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
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.
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.
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