7 Things You Probably Didn't Know About Forex Brokers In South Africa
Forex is one of the most traded markets globally, with trillions of dollars changing hands in this market daily. Forex trading in South Africa began in the 1980s, but it has experienced massive growth. Today, the forex market in South Africa is among the leading markets in the world. Behind this unprecedented growth is a team of brokers who have remained faithful to their work.
Here are seven things you probably didn’t know about these hardworking forex brokers in South Africa.
1. They Rely On Price Action
For starters, price action refers to a plot of the movement of the price of securities over time. It is the basis on which forex, commodity, stock, and other investment instruments are analyzed. The forex brokers in South Africa understand the importance of price action in making decisions, and it forms a part of their forex trading strategy.
2. They Don’t Push Too Hard
Sounds weird, right? But it’s the truth. The best online forex brokers in South Africa work smart, so they don’t have to push hard. From the knowledge they have gathered in the forex market, they know how the market moves, so their trading is usually effortless.
3. Their Trading Edge Is Well Defined
A trading edge is any strategy you put in place to ensure the odds will favor you. It is a conglomeration of the brokers’ ratio of risk to reward, the key levels they have identified, the price action plans they have put in place, their experience in forex trading, and many other factors.
The trading edge also defines how they handle losses and what they do when they win. In essence, a well-defined trading edge encompasses all that ensures successful forex trading.
4. They Always Take Risk Into Consideration
The best forex trading brokers in South Africa are open-minded. They know it is possible to make losses once in a while. That’s why they calculate the risk before investing in any forex.
Most armature brokers never consider how much money they are putting at risk before they open a trade. In the end, they make bigger losses. Savvy forex trades in South Africa use an arbitrary percentage to calculate risk before investing. The risk can be expressed as 1% or 2% of the balance in the trading account.
5. They Rarely Lose
Well, the fact is, no trader can achieve 100% success in every trade they undertake. But the losses made by the best brokers aren’t the same as those made by armature brokers.
What brings this difference? It is the mindset. New brokers treat losses as bad things, dwelling so much on what they did wrong and feeling the forex market isn’t fair.
On the other hand, seasoned South African brokers understand the market is fair and neutral. They don’t view losses as bad things but as a way of finding out what they need to do differently next time. This way, they keep learning and reducing losses.
6. They Know When To Walk Away
All successful forex brokers know when to take a break and when to walk away, and South African forex brokers aren’t an exception. Being passionate as they are in forex trading, they know how difficult it is to take a break. That notwithstanding, they also understand how damaging it can be to continue hanging on when things seem not to work. One unique thing about forex brokers in South Africa is that they can take a break or walk away even after a big win to prevent emotion-driven investment.
7. They Have Their Clients At Heart
No forex broker can succeed without putting their clients’ interests first and everything else second. Brokers in South Africa always strive to provide the best online trading platforms with all the necessary educational and trading tools.
Even though South Africa is still regarded as an emerging market in forex trading, the country has a solid foundation in this market. That’s why the country has some of the best online forex brokers in the world.