Any FSCA-regulated forex broker can lawfully deal in the foreign exchange market for South Africans. In 2021, the daily forex trading volume in South Africa is expected to reach over USD 21.4 billion. It’s a huge amount that attracts various people to start trading. But it’s very confusing for beginners to start trading in 2021 due to huge competition and multiple trading brokers. So we have compiled some basics about how to start forex trading in South Africa and get an active account. So let’s get started.
What is Forex trading, and how to start?
FX is a global forex marketplace where national currencies can be exchanged for several objectives such as trade, travel, or buying and selling. To begin online trading, you must first create a Demat and Trading Account with a stockbroker. After you’ve created the account, you’ll be able to log in and transfer funds from your bank account to your trading account. But must check the stock prices, historical data, charts, and other tools on the trading platform before beginning to purchase and sell shares.
Steps to start Forex Trading:
- Find a Broker by checking the opening and maintenance chargers of various online brokers.
- Then create an account with an initial investment of 5$ or more and enter your details like account number, IBAN, pin, etc.
- View trading detail, explore the market, and start trading
The money you can make through trading:
FX is a dynamic market globally, with average trading sums reaching $5 trillion, making it so tempting for trading. Every day, more than 1000 billion US dollars are traded in South Africa. Therefore it’s not wrong to say that trading can make you rich and have a bright future.
The investment you need for trading:
Many forex traders demand a minimum deposit to start an active trading account, and the quantity of this investment varies based on the broker, their product, and its intended trading system. Although trading accounts may be started for as low as $5, most brokers need a minimum deposit of $100 to $200.Beginners should begin with a minimum account balance of $200 – USD 500. This enables traders to generate minor returns while still taking a conservative attitude to risk.
Best bank accounts for trading:
Although many banks are suitable for trading and money transfer, we recommend you two the best of all.
FNB becomes a subsidiary of FirstRand Bank Limited. FNB Forex has made the procedure of sending money overseas for foreign investment easier.
- Mercantile Bak
The major focus of Mercantile Bank is Business and Commercial Banking. Still, they also offer a comprehensive variety of international and local banking services, debit cards, bank cards, payment services, and a full suite of foreign currency products.
Profitable forex trading is difficult and does not happen quickly. It is feasible to make money through trading forex but only for those who are prepared to put in the time and effort and take the appropriately measured risks.