Thursday 21st March 2019,
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The Best Forex Brokers In South Africa And How To Choose

The Best Forex Brokers In South Africa And How To Choose

In order to find the best forex brokers in the market, we have to compare them to each other and find the strengths and weak point, as well. There are 3 most popular standards to choose the top forex brokers 2018, which are also applied in South Africa market:

  • Regulations that are set by the governmental regulatory agencies.
  • Trading conditions that are provided to traders.
  • Account types for traders to use.

Brokers are also rated based on these standards above.

Regulation from the regulators

In common, traders have more trust in regulated brokers which are managed by the governmental regulatory agencies, especially major regulators. These regulators set some reliable licenses such as FCA, FSCA, CySEC & ASIC. Brokers which could obtain these are also more trusted and reliable. They will follow the rules to create safe trading environment and protect funds for traders.

Reputation

In general, we check these 3 things to make sure if a broker is trusted or not: regulation, trade execution method, and client fund management

First, we consider the regulation of the biggest forex brokers. If they have more than one major regulation, it could indicate that they gain trust from the governmental regulatory agencies. They are also safe and reliable.

Next, we check the trade execution method and see how it works. Is there any conflict of interest between traders and the brokers? Or is a dealing desk involved in the execution? These are the main factors of trust. If you lose your trades when there is financial incentive for your broker, it can be seen that the broker is less reliable.

Finally, to prevent the risk of bankruptcy for traders, a good broker should segregate all the funds of them into different accounts at major banks in the local jurisdiction. This makes it safe and beneficial for traders. One honorable mention is Exness >>> Exness reviews.

 

Trading conditions offered by the brokers

 

Spread

Spread is measured in pips, which is defined as the difference between the Bid and Ask price. If the difference is big, the spread is wide. Or else, if the difference is small, spread is tight. Of course, to reduce the cost, traders often work with brokers offering low spread (tight spread). For example, if the spread is 12 pips, it is wide, if the spread is 0.1 pips, it is tight. Each broker has different spreads.

Leverage

What is leverage? It is a tool to increase the size of trades by many times. If there was not leverage in the market, there would be no business for individual retail traders to take part in. For example, the leverage is 600:1. This means the size of traders could be amplified up to 600 times of the initial size, which makes more benefits for traders because the movements of the market are very small. However, leverage is various and depends on the experience of the traders.

Types of account

 

Live/ Real account

It has real trading conditions, real price, real market and real money. Your balance will be fluctuated after each trading lot.

Demo account

New traders or beginners often use this type of account. It has no risk or profits. It’s totally safe for traders to practice and learn more about the forex market. They can also experience the trading platform, customer service, research area, and trading conditions,… of a broker.

Briefly, these are standards to choose the best forex brokers and we can also use them to find the best South Africa brokers.

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