Forex Trading for Beginners South Africa : How to Trade Forex Beginners

Forex Brokers SA » Forex Trading for Beginners South Africa : How to Trade Forex Beginners

Forex Trading for Beginners South Africa 2021 Guide. Are you interested in the world of Forex but don’t know how to start Forex trading in South Africa? Then this complete guide to Forex trading is for you! We will cover all aspects of currency trading: what is Forex trading, how to learn how to trade Forex or how to trade Forex beginners in South Africa well, why to invest in this market, what are the best Forex trading tactics, which Forex brokers to choose, how manage your risks well and more.

Best Forex Brokers for Beginners in South Africa

Trade with:
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Best Forex Broker South Africa
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Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

Trade with:
FXGM South Africa
Min. Deposit: $200
Top FX Broker in SA
4.5 rating
4.5
T&Cs Apply
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Forex, Margin & CFD are complex instruments and come with a high risk of losing money due to leverage.

Forex Trading: 6 Steps to Becoming a Successful Trader

  1. Learn what the Forex market is through trading training
  2. Determine your trading style to set up a relevant Forex trading strategy according to your personality
  3. Write, back-test and test your trading plan via a Forex trading platform (demo account at first)
  4. Fund your Forex trading account
  5. Take advantage of bullish or bearish trading opportunities in the forex market
  6. Adjust your trading plan if necessary

Advantages and Disadvantages of Forex

Advantages of Forex Trading

  • Significant liquidity
  • Market open 24 hours a day – 5 days a week
  • Large trading volume
  • Reasonable trading fees
  • Low barriers to entry
  • Demo Forex trading account available from all Forex brokers
  • Wide choice of online or face-to-face Forex trading training and courses
  • Interesting returns on different types of currency pairs: major pairs, minor pairs, exotic pairs or even Scandinavian pairs
  • Several possible Forex trading position sizes depending on the starting capital: nano-lot, micro-lot, mini-lot or lot
  • Market that can adapt to several types of investors: scalpers, day traders, swing traders or even news traders
  • You can download Forex trading for beginners in South Africa PDF

Disadvantages of Forex Trading

  • Unregulated market: over-the-counter (OTC) market
  • Possible Forex scams (FX broker, Forex trading system, Forex trading robot, Forex copy-trading…)
  • High volatility
  • Sometimes a long process to learn how to profit from Forex trading
  • Excessive use of margin trading and leverage which can sometimes negatively impact a trader’s results

12 Traps to Avoid in Forex

  1. Not fully understanding what Forex is
  2. Not knowing what moves the price of currencies
  3. Do not take into account the correlations
  4. Not having realistic trading goals
  5. Not following your trading plan
  6. Not adopting a trading style that suits your personality and your availability
  7. Don’t just invest the money you can afford to lose
  8. Not controlling your emotions
  9. Do not use risk and money management rules
  10. Ignoring the market trend
  11. Not watching the economic calendar
  12. Don’t take the time to choose a Forex broker based on your needs

Forex – What is it?

What is Forex trading? How to trade Forex in South Africa? How to invest in Forex? If you are new to the world of Forex, you are certainly asking yourself these questions and more. And all of these questions are legitimate! Let’s start by explaining what the Forex market is.

Forex Trading for Beginners in South Africa

The Forex Market – Definition

The Forex market, or Foreign Exchange in English, is a market dedicated to the exchange of currencies such as the Euro (EUR), the British Pound (GBP), the American Dollar (USD) and many other currencies as shown in the table below.

Country

Currency Name

Acronym Representing Currency

South Africa

Rand

ZAR

Australia

Australian dollar

AUD

Canada

Canadian dollar

CAD

China

Yuan Renminbi Offshore

CNH

Denmark

Danish Crown

DKK

United States

American dollar

USD

Hong Kong

Hong Kong dollar

HKD

Hungary

Hungarian Forint

HUF

Japan

Japanese Yen

JPY

Mexico

Mexican Peso

MXN

Norway

Norwegian Krone

NOK

New Zealand

New Zealand Dollar

NZD

Poland

Polish Zloty

PLN

Czech Republic

Czech crown

CZK

UK

Pound sterling

GBP

Singapore

Singapore dollar

SGD

Sweden

Swedish crown

SEK

Swiss

Swiss franc

CHF

Turkey

Turkish Lira

TRY

Who Can Trade the Forex Market?

