The platform offers free forex signals. Traders joining this group may receive buy and sell trading ideas along with complete chart analysis. Sandile Shezi is the youngest forex trader with a successful track record. He is very popular in South Africa. He owns a global forex institute where he delivers trading lessons to forex aspirants.

You can follow him on his Instagram channel. George is another successful forex trader from South Africa. With in-depth knowledge of the financial markets, George Van Der Riet can help you reach your trading goals. Wayne is a professional trader and entrepreneur. He specializes in price action strategy and provides coaching sessions to traders all over South Africa. Forex trading is legal in South Africa. Forex traders living in South Africa need to disclose their earnings to the South African Revenue Service SARS once a year.

The best time to trade starts when two trading sessions overlap each other. Given below is the timing In South African Time Zone for different overlap trading sessions.

Yes, forex trading is a taxable income in South Africa. The government of South Africa treats forex trading earnings similar to any other money-making business. The applicable tax rate may vary between 18 percent to 40 percent, depending upon the amount of profits made during a fiscal year. Yes, you can make a decent amount of returns with forex trading as long as you employ effective trading strategies and risk management parameters.

About us Contact Us Advertise With Us Press Room Terms of Services Report an Error Sitemap. Forex Trading in India Best Forex Brokers in India SEBI Regulated Brokers Forex Trading in Singapore Best Forex Brokers in Singapore. The knowledge shared on this site comes from his own personal research and experience. He does his best to provide accurate, useful information about financial products and services, but makes no guarantee that all readers will achieve the same level of success.

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WORLD LEADER IN FINANCIAL TRADING SINCE Home » ZA » Forex Trading South Africa Forex Trading South Africa Reviewed by Bowen Khong, ACCA. Fact Checked. Last updated: January 11, What Is Forex Trading? How Does it Work?

You can buy an asset at current market price and liquidate it at higher price to make some money and vice versa Pros And Cons of Forex Trading Forex trading can bring decent returns if carried out with discipline.

Given below are some main pros and cons associated with forex trading; Pros Leverage — Leverage is one of the most crucial elements of forex trading.

It allows traders to trade more volume with limited funds, in turn generating more returns. Likewise, leverage also increases the risk of loss. In case you lose a trade, the loss might exceed your initial capital by many folds. High Liquidity — With a daily trading volume in trillions of U.

Dollars, the forex market is highly liquid. You always have a buyer available to fill up your orders right away. On a contrary, in other businesses, the disposal of an asset can take weeks and months. Decentralized Market — The forex market has no centralized location or headquarters. Therefore, the chances of price manipulation are less as compared to stocks and equity markets, where key players can manipulate prices with insider information. High Volatility — High volatility is considered risky in forex trading.

However, it can also yield some quick returns if traded skillfully with proper money management. Diversification of portfolio — Forex trading comes with a variety of tradable assets including currencies, precious metals and CFDs that brings diversification in your investment portfolio. Minimum Capital Requirement — There is no minimum capital requirement. No other business can be started with such a low investment.

Demo accounts — Demo accounts help traders to learn and grow without any actual investment. In other investment markets, you cannot have another chance to rectify your mistakes. Trading is for everyone — Forex trading is a self-learning process. You can be successful in trading if you know how to control your emotions. Cons Scam and Dishonest Companies — There are so many dishonest forex brokers and money managers operating in the forex industry.

Sometimes it becomes difficult to differentiate between a legit company and fraudsters. Therefore, novice traders are more prone to become a victim of scam companies. Social Trading Cons — Social trading is a superb way for novice traders to make profits right from the beginning of their forex journey.

However, if they end up following a wrong trader, then they could well be in trouble. How To Start Trading Forex in South Africa It is very easy and convenient to start your forex trading business in South Africa as compared to countries with restricted forex trading access, such as India, Iran, and China, etc.

Chapter 2. Understanding Currency Pairs. How to trade Forex in South Africa? Forex Trading Strategies. Forex Trading Platforms in South Africa. Simply put, you buy a currency when you believe its value is going to appreciate go up against the other currency or you sell a currency when you believe its value is going to decrease go down against the other currency.

Sounds confusing? No worries. This guide will show you the entire math behind the trade. Forex refers to Foreign Exchange, or simply FX, sometimes even called Spot FX, where the global currencies are traded against each other. while visiting your bank.

These are the rates of the currencies from the live Forex market. Forex is the most liquid market in the world , operating 24 hours a day, nearly five and a half days in a week.

