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SA Forex Trading – Can You Become a Forex Trader in South Africa

 

We often hear many questions related to the legality of FX trading, like “Is FX trading legal.” And when we talk about it regarding a specific region like South Africa, people must ask, “Is SA forex trading legal?”.

South Africans can fairly trade in the foreign exchange market via any FSCA regulated forex broker. The daily development of forex trading in SA is evaluated to be about USD 21.4 billion per day in 2021. 

So, suppose you are a newbie and want to get a legit idea and understanding about SA forex trading. In that case, this article is ideal for you. So, let’s begin:

What is Forex Trading? (A definition for Beginners)

Forex stands for foreign exchange, and it is always meant to convert one currency into another. It’s one of the most actively traded markets globally, with an average daily trading amount of $5 trillion. If you are a South African, you can also give yourself a chance in this field. Every day, the SA forex trading market moves 80 Billion US Dollars (that equals R120 Billion Rand) from one currency to another. 

What is Forex Market?

After knowing about FX trading, you must know what the FX market is and how it works. Right?

Forex refers to Foreign Exchange, or just FX, occasionally even called Spot FX, where the common currencies are traded against each other. You may have noted ticker symbols of currencies like USD/ ZAR, EUR/ etc. while visiting your bank. 

These are the grades of the currencies from the live Forex market. When you know the FX market in a bit better way, you will hear or read a phrase like “FX market is one of the most liquid markets in the world.” But do you know what the meaning of a liquid market is?

What do you mean by Liquid market? 

A liquid market is said to be that market in which a relatively low price is needed to buy sellers and buyers. Expressly, you can say that it is an easy and quick market in which everything flows like a liquid, and trading is as fast as it should be. 

Make Money with SA Forex Trading  

There are many methods to make money with FX trading in South Africa. Like, many other traders and investors, you can also make money by the “buy cheap and sell expensive” technique. All you need to do is to learn as much as you can about SA Forex trading. Spend most of the time learning about the world of FX. There are three of the most common techniques used to make money with SA forex trading:

  • Binary options
  • Carry trading
  • Shorting

Pro Tip (Conclusion)

Now, you know most about SA forex trading as a beginner. So, as we have mentioned earlier, you have to learn more to earn more. Got it?

So, the tip is that you must have a legit forex broker for a legal trading system for yourself. And in South Africa, those FX brokers are said to be legit that are authorized by FSCA.