South Africa is one of the most developed countries in Africa, so it’s not surprising that there are a number of Forex brokers operating there. In order to succeed in trading, you need to choose an appropriate broker by making a comparison between the brokers. But how to compare the best forex brokers 2018? If you want to know the answer, let read the article.
HOW TO COMPARE BROKERS IN SOUTH AFRICA
Up to now, we have traded with more than 30 brokers. When comparing the brokers, we always use these criteria: account types, regulation, reputation, and trading conditions. After comparing, we rank them so that we can easily choose the most suitable one.
- ACCOUNT TYPES:
Live or real accounts
You will need to use real money to trade with this account. Also, you should note that what you do in this account will influence your account balance.
This account is safe for you. It also gives you a chance to experience the trading platform, customer service, research area, and trading conditions. In our view, this type is worth trying.
A regulated Forex broker is defined as the one who operates within the boundaries set by governmental regulatory bodies. Such regulatory bodies are FCA, FSCA, CySEC & ASIC. The purpose of these regulations is to ensure that the broker maintains a fair trading environment while offering strict auditing oversight and protection of funds.
The reputation of the best Forex brokers in South Africa depends on the following things:
- Regulation: the more main regulators a broker has, the more reliable it is
- Trade execution method: whether or not a dealing desk is involved in the execution or if there is any conflict of interest between traders and the brokers is also a key component of trust
- Client fund management: a broker is supposed to be credible in case all the client funds are segregated in different accounts at major banks in the local jurisdiction.
- TRADING CONDITIONS:
Leverage and spread are the trading conditions of the forex brokers. Followings are the details about these conditions for your reference.
Leverage is an amplifier used in trading Forex pairs and is very important. Individual retail traders are unable to take part in the business unless there exists ways to amplify the size of the trade. Let me show you an example format of leverage: 300:1. In this case, a trader can increase the size of the trade by a maximum amount of 300 times.
Being considered either wide or tight and measured in pips, spread is an indication of the buy and sell price for any currency pair. For instance, if the spread is 15 pips, it is considered wide spread; if the spread is 0.4 pips, it is considered tight. Worry about spread no more with the best ECN brokers.
This is the end of our article – the best forex brokers in South Africa. Hope it is useful for you in finding a perfect and suitable broker to trade with.
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