It seems not to be difficult for traders to find a reliable and good broker in the forex trading, but it is another story in South Africa. Actually, there are hundreds of forex brokers in this market, but choosing the best brokers is never an easy job. This challenge requires traders to consider carefully and understand the features of brokers well.
The hard fact urges us to carry out a research to give traders the standards which they can base on in order to choose the top forex brokers in South Africa. Accordingly, the article explains standards which are regulation, trading conditions, and account types.
FOREX BROKER REGULATION
Why traders are warned to focus on the regulations which brokers have? Because regulation is the factor of trust, the credibility of brokers is evaluated through regulations. After investigating brokers’ capacity, authorized organizations will issue them regulations which can protect traders in case of troubles. It is essential for traders to check whether regulations of brokers are trusted or valuable because not all licenses are granted by organizations with a big voice.
In South Africa, we can recommend traders FCA, FSCA, CySEC, and ASIC which are some of the most trusted regulations. Traders are not suggested to find brokers who own all those regulations, one or two of them is enough. To receive the said regulations, brokers must meet lots of standards; therefore traders can be guaranteed. One of the safest brokers is Exness -> Exness reviews
FOREX BROKER REPUTATION
Besides regulations, traders should consider the trade execution method and fund management of brokers. Traders had better choose brokers who provide both major regulators and minor ones; this shows the level of oversight of the broker. Moreover, the client fund management is also important; funds should be segregated in different accounts at major banks to be protected from loss in case banks get bankrupt. It is so risky if traders choose brokers who have a connection to only one bank. This is the wise step in general business and in the forex trading particularly.
FOREX BROKER TRADING CONDITIONS
Traders who have transactions in the forex industry must be familiar with terms such as spreads and leverage. These are two of trading conditions which traders, even beginners or experts must think about because it is influent on their profits.
Spread is the difference between the bid price and the Ask price, this is measured in pips. In another word, it is an indication of the sell and the buy price for any currency pair, so it means that traders should choose brokers who provide the difference is small. The closer the distance is, the more profits traders can get.
Leverage is considered as a borrowing which the best forex brokers 2018 supply traders for their trades, or it can be understood as a capital provided by brokers for their customers to work in the forex market. There are lots of margins for leverage; the ratio is based on total transaction value. Leverage is one of the top elements to help the forex trading attract traders. For example, with format 100:1, only with $1,000 in your account, you can trade up to $100,000 in value.
FOREX BROKER ACCOUNT TYPES
Best brokers must have different accounts, especially Live/Real accounts and Demo accounts. The difference between these accounts is its reality. For Live/Real accounts, traders must be careful because all actions can affect their account balance, but Demo accounts are opposite. Beginners are able to practice on this type of account before trading officially.
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