Beyond brokers, international companies, institutional and retail traders looking to make a profit in the forex market, it is important to know the main players in Forex – those who can influence the market like:

  • hedge funds
  • Governments
  • commercial banks
  • central banks

How Does the Forex Market Work?

The first thing to know about Forex trading is that when you trade in the Forex market, you are investing in currency pairs, not individual currencies. So there is always a base currency (the left one in a currency pair) and a counter currency (the right one in a currency pair) that form a currency pair.

In the EUR / USD currency pair for example, the base currency is EUR and the counter currency is USD. If the EUR / USD pair quotes $ 1.20903, it means that € 1 (Euro or EUR) is worth $ 1.20903 (US Dollar or USD).

Among the currency pairs available for Forex trading there are major pairs, minor pairs and exotic pairs.

What are Major Pairs ? These are the pairs comprising the currencies of the world’s largest economies. These are the pairs with the large trading volume.

Examples of major currency pairs

  • Euro vs Dollar US = EUR / USD
  • British Pound vs US Dollar = GBP / USD
  • US Dollar vs Canadian Dollar = USD / CAD
  • US Dollar vs Swiss Franc = USD / CHF
  • US Dollar vs Japanese Yen = USD / JPY
  • Australian Dollar vs US Dollar = AUD / USD
  • New Zealand Dollar vs United States Dollar = NZD / USD

What are Minor Pairs ? These are pairs that include currencies from major countries except the United States Dollar (USD).

Examples of minor currency pairs

  • Euro vs Swiss Franc = EUR / CHF
  • Euro vs New Zealand Dollar = EUR / NZD
  • Australian Dollar vs Japanese Yen = AUD / JPY
  • British Pound vs Canadian Dollar = GBP / CAD
  • Canadian Dollar vs Japanese Yen = CAD / JPY
  • Swiss Franc vs Japanese Yen = CHF / JPY
  • Euro vs Australian Dollar = EUR / AUD

What are Exotic Pairs ? It is a pair with a major currency and a currency of a less important developed or developing economy.

Examples of exotic currency pairs

  • Euro vs Mexican Peso = EUR / MXN
  • Euro vs Russian Ruble = EUR / RUB
  • Australian Dollar vs Singapore Dollar = AUD / SGD
  • Euro vs Polish Zloty = EUR / PLN
  • Euro vs Czech Koruna = EUR / CZK
  • Euro vs Hungarian Forint = EUR / HUF
  • Euro vs Norwegian Krone = EUR / NOK

How Does Forex trading work in South Africa?

You have two scenarios when you trade the Forex market: either you anticipate a rise in prices or you anticipate a fall in prices.

If you think that the price of a currency pair like EUR / USD is going to rise, then you are going to open a long or buy position in EUR / USD. So, you are actually going to buy the EUR and simultaneously sell the USD.

  1. If the currency pair INCREASES, you make a PROFIT
  2. If the currency pair goes DOWN, you suffer a LOSS

If you think that the price of a currency pair like EUR / USD is going to lose ground, then you are going to open a short or short position in EUR / USD. So, you are actually going to sell the EUR and simultaneously buy the USD.

  1. If the currency pair INCREASES, you suffer a LOSS
  2. If the currency pair goes DOWN, you make a PROFIT

When is the Forex Market Open?

The Forex market is open 24 hours a day from Sunday evening to Friday evening. Here is a summary table of Forex hours according to the different FX trading sessions:

Forex For Dummies – FX Schedules

Forex Market Opening

Sunday 23:00 – French time

Forex Market Close

Friday 10:00 p.m. – French Time

Currency Quotation

Continuous from Sunday Evening to Friday Evening – French Time

Asian Forex session (including countries like China, Australia, New Zealand, Russia, etc.)

 Usually Between 11:00 p.m. and 8:00 a.m. – GMT

European Forex session (including countries like UK, Germany, France, etc.)

