A beginner's Guide on how to trade forex in South Africa

By: Chime Amara

What is Forex trading？

Forex trading is an investment package that offers traders the opportunity to buy and sell different currencies and other valuable assets including Crypto, Stocks, and Commodities. Often, traders try to make profits from the price fluctuations of these assets when they trade them as CFDs.

A simple guide on how to trade forex

Choose a broker: Brokers are the link between the trader and the exchange market. Every trader needs to identify a reliable broker for trading or visit the Wikifx website to choose from the list of recommended brokers. It is always necessary to ensure that the selected broker is registered with the major financial market regulators including FSCA, FCA, ASIC, CYSEC, FSA, etc.

A. Register an account with the broker: Once you have identified a reliable broker for trading, the next step is to create an account with the broker and complete the identity verification process. This requires you to upload your identity verification documents including your passport and proof of address.

B. Fund your account: The next step after one's account has been approved is to proceed to fund the account. Brokers usually provided multiple options for funding to make it easy for the trader to do so.

C. Select the pair to trade: Choosing the pair to trade is something the trader must pay great attention to. He needs to choose between the options provided by the broker which includes FX currencies, stocks, indices, Crypto, etc. The trader needs to choose the assets he is most familiar with and their pattern of movement.

D. Make a proper analysis of the pair selected: The trader needs to make a proper analysis of the pair he wishes to trade to know whether to buy or sell such a pair.

E. Place your order: The final step after proper market analysis, is to place one's orders in the market. Here, the trader can either place a buy or sell order depending on his analysis and forecast for the price movement.