List of the Top 8 Forex Brokers in South Africa.
Updated on October 21, 2021 | by James Stone
Forex is short for Foreign Exchange trading. In this type of trading one type of currency is converted into another. For instance, US Dollar converted to Indian rupees. This usually has an exchange rate between 70 to 75 rupees per dollar. Due to the high gaining value and fast returns, forex became popular. Forex is used to convert global currencies. If you visit any other country for either vacation, work, or education, you need to have their currency to spend there. For example, if you visit the United Kingdom from India, you need to convert rupees to pounds as they accept the only original currency, that is pound sterling.
There are multiple forex trading companies that help you to either buy or sell the currency. Furthermore, you can convert between two currencies mostly. Then you may convert that currency if you wish.
Idea Behind the Barter System.
Forex trading follows a similar system as the barter system that existed in the past. Earlier in the past, there was no existence of currency. People used to convert required goods for abundant goods. Let’s say if you have a lot of onions, but no potatoes, then you will find someone who can trade you with onions in exchange for potatoes. In this situation, both parties get fulfilled with their demands and requirements.
Under the barter system, not only edible goods but also nonedible goods like clothes, books, and utility items were exchanged. In the barter system, a commodity is exchanged for a commodity and in forex trading, a currency is being exchanged for a currency.
Advantages of Forex Trading.
You may ask, why should I use forex trading? What are its benefits? Well, if you check keenly and attentively and understand the terms and conditions, you can observe a lot of benefits.
- 24 hours working time for 5 days. The currency is exchanged within different countries which expect different time zones.
- Out of all the trading styles and strategies present, you can use a style of your choice to trade and gain, because any style is suitable for it.
- Another benefit is the leverage system. If you start by investing a little amount, you can continue gaining more and more money. Finally, you will have a lot of money saved in your account. So, you can gain without losing. This may not be true always.
- You can complete transactions very easily and quickly. This is due to the factor known as liquidity of the market.
Listed here are only advantages of trading, but there is always a ratio of loss: gain ratio in trading. Also, check for disadvantages first. And if you are a beginner, follow the beginner’s guide to getting acknowledged with the terms.
How Forex is Different From Stocks.
Although both forex and stocks include trading, the basic difference is in what they trade.
- Trading form
In stocks, people trade for stocks of the company claiming some percent of ownership. And in forex currency is being traded.
- Market time
The market is limited for the client in the case of stocks, wherein forex has no time limit, it is open 24 hours.
- A Short and Long Period
With forex, you can change from short to long and from long to short. The area of trading is small but many traders tend to invest and hence prices can change quickly.
Compared to it, in stocks, you have to wait for long terms if you predict potential profit. The prices in stocks do not change much.
As of 2021, the forex brokers that have qualified the list are mentioned in the list below.
Tickmill is ranked number one among other forex brokers in South Africa. It is regulated by the FSCA. It is considered best because it has a low spread. The minimum deposit amount is $100.
HotForex makes it to the second of the list. It is also FSCA regulated and has low fees and zero deposit or withdrawal amount. The minimum deposit is $5.
On number three is the BDSWISS. It allows users to open 0 pip spread raw accounts. The minimum deposit is $100.
FXTM is a regulated forex broker with instant execution. The minimum deposit should be $50.
Exness allows you to open an account with the lowest deposit amount possible. Its minimum deposit requirement is $1.
- XM trading
XM trading offers fast execution with a low spread. The minimum deposit is $5.
AvaTrade gives a fixed spread on your account. The minimum deposit is $100.
On number 8, it’s the FXCM. It is also regulated by FSCA. The minimum amount requirement is $50.