Usually Between 7:00 a.m. and 4:00 p.m. – GMT

Forex session (including countries like Canada, United States and countries in South America)

 Usually between 12:00 p.m. and 8:00 p.m. – GMT

Peak Trading Activity in the Forex Market

  • When several Forex trading sessions are open at the same time like London and New York

  • When publishing important economic statistics or central bank decisions

What Are the Best Times to Trade Forex?

  1. Overlap several Forex trading sessions – One of the best times to trade the currency market is one where several trading sessions are open at the same time as c she Tokyo and London and the London and New York . During these times, trading is more intense because there are more active traders. In this case, the major currency pairs are the most interesting.
  2. Monetary policy decisions, central bank reports and other important announcements and statistics – The release of important economic or political announcements or statistics is also a time that can cause some volatility in the markets that traders can exploit. Among the figures or events having the most impact on the market, we find: inflation figures (CPI or PPI), employment figures (unemployment rate, employment report, demand for unemployment benefit), figures on economic growth (GDP or PMI / ISM index) or central bank meetings (interest rate decision, publication of FOMC minutes, ECB, BoE, BoJ press conferences, etc.)

How Much Do I Start Forex Trading With in South Africa?

Each Forex broker usually asks for a minimum amount to start trading Forex with them. With leverage and margin trading, you can increase your exposure to the Forex market by investing larger amounts than what you have in your trading account, which can greatly benefit your trading – still need to be. have a good grasp of these concepts.

Still enjoying this guide for Forex trading for beginners in South Africa?

What is Money Management in Forex Trading?

Money management, or money management in French, refers to all the rules related to risk management in your trading plan to better manage your capital: position size, level of leverage on the stock market, stop-loss and take orders -profit, etc.

Thus, money management allows you to identify, analyze and assess the risks on the Forex market and find solutions to minimize these risks and reduce their impact on your trading capital.

How to Pay Attention to Money Management When Trading Forex? It is important to always have risk and money management rules in your Forex trading plan to protect your trading capital.

12 Rules of Money Management in Trading

  1. Only trade with the money you can afford to lose
  2. Use a demo account to learn Forex through a regulated Forex broker in your area
  3. Understanding the Risks of Trading the Forex Market
  4. Learn how to quantify your risk per trading position
  5. Do not invest all your capital in one position
  6. Take into account the margin required to open a position but also your available margin
  7. Control your leverage
  8. Vary the size of your trading positions depending on market conditions and your trading capital
  9. Use a risk / reward ratio to determine stop-loss and take-profit orders
  10. Secure part of your profits
  11. Learn from one’s mistakes
  12. Do not let yourself be guided by your emotions

How to Learn Forex Trading Online in South Africa?

The best way to be successful in Forex trading is to start by learning what Forex is and how you can best trade it. So take stock of what you know about trading, the Forex market and Forex trading. Once you have determined your level of Forex trading knowledge and training needs, you can begin your research to select the best way to learn Forex trading for you.

There are also many online educational resources to learn how to trade Forex for free like how to do Forex trading in South Africa.

Forex jargon

AT

  • Technical analysis: Analysis of the price action of an asset to anticipate the direction that the said asset will take.
  • Fundamental analysis: Micro and macroeconomic analysis using fundamental factors to find the intrinsic value of an asset. Thus, a trader can determine if there is a buying opportunity (asset currently undervalued by the market) or a short selling opportunity (asset currently overvalued by the market).
    Ask price : Purchase price of an asset.

B

  • Central Bank: Financial institution of a country or region such as the euro zone which decides on the monetary policy to be carried out: interest rate, quantitative easing program, minimum reserve requirement for commercial banks, etc.
  • Bid price: Sale price.

