Usually, a scalper enters and exit trades several times a day and the trade holding time period is very small generally few minutes. Joined Apr 30, Messages 15, Our affiliate trading site allows all traders to trade with confidence by ensuring high standards of fund security through separate accounts at big international banks. If you are a seasoned trader or want to learn with many of the features at your disposal then Trading Point is for you. You can make easy money, fast, and lose it just as quickly. However, some people prefer to install a trading software on their computer and start trading. A forex trader makes a profit by purchasing a currency and then selling after the price has changed.
For more on this read our taxation article for forex traders who reside in South Africa. FSCA (formerly FSB) Regulation in Forex Trading. South Africa’s investment regulatory body is called the FSCA (Financial Sector Conduct Authority) – formerly known as the FSB. It is their job to regulate all non-banking service providers in South Africa.
As such, it is the only body you can turn to in case of any disputes. However, licenses from CySec, FSA, and other trusted regulators gives you the same level of protection, which is particularly useful considering the FSB has rarely been involved with Forex brokers. When choosing what broker to use, the first thing you need to consider is whether the broker is licensed and registered with any relevant body or not.
Needless to say, you should always choose brokers that hold a license to make sure you have the best trading experience. In short, it all comes down to having the right:. Unless you are planning on only trading Rand pairs, you should choose a broker that can offer more trading variety rather than just the standard offer.
Most brokers will offer from one to several popular platforms like the MT4, while some will even develop their own. The easier for you to understand your platform and tools, the easier will it be to start earning money.
The leverage offered by Forex broker can range from something as small as And lastly, if you want to enjoy more than tight spreads, pair variety and good leverage, you might also want to check out the bonus offer. Another way in which brokers compete against each other is by offering sign up and loyalty rewards to their customers.
Some brokers will offer no deposit rewards while others will have additional promotions like trading competitions with lucrative prize pools, or similar incentives. Choose what speaks to you most. When picking your South African Forex broker, there are also other important factors, apart from the trading offer and license. And although these are not the most crucial of features, the following are still vital to having the best possible trading experience with your Forex broker:.
The payment methods offered by your broker are important, because some methods have a much faster processing time and fewer fees than others. While e-payment providers will usually process your withdrawals in up to 24 hours, banks might take anywhere from 3 to 7 days to do to this. And depending on the broker, you might also be charged fees for withdrawing money out of your Forex account.
While this is no longer a standard practice in the industry, there are still some companies that do this. There are also some brokers who charge account maintenance fees and apply other additional charges. Resources are yet another overlooked factor that is just as important as any other feature of your Forex broker. Keeping yourself updated and informed can make a world of difference when trading foreign currencies, as most major market events can be foreseen, to some length.
The regulatory body for non-banking financial institution is the Finacial Services Board FSB , although they have rarely issued licenses to Forex brokers. Is Forex trading taxable in South Africa?
Profits from Forex trading is taxable, just like your normal income, based on the applicable tax rates. The spreads are not the tightest on the market, but the minimum deposit is just right for this market, and the winning mentality of the customer support will keep you happy.
I like Avatrade because it is a well-established broker that covers all the basics, and does them well. If you are a beginner looking to start trading in South Africa, AvaTrade is highly recommended. Read CM Trading Review. CM Trading have numerous advantages for us South Africans, in addition to the offices, because I am able to easily transfer funds to a local NED bank account directly from our local bank accounts. Being in South Africa is often frustrating when we have to wait for Europe to open to make deposits, so if you are looking to have more flexibility, CM could be good for you.
If you are a bigger trader, CM uses Intercash so that funds are moved in and out of the trading account as fast as possible — but I have not yet tried this. While the website and the sign-up process could be easier, the staff are welcoming and helpful if they are called upon to help out. If you want a broker with good leverage, Easy Forex is probably not for you, but if you want to start off a trading career with low risk then that low leverage does play in your favour.
XM — Best Account Options. I first started using XM when I was trading binary options, and really appreciated the advanced uses of this broker. This broker has huge leverage, and tight spreads but to mitigate risk hedging is allowed. If you are a seasoned trader or want to learn with many of the features at your disposal then Trading Point is for you. This broker has no minimum on the micro and zero accounts making it hugely attractive for newcomers too.
In the financial markets, a Forex broker is an intermediary or the middleman that allows people to have access to the Interbank market. The Interbank market is simply a network of banks and electronic brokering platforms that trade with each other and offer liquidity. A Forex broker will offer you currency quotes at which you can buy and sell in exchange for a small fee or commission. In some cases, a Forex broker can be the sole counter-party of your transactions.
Put simply, a Forex broker has two fundamental functions: A regulated Forex broker is simply a licensed Forex broker that operates within the boundaries set by the governmental regulatory bodies. The regulatory agencies ensure that the retail Forex traders have part of a fair trading environment and protection against possible frauds.
A Forex broker with a supervisory agency is perceived to have more integrity. On this site, we have strict citeria for introding brokers to our readers. We have worked for many years in the industry, and we are well connected with the brokers and the reputations of the brokers in the community. We believe that a forex trading experience should be safe, and fun. In this type of trading environment, your orders are processed straight through to the Interbank market, connecting you directly to the liquidity providers.
Dealing Desk Brokers are also called market makers, which means the Forex Brokers sets their own price rates for currency transactions. This means the Forex Broker trades against its client base. For the privilege of offering you access to trade the Forex currency market, the majority of the Forex brokers will charge their clients either a commission or the spread. This is simply associated with the cost of doing business in the Forex market.
However, a Forex Broker can make money through three different income streams and beside commissions and the spread he can also make money if your broker is a Market Maker and take the other side of your trade because he makes money every time you lose. This makes total common sense for the broker to be on the other side of your trade because they can profit from that. Some brokers have proprietary software while others use popular platforms like MetaTrader4 , cTrader, and other software packages.
Most brokers also have forex trading mobile phone apps.
6. SARS and its tax implications on Forex Trading. The South African Revenue Service’s (SARS) treats profits from Forex trading as gross income and is therefore subject to income tax as per the Income Tax Act. All expenses incurred from trading must be deducted from . South Africa is one of the most developed countries in Africa, so it’s not surprising that the country enjoys one of the most reliable and established regulatory bodies in the region for those who want to trade Forex (and pursue other economic trading opportunities). Forex trading is becoming increasingly popular in South Africa, and brokers are sprouting there weekly. Both global brokers and local brokers are looking to attract South African traders to .
FXCM South Africa (PTY) LTD is an operating subsidiary within the FXCM group of companies (collectively, the “FXCM Group”). FXCM South Africa (PTY) LTD is an authorized Financial Services Provider and is regulated by the Financial Sector Conduct Authority under registration number Top Forex Brokers in South Africa for Forex Trading Foreign exchange trading, or Forex trading, has always been one of the most popular profit-making opportunities in modern times, and thanks to technology, it is now available to anyone, any time. Jan 31, · I would like your advice on your experiences with Forex, have you tried it out, were you successful? What kinda platforms should I look into? Forex Trading in South Africa.
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