Forex trading is also known as the foreign exchange market trade. This is an over the counter or global decentralized market that is geared to the trading of currencies. As it has spread around the world, South Africa and its citizens have started getting their share in this fast paced profitable market.
What Are The Motivations That Draw South Africans To Forex Trade?
It’s no surprise that like, the rest of the world, South Africans also want a way to make money without having a 9 to 5 job. Things such as the flexibility of one's own working hours and even earning better are some of the things that people are initially drawn to.
The get rich immediately notion is one that sticks with forex trade a lot, however, this is not true all the time. Beginners have at most a 95% rate of failing before they can even score their first trade. The forex south africa traders are also aware of this and are advising beginners to not over think.
Pros And Cons In Forex Trading In South Africa
If one has the depth of knowledge and expertise in forex trade, then he or she will find it easy to succeed in forex trade in Africa. Banks have the opportunity to offer leading regional as well as multinational services the power and flexibility to trade all across Africa. It is also easier to provide short term credit.
Africans are also given the power to invest in their own country and many are doing that recently compared to the past where they would invest in foreign businesses. Inward investment has a possibility to grow as well the country’s GDP.
The total value places on African exports are also topped by trillions of dollars and still rising. Development of new port terminals, as well as improvement in both imports and exports, are also on the rise.
One of the cons with Export Credit Agencies in South Africa is that there is too little information. The country also has relatively low standards of auditing and assessing information can be quite hard. Bureaucratic and legal processes can also be slow and recover payment from a debtor can also prove too taxing.
Regulations Of Forex Trading Found In South Africa
When one is considering to be a forex trader in South Africa, there are some specific rules and regulations to be followed. There is a need to be careful especially when one is planning to use services of a forex broker in the country. This is because some brokers use fake unbeatable programs and one has to be very wary about that.
South Africa has these rule that there is a limit on the amount of money that can be deposited d into the account. This is a problem for some, however, the limits themselves are also high. The important thing is knowing how to manage the account effectively.
When opening a forex trade account in South Africa and one has no idea how to do this yet, the best option is to try a demo account and understand how one can place orders. After practicing, open a live account and prepare a FICA to show registered and legal brokers there. Administrative processes can take a few days and they will send the login details.
Begin to fund the account by using a resident broker in South Africa. One can make a local EFT into the bank of the resident and then receive the EFTs when it is time to withdraw. When the EFT clears, the broker then receives the funds. One can now begin trading and also get training.
South African Forex Trading Success Stories
A popular success story would be from Sandile Shezi. He became a millionaire at the age of 23. Shezi invested his entire college tuition fee to the forex market and thus, he became South Africa’s youngest millionaire. He then established the Global Forex Institute which is a training company in South Africa.
Want To Succeed? Start Forex Trade Training Now
l Learn the basics
n This is important when you want to be familiar with forex trading and how it works.
l Create your own strategy
n One will need to have a game play when trading and not go blindly into battle, it’s important to stay afloat in the market.
l Use a demo account
n This is important so that one does not panic when using the actual live account. Even though they are different it is a good learning ground.
l Look for a good mentor
n There are forex courses that can set mentoring platforms for eager learners who want to know the secrets of the trade.