VS

  • Economic Calendar: This is a calendar bringing together all the economic, financial and political events and announcements that may influence the markets. Thus, a trader can follow the most important statistics for the Forex markets such as GDP, CPI or even employment market figures.
  • CFD on Forex: Contract on the Difference whose underlying asset is a currency pair.
  • Currency carry tradingTrading technique which aims to take advantage of the interest rate differential between two economies rather than on the rise or fall in value of one currency against another.
  • Forex quotation: Indicative market price of a pair of currencies (bid and ask prices).
  • Cross quotes or indirect quotation: To determine the price of a currency pair, the investor will use the rates of the currencies that make up a pair against a common currency (often the USD). To determine the price of the JPY / CAD pair using the cross rate method, a trader will need the USD / JPY and USD / CAD pairs.
  • Quote at certain: Quoted currency where a unit of the local currency (base currency) is expressed in unit of the foreign currency (counter currency) as 1 EUR = 0.864366 GBP.
  • Quotation in uncertainty: Contrary to quotation in certain: a unit of the foreign currency (base currency) is expressed in unit of the local currency (counter currency) as 1 GBP = 1.15703 EUR.

D

  • Day trading: Style of trading where the trader closes all his positions during the same trading session to have no position overnight.
  • Base Currency: First currency in a currency pair.
  • Counter Currency: Second currency in a currency pair.
  • Interest rate differential: In the foreign exchange market, this is the difference in the interest rate between two currencies (a key concept in the currency carry trade).

E

  • Leverage: Using funds borrowed from a broker to increase your exposure to the markets you trade.
  • Exotics: Currency pairs with a major currency against a currency representing a developing economy or which has less influence on the international scene.

H

  • HedgingHedging technique aimed at counterbalancing the risks of trading positions by opening opposing positions.

L

  • Lot: Size of a standard position on the Forex market corresponding to 100,000 units of the base currency. Brokers generally offer other position sizes such as mini lots (10,000 units), micro lots (1,000 units) or nano lots (100 units).

M

  • Margin: Amount of trading capital set aside so that a trader can open a larger trading position than his trading capital allows.
  • Major: Currency pairs including the world’s most important currencies. The currencies forming the major pairs are EUR, USD, GBP, JPY, CHF, CAD and AUD.
  • Minor: Currency pairs including internationally important currencies without taking the USD into account.
  • Safe haven currencies: Currencies of a country deemed safer by investors in the event of economic instability or extreme volatility of the stock markets such as the American Dollar (USD), the Swiss Franc (CHF) or the Japanese Yen (JPY) .

O

  • Overnight : Overnight

P

  • PIP: Smallest unit of price of a currency, usually the fourth decimal place (or the third with pairs including the JPY).
  • Currency pair: Two currencies forming an exchange rate such as GBP / EUR (Pound Sterling / Euro).
  • Long Position and Short Position: A long position represents an open buy position to take advantage of a price increase. A short position represents a short position to profit from a fall in price.
  • Monetary policy: Set of decisions adopted by the central bank of a country to vary the money supply available in an economy.

S

  • Scalping: Ultra-aggressive trading style through which a trader takes advantage of rapid changes in the price of an asset (positions held for a few minutes).
  • Currency swap: Financial transaction aimed at exchanging a specified amount of foreign currency to another party.
  • Spread: Difference between the sale price (bid) and the purchase price (ask).
  • Slippage: Difference between the price targeted by the investor and the price obtained. Slippage can be positive or negative for the trader.
  • Spot market , spot or cash market: Market where assets are traded at the current price immediately.

T

  • Policy rates: Main interest rates of a country determined by the central bank of the latter.
  • Exchange rateRate of one currency against another (fixed exchange rate or floating exchange rate).

What Are the Most Popular Forex Trading Styles?

There are several styles of trading suitable for Forex Trading , which allows many types of traders to participate in this market. Here are the main Forex trading strategies.

Forex Scalping Definition

Scalping in the Forex market is a popular style of trading for aggressive and active Forex traders. The purpose of scalping is indeed to buy and sell a currency pair within minutes to make a quick profit. A scalper therefore seeks to perform many successive trading operations to accumulate profits on small price movements.

