The widening popularity of forex trading in South Africa proves the fact that it's worth trying to join the ones who make a profit anytime and anywhere. There are always a lot of questions at the beginning, but you will gain a better perspective since you're armed with patience, motivation, and consistency. Let's mark this article as your first step in becoming a professional trader.
Key Benefits of Forex Trading in South Africa
Being a global over-the-counter market, forex allows conducting trading operations for the purchase and sale of a foreign currency in a fraction of a second. But there are far more things that make this market a good option for generating income. They are the following:
- This market operates 24 hours a day, five days a week in different parts of the world (from 5 p.m. EST on Sunday until 4 p.m. EST on Friday). There are four major forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. We're all faced with the restrictive global pandemic realities, so there is no need to leave home to earn money if you consider trading forex. You can keep it flexible.
- Compared to other markets, there are no commissions for trading in the forex market, apart from the standard market difference between the bid/ask prices, alternatively referred to as a spread.
- Forex equals accessibility. Hundreds of thousands of new accounts are opened every day. To boost newbies' trading expertise, forex brokers are ready to provide a wide variety of educational resources and recommendations. Moreover, there are brokers that enable traders to contact their support team 24/7, and JustMarkets is one of them.
- The forex market is known for its liquidity. Money is the most liquid commodity that enables traders to buy and sell currency seamlessly without drastically affecting its market price.
- Leverage as a green light to more serious steps. Brokers provide traders with the opportunity to use borrowed money for the purchase of an asset if necessary. For example, a trader's leverage is 200:2, so he/she can control a trade of $200,000, having only $2,000. A good thing to consider, right?
To boost newbies' trading expertise, forex brokers are ready to provide a wide variety of educational resources and recommendations.
Making Money with Forex in South Africa
How to start forex trading in South Africa? Am I doing the right thing? You might have questions like this when you're jumping from one source to another because it's challenging to find the right and clear recommendations. Basically, there are just five main steps you need to take to call yourself a trader.
- 1. Learn about Forex. Just start with the basic forex terminology that will become the foundation of further learning. You will face reading analytics and news where it's easy to lose orientation if you don't understand the actual meaning of words. It's advisable to learn forex vocabulary in context. You can also check the materials that JustMarkets updates and provides for newbies and professional traders.
- 2. Open a trading account. The best way to understand this machine is to open a trading account at a brokerage. Theory without practice is nothing. There are no commission fees you need to pay since brokers make money through spreads.
- 3. Develop your trading strategy. You can't rely solely on the news because the currency market is far from being predictable. Strategy is your orientation. It answers your main questions "how," "what," and "when." Your strategy reflects your trading preferences, expectations, and financial situation.
- 4. Prioritize analysis. Check your positions at the end of the day. Make sure there is enough money on your account and analyze your gaps that occurred during the day: what should be done differently to resolve an issue?
- 5. Monitor the news. Profitable trading is a reality since you devote your time to reading news, updates, and forecasts.
How Much Money do You Need to Start Trading in South Africa?
It all comes down to the trading conditions of the broker you've chosen. With JustMarkets, it's possible to start trading with a deposit of just $1. Remember that your profit strongly depends on the amount of money you have on your account. Anyway, the possibility of trading with such a minimum deposit propels practice to the next level without significant financial losses. The willingness to increase the sum of your deposit will come with experience.
Currencies are always traded in pairs. A currency pair represents the ratio of two national currencies with the value of one currency being quoted against the other. So, the first listed currency of the pair is defined as the base currency, and the second one is the quoted currency. Here is an example:
A trader wants to trade the USD/ZAR currency pair. So, when he/she makes a decision to sell that currency pair, then he/she sells the base currency (USD) and buys the quote currency (ZAR). With the decision to buy the currency pair, a trader buys the base currency (USD) and sells the quoted currency (ZAR).
Currency prices are known for their fluctuation (numbers are constantly changing). The change of the price is defined as a point (unit of measurement), so if USD/ZAR moves from 1.20330 to 1.20331, that means that USD/ZAR increased by 1 point (the last symbol of a quote).
The most popular trading currencies are also known as majors: USD (US dollar), EUR (euro), GBP (British pound sterling), JPY (Japanese yen), and CHF (Swiss franc). As a trader, you will use an MT4 or MT5 platform which is available on a broker's website.
How To Open A Forex Trading Account In South Africa?
There are just a few steps that need to be taken to open an account on JustMarkets.
- 1. Follow the link.
- 2. Fill in a short online form.
- 3. Download an MT4 or MT5 trading platform.
- 4. Sign in using your email address.
- 5. Start trading.
Successful trading requires constant improvements in your skills. Be responsible for every single step starting from learning the forex terminology to chart analysis. Devote your time to reading everyday overviews and forecasts of the market to define your moves. The JustMarkets team works on creating materials and recommendations on various topics, which can be found here.
JustMarkets is an international broker with clients from 197 countries. Millions of people have already opened trading accounts on JustMarkets to benefit from the best conditions, including low spreads, commission-free withdrawals, and a helpful team of support, working round the clock to ensure that each of our clients has the most convenient trading experience.
Open a demo account on JustMarkets to try your hand at currency trading. It's a risk-free way to learn to trade in the most liquid financial market. A teaching account will help you learn trading basics and develop your own strategy before you invest any money. Learn trading today to take care of your future tomorrow.