The market participants in Forex include commercial banks, governments, central banks and institutional investors, currency speculators and even commercial corporations wanting to hedge their risks or speculate. If you been to a foreign country, then it is likely that you may have converted your local currency i. South African Rand ZAR to another currency like Euro or a US Dollar. If you exchanged your currency before, then you have already traded in the forex market.

In this example, you would be physically selling your home currency South African Rand for buying US Dollar. When you are exchanging your money for travelling abroad, you through your bank are making a forex transaction in the global forex market without even knowing. The rate at which you can exchange your currency to another is called the Exchange Rate.

This rate is continuously fluctuating every second as the forces in Forex market determines the rate. If the ZAR's exchange rate in the live market is R The difference of R0. In theory, Retail forex trading through an online broker is similar to currency exchange, but still there is more to it. Don't worry, we will be explaining everything in the next chapters of this guide! Currency Pair is the quote of one currency relative to the other currency. In the Forex market, all currency are traded against each other, therefore being called 'currency pairs'.

So when you are trading in the forex market you are actually trading 2 currencies simutaneously. There are other terms like a Base Currency, Quote Currency, majors, minors etc. Let's get to them. Here we will explain all the important terms that you must know before understanding more about forex trading. You will hear a lot of these terms commonly while trading, so let's start. If you hear the local business news or a trader talks about the currencies like: "The South African ZAR edged higher againt the Dollar today, reaching a two-week high of And 'Ask price' is the price at which you can buy the base currency in the pair.

Bid price is always lower than the ask price. This is the fees charged by the forex brokers for each trade trade, and it depends on the market liquidity, and the currency pair that you are trading. The lower the spread, the better it is for you.

Simply put, 1 pip is the smallest measure at which the market moves. It is important to select a broker that charges the lowest spread in pips. We will explain this more in the chapters below. So, don't worry if you don't understand this now. The are are 7 major currency pairs, and these are generally the currencies of most stable and well-developed economies.

They are typical less liquid and more volatile than the Major pairs. Exotic Pairs: Exotics are generally major paired against a currency of emerging economy.

Legally trading forex is now possible for all individuals in South Africa. For trading forex, you have to signup with a regulated Forex broker to place your real trades in the market.

Choosing a 'good' broker is an important step because the broker plays a pivotal role in your trade. There are many regulated forex brokers that accept South African traders: Hotforex FSCA Regulated , XM Trading , Exness, Forextime, Avatrade, FxPro, and so many others. You should also decide on the Account Base Currency that you want to choose.

We have only selected the brokers that are regulated with atleast 2 regulators including FSCA, FCA, ASIC, CySEC , have competitive trading fees, and transparent record for fair dealing practice in the past.

Hotforex is our 1 recommended broker for Forex trading in South Africa. Start Trading at Hotforex Important: Forex Trading involves high risk, and your capital is at stake. Note: Before you open your trading account with any forex broker, make sure to check that it is licensed or authorized by the FSCA for offering derivative instruments. Some brokers may claim to be authorized but may actually be unlicensed.

Also, it is important to note that some fake forex brokers may use the license number of an authorized broker on their website, claiming that they are authorized, which may not be a true claim. Check the products for which the broker is licensed. And verify that you are opening account on the website actually licensed by the Regulator, avoiding any clones.

For example, Tickmill South Africa is authorized by FSCA under FSP No. After you have made your choice on the broker, you then need to open your trading account with that broker. For ID proof, you can normally submit your Driver's License, and a Home Utility Bill of your Residence for the Address proof. You must verify your account before you can start trading live on any broker's platform. Opening a demo account does not require KYC, but it will be required when you are opening a Live Account.

An important question is how much money is required to start forex trading in South Africa? In ZAR the minimum is R70 at Hotforex. But it is advised to start with a capital that is not too low, otherwise you are likely to use very high leverage in order to gain more profits.

And this puts your entire trading capital are huge risk with every trade. We will first dive into some important terms that you would need to know while placing your trade. There are mainly lot sizes i. The number of lots that you can trade will depend on factors like leverage, margin, your risk threshold etc. Otherwise you risk losing your total capital in a single trade.

Let's understand this with an example. You risk losing your entire account balance on a single trade. Leverage: Leverage, by definition, essentially involves borrowing a certain amount of money to invest in something. In Forex, if you are using leverage then it means, you are borrowing some money from your broker to place order for a bigger position than your actual capital.

