Choosing the top forex brokers in South Africa is not an easy thing nowadays due to the increasing of forex brokers all around the world. This article will help especially South African traders to find their best brokers to work with, based on some common standards that are explained clearly below.
HOW TO COMPARE
Basically, there are 3 main standards to compare brokers to each other as below:
- Trading conditions
- Types of account
Each broker is rated depending on the regulation, platform choice, and trading conditions for the clients.
In common, the more major regulators a broker has, the more trust and integrity it gains from them. The trusted licenses are such as FCA, FSCA, CySEC & ASIC. Brokers which sign up to these regulations have to follow the rules accompanied with and make sure that the trading environment is safe and all the funds are protected as well. The organizations are the governmental regulatory bodies.
If we want to trust a broker, we have to see these 3 most common things first: trusted regulation, trade execution method, and client fund management.
Of course, the broker must be regulated and reliable. It would be better to have more than one international regulations from the major regulatory agencies.
Trade execution should be evaluated carefully because it is the performance of the broker. In this term, we have to see: if a broker executes the trades well or not, a dealing desk is involved in the execution or not, if there is any conflict of interest between traders and the brokers, if the broker receives financial incentive to have you lose your trades or not. Bad things may happen in this term, and it could indicate that the broker is less trustworthy.
Finally, every broker has a risk of bankruptcy. Therefore, a good and reliable broker knows how to protect the benefits of traders. It will separate all the funds of traders into different accounts at major banks in the local jurisdiction, which would reduce the damage from bankruptcy if it happens. One of the most reliable brokers is Exness => Exness sign up.
Spread is one of the most considered issues in forex system because it is the cost for traders. It is measured in pips such as 10 pips, 15 pips, 0.3 pips,… According to this, 10 pips is considered wide spread, when 0.3 pips is considered tight spread. Traders often like tight spread, so they would love to work with brokers which offer the tightest spread (lowest spread).
Leverage is one of the most useful tools provided by brokers. Why so? Because it could amplify the size of trades, which is originally very small due to the small movements of the market. Leverage helps traders a lot, especially individual retail traders to do business in this term. For example, a leverage is 750:1, it could be increased up to 750 times by traders, which is very big. Different brokers provide different leverages, which are suitable for each trader.
Live or Real accounts, the Demo accounts, and Swap-free account are the 3 main account types recently. Managed account is used by some traders but very rare.
LIVE / REAL ACCOUNTS
We are talking about real money, real profit, real prices and real conditions. Your account balance is really affected after a trade because this is regular account used by all traders in the market.
Instead of real things, this account use unreal money, unreal profit and fake prices, fake conditions. In common, this is mostly for newbies who are new to the market. They could learn and practice trading forex herer.
In brief, to choose the best forex brokers in South Africa, traders should compare brokers in that area to each other and then make the final decision.
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