WHAT TRADER SHOULD KNOW BEFORE TRADING IN SOUTH AFRICA

The national currency of South Africa is Rand (ZAR) placed in the twentieth of international trading currency by Bank of International Settlement according to the trading weigh and incomes in the forex market.
The topic we will discuss in this article is how forex trading work in South Africa. The rapid economic development of South Africa has made it a lurable place for forex trading both international and South African. However, you should know that forex trading is depending on your experience and knowledge of the currencies but not the location of the trade. South African traders must know that there are several factors that only applied in South Africa.

Tax

The first and foremost thing is tax. The government of South Africa required each trader to pay tax for income earning from forex trading market within South Africa. Tax rate is about 18% to 42% according to the volume of income and tax-payer’s status.

Regulation

The answer for how does forex trading work in South Africa is how it is regulated. The forex trading market is controlled by (FSCA) South African Financial Sector Conduct Authority. Previously, it was controlled by South African Financial Sector Conduct Authority (FSCA) and the brokers were licensed by FSCA as well.  FSCA requires brokers to keep customers’ investments in separate accounts and not to share customer information with any third party. The brokers who base overseas can do business with South African traders in the condition that they are licensed by FSCA. Remember not to work with brokers who regulated by no authority because you money can be in a very dangerous situation.

How does forex trading work in South Africa

Before making any further step, you need to know what is the forex trading market. The forex market is the unique one all over the world. The trading is performed continuously from 5pm on Sunday to 5pm on Friday.
The forex market is bigger than the sum of other markets with daily transaction volume up to 5 billions dollars. This market has trendings which according to the economics condition of the nations who provide currencies.
Although you may have time working in other markets, but it is necessary that you must obtain basic knowledge before step into the forex trading market. I will show you some initial things to understand before trading in the forex market.

Initial steps to the forex market

It is very important to choose a reliable broker to work with. Your understanding of the forex market and your level of trading skills will effect on what you need from brokers. 
In the condition that you have considerable experience in forex trading, what you should do is selecting a good broker with diverse trading instruments and the best trading platforms. In another case, if you are a newbie to forex trading, you should pick a broker with good customer services and have a wide range of learning materials and courses. 
Always put in your mind that forex trading is highly risky because you can use high leverage to manage your high position with real money. It means that you must be bared a bigger lost or making a bigger profit. In other words, if you make too much use on a high leverage your account balance can be completely erased at once. 
In conclusion, the trading experience may be the answer for the question of how does forex trading work in South Africa. The more experience you have, the higher leverage you should use. If you are skillful, you can take advantage of high leverage to make a big profit. Or else, if your are at beginning level, a lower leverage may help protect you from losing your money. Besides, I highly recommend that a new trader should take the first step of forex trading by making transaction with small or even super small lots and you can enlarge your lots later when you are confident enough to your trading skills. 
Next up, learn about the forex traders in India.

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