Scalping – Pros and Cons

Benefits of Scalping

  • Strategy requiring a low start-up capital
  • Trading technique that can adapt to bullish or bearish markets
  • Scalpers enter and exit the market very quickly
  • The results are known immediately
  • They make the most of the leverage offered by the broker
  • Exposure to market risk is limited compared to the time spent in a position
  • They win on really small price movements
  • Positions are only kept for a few minutes
  • With small price movements, it is easier to achieve your goals
  • Excitement, action and adrenaline are at their peak with this trading strategy

Disadvantages

  • You have to be very disciplined
  • Accumulating small positions means increasing your potential trading costs
  • Aggressive and stressful strategy
  • You have to be available in front of your screens to take advantage of each trading opportunity
  • You need to spend more time actively managing your positions compared to other trading strategies
  • Volatility can sometimes be an enemy
  • The psychological and emotional aspect can be important and weigh on the performance of a trader

Scalping – Best Tools

Since scalping is a technique aimed at taking advantage of small price movements, the scalper is generally a technical analyst who will use momentum and tools such as support, resistance or even trend lines on 1-minute charts. or in 5 minutes. Using an economic calendar is also important for scalping.

Forex scalping in 5 steps

  1. Spot the trading conditions of the currency pair: momentum and volatility
  2. Identify the trend followed by the currency pair at the moment: uptrend, downtrend or neutral
  3. Determine the closest and most significant support and resistance levels
  4. Use your scalping tools to get into position
  5. Manage your position according to your money management and your trading plan

Forex Day Trading – Definition

Day trading in the Forex market consists of holding your Forex trading positions from a few minutes to several hours within a single trading day. Thus, a day trader will close all his Forex positions before the end of his trading day so as not to have a single position open overnight.

Day Trading – Pros and Cons

Benefits of Day Trading

  • Strategy that can be implemented with a low starting capital thanks to the leverage effect
  • Trading style that works with bullish or bearish markets
  • Results are known at the end of the trading day
  • No position is kept overnight, avoiding surprises when you wake up

Disadvantages

  • It can be an addicting style of trading that leads to over-trading
  • When a trading opportunity arises there is seldom much time to think before seizing it.

Day Trading – Best Tools

Day trading strategies vary from trader to trader. Like the scalper, the day trader uses price volatility to profit from a market movement during the day. It is therefore important to know the price momentum and to visualize resistance and support levels. Some of the most popular technical indicators for day trading are moving averages, RSI, MACD, pivot points, and Fibonacci retracements. The use of an economic calendar is also important for day trading in order to anticipate movements of volatility.

Forex Day Trading in 5 Steps

  1. Identify the trend followed by the market at the moment: bullish, bearish or neutral
  2. Select the most promising currency pairs of the day
  3. Determine the most important support and resistance levels
  4. Use your day trading tools to enter and exit the market
  5. Manage your position according to your money management and your trading plan

Forex Swing Trading – Definition

This trading technique is much less aggressive than scalping or day trading, as it is more used by medium-term traders to take advantage of directional movements of a certain magnitude called swings . Usually a swing trader will hold their position for several days or several weeks depending on the trend of a currency pair.

Swing Trading – Pros and Cons

Swing Trading Benefits

  • Strategy that is better suited to people who prefer to hold their positions for several days
  • Trading style more suited to those who have a job, as there is little time commitment to follow the position
  • There are fewer trading positions than with scalping or day trading, but more organization and preparation to enter and exit a position increasing the chances of success over time

Disadvantages

  • Risks associated with overnight and weekend exposure to events around the world

Swing Trading – Best Tools

There are different swing trading strategies that require different trading tools. Among the most popular are trend reversals, pullbacks and even break-outs. The tools needed are generally trend lines, supports, resistances, trend reversals, indecision or trend confirmation figures, associated with technical indicators such as moving averages.

5 Steps to Forex Swing Trading

  1. Identify the general market trend: bullish, bearish or neutral
  2. Determine the phase in which this trend is located
  3. Find low points for a long position (swing lows) and high points for a short sell position (swing highs)
  4. Use your swing trading tools to improve your timing
  5. Manage your position according to your money management and your trading plan

Forex Trading Strategies, Signals and Robot

Depending on the style of trading and the trading strategy you use, you will be able to benefit from relevant trading signals that will guide you in your trading. What are trading signals ? A trading signal is a buy or sell signal that allows you to take a position accordingly to get the most out of your trading.

To take advantage of the best trading signals, you need to have a precise trading plan that will give you relevant trading signals based on market setups, your way of analyzing the markets, your trading strategy, and your goals.

