Currency Trading in South Africa
Compared to the rest of the continent, South Africa is a bastion of freedom and a model of economic growth, and there are currently millions of SA residents looking to invest their money into various markets in order to profit. That’s not to say that the South African economy is booming or surpassing any other industrialized nations in terms of growth. But compared to the SA of 20 years ago, 2012’s nation is bustling.
Many SA residents are looking into Forex (the Foreign Exchange Market) as a way to invest their money. By trading currency pairs, you can profit according to the strength of your base currency vs. another trader’s currency. For the ZAR (referred to as simply “R” here) in particular, this currency is fairly strong on a world scale, with mining operations and other economic factors backing it.
You may have searched terms like “currency Forex market trading” before, specifically dealing with South Africa, in order to get some information about it. Well, here is some valuable info related to currency trading in South Africa. Hopefully you will come away able to make an informed decision – welcome to the world of Forex.
Is it Different Than Other Places in the World?
There are a few differences in South African Forex trading and currency trading in other parts of the world. However, these are not major differences, and they’re in no way differences that would impede your progress as long as you’re willing to look before making the proverbial leap.
For example: South Africa has a lot of fake brokers and bad software out there; this is why there is a great trend to look internationally for brokers that can be more accredited and reliable. The market hasn’t been saturated by any stretch, but if something looks too good to be true, it generally is; remember to research every single broker, software package, and other Forex-related aspects before ever trusting, signing up or spending money!
Another difference is that the South African government will limit the amount of money you’re able to invest in Forex trading. Currency Forex trading doesn’t require millions invested to profit, so, again, this isn’t anything that would impede your progress.
The South African Forex market is also relatively new on a world stage, so be careful when trading that you understand the strength of your currency and that you’re playing the long game. Learn more about Forex trading in general to protect against bad trades.
Is it Actually Legal in South Africa?
Every nation has many different laws – rules and regulations that many of its citizens aren’t even aware of. Forex trading in South Africa is legal, but it’s not something that’s necessarily mainstream, and thus not every citizen knows that it is legal, and even some of those that do don’t know about any of the regulations.
As of 2010, currency trading Forex platforms, brokers, and the market in general became generally easier and more tolerated in SA. It also became legal for South Africans to move their money around.
Brokers will have a harder time setting up shop in South Africa, because they have to worry more about the money being transferred and those particular regulations. The average investor, however, simply has to find a reputable broker.
At the end of the day, currency trading in South Africa is a pretty straightforward process. The trading works the same. You just have to select the right software and broker and avoid scams and bad investments.