What Is The Perfect Timing To Trade Forex In South Africa?
by Arnab Dey Finance 27 August 2022
The process of trading with different currency speculation is more popular and people are searching for new trading possibilities and areas with better conditions and environments.
South Africa is not an exception because, in South Africa, FX trading is getting more attractive for people. This is the market where more than 450 000 people are trading.
This region, conditions, and policies are fully legit and regulated by the Financial Sector Conduct Authority. The main trading currencies are ZAR, USD, EUR, and GBP. But the most common pairs are trading with USD and ZAR which is an African currency.
We have to mention that South African Rand is one of the most traded currencies in the world. Its volume is more than 72 billion USD.
The daily amount of trading is about 25 billion USD in South Africa. Remember that if you want to start Forex trading in a secured way, you should check if the broker is licensed by FSCA because this is the main regulation in South Africa.
Never start trading on a platform that will not be licensed by this authority or will not have any information about the license.
How To Start Trading On The South African FX Market?
If you are new to the South African market and you do not have enough experience or knowledge, we would recommend you try a demo account from a licensed platform and then start understanding the main specifics and features of the African FX market.
Most South African Forex brokers do not require a high amount of minimum deposit. You can start trading with a low amount such as 1 USD, but if you decide to trade with ZAR, you need to create an account and place at least R70 on deposit. In USD, it is recommended to place at least 5 USD.
Remember, that as low your main deposit, the smaller amount of profits you will get. The average amount of deposits on South African FX platforms is R12 900. In USD, this average amount equals 742. If you want higher amounts of profits with a higher probability, you need to make a brave move and place a higher amount of deposit.
Another factor that determines your probable profit amount is the size of the lots. This is the united currency for trading and can be standard, mini, or micro. They include base currencies from 1 000 to 100 000 units. The placed amount of lots also determines the level of risk.
During the trading, you should also consider influential factors and features such as stop loss, leverage, margins, best hours to trade Forex in South Africa, and others.
To conclude, if you decide to start trading on the South African FX market and you are a beginner trader, you need to consider the following: find the regulated broker which will be under the FSCA list of FSCA. The safe broker also should have an anti-fraud mechanism and safety standards, which will be relevant to South African Revenue Service requirements.
Then open the account with a minimum of 5 USD or R70 amount and use the leverage of 1:10. This will make trading less risky. To complete the required steps, you need to add KYC documents to your account and then you are allowed to complete your fund.
How To Choose Trading Time On South African FX Market?
Choosing the right time for trading is one of the most important factors that determine your chances of success and getting profits.
Usually, the Forex market is open 24/7 for five days and you can trade anytime. But on different FX markets, there are different time periods which are the best to start daily trading. The South African market, opens on Sunday at 23:00 and closes on Friday at 23:00.
Before we outline the most suitable trading period for the South Africa FX market, it is necessary to know that globally, there are four main sessions for trading.
The first is for the Pacific region, according to Sydney. For Asia, it is the Tokyo session. For the European market, it is the London session, and for the American region, the New York session.
The main factor that determined the trading time in South Africa, is the relevant time zones. There is a single zone that is 2 hours different from Greenwich Mean Time. Because they do not have daylight saving time, it causes a 6-hour difference from EST in summer and a 1-hour difference from GMT.
Another factor that determines the best period is volatility level and liquidity. In general, the best days are Thursdays and Fridays. But they are searching for where the highest profit is on Wednesdays too. When it comes to specific hours, it is best to trade from 10:00 to 16:00, but it is also good to trade from 08:00 to 14:00.
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