Foreign currency refers to the means of exchanging one currency for another. Why would anyone do that? There are many reasons for this. Imagine you are on vacation in Japan. You will need to change your currency to get some Japanese Yen to use in Japan. That transaction is forex trading. You have exchanged one currency for another.
Trading is very different in South Africa from what many people advertise. Many believe trading in South Africa is challenging, but have you ever wondered how to start trading in South Africa as a beginner and succeed? You don’t become a millionaire overnight, unless you start as a billionaire. It’s work, like any other, and it takes time and effort. If you’re not prepared to devote part of your time to growing your business, you’re not going to get the best results. Forex trading income is far above the average job here in the UK. Thus, from forex money, you will be capable of living the lifestyle you love, working from home, and being able to take breaks and holidays whenever you want. You can also travel around the world for about a year, only with your laptop with you to track your savings.
Trading in South Africa
The FSCA is a good regulator, but foreign exchange trading in South Africa is less regulated than most of the world. Here, forex brokers should not provide poor protection to their customers and there is no limit to the amount of leverage they can provide. South African traders must therefore be careful in trading to avoid losing more money than they have in their trading accounts. FSCA-regulated forex brokers are required to keep their clients’ funds regularly audited to ensure that client funds are not misused.
Tips for beginners of forex trading
1. Choose a valid Broker
It is important that you pick a reputable broker. Look out for a dealer who provides customer-friendly platforms, aggressive spreads, and sturdy customer service. Of course, make sure they are regulated by some known financial authority so your investments are protected.
2. Open a Demo Account
Practice makes perfect. Most agents provide demo accounts in which you can practice trading with virtual money. This allows you to get yourself up to speed on the trading platform and expand your trading strategy without any economic risk.
3. Grow your Trading Strategy
A well-defined trading system is key to any forex trading investing success. This can take the form of technical analysis—it examines price policy strategies and uses indicators to predict price trends—or even specialized analysis, which is the analysis of economic indicators and issues affecting stock prices
Advantages of Forex Trading Over Other Investments
Access
You can trade forex online from your phone or home computer. Almost anyone can trade forex.
24-Hour Market
Unlike the stock exchange, the forex market is open 24 hours a day, 5 days a week.
Leverage
Forex trading is leveraged. With limited liquidity, leverage allows traders to open larger positions and increase their profits.
Short Selling
Forex traders can easily sell currency pairs and make a profit when the price falls.
Low Initial Cost
Forex trading is relatively cost-effective to begin with. Most brokers will only require the equivalent of a 100 USD deposit to open an account. Some brokers require only 5 or 10 USD.
