Have you ever traded with the best forex brokers in South Africa? I believe that they will have an impact on your trading success.
I have carried out my research by trading with the most popular Forex brokers for a long time. When comparing brokers, I think out the reputation of the broker and how they compare to each other. This article will help you find a regulated and reliable Forex trading platform.
HOW TO COMPARE BROKERS IN SOUTH AFRICA?
Some following criteria will help you to find the top 5 forex brokers in the world:
- Regulation is considered as trust in the investment business. There are major regulators and minor regulators 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.
Our broker rankings are based on broker regulation, platform choice, and trading conditions.
FOREX BROKER REGULATION
WHAT IS A REGULATED FOREX BROKER?
FCA, FSCA, CySEC & ASIC are governmental regulatory bodies that are responsible for setting the regulations to brokers and traders. They want to ensure the broker to maintain a fair trading environment while offering strict auditing oversight and protection of funds. A Forex broker regulated by more than one International agency is thought to have more trust and integrity.
FOREX BROKER REPUTATION
CAN YOU TRUST A FOREX BROKER?
Regulation, trade execution method, and client fund management are 3 basic foundations of understanding if a broker should be trusted.
Regulation is a strong indicator of the level of the broker, licensed by government regulatory agencies to improve broker’s trust. Besides, how the broker is executing your trades, and if a dealing desk is involved in the execution or if there is any conflict of interest between traders and the brokers are considered as a key component of trust.
Also, all client funds are sorted out in different accounts at major banks in the local jurisdiction, this is a good indicator of trust. This means that client funds are protected against the broker going bankrupt.
FOREX BROKER TRADING CONDITIONS
Spreads can be wide or tight and are measured in pips. 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.
On FX pairs, several brokers will have different spreads. In general, a trader will always trade with a broker which the tightest average spreads on the pairs to increase their profits.
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Leverage is a strong tool as amplifier in trading Forex pairs. Because the market movements are small and it’s impossible to amplify the size of the trade, so leverage will give individual retail traders to participate in the business. Leverage is given 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 changes between brokers, and brokers may also reserve the right to limit a client’s leverage in terms of the trading strategies.
FOREX BROKER ACCOUNT TYPES
Several types of accounts are popular with each broker. Some typical accounts are used such as: Live or Real accounts, the Demo accounts, and Swap-free account. Managed accounts are available, but rare.
LIVE OR REAL ACCOUNTS
Real money is used to put into these accounts to trade in the markets. Your account balance comes from what you do in this kind of account.
Many funds in these accounts are fake to protect traders from any risk of trading. In addition, this gives the trader an opportunity to try the trading platform, customer service, research area, and trading conditions. Some demo accounts are time-limited and are easy to reactivate, and other are time- unlimited.
In a word, the best forex brokers in South Africa conform to the above-mentioned standards. If you want to find a broker to trade with, the best forex brokers in South Africa is the primary concern.
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