Forex trading in South Africa is still a relatively new phenomenon. Retail forex trading is however gaining momentum in a country which previously had stringent laws which scared forex investors. With the relaxation of laws governing investment and trading by individuals, many South Africans are now enjoying what other traders have been enjoying elsewhere, which is making profit. A few questions on trading in South Africa will be answered.
What Is The Best Way To Go About Forex Trading In South Africa?
Your first focus as a trader is to find a broker who matches your trading needs, especially your specific set of trading demands. If for example you do not have much money to invest, you need a broker who offers micro-accounts, tight security and a lot of support, amongst other features. If you want a managed account with a mobile platform and a high leverage, you need a broker who can offer you these.
Forex Trading in South Africa: What Are The Advantages of Having A Broker?
With the services of a broker you will gain access to different charts and technical analysis. You will also stand to receive constant reports on the market. Above all, you will enjoy the services of an expert to help you handle your trades for you. With a broker you are more of an investor than a trader and this way you will minimize your risk of losing money while you maximize your chances of making profit. Furthermore, funding a broker account in South Africa is much easier, as the broker will do all the mixing and matching of currencies and the moving of money around. For investors who want to fund their forex accounts directly will have some difficulties and some red tape to jump through.
What Are The Challenges With CurrencyTrading In South Africa?
Although South Africa is a booming nation when compared with other nations in Africa, the country’s financial regulations are a bit too stringent and restrictive when it comes to trading in foreign currency. While it is not really illegal to trade with currency in South Africa, the different limit amounts, workarounds and pieces of legislation limiting money going to offshore accounts do often complicate the issue, making forex trading a little bit more difficult.
What Are The Limits To Comply With When Trading Currency In South Africa?
From 2010 it has become a bit easier for South African citizens to legally move money, including large sums of money from South Africa to offshore accounts. The limit applicable to this is that each South African citizen is only given an allowance of 4million Rand for exchange. While this is a lot of money, especially for individual traders.
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