2 MINUTES TO IDENTIFY THE BEST FOREX BROKERS IN SOUTH AFRICA
Posted by john wayne on December 26th, 2018
I’ve heard a lot about the best forex brokers in South Africa and they deserve to trade with. They will have an impact on your trading success in terms of your trading strategies, trading needs.
Many of my research has been conducted with the best Forex brokers 2018. I concentrated on the reputation of the broker and how they compare to each other. This article will share you with a regulated and reliable Forex trading platform.
HOW TO COMPARE BROKERS IN SOUTH AFRICA?
In order to find the best Forex trading broker, I decided to follow some popular criteria of the best brokers. Here are some of them:
FOREX BROKER REGULATION
WHAT IS A REGULATED FOREX BROKER?
The governmental regulatory bodies like the FCA, FSCA, CySEC & ASIC will be responsible for setting the regulations for regulated Forex brokers within the boundaries. Their purpose is to ensure that the broker maintains a fair trading environment while offering strict auditing oversight and protection of funds. The top Forex brokers in South Africa licensed by more than one International agency are more reliable.
FOREX BROKER REPUTATION
CAN YOU TRUST A FOREX BROKER?
Regulation, trade execution method, and client fund management are 3 basic elements to understand if a broker should be trusted.
Regulation is regarded as a strong indicator of the level of the broker and an indication of the level of trust offered by the government regulatory agencies. Also, how the broker’s execution, and if a dealing desk’s involvement in the execution or if there is any conflict of interest between traders and the brokers is also a key component of trust. In addition, trader’s funds are segregated in different accounts at major banks in the local jurisdiction, this is a good indicator of trust. This helps client funds to be protected against the broker going bankrupt.
FOREX BROKER TRADING CONDITIONS
Spreads can be either wide or tight and are measured in pips. This is an indication of the buy and sell price for any currency pairs which are far, or close to each other. If the spread is 15 pips wide, that is considered a wide spread, where a 0.4 pip spread is considered tight.
Different spreads will be offered by different brokers. In general, a trader tends to find a broker with tightest average spreads on the pairs to maximize profits
The market movements are too small, so there is a tool to amplify the size of the trade. And leverage is an amplifier used in trading Forex pairs. This gives chances for individual retail traders to participate in trading. Leverage is shown in a format like 300:1 – in this case, a trader can increase the size of the trade by a maximum amount of 300 times. Leverage varies between brokers, and brokers may also reserve the right to limit a client’s leverage.
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FOREX BROKER ACCOUNT TYPES
Most traders have several account types to trade. Some of them are: Live or Real accounts, the Demo accounts, and Swap-free accounts. Managed accounts are available, but rare.
LIVE OR REAL ACCOUNTS
With these accounts, real money is put to trade in the market. Everything that you do in this account could have an effect on your account balance.
The funds in these accounts are fake to protect traders from trading risks. Also, this gives the trader an opportunity to try the trading platform, customer service, research area, and trading conditions. Some demo accounts are time-limited or time-unlimited for each trader according their trading strategies.
If you want to find a reliable broker, the best forex brokers in South Africa are good options for you. I strongly believe that they will be your partner on successful path.
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About the Authorjohn wayne
Joined: April 21st, 2018
Articles Posted: 80
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