Don't worry, and follow through the following example. But what if you can lend money from your broker, and place the order. But Leverage is kind of a double-edged sword which has the potential to increase your profits if you are right, but also increases the risk of a bigger loss to you if you are wrong.

A leverage of allows the trader to take a position that is times the amount of initial margin. If the trader is not careful in setting up the stop-loss, it could quickly deplete your trading account. But if the trader is right in his trade, then he can gain from the trade.

But as you can understand from this example, the risks of using excessive leverage to trade forex is very risky. You must never use more than leverage. Margin: Margin is the amount needed in your trading account to place an forex trade. Forex brokers set margin requirements to open a trade, and this is the money set aside with the broker when your position is open.

If margin goes down below a threshold required by the broker, you will receive a notice from the broker to fill it up to the required levels. Stop Loss: Stop loss is the level that you can set, at your desired price where you decide to exit a losing trade. Losses are inevitable, but how you manage that loss is important. So always remember to set a stop loss whenever you are placing a trade.

Some brokers also offer GSLO Guaranteed Stop Loss , which guarantees that your position will be closed at the price limit set in your order.

We will now take example of actual trading positions, and how you can place the trade in Forex market. Loss Case: But if the market goes against you, let's say to 1. Loss Case: In case the market goes up, from 1. Both the above cases highlight how you can lose or gain from a forex trade, depending on your position, position size lots , leverage etc.

It is best to fully understand all these dynamics on demo, and then only trade live when you have a proper strategy in place. And always remember to use a Stop-loss for every trade. Successfull forex traders follow a sound trading strategy. With technical analysis trading, you are basically relying on the price chart, and trading based on the chart patterns, technical tools like candlestics, moving averages etc.

On the other hand, fundamental trading involves trading long term based on macro economic factors of a country like their employment data, Retail Sales, Central bank's interest rates etc. Fundamental analysis mainly involved trading based on the news releases.

would determine the price of currency and base the decisions of currency movement by analysing these factors. There are plenty of online Forex news calendars available for free if you want to make it your sole trading strategy.

Also, you can get an idea on how a particular information may effect the market movement upward or downward. For example , the release of employment news data of a country is a major news because if the higher population is employed, it is a sign that the economy is improved and hence this would reflect in the overall currency value.

Similarly, a bad news or policy change by the central bank of the country would likely affect the currency' price's exchange rate in the short term as well as long term. Even if you consider yourself a Technical trader, it is really important to keep track of the Economy News as this would affect the direction of a currency. For ex. A weaker than expected Economic growth in the UK would affect the rates of GBP against other major currencies like US Dollar, Euro etc.

Similarly, an increased in interest rates by the Fed, and divergence in the Central Banks monetary policies can affect the currencies. So, it is really important to understand how ihis works, and use it to form a general bias on the currency's future price. It is wise to learn about both the strategies on demo, spend hours to analyse the charts, and also analyse how the currencies are affected during news hours, and only then trade based on the strategy that works for you.

Most Forex brokers offer multiple trading platforms for online forex trading. In this chapter, first we will list for you all the popular trading platforms offered by different brokers. And then give you the comparison of all the best forex brokers based on their platforms. Metatrader gives traders the ability to perform advanced trading operations, run Expert Advisors and copy trades of other traders. This platform is owned by MetaQuotes Software Company.

The best feature with MT4 also offers the flexibility to write your own code and create your own custom indicators and 'Expert Advisors' or EAs. Most of the brokers offer MT4 or the latest MT5 for free. We advise you to go for a broker that offers Metatrader. cTrader: CTrader Platform is offered by some of the regulated forex brokers like FXPro.

Their fees with cTrader platform is lower than their fees with MT4 platform. Web Trader: Numerous brokers including Exness, HotForex, Tickmill etc.

offer their Web Based Trading platform where you can just open the chart in a browser instead of downloading the software. For a start, you may want to consider trading off a WebTrader.

You can see the performace of the available copy traders over a period, risk ratio etc. You also must note that copy trading carries singinificant risks, so you must carefully check if you want to follow the strategy of a trader or not.

Proprietary Platforms Some forex brokers offer their own platform. But there are disadvantages of choosing such brokers, as you will not get the flexibility of third-party platforms. Even the best of traders have bad days, but with good money management you can minimize your risk.

