Since forex trading is one of the easiest ways to invest and draw profit, many are interested in trading forex. However, forex brokers are the gateways to trade forex. These forex brokers facilitate their clients with different facilities, forex broker bonus, easy-forex account opening, forex apps and many more. Every investor or trader can get these benefits from the brokers. Forex brokers in South Africa also provide the same facilities.
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What is a forex broker?
Forex brokers are the companies, that is to say, brokerage companies organising transactions between a buyer and a seller and, in return, these companies receive commissions after the sale is executed or executed.Even sometimes, the brokers offer forex brokers bonus.
In other words, forex brokers act as an intermediary between the two parties in a purchase/sale transaction and invoices a commission for the service that they provide. A forex broker is an independent platform, which responsibilities involve in bringing sellers and buyer together. It is because the forex broker can trade with each other using the broker himself as an intermediary.
Therefore, a broker is a facilitating agent for transactions between purchasers and vendors. They can also provide valuable market information. The information regarding prices, products and market conditions, they deliver. However, brokers can represent the seller or the buyer.
Choosing the best forex broker in South Africa
Since forex is a trendy and profitable trade, people all over the world do invest in this online forex trade. Many brokers are offering many facilities to the buyer and seller, even with forex brokers bonus. However, forex brokers bonus may differ from one agency to another. To find out the best forex brokers in South Africa, the following tips will help you tremendously.
- Check whether the forex brokers South Africa is regulated or not. Indeed, the best forex brokers in South Africa must be supervised and regulated by some local or international agencies. So, only select a regulated South Africa Forex Broker.
- You must also check whether the broker offers high or low spreads. High spreads offer are never fruitful. So never select this type of forex brokers in South Africa.
- Do the forex brokers South Africa offer high leverage? High leverage means that you can trade more than your deposit. You can select this type of brokers in South Africa. However, keep in mind, if you lose, you need to pay back to the brokers also since you have taken advantage of leverage offers.
- If the forex broker executes the task very fast, you must select this type of broker.
- Check whether the forex broker offers different types of account and a demo account. The demo account is free of charges and may help you to increase your knowledge on how to trade in the forex market. Besides, different types of account mean different types of forex brokers bonus.
- Readability is also a significant factor. Choose only the reliable forex trading platform in South Africa. These reliable platforms not only offer secure and automated trade, but they also provide visual features like graphs and charts.
Critical Factors In Choosing a Forex Broker
The Forex market is so competitive that the mere thought of having to sift through all the available forex brokers can give you a headache.Choosing the forex brokers in South Africa is not a complicated one if you look for the following tips:
- The first characteristic of good forex brokers South Africa must be a high level of security, high enough for the transaction of large sums.
- There is always transaction costs in forex trading brokers. Whenever you enter a trade, you will have to pay for the spread or a commission, so it’s natural to look for the most affordable and cheapest rates offered by forex brokers South Africa.
- Best forex brokers always provide better facilities: deposit funds and you can withdraw hassle-free your winning. Forex brokers have no reason to prevent you from withdrawing your profits because the only reason they hold your funds is to facilitate transactions. If the forex brokers from South Africa you are selecting and find that they ensure a quick and smooth withdrawal process, then select this broker.
- The forex brokers trading platform must be user-friendly and stable.
- Do the forex brokers in South Africa provide 24/7 customer service? If the answer is yes, then you can consider this broker along with other critical factors.
Best Forex Brokers in South Africa
- Saxo Bank
- City Index
- XM Group
- IC Markets
- Think Markets
- Vantage FX
- Forex Time
- FX Choice
Commissions & Spreads
Forex brokers from all over the world and even from South Africa use three forms of commissions. Some offer a fixed spread, and some provide a variable range. Again, some charges a commission based on a percentage of the trading volume.
The definition of the spread is the difference or the differential between two rates. In Forex, it is called the “spread bid / ask”, that is to say, the difference between the two prices. The asking price corresponds to the rate at which it is possible to buy the financial value, while the bid price corresponds to the rate at which it is possible to sell it. The spread is expressed in pips.
For example, if the buy (ask) value of the EUR / USD parity is 1.5763 and the sell (bid) 1.5761 then the spread is 0.0002, i.e.two pips. The spread is a measure of market liquidity. The closer the spread is to zero, the easier the transactions.
The spread is often the commission that the broker will receive on the transaction. This difference in the price constitutes all or part of the broker’s remuneration. The level of spread varies from one broker to another, and brokers use this as a business policy to stand out from the competition. With the tight race currently facing the Forex investment sector, brokers are now practising lower spreads ever.
Different forex brokers offer different types of a forex account. However, basically, there are three types of account:
- Standard Trading Account
- Mini Trading Account
- Managed Trading Account
Note: If you are searching for the forex brokers South Africa, we have already mentioned the best forex brokers around the world, along with South Africa. You can simply visit these sites and select the best account for your suitability.
Forex Broker FAQs
Question: Is Forex Trading Legal?
Answer: Yes, Forex trading is legal. However, in some county, it is banned
Question: Is Forex Trading Legal in South Africa?
Question: Is there any scam in forex brokers?
Answer: Due to the demand for easy profit, forex trading is widespread. Thus, many brokers are coming into existence. Yes, we can not deny that there are few scam reports reported earlier. However, if you trade from the trusted forex brokers, you will never face any scam.
Question: Which account should I open to trade forex with the brokers?
Answer: We have already mentioned that there are basically three types of a forex account. It is always wiser to check the details from the forex broker website and select the best one, which is suitable for you.
Question: Who are the Forex brokers in South Africa?
Answer: Specifically we can’t name one broker in South Africa or else it might seem that we are advertising the agent. There are many local and internationally run forex brokers available in South Africa. We have even mentioned the name. Check our article section: Best Forex Brokers in South Africa.
Question: Are Forex brokers bonus legit?
Answer: Yes. Many brokers announce different types of forex broker bonus to enlist more clients to grow their business. Thus, both the party, you, the traders and the broker house draw financial benefits.