Forex is an incredible opportunity that everyone can access. However, in trading (Forex trading), it is crucial to take the proper first steps for success.
Because for example, choosing a broker directly affects the trader’s opportunities, including trading tools, working with relevant analytics, and investment programs. This article is created to help beginners to understand everything and simplify their way.
We will consider the main points determining a beginning trader’s future success and help you approach it much faster.
5 Steps to Successful Forex Trading in South Africa
One of the Forex peculiarities is that private players can’t trade currency on their own. A trader works only through a broker, an intermediary company that is an official participant in currency trading on the interbank market. That is why all 5 basic steps for successful trading, which we will consider now, concern Forex brokers in one way or another. By following these steps, the beginning trader will protect himself from common mistakes, minimize risks, and get a full range of successful trading opportunities.
Registration on South Africa platform
To build a high building – you need an excellent foundation to start your way to success on Forex – it is vital to make the right first step. And this step is registering on our site.
Choosing a Reliable Forex Broker in South Africa
After registration on the website, you will need to register with a broker – that will be the second step. The broker gives the trader access to the interbank market, executes the trader’s orders, and provides him with a trading platform and information support. Also, the broker gives the trader additional possibilities to earn money through investment programs.
The choice of a broker is a conceptually important step for successful trading. After all, incompetence is far from the main problem a trader may encounter if he chooses an unreliable brokerage company. There are still various fraudulent schemes – from forex kitchens, which do not withdraw their traders’ orders to the interbank, to pyramid schemes disguised as investment schemes.
What criteria to consider when choosing a Forex broker
Year of foundation
If the brokerage company was founded last year – do not work with it. It can be promising and with favorable conditions. Still, the lack of experience will play a cruel joke on the broker and the trader if there is an economic crisis or other unpredictable events. A reliable and experienced broker you can trust must work on the market for at least five years.
Age of the domain
It is a conceptually important point because many brokers, working for only 3-5 years, say their companies were founded 10-20 years ago. But a broker needs an official website to be licensed – accordingly, if they entered the market 20 years ago, the website domain is about 20 years old. The data on the domain is easy to check through free services.
There are many possibilities for a minimum deposit, trading platform, broker’s commission on transactions, analytics and signal providers, PAMM accounts, and investment portfolios. Here, studying all the nuances and understanding how they suit you is imperative. As far as additional options are concerned, the more there are, the bigger and more reliable the company with which you plan to work. But again, this does not invalidate the analysis of offers for profitability.
Basically, it is currency pairs (Dollar/Euro, Canadian dollar/Swiss pound, etc.). It is better to choose a broker who offers many currency pairs because no successful trader limits himself to one or two trading instruments.
Learning the Basics of Forex
You don’t need an economic education to be a successful Forex trader. Nevertheless, a trader still needs to obtain basic knowledge about the structure and functioning of the Forex market before proceeding to trade. For example, you can find great courses on smartyafrikaners.com. And this will be the 3rd step.
It is necessary to get a general idea about specific terms, typical trading strategies, forecasting approaches, risk diversification methods, etc. We want to note that all this is not as difficult as it seems – it is not so volumetric a layer of knowledge.
Funding a Forex Account and Trading
Once you have opened an account with your Forex broker of choice and learned the basics, it’s time to fund your account and try actual trading.
The success of a Forex trader is always based on a well-thought-out strategy and the absence of haste. That’s why it’s wise to open a trading account with a minimum deposit first, and there is no sense in risking significant sums at once. Many brokers offer demo accounts, which replicate real accounts’ mechanics without any investment. Such accounts are suitable for basic training but are of little practical use.