News Press Office Breaking News Forum Industry News Speed Test. Forums New posts Search forums. What's new New posts New profile posts Latest activity. Members Current visitors New profile posts Search profile posts. Log in Register. What's new Search Search Everywhere Threads This forum This thread. Search titles only. Search Advanced search…. New posts. Search forums. Log in. Join the MyBroadband community. Ask a question and get free support. Unlock new privileges and see hidden discussions.

Do a speed test on our app - R5, up for grabs. Question of the day ~ Were you offended by Charlize Theron's comments about Afrikaans? JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding. You are using an out of date browser. It may not display this or other websites correctly. You should upgrade or use an alternative browser. Forex Trading in South Africa. Thread starter Investar Start date Jan 30, Tags forex forex trading how to trade forex investing jse shares trading in south africa.

Investar Member. Joined Jan 28, Messages Hey guys So for a while now I have been interested in getting into Forex.

I understand it's a completely volatile option and should only get into it if you know what you are doing. I've tasked myself with a few months to learn as much as possible about the different options and to educate myself what it's all about before I make my first deposit.

I would like your advice on your experiences with Forex, have you tried it out, were you successful? What kinda platforms should I look into? This is a big learning curve for me, so would appreciate all the feedback possible.

Happy trading! EasterElchies Well-Known Member. Joined Jun 1, Messages Go to a casino. You have MUCH, MUCH, MUCH better odds there. Or throw your wallet into Harties - you will lose less that way. Why don't you ask the "guys, guys" OP from the pudding thread.

He also went the gambling way. Last edited: Jan 30, gram Active Member. Joined Mar 31, Messages Hi Investar FX is not for the faint-hearted. You can make easy money, fast, and lose it just as quickly. but avoid the local brokers, you will get better value with a European based i.

e better spreads, charges , you can always use a european based vps if you are worried about speed. thirdly, divorce yourself from any emotion if you intend trading. It helps, you cant fall apart when you lose money, you will make rash decisions trying to earn it back, and then lose even more in the process. and, finally only trade money you are willing to lose. hope this helps Muki Well-Known Member.

Joined Feb 11, Messages I used to trade forex a few years ago, it is EXTREMELY volatile but you can still make some good money off it. You need to be very disciplined though and be very selective of the broker you go through as some are fly by night companies and disappear when you want to withdraw funds.

The most common platform was MetaTrader 4 a few years back, I think MetaTrader 5 is out by now. Go through the training at Babypips. com first, then run a demo account.

Trade it as if it is your own money and after you have doubled it, put in money. It is very risky, but overall I ended up making a nice profit over a year or so. Bismuth Expert Member. Joined Jun 22, Messages 3, Would recommend BabyPips, found that quite informative. Have also traded a demo account, but didn't do too well for the short period I had it.

But did enjoy it. or throw your wallet into the Harties! FrankieK Senior Member. Joined Jan 14, Messages OP, try thinkorswim paper money. Fairly easy platform to get used to. They will let you have free access for, I think, two months and you can reset the platform when you lose all your paper money.

Forex is heavily leveraged. And like that wild girlfriend you had at 'varsity, when she's on she's astonishing and when she's not she's downright diabolical. Forex trading is NOT for amateurs. Repeat NOT. Refer to FXCM from earlier in Jan after the EURCHF debacle. Best thing for retail investors is to stick to standard investing in stalwarts like AAPL, GILD, BRK.

B etc. Joined Apr 30, Messages 27, From this thread YingYang said:. That's somewhat true, but nowadays the brokers are also market makers. Meaning if there's nobody to take the opposite position to yours, then the broker will take it. What is however a problem with demo account is there's no slippage. When trading on a live account, the larger the lot size the bigger the slippage and this will either cost or make you money The biggest difference between a demo and a live account is A real account is much more psychologically taxing, much, much more.

And the reason is simple: no longer are you trading with monopoly money, money you lose or gain result in real losses or gains. How much are you willing to lose before you walk away?

How greedy are you;when do you take profit? How do you react when you lose a great deal of money? Why don't you run it on a server in SA you ask. Two reasons: 1 blazingly fast lines with very low latency to the Forex data centres 2 no loadshedding disclaimer: this is not in any way, shape or form intended to be financial advice!!!

Click to expand gram said:. FrankieK said:. Bismuth said:. Every time you fail to do this then start from scratch. Choose a broker who puts your money in a segregated bank account. All Australian forex brokers have to comply with this by law.

This way, the broker can't use your money for business activities.

Chapter 2. Best Forex Brokers with Minimum Deposits. Beginner P F. What regulation is reliable? Help Remember Me? What's New?

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