The purpose of finding the good brokers in Forex
trading is to archive a good payback as the result. Surprisingly, because of
the huge number of Forex brokers who are operating in South Africa, the works
of picking the top Forex brokers in South Africa may take a lot of sweat.
Nevertheless, every trader is different in their characteristic, education
material, expert analysis and trading tools. So, their needs might be specially
various. In order to help you efficiently find out a reliable and regulatory
platform in Forex trading, we have conducted a research since 2008 by examining
and trading with most popular Forex brokers. We specially concentrate on their
performance and reputation, compare them with another then selecting brokers.
As the result, we gather a lot of experiences and here they are.
Method to
compare brokers in South Africa
More than 30 brokers is the number that we registered
and tried to trade repeatedly many times since 2013. We have the criterias to
evaluate the top forex brokers 2018 to trade reflecting our experience.
Regulations: the brokers
should follow a set of governance. Regulation may be directed by both major
authorities and minor authorities. These bodies are taken in our consideration
Trading environment: this
guide the traders to the description of the brokers’ products.
Varieties of accounts
The overall rank of us responding to the brokers’
regulation, trading platform and trading environments.
The regulation
of Forex brokers
The Forex brokers who want to have more credibility
and integrity must have more regulations from global intermediaries. Their
practical purpose are ensuring the save of trader’s fund and maintaining a fair
trading environment provided by brokers to traders, completely audit for any
errors. In order word, the brokers must sign up and operate in within the
boundaries of these institutions if they want to be recognized as regulated.
There are many well-known governmental regulators in Forex trading respectively
are FCA, FSCA, CySEC & ASIC.
Forex broker reputation – how trustworthy is a
broker?
A trusted broker is examined by three aspects,
which are regulations, trade execution methodology and customers’ financial
management.
A perfect indicator to the broker’s
reliability is their authorised regulators. The major regulators will govern
the level of their oversights. Thence, it guides the brokers to the way they
execute your trades, execution to the dealing desk involvement and the solution
to the interests conflict between traders and brokers. The reliability of
broker is decreased due to the lost of your trades during a financial
incentive. Lastly, a segregated account policy which separates clients’ bank
accounts in a local jurisdiction from the brokers’ account makes that broker
reliable as the traders’ funds are safe from broker’s bankruptcy.
The trading conditions of Forex Brokers
Spread
Pip is the unit to calculate a spread to be
wide or tight of the buying or selling
price for any currency pairs. While 15 pips is considered to be the wide
spread, 0.4 pip is the tight spread. Spreads are different by brokers. To maximise
profits, traders aim to seek for the brokers offering the tightest average
spread of their trading pairs.
Leverage
In Forex trading,leverage is a tool to amplify the trades. Based on the
tight movement of Forex market, the leverage is a critical technique that help
traders enlarge their trading size. Without leverage traders have no way to
participate in the market. The leverage is presenting in the format of 300.1,
which means the enlargement of traders’ size is maximised to 300 times. The
brokers offer different leverage, but they have the right to limit your
leverage due to your trading incentives.
Account variety of Forex Brokers
The various brokers operate a wide variety of accounts. However, the
market are set in a few account variety in the trend. There are differences of
Live or Real accounts, Demo accounts and Swap-free account. Although managed
accounts are available but incommon.
Live or Real accounts
This type account requires traders to use their real money to trade. It
means every win or lose of trades will affect the account balance.
Demo accounts
In contrast, Demo accounts use a fake fund which then does not put
traders in any risks. Traders can use this account type to test the trading
platform, customer service and trading environments of the brokers. Some Demo
accounts allow users to reactivate after a period of using, meanwhile, other
Demo accounts are unlimited uses.
Overall, The best Forex Brokers in South Africa can be evaluated via
the mentioned criteria.
Ryan Myers is a business blog author and writer. He graduated from the University of California, Berkeley in 2009 with a degree in Political Science. His favorite topics to write about are blogging for small businesses and becoming an entrepreneur.
