Have you ever tried to determine the best forex brokers in South Africa? If you did that, maybe you have to closely follow some popular standards.
We have conducted our tests by studying the most talked about forex brokers since 2008. We take the reputation of the broker and how they compare to each other in serious consideration. Below are our findings to help you find a regulated and reliable Forex trading platform.
HOW TO COMPARE BROKERS IN SOUTH AFRICA?
We had experience in trading with 30+ largest forex brokers and it’s quite easy to find the best Forex trading broker, we compared them on the following criteria.
- Regulation is basement in the investment business.
- We compare the trading conditions which the brokers offer to forex traders.
- Account types.
We based on broker regulation, platform choice, and trading conditions to rank among the best traders.
FOREX BROKER REGULATION
WHAT IS A REGULATED FOREX BROKER?
The governmental regulatory bodies are responsible for setting regulations to Forex brokers. We can name here: FCA, FSCA, CySEC & ASIC. Their mission is to ensure that the broker maintains a fair trading environment while offering strict auditing oversight and protection of funds. A Forex broker regulated by more than one International agency is thought to have more trust and integrity.
FOREX BROKER REPUTATION
CAN YOU TRUST A FOREX BROKER?
Regulation, trade execution method, and client fund management are 3 elements to identify a trusted forex broker.
Regulation is a strong indicator of the level of oversight the broker. This can protect traders from trading risk and have more faith in brokers.
The execution, dealing desk’s involvement and any conflict of interest between traders & the brokers are also a key component of trust. If there is any financial involvement in trader’s loss, this could be seen as making the broker less trustworthy.
All the funds of clients are segregated into different accounts at the largest banks in the local area. This action is symbol of trust. This can help traders from broker’s bankruptcy.
FOREX BROKER TRADING CONDITIONS
Spreads are either wide or tight and are measured in pips. This is an indication of the buy and sell price for any currency pair which is far from each other, or close to each other. If the spread is 15 pips wide, that is considered a wide spread, where a 0.4 pip spread is considered tight.
The change in FX pairs will be different from each brokers to have spreads. A trader will always find the best forex brokers in South Africa with the tightest average spreads on the to maximize profits.
Leverage is very important in the small market movements for the purpose of amplifying the size of the trade to help individual retail traders to participate in the business.
The leverage’s format is 1:500, which means traders can maximize the size of the trade by a maximum amount of 500 times. Each broker has a different leverage, and they can also limit the leverage of each types of traders.
FOREX BROKER ACCOUNT TYPES
Each broker will have a varying amount of account types. They include Live or Real accounts, the Demo accounts, and Swap-free account. Managed accounts are available, but rare.
LIVE OR REAL ACCOUNTS
These accounts use real money to trade the markets. What you do in this account can have an effect on your account balance.
These are accounts where the funds in the account are fake. This can give the trader an opportunity to try the trading platform, customer service, research area, and trading conditions without any risks.
You can refer to the best forex brokers in South Africa to compare with the above-mentioned standards to identify the best traders.
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