Have you ever traded with the best forex brokers in South Africa? Do they affect your trading success? and Do you choose them on education material, expert analysis, and trading tools?
This article is written to identify a reliable broker followed by popular standards. After many research, we take the reputation of the largest forex brokers and how they compare to each other in serious consideration. Our findings will help you find a regulated and reliable Forex trading platform.
HOW TO COMPARE BROKERS IN SOUTH AFRICA?
We always compare several brokers on the following criteria to find the best Forex trading broker.
- Regulation is trust in the investment business. There is major regulation and minor regulation 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.
We rank the best forex brokers in South Africa in terms of their regulation, platform choice, and trading conditions for the clients.
FOREX BROKER REGULATION
WHAT IS A REGULATED FOREX BROKER?
FCA, FSCA, CySEC & ASIC are the governmental regulatory bodies to set Forex broker’s regulations. They want to make sure that the broker maintains a fair trading environment while offering strict auditing oversight and protection of funds. If a broker is regulated by more than one International agencies, this can be believed to have more trust and integrity.
FOREX BROKER REPUTATION
CAN YOU TRUST A FOREX BROKER?
3 things should be considered to understand if a broker should be trusted – regulation, trade execution method, and client fund management.
Regulation is a major indicator of the level of oversight the broker. It’s a symbol of the level of trust the government regulatory agencies.
We need to look at how the broker is executing your trades, how a dealing desk is involved in the execution or any conflict of interest between traders and the brokers to come to a conclusion of broker’ trust.
The client fund management is another factor to identify a reliable broker. In general, all the client funds should be segregated in different accounts at major banks in the local jurisdiction. This helps to protect any risks from broker’s bankruptcy.
FOREX BROKER TRADING CONDITIONS
Spreads are measured in pips and regarded as wide or tight. 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. The change in FX pairs can depend on each broker. A trader will determine a broker which has the tightest average spreads on the pairs they trade for the purpose of maximizing profits.
Leverage plays an important role in amplifying trading Forex pairs. In case of small movements in the market, there is no way to amplify the size of the trade, it would be impossible for individual retail traders to participate in the business.
Leverage is showed 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 can vary between brokers, and brokers may have the right to limit a client’s leverage.
FOREX BROKER ACCOUNT TYPES
Each broker can have several types of accounts. They can be Live or Real accounts, the Demo accounts, and Swap-free accounts. Managed accounts are available, but rare.
LIVE OR REAL ACCOUNTS
These accounts use money to trade the markets. What you do in your account will have an effect on your account balance.
Demo accounts give the traders an opportunity to test their trading platform, customer service, research area, and trading conditions. Some demo accounts are either limited or unlimited.
When comparing above-mentioned standards with those of the best forex brokers in South Africa, I strongly believe that they deserve to be the best forex brokers.
For readers in Thailand, this is โบรกเกอร์ forex ที่ดีที่สุด 2018.