Forex Trading for Beginners South Africa

What Are the Best Ways to Analyze the Forex Market?

Forex Trading Analysis – Definition

Forex technical analysis is the study of the price action of currency pairs. This is often pure graphical analysis combined with technical and mathematical analysis applied to prices. The theory behind technical analysis is that price action takes into account all the information available at a time t and therefore only price analysis is sufficient to trade. In addition, technical analysis considers historical price movements to be repeated. Thus, by analyzing past prices we can anticipate the potential future movement of a currency pair.

Forex Trading Analysis – Pros and Cons

Benefits

  • If the premise on which technical analysis is based is true, then only trading volume and price action are needed to determine the future direction of a currency pair (always readily available from an FX broker)
  • Flexibility on the time units that can be used depending on the trading styles: 1 minute chart, 5 minute chart, hourly chart, etc.
  • Many technical trading platforms exist today such as MetaTrader or TradingView allowing traders to have access to many tools and technical indicators
  • The basics of technical analysis are relatively easy to understand

Disadvantages

  • The interpretation of certain technical market configurations may vary from one technical trader to another.
  • For technical analysis, all the information is incorporated into the price movement and the actors react similarly to the available technical data, which is rarely true.

Fundamental Forex Analysis – Definition

Forex fundamental analysis does not focus on price action, but rather on the fundamental factors of a country to determine its overall and economic health with the aim of determining whether the demand for its currency will rise or fall. Fundamental analysis in the Forex market includes looking at all economic statistics and reports to determine currency price movements. The numbers taken into account by central banks in making their decisions on interest rates are the most followed by fundamental analysts.

Fundamental Forex Analysis – Pros and Cons

Benefits

  • Forex fundamental analysis takes into account what is happening in the economy of a country (unlike technical analysis which is based only on prices)
  • Fundamental analysis allows traders using it to have a global and more complex perspective of the fundamental situation of a country that can impact the demand for a currency.
  • Information analyzed by fundamental analysts is often public so it is easy to access

Disadvantages

  • More suited to long-term strategies
  • The learning curve is steep and the results often depend on the skills of the trader
  • Fundamental analysis is not the best option to help find points to enter or exit the market

What Are the Best Forex Trading Strategies?

  • Crossing Moving Averages
  • Bollinger bands
  • Fibonacci retracement
  • Pivot Points
  • MACD
  • RSI
  • Currency carry trade
  • Correlations

You can also get trading signals through third parties like Trading Central, through automatic trading with Forex trading robots or through the best copy-trading site on the market eToro.

Why Use a Trading Simulation?

It is important to use a Forex trading simulator to be able to test your trading strategy without risk. It is also a good opportunity to test the functionalities of a trading platform, as well as the availability and professionalism of a broker’s support team.

A Forex trading simulator makes it possible to use the fictitious funds of a broker in a secure trading environment via a demo account. This account allows you to familiarize yourself with the Forex trading environment without using your trading capital.

Advantages and Disadvantages of a Forex Trading Simulator

Benefits

  • Allows you to test your trading strategy to make the necessary adjustments
  • Provides the ability to view Forex charts and understand the process of opening and closing trading positions
  • Free training tool that allows traders to get their first trading experiences without risk
  • Allows you to familiarize yourself with the broker’s trading platform and tools
  • Gives the possibility to test the functionalities of a broker before funding his Forex trading account to trade in real life in order to know if the tested broker meets your needs
  • Tool to refine its risk and money management rules according to the options offered by the broker: type of stop-loss orders, type of take-profit orders, type of trading orders, etc.
  • Allows you to discover certain psychological or cognitive biases that we are confronted with in order to learn to better control our emotions

Disadvantages

  • Trading conditions not completely identical to real market conditions
  • Psychological aspect of underestimated trading in a fictitious trading environment

What Are the Best Forex Trading Platforms in South Africa?

It is hard to imagine that a single trading platform could meet all the needs of all types of traders.

Some like to trade on the go via a Forex trading app, while others prefer to trade Forex via an online platform and others will prefer Forex trading software installed on their computers… Some traders want to control all aspects of their trading, while others need tools to set up an automated trading strategy.

