South African population has recently become fond of Forex trading. South African Forex trading market is the fastest-growing market in the world.
With the rapid growth of the Forex industry, new users are having a hard time picking a broker that suits their needs.
This article will briefly discuss the SA Forex brokers and the factors that differentiate good from bad ones.
Things that make a difference
Here is a list of a few things followed by a brief explanation of some factors that can affect your decision.
- Regulatory authorities
- Leverage rates
- Customer support
- Language support
- User experience
- Deposit time
- Withdrawal time
- Deposit limits
- Bonus schemes
1. Regulatory authorities
Regulatory authorities are government authorities that monitor the activities of a broker. Authorities then license a broker and allow it to operate in a country.
Some authorities are considered to be more relaxing than others. Thus, we suggest looking for a broker who has multifold regulations.
2. Leverage rates
Leverage rates of a broker mean the amount of exposure it gives its users on opening new trades. Higher leverage rates mean that you can open larger trades than your invested income and earn higher profit, but it also makes you susceptible to greater losses.
3. Customer support
Most reviewers don’t take this factor into account. It is ok if you run into a trading problem once a month. The thing that matters is how your broker handles your issue. If the staff is helpful and cooperative, it will make a huge difference.
4. Langauge Support
All South African-based brokers don’t support the local languages. Similarly, many international brokers also don’t support the languages spoken in SA. Hence, make sure your broker knows your language.
5. User Experience
User Experience makes a huge difference in trading. If your broker has a buggy website or slow server response times, you will get annoyed and frustrated.
6. Deposit time and fee
Most brokers often, next to none, deposit time to deposit funds into your account. Also, there are very brokers who would charge you a deposit fee. Thus, ensure that your broker doesn’t have these unnecessary trading fees.
7. Withdrawal time
The withdrawal time is also a very important thing to notice. If your broker takes forever to let you withdraw funds, then it is probably not worth it.
8. Deposit limits
Deposit limits don’t make a huge difference for professional and long-term traders. If you are trading in thousands of dollars, you are already going to deposit more money than the deposit limits. However, new traders need to worry about the deposit limits. It would help if you tried brokers with lower deposit limits without compromising the trading functionality and features.
9. Bonus schemes
In our opinion, you should never trade with a broker just because of an attractive bonus offer. Because the bonus is just a one-time thing, and afterward, you will be stuck with that broker absent cause.
There are a bunch of brokers in South Africa that do a great job in handling all sorts of users. However, it depends on the broker to understand their requirements and look for a broker to handle them.