Currently there are many brokers operating in South Africa, so finding the best one is harder than before. Traders must have much experience and vision to be able to discover the strong points of one broker. However, the best one for traders do not have only strong points, traders should consider their trading strategies and plans before deciding to cooperate with one broker. In this article, I will show you how to compare brokers in South Africa and clarify all factors for the top best forex broker in South Africa.
How to compare brokers in South Africa?
During my path in forex trading, I have traded with over 25 brokers and experienced many situations with them. I am confident to say that I could give you the best advice to choose the best broker for each of traders, especially in South Africa. Traders should compare among brokers according to following criteria:
- Regulation is the factor to prove the credibility of one broker.
- Trading conditions are details of requirements that brokers offer for traders in their trades.
- Account types. There are various kinds of account types so traders must be clear in choosing the most suitable account type as well.
When mentioning the credibility of one broker, we often think of regulations or license of that regulation. So what is the regulation? Regulation is the range of standards that non-profit or profit organizations offer to manage the broker. Regulations operate within the boundaries of governmental regulatory bodies such as FCA, FSCA, CySEC and ASIC. These regulations help to provide the fair trading environment for traders and avoid cheating from brokers.
The way broker operate your traders is important to decide how many traders sign in. if there is any conflict among traders and brokers, the way brokers deal with this problem become the decisive reason for traders’ choice. Normally brokers usually have some incentive programs for traders, if these programs make traders get losses, this broker may be less trustworthy.
Spread: is the difference between the selling price and the ask price for currency pair in trading. The spread is 15 pips which is considered wide spreads. 0.4 pip is the tight spread. Each broker has their own spread depending on their strategy and plans. Traders tend to choose the best broker with tightest spread. By this way, they can maximize their chances to get the highest profit if they win.
Leverage: is the way to open the trading business. Leverage is normally shown in a format like 300:1 – in this case, a trader can increase the size of trade up to 300 times. Moreover, broker has the right to limit or open traders’ leverage based on their experience.
Depending on the purpose of trading, traders will choose the suitable account for themselves. For example, trading beginners tend to choose demo account or Cent/ Micro account with the low minimum deposit to save money for practicing the trading cost. Currently, there are some popular account types such as Live or Real accounts, Demo accounts and Swap-free account.
- Live or real account: with this type of account, we must use real money to trade in the real trading environments with real trading action. All you do would have the impact on your account balance.
- Demo accounts: Like its name, this type of account allows traders to trade with fake account and fake trading conditions. They let traders try trading platform, customer service, research area, and trading conditions. However, traders should trade with this account type within a short time and don’t waste time trading with them too much.
As you can see, it’s not hard to find out the top best forex broker in South Africa. Based on my standards, find yourself the most suitable broker for you and then start trading today.
Synthesized by top4forexbrokers.net