Forex trading as a new source of income in South Africa

Forex trading as a new source of income in South Africa Source: Forex trade: Google Images

You’ve probably heard or read something about forex (foreign exchange), which proves the fact of its widening popularity. Yet, there are a lot of those interested ones who want to go beyond their basic understanding of how this financial market works or just don’t know exactly how to start trading in South Africa. Let us guide you through the whole process.

 

WHAT IS FOREX?

Forex is a global over-the-counter market for conducting trading activities. Here it’s possible to start making transactions for the purchase and sale of a foreign currency in a fraction of a second since it operates 24/5 in different parts of the world starting from 5 p.m. EST on Sunday until 4 p.m. EST on Friday.

Currency pairs are used as commodities here that represent the ratio of two national currencies in the forex market, where the value of one currency is quoted against the other. The first currency that is listed in the pair is called the base currency, and the second one is the quote currency.

Let’s take EUR/USD currency pair as an example here. So, when you decide to buy a currency pair, you buy the base currency (EUR) and sell the quote currency (USD). Alternatively, when you choose to sell the currency pair, you sell the base currency (EUR)  and buy the quote currency (USD). 

Image credit: Supplied

WHY IS IT SO CONVENIENT TO TRADE FOREX?

Trading forex is becoming even more popular nowadays as we are all faced with pretty restrictive pandemic realities, right? So, this is where you can start earning money without leaving home. You can easily choose the comfortable hours for your trading activities and just keep it flexible. In order to trade forex safely, it’s crucial to choose a reliable broker that prioritises excellent trading conditions and timely payments.

Compared to other markets, forex is the place with no commissions for conducting trading operations, except for the common market difference between the bid/ask prices (spread).

As a newbie, you might be interested in whether it’s possible to start trading with a minimum deposit of, let’s say, just 1$? Absolutely.

Some brokers like Justforex provide such an opportunity for everyone who wants to become a part of the global market and develop trading expertise. The broker is one of those that are gaining more and more popularity in South Africa.

Forex is considered to be the most accessible market for trading since thousands of new accounts are opened around the world every day. To enhance newbies’ trading efficiency, reputable brokers are highly interested in providing a variety of educational materials and recommendations, making it the most beginner-friendly market for trading activities.

HOW TO START TRADING FOREX IN SOUTH AFRICA?

Like any other profession, trading in the foreign exchange market requires specific knowledge, skills, and moral qualities. So, how to trade forex in South Africa and get to the desired top?

LEARN MORE ABOUT FOREX

Devote your time to learning the basic concepts, abbreviations, and features of the forex language, as it will just simply help you understand what a certain trading book, article, or video is about.

Being picky about what you watch and read is essential while learning forex. In the beginning, there is a big chance to be distracted by some kind of questionable information after reading of which there still won’t be a clear understanding of certain things.

Forex trading lessons, articles, books, or videos – any information you need is right there for you. Justforex keeps up with all updates in the world of trading, so you can find a lot of interesting, and more importantly, high-quality content suggested by our professional team that really cares about the way you begin your journey as a trader.

FIND A RELIABLE BROKER

There are a lot of forex brokers available in South Africa, but unfortunately, not all of them meet the standard trading norms. While choosing your broker, determine the parameters you’re interested in. Take into account your specific needs, and you will be able to find not only outstanding characteristics of your broker but also potential bottlenecks.

Image credit: Supplied

Here are the special conditions you should pay attention to in order to find a trusted broker:

  • Reviews. Devote your time and read the reviews on some independent platforms like Trustpilot. This is how you get 100% accurate information about the trading conditions of a certain broker.
  • 24/7 withdrawal. This is how you’re in charge of the process. You can withdraw your money anytime you want.
  • Leverage ratio. If you need to borrow a certain amount of money to make an investment, a broker is right there to help you. A broker can offer convenient leverage from 1:1 to 1:3000, so you can easily enhance your profit from trading activities.
  • Amount of deposit. That’s crucial for beginners since they want to start trading with a modest amount of money. Consider choosing a broker that is fully supportive of this idea and offers the possibility to start trading with just $1. Remember, your profitability ratio strongly depends on the amount of money you have in your trading account.
  • Bonus programs. Such promotional programs enable traders to multiply their deposits for better trading opportunities. This is how getting a big sum of money just for conducting your day-to-day trading operations becomes something achievable.
  • Contests. They are our everything since it’s a good opportunity to get rewarded with valuable prizes for your trading activities. You should definitely draw your attention to the brokers that made it a tradition to launch a couple of contests every month.
  • Low spreads. Consider choosing the broker with reduced spreads as it will just save your money. Trade with the ones where the spreads start from 0 pips.
  • 24/7 support. Support is something you can always count on in case of anything and it’s cool when brokers understand its importance.
  • Understanding comes with experience. Just start trading, and you will come to a substantiated decision.

Justforex is one of the few brokers in the South African market that provides all of the above-mentioned benefits. By the way, there is a good opportunity to start trading with a 120% deposit bonus promotion offered by the broker.

THINK OF YOUR TRADING TIME

Yes, it’s possible to trade at any time of the day and night in the forex market. The thing you should consider here is that there are four major forex trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Trading time is something very personal, so you should choose the one that works best for you and your trading strategy.

START WITH A DEMO ACCOUNT

demo account is a good opportunity to learn how this global financial market works inside out. You will have a chance to master the world’s most popular trading platforms MT4 or MT5 and just prepare to work there psychologically. Don’t worry about money while using the demo account since you’ll conduct trading operations only with virtual funds. This is where you won’t lose anything and get a lot in return.

TRADING WITH A FOREX BROKER IN SOUTH AFRICA

You can start your trading journey by opening a trading account. Your steps are the following:

  • Fill in the registration form.
  • Choose and open a trading platform (MT4/MT5).
  • Make a deposit and start trading.
  • Read our daily forecasts and market overviews to be on top of things.

DISCOVER NEW HORIZONS

Forex is open to anyone who wants to start trading even without experience. The main thing to consider here is that you should start with a small amount of money and devote your time to everyday learning. Beginners and experienced traders find it important to conduct trading operations with a reliable broker, one of the leaders in the South African market – Justforex.

Millions of their clients from 197 countries are ready to prove that. That’s the broker that never stops improving and offers beneficial trading conditions for its clients from all over the world.

Make the first step and become a global market participant today.

Contact sales@cbn.co.za to enquire about our digital marketing options
Contact sales@cbn.co.za to enquire about our digital marketing options