We help you find a trusted forex broker in Africa
A group of Forex traders and industry experts got together to create forexbrokerinsights.com to share their insight with Forex traders all over the world and especially in Africa. Forex Broker Insights strives to inform Forex traders across Africa on Forex trading, the Forex market, and the broker industry.
It serves as central information and review hub for forex traders seeking a legitimate Forex broker based in Africa. The content covers a wide range of important Forex topics organized into popular categories like Forex Brokers, Forex Market, Forex Trading, and Metatrader 4.
The content aims to provide objective reviews on forex brokers and insightful information to forex traders across Africa and the world by sharing unique insight into the industry and forex market and help professional traders find a trusted forex broker.
Africa is an emerging market for Forex and there are many Forex traders across the continent seeking legitimate Forex brokers. Featured on the blog are reviews, lists, and information on Forex brokers that work with local African and South African banks.
What is forex trading?
For traders who’ve just heard about forex trading, it’s important to know what it is before putting money into it. Forex trading is the art of trading currencies.
This means to buy and sell currency pairs such as USD/JPY and EUR/GBP with the goal of earning a profit. Profits in Forex trading are made from conversion rates.
The trading happens electronically over-the-counter as there is no central market for forex. You can trade at any time of the day and 5 1/2 days a week.
There are many benefits to trading Forex in the digital age, you can read about it in the benefits of online trading post.
How does forex trading work?
There are a variety of different ways that you can trade forex. Basically, they all work the same way: by simultaneously buying one currency while selling another.
Traditionally, a lot of forex transactions are made via a forex broker, but with the rise of online trading, you can take advantage of forex price movements using derivatives like CFD trading.
CFDs are leveraged products, which enable you to open a position for a just a fraction of the full value of the trade. Unlike non-leveraged products, you don’t take ownership of the asset, but take a position on whether you think the market will rise or fall in value.
Although leveraged products can magnify your profits, they can also magnify losses if the market moves against you.
Find a trusted Forex broker in Africa
To trade forex, you need an online broker. Trading with a trusted forex broker is crucial for success in international currency markets.
As a forex trader, you may have specific needs related to which platform, tool, or research requirements you have. Understanding your investment style can help determine which fx broker will be best for you.
Getting Started with Forex trading in South Africa
Forex trading in South Africa remains the largest segment in Africa with a slight edge over Nigeria. The South African Rand is one of the most commonly traded currencies today. and has been for over 15 years.
The Bank of International Settlements (BIS) ranks the South African rand as the 18th most commonly traded currency in the world. According to the BIS 2019 triennial report, the rand has remained within the top 20 currencies since 2004. And it is the only currency on the continent of Africa to achieve this ranking in the forex market.
Strong regulation in the financial sector and the relative strength of the economy give Forex traders in South Africa the confidence to trade in forex at a rate roughly equal to Nigeria. Local experts actually give Forex trading South Africa a slight edge in total volume, average account size, and the number of traders.
Anyone who knows how to trade forex will tell you the game is 90% preparation. Your infrastructure needs to be solid or even the best-laid plans will fall flat. As the biggest financial market in the world, forex is a global competition that takes no prisoners.
If you’re new to Forex trading, have a read through the Forex Trading basics for beginners post to help you get started.