Forex has garnered huge popularity all over the world. The concept of trading in various currencies has always intrigued people. It leads to more people joining in hopes of making a huge profit. However, forex does not bring good news to everyone. In fact, many users have even reported huge losses that made them quit trading forever. Regardless of profit and loss, forex trading is getting more and more recognition every day. Although this popularity can be observed from all over the globe, South Africa resides one of the highest numbers of Forex Traders in the world.
This article will tell you why the number of users keeps increasing in a specific region. It will also help you start your trading career. So, here are the main reasons that explain why forex trading is so popular in South Africa.
6 Reasons for Forex Trading’s Popularity in South Africa
A factor that has helped a lot in the rise of Forex Trading is its convenience. You do not need to spend a long time on it. People use it for short-term trading and investment. And, it pays off as well. Plus, there are many mediums to learn from. If you want to start Forex Trading, there are many books, video tutorials, journals, etc. All these sources are good for understanding the fundamentals and making the right start.
While this is not a region-specific benefit of Forex Trading, it is also a huge factor that has helped it become popular in South Africa. With that said, let’s take a look at some of the main reasons.
- The Availability of CFD
Unlike many other regions, CFD (Contract for Differences) trading is present in South Africa. It allows users to have an affordable start in Forex Trading. That is because people can trade a larger amount than their deposit. Not only is it helpful for those struggling financially, but it also provides chances for larger exchanges.
So, if you want to start Forex Trading from South Africa, it will be much easier for you. However, one thing you should consider is that CFD works both ways. For beginners and amateur traders, it is recommended not to consider CFD. Instead of working as leverage, it can pull you down. For experienced traders, it is a significant plus point.
- No Boundaries
Traditional trading has boundaries. In many regions, it is not available. Or if it is, it may cost more. These geographical limitations usually force traders to operate from only one area. However, Forex Trading does not implement any bounds. You can trade from every part of the world. Since there are no limitations, you can access markets all over the globe from South Africa.
Another benefit is that you are not restricted to one currency. You can trade from your region with a currency of a different country. This is a huge reason why Forex Trading South Africa has become this famous.
- Leap from Short-Term to Long-Term
In South Africa, you will find many Forex Traders who do it full time. They do not take part in the trades as a hobby or short-term. Instead, they have made it their career and are exceeding in it. It is mainly because of the examples that are present in the region. They have shared their life-changing experiences from Forex Trading.
It empowers new traders to take part. Moreover, it encourages those who are doing it as a short-term investment. This leap shows how people can approach Forex Trading as a career.
- Presence of Mentors
It is not only the amount of Forex Traders that South Africa is popular for. There are also many successful ones in the region. These traders are mentors for many people who are beginning. This way, people are also motivated to join it as short-term and then make it their full-time career. With the presence of so many living examples, people can easily learn how to start Forex Trading.
- Use Any Device
Forex Trading does not require expensive devices, nor it has any high requirements. All you need is a simple device like a PC or laptop to get started. If you do not have either of those, you can even do it from a smartphone. Plus, you can also watch video tutorials and read articles from a device about Forex trading. It is helpful as people can learn as they go.
- Start With Low
Most forms of trading will ask you to invest a large amount to get started. However, Forex Trading can be started with a low entry cost. In South Africa, one can start it with as low as R5000 depositing money. However, the more you spend, the higher your returning price will be.
For beginners, it is extremely helpful as they are learning. They can jump-start their forex trading career with little money, so they would not lose much too.
Forex Trading South Africa Rules and Regulations
Just like all other regions, South Africa also has some regulations that are followed for Forex Trading. International or national regulators supervise all the traders. The Financial Services Board regulates the South African non-banking sector. Every trader must be registered on their brokerage platform to start Forex Trading. You can contact FSB to check whether you are eligible or not, as they keep a list of all registered traders. However, this is only the national level supervision.
International regulatory bodies, like FCA, ASIC, and CySEC, ensure supervision on the international level. These regulations are not only for Forex Trading but also for all kinds of trading platforms. It is recommended for newcomers to understand all the rules and guidelines before starting Forex.
The reasons mentioned above explain why Forex Trading South Africa is getting popular every day. Also, these reasons are enough to convince you to start trading if you are also a part of the region. By following fundamental tips from Forex Trading books, you can give the right beginning to your career.