Do you find it difficult to choose the top forex brokers in South Africa? You don’t know where to start before This article will help you do this job by comparing the brokers first based on these 3 common standards below.
COMPARE BROKERS TO EACH OTHER
In order to find the best forex brokers in the market, we have to compare them based on these common standards:
- Trading conditions
- Types of account
Governmental regulatory bodies provide regulation, which is the license, to manage the brokers which sign up with. The regulations such as FCA, FSCA, CySEC & ASIC are trusted and reliable. Brokers which sign these licenses have to follow the rules to create the safe trading environment and protect all the funds for traders. In general, it is recognized that a broker with more than one international license has more trust and integrity from the governmental regulators and traders.
It is hard to find a broker that we can trust and work with for long-term. Therefore, we have to see and assess brokers by these 3 standards: trusted regulation, trade execution method, and client fund management.
Trusted regulation is an important part. It could show the level of trust for a broker. Often, a trusted broker should have major regulators and it would be better if that broker has more than one international license. One of the most reliable brokers is Exness => Exness reviews
Trade execution is also important. We could see how reliable a broker is by checking these things: if a broker executes the trades well or not, a dealing desk is involved in the execution or not, if there is any conflict of interest between traders and the brokers, if the broker receives financial incentive to have you lose your trades or not. If those things happen, it could show that the broker is less trusted.
Finally, traders will be safe and protected as their funds are segregated into different accounts at major banks in the local jurisdiction. Due to the risk from the bankruptcy of broker, protecting traders’ funds will make brokers more reliable.
Spread is measured in pips. If the buy and sell price for any currency pair are far from each other (such as 10 pips, 20 pips), the spread is wide. Otherwise, the spread is tight (such as 0.1 pips, 0.01 pips). As a result, wide spreads mean high cost of transaction and tight spread comes with the low trading cost. We can also see that traders like the brokers with the tightest spread.
In fact, the movements of the market are so small. With these, individual retail traders could do nothing in business without using any tools. Therefore, it needs to be the leverage to amplify the size of trades. For example, a leverage is 700:1, it could be increased up to 700 times by traders, which is very huge. Leverage is really useful for traders and various among the brokers in the market.
Traders change their habits by time and the account types are not the exception. There were more types used before, but now, traders mostly use: Live or Real accounts, the Demo accounts, and Swap-free account. Managed account is available but rare.
LIVE / REAL ACCOUNTS
Real account means real money, real profit, real prices and real conditions. Your account balance is really affected right after a trade.
Demo account means unreal money, unreal profit and fake prices, fake conditions. This is mostly for beginners to practice and learn more about the forex system.
In conclusion, these standards are used to compare brokers before choosing the best forex brokers in South Africa.
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