This is why the choice of a trading platform should be made according to your needs and the style of trading you want to set up. Before selecting a trading platform, therefore, think about your trading strategy and the tools you will need to make the most of it. By now you should have an idea how to trade Forex beginners in South Africa.

How to Choose the Best Trading Platform?

  1. It must be popular and recognized worldwide
  2. She has to be sure
  3. It needs to offer tutorials, videos, guides and other educational resources to educate its users and allow them to take full advantage of the platform’s features.
  4. It must meet your Forex trading needs
  5. It must be customizable so that you can create your optimal trading station for your trading.
  6. It must offer stock market orders adapted to your strategy
  7. It must be fast and the execution of orders must be optimal
  8. It must be intuitive and easy to use
  9. It must offer access to the markets you want to trade in addition to the Forex market
  10. It must work on several devices so that you can trade on different media and at all times (Android or iOS software or Forex trading platform on iPhone, Forex trading application, etc.)
  11. It must offer the technical and fundamental tools necessary for you to be able to set up your trading strategy as well as possible.
  12. It must allow you to apply good risk and money management
  13. The platform must allow the creation of price alerts or allow you to follow certain information with push notifications, SMS or e-mail
  14. You must be able to set up a VPS if you use an automated trading strategy so that your robot can work when your computer is off (VPS Forex trading)

MetaTrader

The MetaTrader trading platform was developed by the MetaQuotes company which specializes in the development of powerful and efficient multi-asset trading platforms.

There are two very popular versions of MetaTrader today: MetaTrader (MT4) – which was more developed for the Forex market, and MetaTrader 5 (MT5) – which is more intended to be a multi-asset trading platform.

Both platforms can be used on PC, MAC, web browser and mobile. Although both are popular, MetaTrader 5 is a newer platform than 4, making it a more advanced platform with more trading options, features, markets, and stock market orders.

TradingView

TradingView is seen more as a platform for getting real-time trading information and ideas than a pure trading platform (although it is offered by several stock brokers and there is a trading option in the graphic available).

Easy to use for Forex beginners and powerful for experienced traders, TradingView offers many chartist tools and features to perform comprehensive technical analysis on many markets including the Forex market.

This platform is also a social trading platform , as it allows users to share their trading ideas or market sentiment.

How to Open a Trading Account in South Africa?

When you have selected the Forex broker you want to use, nothing is easier than opening a trading account (as long as you have all the required supporting documents).

In general, the broker will ask you several questions to find out your knowledge of financial products, your trading experience, your trading habits, the level of risk you are willing to take, your financial situation or the source of the funds you want. use in your trading.

All of these questions are designed to determine whether the financial products and services offered by the broker are suitable for your trader profile. This step also allows you to determine the level of protection you will receive.

After answering a questionnaire, you will need to provide several supporting documents, in particular proof of identity (driving license, identity card, passport), proof of address (bank statement, water bill, electricity bill, etc. telephone bill) and proof of the source of funds (official documents proving the sale of land, inheritance documents, donation documents, payslips).

The Welcome Bonus at the Time of Account Opening

Some brokers like CM Trading may offer benefits at the time of registration such as a Forex bonus on first deposits, but this is not automatic. In our experience, a trader shouldn’t prefer one Forex broker over another just because they offer a welcome bonus.

What about Taxation related to Trading?

Many newbie traders are wondering how to report profits from their Forex trading activity. This is why one can find many questions on this subject in Telegram forums or groups, and for good reason.

The taxation of Forex trading is an important aspect that must be taken into account from the start to optimize your results and put in place the best trading tax strategy.

Forex Trading For Beginners in South Africa – Final Words

Forex trading (buying and selling currency pairs) is of interest to both novice traders and seasoned traders who want to profit from the most liquid market in the world. Several styles and trading strategies can be implemented in this market, which allows all types of traders to benefit from it. So why not you ?

To be successful in Forex trading, it is important to educate yourself to fully understand what influences the price of currencies. You must also choose your trading style according to your personality, your risk aversion and your starting capital. So determine what kind of Forex trader you are before developing your trading plan and choosing your Forex broker.

