If you are new to Forex trading, you must face the above-stated question. There are many good brokers in South Africa, and it is hard to find one perfect.
Users often want to trade with a premium broker which offers tighter spreads. However, the trading costs of premium brokers are unaffordable for new traders.
This article will tell you how you can find the best one for you from the bulk of Forex trading brokers in South Africa.
Guide to finding the right broker
If you don’t know anything about Forex trading, then we highly suggest that you should watch detailed tutorials before stepping into the market.
Expert traders would already know everything about the market and the brokers. We aim to educate the beginner-level traders, who have little knowledge but are not experienced enough to find the right broker.
1. Look for regulated brokers
As we go along the process, we suggest that our readers make a list of brokers and add or remove names. If you are in South Africa, make sure only to consider brokers that offer FSCA regulation. If the FSCA does not regulate your broker, your funds are potentially at risk. FSCA ensures that your funds are not used or transferred against the law. If the broker goes bankrupt, you can also file for restoration of funds.
2. Decide your minimum deposit limit
The next step is to decide how much money you are comfortable investing in Forex trading. Consider brokers who offer deposit limits that you can easily arrange and trade. More often than not, you will come across great brokers, but their minimum deposit limit would be too high.
3. Risk and exposure
The third step is most crucial to your actual Forex trading. If your broker offers variable leverage rates, then you will be fine. However, most brokers offer lower or high leverage rates, which can’t be manipulated. In the latter case, decide your trade needs and choose a broker with higher leverage and spreads or lower, accordingly.
Promising Forex brokers
Here is a list of some Forex brokers ideal for most traders.
1. Khwezi Trade
Khwezi Trade is not a very famous broker in South Africa, but it is good for new traders. The minimum deposit of this broker is set at 200 ZAR. It is not a high deposit limit; thus, most traders would trade fine with the Khwezi. You don’t get to make an Islamic account with the Khwezi trade. That is the only thing you will be missing out on, Google My Business in our opinion.
2. FBS
FBS trader is an effective Forex trader that would also be fine for most new traders. At FBS, you can open an account with just 1USD. The FSCA regulates FBS. Hence, you will be safe going with FBS.
Final words
There are a bunch of good brokers in South Africa. To find the broker that suits your trading needs, Google My Business do extensive research and pick one that feels right.