Forex trading has already become a source of income for many people around the world. Some of them have made it a sort of hobby and an additional source of income; for some, it’s now a full-time job. Read on to find out what forex may become for you.
Why Trade Forex in South Africa
The foreign exchange market in South Africa may be an exciting way to make money. FX is the largest financial market. It is also the most liquid one. It allows people to earn money simply by exchanging currencies. Consider the following reasons why people choose trading currencies over other types of securities:
- One can enter the market even with very limited funds. Many brokers set very low minimum deposit requirements. Since even $1 is enough to open an account and place a trade, forex is considered very accessible.
- High leverage. Professional traders often use borrowed funds to increase their profit. The leverage in forex may be as high as 1:3000.
- It is not necessary for a currency pair to grow in order to bring you profit. One can speculate not only on the rising price of a currency but also when it’s about to decline by selling it before the drop. This is possible because currencies are traded in pairs.
Read more: Forex Trading for Beginners in 2022
How to Start Trading in South Africa
It is not that hard to start trading forex. The hard part is to make a consistent profit out of your trading. And it takes time and effort to get there. To start trading, all you need to do is complete a few simple steps that include:
- Registering with a broker;
- Completing verification process;
- Opening an account;
- Downloading/opening a trading terminal;
- Placing a trade.
As an absolute beginner, you might want to start practicing on a demo account. Demo accounts are designed to help people learn without the risk of money loss. Using this kind of account will help you get accustomed to the MT4/MT5 trading terminal you will further use in real trading. It will also teach you how to choose a currency pair for trading, open and close an order, and determine position size. All these skills are the basis of successful trading. However, keep in mind that since the demo account does not require any deposits from your side, it doesn’t imply the withdrawal of your potential profit – basically, you trade virtual money. The account is designed for you to learn, not to make money.
To start making money, you can open one of the following account types: Standard Cent, Standard, Pro, or Raw Spread account. A standard account is probably the most suitable one for beginners who have already practiced on a demo account. Just remember, like almost any other sphere, this one is profitable only for those who put effort and take time to learn.
Read more: Best Forex Trading Books For Beginners
How to Open a Trading Account in South Africa
To open a trading account, you should register with a broker. But don’t rush into signing up with the first broker in your way. The result of your trading is highly dependent on the broker you trade with. Why? First of all, not all brokers offer the same trading conditions. They can be more or less advantageous. Good conditions include small bid-ask difference (spread) and commission-free deposits/withdrawals. If you get that, you will greatly reduce the cost of all your FX transactions.
Another important thing to consider is the quality of the broker’s service. Are your trades executed promptly? Does your broker offer reliable customer support? Ask these questions before depositing significant sums of money. Refer to independent platforms, e.g., Trustpilot, to read real users’ reviews. They may give you a good idea of what you will experience with the broker you intend to trade with.
Read more: How to Start Forex Trading in South Africa in 2022
Forex Operating Hours in South Africa
Forex offers the privilege of round-the-clock availability. Unlike stocks, currencies can be traded at any time, Monday to Friday. The market is closed on weekends (Saturday and Sunday). This is because currencies are exchanged all around the world in many time zones. So, whenever on weekdays you decide to place a trade, one or another trading session will be at your disposal.
The fact that the market functions 24 hours a day doesn’t mean one should trade chaotically or whenever it comes to mind. Part of the success secret is in a consistent and thought-out schedule. The time when you trade is ideally predetermined by the level of volatility in the market and the macroeconomic releases that take place at a certain time. This kind of approach will not guarantee you profit but is very likely to get you closer to it.
Read more: Best Time to Trade Forex in South Africa
A Forex Strategy Example
Smart traders never rely solely on intuition. Such a trading style involves increased risks, and the likelihood of financial losses increases. Professionals make their trading decisions based on their goals and the strategy they follow. There are plenty of ready-made strategies you can apply when learning to trade. For example, beginners often start with trading Support and Resistance levels. You can find ideas on how to use this strategy in our daily forecasts.
Final Words
Forex has a lot to offer to those ready to give it time and effort. What the FX market offers is a flexible schedule, an exciting trading experience, and a limitless profit potential. Try your hand at currency trading in South Africa by opening a trading account. Remember that the best way to learn forex is to combine theory and practice. As for the theoretical part, you can find a lot of valuable information in the JustMarkets education section and open trades in your demo or real account thoughtfully.
About JustMarkets
JustMarkets is the world’s trusted broker that offers 180 popular trading instruments. By having a trading account on JustMarkets, you benefit from advantageous conditions, including high leverage, low spreads (from 0.0 pips), as well as commission-free deposits and withdrawals. And if you have any questions, there is a helpful support team working round the clock to ensure you have the most convenient trading experience.
Try your hand at currency trading by opening a demo account on JustMarkets. It’s a quick and risk-free way to master trading in the most liquid financial market. A practice account will help you learn trading basics and develop a strategy before investing money. Start trading today to take care of your future tomorrow.
FAQ
What Time does the Forex Market Open in South Africa?
You can trade forex starting from Monday midnight (the opening of the New Zealand trading session). The market closes at 11:00 pm on Friday. However, the most active trading hours take place between 2 pm – 5 pm Monday to Friday.
Which Broker is the Best in South Africa?
There are many firms providing brokerage services in South Africa. The best one is the one that provides the best trading conditions. For instance, with JustMarkets, you get the lowest spreads (transaction costs), 0% commission on deposits/withdrawals, and a helpful support team, ready to answer any of your questions 24/7.
Can I Trade Forex With $10?
Yes, you can. Open a Standard account with JustMarkets to start trading with $50, $10, or even $1. The best way to learn to trade is to practice with minimal investments.
Is Trading Forex a Good Idea?
Trading forex has already become either an additional or main source of income for millions of people around the world. It is worth trying if you are not sure it’s for you.
by , 2023.04.24