The Best Forex Trading South Africa Guide For SA Traders
We are always at your service at Forex Hour. We are here to guide you about Forex trading in South Africa so that you can profit consistently and be among the high flyers in Forex trading. Studies show that only about 5% of Forex traders are making a consistent profit from trading Forex, which means the remaining 95% are making losses or inconsistent profit.
Best Forex Trading SA Sites 2020
If you are one of those that are making a consistent loss from Forex trading, you can partner with us at Forex Hour and we will help you to start making a consistent profit in Forex trading. We have been in the Forex market industry for years and have honed our expertise over these years. We have won accolades and have also warmed our ways into the hearts of our teeming clients thanks to our insistence on top quality services at all times as far as Forex trading is concerned in South Africa.
What exactly do we do at ForexHour?
We provide helpful information that can help the trader to succeed in Forex trading. We can also guide the trader to make the right choice when trading Forex so that he can consistently be in the money at the expiration of every open trading position.
It is one thing to have a good Forex trading strategy that can make you money consistently and it is another thing to have a good Forex broker. In fact, your Forex trading South Africa may not yield any positive fruit if your broker is not reliable. Consequently, you need a reliable Forex broker to make headway in Forex. At ForexHour, we enlighten Forex traders about the best Forex brokers so that they will not end up with the wrong platform.
Our online trading professionals have taken time to investigate different types of Forex SA brokers and pick out the good ones among them. We equally show our clients those Forex brokers that are regulated and domiciled in South Africa so that they can open a Forex trading account in line with the country’s financial regulations and also trade Forex in the local currency, Rand.
All the Forex brokers on our platform at ForexHour have been properly investigated and we only add regulated and reliable brokers to our platform. We take time to read reviews about each of the brokers to find out if that broker delivers what it promises.
What is Forex?
Forex, also referred to as FX, currency trading or foreign exchange, is a global decentralized market for the trading of currencies. The Forex market is the world’s biggest and most liquid market. With an average volume of $5 trillion traded daily, this market determines foreign exchange rates for every currency.
The foreign exchange attracts many South Africans forex traders. It is with this reason we decided to help you learn about Forex trading and how you can benefit from trading opportunities.
Online Forex Trading
The main participants of the foreign exchange market include commercial banks, foreign exchange brokers, central banks, MNCs and individuals and small businesses. One of the reasons individuals speculate currencies in online forex trading is to make profit or hedge unwanted currency risk. All these participants in the forex trading marketplace trade via a bank or a broker. A broker or a bank gives the retail client a trading account that will be funded in a base currency. Once it is funded, the trader will be able to buy and sell currencies online with the aim to make profit.
How Does Forex Trading Work in South Africa?
Foreign exchange trading is all about buying and selling currencies. You trade one currency for another. In order to trade, you are required to open an account and deposit money. You can trade for short-term or long-term. FX trading is traded in currency pairs, for example, EUR/USD, the most-traded currency pair in the world. The first currency is called the ‘base currency’, while the second currency is called the ‘quote currency’.
Example of trade; the quotation EUR/USD 1.1234 is the price of the euro expressed in U.S dollars. This means 1 Euro equals to 1.1234 American Dollar.
The Forex market is open 24 hours a day in different parts of the world, from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. Most of the currencies are traded in the major financial centers of Zürich, Frankfurt, Paris, Sydney, Singapore, London, New York, Tokyo and Hong Kong.
What Influences Prices in Forex Trading?
There are a lot of factors that cause exchange rates to change. It is very important to know why an exchange rate changes. The main causes of changes in supply and demand are due to changes in geopolitical events, economic trends and changes to market sentiment. But there are 6 main factors that influence prices in currency trading:
- Differentials in interest rates
- Differentials in inflation
- Public debt
- Current account deficits
- Political and economic stability
- Terms of trade
Always remember that when you trade, you trade a currency for another. When one currency falls, the other currency rises.
Basic Forex terms
Some of the most used terms in currency trading
- Pip – A Pip is a Percentage in Point (PIP), is a very small measure of change in a currency pair in Forex
- Ask Price – Ask price is the price a trader will buy a currency pair at
- Bid Price – The Bid price is the price an online trader is willing to sell a currency pair for
- Spreads – Is the price difference between where a trader may buy or sell an underlying asset
- Currency rate – A currency rate is the relative value between two currencies. Or the rate at which one currency exchanges with another.