Finding the best forex brokers in South Africa plays the most important roles in driving traders to trading success. Because the traders are different in their trading characteristics and expectations, there are various training material, analysis and trading techniques fitting them.
There are lots of tests and researched we have done since 2008 in trading and analysing the leading Forex brokers. We compares brokers by their reputations. Our findings in this topic would help you to figure out the a suitable regulated and reliable Forex trading platform.
How brokers in South Africa can be compared?
Starting from 2013, we have been repeatedly registered to trade with more than 30 largest brokers. We followed our criterias as listed below to compare and contrast the best Forex brokers.
- License is the certificate of trust of any investment. Licenses are issued by large authorities or small authorities. We took into account all of them.
- Trading environments are conditions of services that brokers provide to traders.
- Account ranges
Our rank of brokers considers the brokers’ regulations, platform, and trading environments.
Forex regulation – How are Forex brokers regulated?
The FCA, FSCA, CySEC & ASIC are authorised bodies that provide the standards and licenses that Forex brokers should achieve. These standards would ensure the sustainability of fair trading environments with the stricted auditing and protected capitals. The trustworthiness of Forex brokers are increased as they achieve at least one global regulator.
Reputation – the quality of trust of a Forex broker
A trusted Forex broker is qualified by three aspects, which are regulation, trading strategy, and fund management.
The regulation, which is considered as an indicator of a broker’s level of risk-management, is heavily relying on how trustworthy the regulatory authorities are. In another word, the reliability of a broker would be defined by its trading policies, solution for the occured dealing desk, and resolution for the conflict of interest between traders and broker. The financial instability of broker which may lead you to lost the trades would make that broker less reliable. Furthermore, a broker that have clients’ segregated accounts in local bank from its bank account is a good aspect of reliability that may save traders’ fund as the broker is going to bankrupt.
The Forex trading environments
The unit of spread is pips and considered to be tight or wide difference of the buying and selling price of any currency pairs. For instance, the spread with 15 pips is a wide whilst 0.4 pip is a tight spread. Depending on the trading execution, each broker has difference spreads of their FX pairs. Hence, in order to maximise the profits, the traders will seek for the brokers that offer the tightest average spreads of their trading currency pairs.
The Forex traders use leverage to enlarge their trading pairs. As the Forex market move quickly, the leverage tool amplifying their size of the trade would help them possibly participate in the market. The basis of leverage is 300.1 which means a trader is capable to maximise their trade by 300 times. Different brokers introduce different leverage. The brokers will base on the traders’ experience to limit their leverage basis.
The Forex Account varieties
There are variety of accounts that operated by different brokers. However, the market are just favouring in a few number of accounts recently. These favourite account varieties are different in the Live or real accounts, the Demo accounts, anf Swap-free account. Nevertheless, it is rare managed accounts.
- Live or real accounts
Traders of these account use their real capital to trade on the markets. So, the effect on trades are directly influenced on traders’ real funds.
- Demo accounts
These accounts are using a pretending fund provided by brokers, so the traders can try trading without risks. This account type would help traders to try the trading platforms, customer support, researching method and trading environments. Although the Demo accounts are limited time with the ability to reactivate, there are Demo accounts that unlimited uses.
For Thai readers, this is โบรกเกอร์ forex ที่ดีที่สุด 2018