The forex trading now is on the path of strong development in all religions, and South Africa is no exception. This is very good news, but it is also a challenge to traders in South Africa when they might not know how to choose the best brokers to work with. This article will explore standards which traders can rely on to evaluate brokers in their country and decide which to be the best.
Those standards are regulation or reputation, trading conditions, and account types. In order to give that conclusion, we have carried out research on numbers of the best forex brokers 2018 to investigate how they are operating, whether they can meet requirements, and which order they are ranked.
FOREX BROKER REGULATION
First of all, traders in South Africa should ask themselves what regulated forex broker is and how to know if that broker is reliable or not. The answer is regulation. Regulation is the factor to define the credibility of brokers. Never choose brokers without regulations.
Traders should know that the regulation is not easy to be owned. If brokers cannot meet standards which are listed out by authorized organizations, they will never get licenses which can protect traders during their trading period with brokers. As a result, regulations or licenses are very important. In South Africa, FCA, FSCA, CySEC, and ASIC are the best regulations. If your broker can achieve one of those licenses, it is your good choice. It is unnecessary to choose brokers with a dozen licenses, this can make you pay a higher fee because brokers have to pay a fee to get regulations. Therefore, one or two regulations are enough, but it is compulsory to be issued by authorized organizations. One of the safest brokers is Exness -> Exness reviews
FOREX BROKER TRADING CONDITIONS
For trading conditions, traders should focus on spread and leverage provided by brokers. They are not the only things, but the most important factors according to our research. Spread is measured in pips and leverage is presented in a margin.
The spread is defined to be the difference between the bid and ask price, so traders tend to choose brokers with the tightest average spreads on the pairs so that they can get higher interest for every transaction. Like spread, leverage is different among forex brokers. It is presented in a format such as 100:1, 300:1, or 400:1 and traders can understand it as a borrowing from brokers to traders. This example will make you clear: margin 300: means if your account has $3,000, you can trade up to $300,000.
FOREX BROKER ACCOUNT TYPES
In order to serve groups of traders, the top forex brokers in South Africa provide various account types, among them Live/Real accounts and Demo accounts have been concerned by traders most. While Live/Real accounts could affect the account balance of traders for every transaction, Demo accounts have no risk. This kind of account helps traders have an opportunity to practicing before having a commitment to the interesting but risky market. Clearly, nobody wants to get lost or troubles in the very beginning period when they are not experienced in any fields, so Demo account is an ideal option.
From the above analyses, we can give a brief conclusion that regulations, trading conditions, and account types are the three most important for traders in South Africa to concern to choose the best brokers.
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