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BUSINESS NEWS - Trading currency pairs or forex, involves buying and selling currencies with the goal of generating a profit from shifts in the value of one currency relative to another.
A trader needs to decide which currency pair they want to trade and which way they think the market will move before they can initiate a position.
The trader has the ability to either make a profit or incur a loss depending on the current state of the exchange rate between the two currencies.
Trading CFDs on Forex is available to everyone who has access to the internet. But the fact that everyone is capable of doing it is not the same thing as saying that everyone ought to do it.
Forex traders who take their profession seriously are well aware that education, self-control, and a sound trading technique are the three most important factors in determining whether or not they will be successful.
If you start trading Forex without these skills, you might make money off a few trades in the beginning, but in the long run, you will lose money.
Trading currency pairs online with an FSCA-regulated and OTC approved Forex broker like Khwezi Trade can be an excellent approach to generate a stable income if you are well prepared and willing to master the necessary skills.
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The role of Forex brokers
Choosing a regulated and reputable Forex broker is a critical component to successful Forex trading in South Africa.
There are only a handful of FSCA regulated and OTC authorised Forex brokers such as Khwezi Trade, which provide South African traders with a high level of transparency and security when trading the Forex markets.
A regulated trading environment is crucial due to the vast and volatile nature of the Forex market. As the largest and most liquid financial market in the world, having a reputable Forex broker to provide you with access to the best trading features, fast execution, and competitive pricing, will make all the difference to the quality of your trades.
A good broker like Khwezi Trade will also provide traders with access to a wide range of additional asset classes and markets that will allow for sufficient portfolio diversity. For example, Nasdaq index brokers give traders the opportunity to trade the top 100 tech companies in the US.
The importance of trading platforms
Just as a Forex broker should offer traders in South Africa access to transparent and competitive trading conditions, so too should they provide traders with the best-in-class trading platforms.
Trading platforms comprise the software required in order to execute trades on the Forex market, and should come equipped with a range of analytical tools that allow you to make the most informed decisions and respond effectively to changes in the market.
As such, MetaTrader 4, from MetaQuotes, is the gold standard when it comes to online Forex trading platforms, and using this software with a reputable broker like Khwezi Trade will allow traders in South Africa to match powerful trading features with excellent pricing and great customer support.
Traders should also place value on brokers who offer ZAR trading accounts as this is a compliance matter within the regulation framework and negates the potential negative factor of the exchange rate risk when withdrawing funds from the trading account. Khwezi also offers all clients with local segregated banking accounts which comply with OTC regulations.
Next time you think of forex trading, let Khwezi be your reliable partner.
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