money lending singapore

REASONS TO CHOOSE THE BEST FOREX BROKERS IN SOUTH AFRICA

REASONS TO CHOOSE THE BEST FOREX BROKERS IN SOUTH AFRICA

 

Like many brokers around the world, the best forex brokers in South Africa will give you chance to your trading success. Each trader will have different needs when it comes to education material, expert analysis, and trading tools.

When comparing brokers, we consider the position of the broker and how they compare to each other. This article is written to help you find a regulated and reliable forex trading platform.

HOW TO COMPARE BROKERS IN SOUTH AFRICA?

To determine the best Forex trading broker, it’s necessary to follow some common criteria. We compared a lot of brokers and came to this conclusion:

  • Regulation is trust in the investment business. There are extensive regulators and slight regulators and we took all of them into account.
  • Trading conditions are the details of the product the broker has to offer the trader, and we compared them.
  • Account types.

Our broker rankings are based on: broker regulation, platform choice, and trading conditions.

FOREX BROKER REGULATION

WHAT IS A REGULATED FOREX BROKER?

The governmental regulatory bodies such as FCA, FSCA, and CySEC & ASIC will set regulations for traders and brokers. They want all brokers to keep a fair trading environment while offering strict auditing oversight and protection of funds. If a broker is licensed by more than one International agency, it’s perceived to be more trust-worthy.

FOREX BROKER REPUTATION

CAN YOU TRUST A FOREX BROKER?

3 fundamentals to understand if a broker should be trusted – regulation, trade execution method, and client fund management.

The most basic component is regulations which are an indication of the level of trust. Besides, broker’s execution, dealing desk’s involvement and any conflict in trading make contributions to trust. If there is any financial incentive, this can have a negative effect on trust. Finally, if all the client funds are distributed in different accounts at major banks in the local jurisdiction, this is a good indicator of trust. This will protect against the broker going bankrupt.

FOREX BROKER TRADING CONDITIONS

SPREADS

Spreads can be wide or tight and be measured in pips. This is an indication of the buy and sell price for any currency pairs which are far from each other, 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.

As you know, Different brokers will have different spreads on their FX pairs. A trader will try to find top 5 forex brokers in the world with the tightest average spreads on the pairs for the purpose of increasing profits.

 

LEVERAGE

Leverage is considered as an amplifier used in trading Forex pairs. Because the market movements are so small, it’s necessary to have a tool to amplify the size of the trade for the purpose of having chances for individual retail traders to participate in the business.

Leverage is presented in a scale like 300:1. A trader can enlarge the size of the trade by a maximum amount of 300 times. Leverage can change between brokers, and brokers may also reserve the right to limit a client’s leverage according to their targets.

FOREX BROKER ACCOUNT TYPES

It’s common to have several account types with each broker. One of them consists of Live or Real accounts, the Demo accounts, and Swap-free account. Managed accounts are available, but rare.

LIVE OR REAL ACCOUNTS

These accounts are offered real money to trade in the markets. Everything that you do in this account could have a result on your account balance.

DEMO ACCOUNTS

The funds in these accounts are fake. No risks are concerned. This gives the trader a chance to try the trading platform, customer service, research area, and trading conditions. Some demo accounts are time limited but are usually easy to reactivate, and other accounts are unlimited in use.

Besides several brokers, the best forex brokers in South Africa deserves to be most reliable because they meet all standards of a good broker.

For Thai traders, click here for ฟอเร็กซ์ โบรกเกอร์

About

Powered by themekiller.com