Nowadays, a lot of Forex brokers working in South Africa. We know that trading with a suitable merchant will affect our success. Every trader has their own thinking and their demand also differs from each other when talking about education way, adept analysis, and dealing tools.
For over ten years, we have done our study by doing the transaction and analyzing the best Forex brokers in South Africa. We have compared them based on their fame and their strength. The contents below are our discoveries that would aid you to get a regulated and trusted Forex trading platform.
WAYS TO COMPARE BROKERS IN SOUTH AFRICA
From the start in 2013, we have dealt with more than thirty brokers and ignored more than sixty. It is because we assessed them following these standards:
- Regulation is trusted in the investing sector. We consider both major regulators and a minor one.
- We paralleled dealing status among broker, which is what they have to offer the buyer.
- Account types.
Our hierarchy is formed from the intermediary rule, platform option, and dealing conditions for the customers.
FOREX BROKER REGULATION
DEFINITION OF AN ORGANIZED DEALER?
We call a Forex broker that is regulated if they are bounded by governmental regulatory organizations such as FCA, FSCA, CySEC & ASIC that they participated in. We know that those agencies assure that the broker doesn’t break the rule of dealing environment. They also control the auditing oversight and protect the money. The more regulation these organizations admit, the more trustful and integrity a broker has.
FOREX BROKER FAME
SHOULD WE HAVE FAITH ON THEM?
In order to deeply comprehend whether we can trust a broker or not, we base on three factors: regulation, dealing way, and customer funds organization.
As we mentioned above, we have major regulators. They are an index of the stage of supervising the brokerage, and therefore, we know the level of confidence the government regulatory agencies have. The way the broker execute your transactions, the dealing desk involved or the conflict of interest between buyers and sellers is a part of credit as well. And if you lose your trades due to the financial incentive of the broker, we assumed the broker to be less trustful.
Lastly, customer money should be separated into many accounts at elite banks in the regional jurisdiction. A broker who can do this is more reliable because the client fund is ensured even if the broker bankrupt.
FOREX BROKER DEALING STATUS
Spreads are the discrepancy between the Ask price and the Bid price, we measure it by pips. This is an indicator that can be wide or tight. If it is fifteen pips, we call it a wide spread, and if it is 0.4 pip, we call it a tight spread. Each broker has their own spreads on their FX pairs. However, to raise the gain, a tradesman should cooperate with the lowest spread brokerage.
Read more about the best forex bonus.
An efficient tool usually used in dealing Forex pairs is leverage. Why is that? It is because the fluctuations in the market are such small, so we can’t join in the business if the trade’ size remains tiny. Leverage is formed in a format like 300:1, which means we can expand the size to three hundred times. Just like spreads, it differs from each broker, and sellers might keep the right to hold a customer’s leverage at a certain point.
FOREX BROKER ACCOUNT TYPES
We use real funds to deal with the markets. Your account balance is directly affected if there is anything happens to these accounts.
Unlike the previous types, we don’t have to use the real fund in this type since the account has unreal money. Therefore, you don’t get into any trouble. It grants the trader a way to experience dealing platform, client care, research region, and trading circumstance. They also divided into two types: limited time accounts and vice versa.