We have the best guide to forex trading in South Africa
Understand how forex trading works.
Get information on the best brokers for forex trading.
Access tips and tricks that have helped thousands of investors to embark on successful forex trading careers.
WHAT IS FOREX?
Forex is a combination of “foreign currency” and “exchange” and is also known as FX. As the name suggests, it is about exchanging one currency for another.
And you don’t necessarily have to be a trader to participate in the foreign exchange market, because you actually participate in the forex market every time you travel and exchange money for another currency. The value of a currency translates into the amount of money you receive in this kind of transaction and is determined by the exchange rate. The exchange rate is influenced by inflation, changes in supply and demand, and other economic changes.
Be aware of changes to exchange rates
Exchange rates change, so best to keep an eye on these at all times. This is important because you work with currency pairs for example, United States Dollars vs Euro.
How do I begin Forex Trading?
Step 1
Understand the basics of forex trading
Step 2
Choose a good forex
broker
Step 3
Start buying and selling currencies
This is why you need a forex trading account because it is linked to your personal bank account where you can access your profits at any time.
You need an account to start trading forex
Because you are buying currency online, and selling currency online, you need a place to complete all the transactions. This place is a forex or foreign exchange account. You open an account for free, you deposit the money you are going to buy foreign currency with, and then you buy and sell currency pairs with the aim of making money on your trades.
Why do I need a Broker for Forex Trading?
As a beginner, it is important to partner with the right broker. Your broker will give you access to trading platforms and tools. A good broker will not have hidden fees.
Before there were forex brokerages, people who wanted to trade in foreign currency had to have two things: a relationship with a bank and huge amounts of money available. So brokers are there to make things easier. Look for a regulated broker with low spreads, technical tools, an outstanding track record and low minimum lot sizes. Speed is also critical to forex, so opt for someone who moves fast to meet the needs of their clients.