Forex Trading for Beginners

8 Tips for Getting Started in the Forex Market

Here are some Forex trading tips that could help you start your Forex trading business off on the right foot:

  1. Take the time to analyze your financial situation to properly determine your investment objectives (clear, precise and realistic) and your availability to do Forex trading
  2. Determine your level of knowledge of the Forex market and trading in general to know what type of trading training you need to take
  3. Know your trader profile to create a relevant trading plan for you
  4. Make a List of Your Trading Needs to Select the Right Forex Broker
  5. Test your trading strategy via a demo account (Forex trading simulation) with several brokers
  6. Compare trading conditions and fees to choose the right Forex trading site for you
  7. Keep a trading journal to analyze your trading process and make any necessary adjustments to improve the profitability of your investment system
  8. Always stick to your trading plan, control your emotions and be patient

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Forex Trading For Beginners FAQs

What is Forex Trading?

Forex trading is a style of trading dedicated to the forex market in which currency pairs are bought and sold in order to profit from changes in the relative price of one currency against another.

What Is the Best Forex Broker?

If you want good customer service and top notch help with your Forex trading education, you can choose Admiral Markets. If you don’t know how to trade Forex beginners in South Africa and want to copy other traders, choose eToro. If you want to take advantage of a bonus on your first deposit to trade Forex, choose CM Trading.

Why Invest in Forex?

Many traders want to invest in Forex because it is the most liquid market in the world and because it never sleeps! So you can trade Forex whenever you want when you are available depending on your trading strategy. In addition, barriers to entry are low. For example, the minimum deposit is €100 at Admiral Markets or $200 at FXMG South Africa or eToro.

How to Start Forex Trading in South Africa?

The first thing you need to do if you are new to the world of Forex is to educate yourself in trading and the Forex market to fully understand how everything works. Then you need to develop your trading plan according to your personality, your trading strategy, your availability and your risk tolerance. Finally, you must use the demo account of a broker like CM Trading or Markets.com to test your trading strategy and the functionality of the broker’s trading platform.

What Is the Minimum Deposit Amount Required to Trade Forex?

The minimum amount to start trading Forex is relatively low, but it varies from one Forex broker to another. It is therefore necessary to verify the funds required to start trading with a broker before starting the account opening procedures. For example, the minimum deposit to trade Forex at Admiral Markets is €100, while it is $200 at FXMG South Africa or eToro .

When to Trade Forex in South Africa?

The Forex market is open 24/7 which means you can trade currencies whenever you want based on your availability, your trading strategy and the pairs you want to trade. The most interesting times to trade Forex are when several trading sessions are open at the same time or when economic and political statistics and announcements are made.

What Are the Best Currency Pairs When Starting Forex Trading?

As a beginner, it is best not to invest in too many different currency pairs. We recommend that you use the major currency pairs in your trading first, as they are the most traded pairs and the pairs with the most information. These are also often the pairs with the lowest trading costs.

Can We Live From Forex?

Making money with Forex trading takes time, commitment and seriousness. There is no such thing as “get quick wins with risk-free Forex”. Worse yet, they are fake! Because every investment has a certain degree of risk – especially since the gains are generally proportional to the level of risk you take.

How to Open a Forex Trading Account in South Africa?

To open a Forex trading account in South Africa, you must first go to the official website of the online broker you want to use. Then, you must complete the account opening form by answering several questions that will allow the broker to determine the type of trader you are. Finally, the broker will ask you to provide several official documents such as an identity document issued by the government, proof of address or even proof of the origin of the funds that will be used for Forex trading.

What Are the Best Forex Trading Strategies?

Some of the most popular trading styles in the Forex market are scalping, news trading, day trading, swing trading, and currency carry trade.

Forex Trading – Halal or Haram?

Investing in halal is important for many traders of the Muslim faith who wish to profit from trading in accordance with Sharia law. This is why many Forex brokers like Admiral Markets, AvaTrade, Axi, eToro or even Vantage FX offer an Islamic trading account, also called a swap-free account, which turns classic trading, often considered haram, into halal trading.

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