Forex Trading South Africa

Want to trade Forex online in South Africa? TradeForexSA answers questions for those who are getting started with Forex trading and gives honest and balanced reviews of the Forex brokers available online.  Forex trading can be a lot of fun, but it does come with a great deal of risk.  If we help you choose the best broker, by weighing every pro with a con, we have then succeeded in our goal.

The Best Forex Trading Brokers For South African Traders

What is Forex Trading?

In the past, you might remember that when we traveled overseas we needed to exchange money before we hopped on the plane.  It meant that we needed to take money from our bank accounts and either change our money into cash or a traveler’s check that we could cash on arrival at our destination.  Although this no longer happens as much because of wide-spread credit card use, the practice of buying and selling one currency for another still takes place.  It takes place on the global currency market and everyone from the smallest of forex traders to the biggest of banks are continually buying and selling currencies for profit.

The Foreign Exchange Market, or Forex, is the biggest financial market in the world. Dealing in the trading of international currencies, Forex has different financial centers located around the globe, and buyers and sellers work throughout the week to trade currencies and other commodities.

Forex trading, as with the buying and selling of any other product on the market, has everything to do with supply and demand.  If we are going to sell a currency there must be someone else who must be willing to buy it.  Because of the potential for profit, there will always be a lower price and that buyer will be willing to pay for a unit of the currency than for buying it.  A forex trader is able to make a profit by purchasing a currency and then selling after the price has changed.

The biggest difference with Forex trading, compared to trading more physical products, is that traders can either invest in the price increasing or decreasing.  This is called going long, or short.  A forex trader is able to make money by speculating on a currency dropping in value (going short) or increasing in value (going long) as long as the determination is made in advance.

New to Forex Trading?

Learning to trade forex can be hard but you are not alone.  We have put together a set of articles to get you comfortable enough to get you started and take that first step. Much of trading is learning by doing. Once you understand the basics because it is only using expert tools and doing your own analysis that you will start to understand what is involved.  So, as you choose your broker, read the following articles.

Getting started with Forex Trading

  • Find a broker on our website that would suit you.
  • Open an account on the broker website by providing your name and phone number.
  • The broker will call to see how to give you the best start.
  • Verify your identity & personal details by providing the requested documents.
  • Make your initial deposit to start trading & get access to training material.

Featured Sections

Demo Accounts

Demo accounts are a good way for a new trader to try a broker without risking any capital.  Demo accounts often have all of the features you would expect from the broker, and it gives the trader a good feel for what trading would be like with MT4 or with the broker’s own software or apps.  Read more.

Cryptocurrency Trading

Looking to trade Cryptocurrencies like Bitcoin and Etherium? They have become very popular and are good trading for those who enjoy technical analysis and charts.  Here are the best brokers who offer these assets.  Read more.

Forex Trading Apps

Some Forex trading apps are high quality and can be used in trading, price quotes, currency comparisons, and analysis.  Here is a list of brokers with great mobile apps so you are ready to trade on the move.  Read more.

What is Forex Trading Like?

Forex traders spend much of their time looking at the way the value of a selected currency changes over time.  This is always done in relation to another currency, just like the example above when we would sell our ZAR to buy another currency we traveled.  The best way to visualize these changes over time in on a chart, and below is the chart showing the changes in the ZAR and USD prices over time.

Is Forex Trading Profitable?

Forex Trading can be profitable or unprofitable depending on what at trader invests in, how the trader makes the investment, and the market conditions during the time they hold the investment.  These aspects working together will determine if the trade is profitable.  Forex traders will always lose a portion of their trades, so it is important for all traders to set a win-loss ratio that you should target.  As a general rule, a trader should not invest more than 2% of their total capital into one trade, and never trade any money that you can not afford to lose.

Are there Forex Trading Tools?

There are a great number of tools to help with Forex trading.  Most of them are already included in the platform that you use when you sign up with the broker, but there are other good stand-alone pieces of software that can be a real help give you an additional edge in your trading.

We feature these kinds of software because we believe they have great value for the readers. Examples of tools are FormationSeeker that helps traders identify harmonic patterns in the trading and highlights opportunities for profit, and PitView that gives full transparency to how the banks are trading making it much easier to predict the market.  For a full review of all Forex analysis tools, you can read our article here.

Do forex traders pay tax in South Africa?

Forex gains are not tax-free income, and all gains from your Forex trading are taxable even if your brokage and capital are overseas.  South Africans are expected to declare taxes just as with any other income either as an individual or a company.  For more on this read our taxation article for forex traders who reside in South Africa.

FSB Regulation in Forex Trading

South Africa’s investment regulatory body is called the FSB (Financial Services Board) whose job it is to regulate all non-banking in South Africa.  Regulators like the FSB are put in place to protect the public from financial crimes and irregularities.  Today, in addition to regulating trading on the JSE, the FSB regulates Forex trading brokers.