Forex trading has become way too popular among South Africans. In recent years, the country has seen a huge increase in interest in this speculative market thanks to the fast development of the economy.
There are tens of different Forex brokers offering their services to the citizens of the country, but local traders still have challenges finding trustworthy forex broker in South Africa.
For South African traders, forex trading can be a way to earn wealth. According to official data, the estimated daily trading volume in the country is as much as 30-45 million ZAR and because of the opportunities that it offers, the popularity of it is only increasing in the country.
Today, we are going to talk about the forex trading market in South Africa and we will provide you the information that is of utmost importance if you are planning to start trading in the country.
How is forex trading in South Africa regulated
Forex trading in South Africa is very much legal but there is also lot of forex scam going unnoticed according to a forex broker expert Edward Kendy.
To make the market as safe as possible, the FSCA Financial Service Conduct Authority of South Africa is overseeing every activity in the market. Its main job is to ensure the transparency and efficiency of the market in the country. Forex brokers in South Africa are receiving licenses from FSCA (Former FSB) , and they are required to follow the guidelines strictly.
FSCA is known to have very strict regulations, they are very active in protecting the rights of investors in the country. However, the problem of scam brokers in South Africa is still something that is not completely solved. Because of this, Forex traders in South Africa have to do their best to find trustworthy and secure Forex companies that are regulated locally to safeguard their funds.
National Currency of South Africa
The national currency of the country is the South African Rand the code of the (ZAR). The South African Reserve Bank is responsible to issue and monitor the national currency. It also has a special department, called the Currency Operations Department, which is controlling the management of the currency.
In most cases, the National Currency of the country is traded in pairs with the USD. While trading Forex in the country, it is very important to use the one that accepts payments in the local currency, to avoid high exchange fees.
Should You Trade Forex in South Africa?
Before you are able to start trading in the country, you will have to find a solid FX broker. There are many internationally well-known companies in the country, but make sure that you are investing with the one that owns local authorization as well.
South Africa has a huge financial market and it can be very beneficial for Forex traders. However, the safety and security of your funds is something that should be your top priority while trading Forex in the country.
So, if you are ready to do your research and only trust reputable brokers, there is a lot that this market has to offer you.