What is Forex Trading?
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies.
This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.
How To Learn Forex Trading in South Africa
Decide how you’d like to trade forex
A lot of forex trading takes place between major banks and financial institutions, which buy and sell massive amounts of currency every single day. For individual traders who don’t have the means to make billion-dollar forex trades, though, there are two main ways to get involved: forex CFDs or trading forex via a broker.
Learn how the forex market works
One of the first things to learn when you want to trade currencies is how the forex market operates, which is very different to exchange-based systems such as shares or futures.
Instead of buying and selling currencies on a centralized exchange, forex is bought and sold via a network of banks. This is called an over-the-counter, or OTC market. It works because those banks act as market makers – offering a bid price to buy a particular currency pair and a quote price to sell a forex pair.
Open an account
If you want to trade forex via CFDs, you’ll need an account with a leveraged trading provider.
You can open an IG account in minutes, and there’s no obligation to add funds until you want to place a trade
Build a trading plan
Building a trading plan is particularly important if you’re new to the markets. A trading plan helps take the emotion out of your decision-making, as well as providing some structure for when you open and close your positions.
You might also want to consider employing a forex trading strategy, which governs how you find opportunities in the market.
What is the best trading platform in South Africa for beginners?
XTB – the best broker for beginners in South Africa in 2024.
High interest paid on cash. Webull – Free stock/ETF trading and high 5% interest on uninvested cash. Fast and easy account opening. Great trading platforms.
Is forex trading profitable in South Africa?
Trading in forex has grown significantly in favor of South African investors looking to profit from the thriving international currency markets. Effective trading strategies must be used if one is to effectively manage the risks of forex trading.