DO YOU KNOW HOW TO COMPARE AND CHOOSE THE BEST FOREX BROKERS IN SOUTH AFRICA?

DO YOU KNOW HOW TO COMPARE AND CHOOSE THE BEST FOREX BROKERS IN SOUTH AFRICA?

Find the top forex brokers in South Africa is not an easy thing to do. Why so? Because each broker has their own strengths and weak points, and the best brokers may not be suitable for all traders. By creating the list of common standards, we can compare brokers to each other, and then choose the best of them.

THE COMPARISON

When trading with many kinds of forex brokers in the market, we have found that each one has their own strong points and weakness as well. Therefore, to compare brokers to each other, we have to list out these common standards:

  • License
  • Conditions
  • Types of account

LICENSE

Regulation is an indication for the reliability of a broker. If major regulators approve to provide licenses for a broker, it means that the broker is very trusted and reliable. Normally, the rules are set by the governmental regulatory bodies like the FCA, FSCA, CySEC & ASIC. Brokers following these rules make sure to create the safe trading environment and protect all the funds for traders.

TRUSTED BROKERS

How can traders know about a broker? The standards to see if we could trust a broker are as following: trusted regulation, trade execution method, and client fund management.

As mentioned above, regulation is very important. More major governmental regulatory bodies that a broker has can indicate that the broker gains more trust and integrity.

How the broker executes the trades is another important part. We also have to check if a dealing desk is involved in the execution, if there is any conflict of interest between traders and the brokers, if the broker receives financial incentive to have you lose your trades… A broker is indicated as less trustworthy when such bad things above happen. One of the most reliable brokers is Exness => Exness reviews

What will happen when the broker goes bankrupt? All funds of the traders will be gone and not be able to take back. Therefore, a good broker should separate all the client funds in different accounts at major banks in the local jurisdiction.

CONDITIONS

Spread:

Spread is the difference between the Bid and Ask prices. When these 2 prices are far from each other, the cost will be high. When they are close to each other, traders will like it because of the low trading cost. Spread is measured in pips. For example, 17 pips wide or 0.3 pips tight. As mentioned above, traders are tend to work with brokers providing the lowest spread in the market.

Leverage:

Traders use it to increase the size of trades. Because the movements of the market are so small, it would be nearly impossible to do business for individual retail traders if there was not any leverage. For example, a leverage is 450:1, traders could increase up to 200 times of the original trade sizes, which brings lot of profits. Leverage is also various among the brokers.

TYPES OF ACCOUNT

Most traders use 3 main types of account: Live or Real accounts, the Demo accounts, and Swap-free account. Brokers also offer managed accounts but rare.

LIVE / REAL ACCOUNTS

With these account, traders can make real money and earn real profits. They can experience the real conditions, price, services in the market, too. However, your account balance will be affected.

DEMO ACCOUNTS

It is the time for traders to try the trading platform, customer service, research area, and trading conditions… even though all things here are fake. There are fake trading conditions, prices and money.

In conclusion, the important thing before choosing the best forex brokers in South Africa is to compare brokers to each other.

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