South Africa Spots FX Trading Growth in 2020
Today, South Africa is the continental leader in terms of volumes of FX trading. At the moment, around 200,000 residents engage in trading through the internet, and this number is growing right along. What are the leading causes of this rise, and is it going to last?
Q3 2020 hedge fund letters, conferences and more
Forex, or foreign exchange, is the largest financial market in the world. Its turnover is estimated to reach 6 trillion US dollars daily. In the past, it was only accessible for major institutional players. Today, anyone with a computer and a registered trading account may start working in the market. The job of an FX trader is fashionable. Here is why.
1. Increased Accessibility of Trading
Today, one does not even need a computer to trade online. Apps for tablets and mobile phones allow trading from any location. There is a software product for any popular OS, and users may also switch devices during the day. As data is stored on cloud servers, you may open a trade from your smartphone, edit it via your tablet and close via your laptop (or in any other order).
Trading accounts are registered online, and this requires only baseline information. To trade live, clients need to upload a few documents to their broker’s website. The process is simple and quick, and the demo mode has no expiry date. Beginners may practise as long as they need using any suitable device. Anyone can become an FX trader with a bit of patience and determination
2. Increased Affordability
Few people may afford to access the stock market, or commodity futures trading. That is because entry may be prohibitively expensive. In this regard, Forex is also attractive, as you may open an account with just $10. Newbies with limited budgets may start small and increase their investment gradually.
3. You Can Learn for Free
Anyone can learn to trade Forex for free. Retail traders have been developing strategies since the 1990s. Today, there is an abundance of information on the subject. You do not need paid courses to learn the basics.
Google forex trading, and you will see countless articles, tutorials, podcasts, and books on the subject. YouTube has dozens of channels devoted to the topic, some of which are hosted by prominent experts in the field.
Renowned brokers also educate their clients for free. They post beginner’s guides, articles detailing common strategies, links to webinars, etc. Some companies even organize face-to-face seminars around the world.
Finally, rookies can and should start with the demo mode. Demo login and password generated by their broker unlocks the trading terminal (for example, MetaTrader4) in its special simulated mode. The system imitates real market conditions, but any profit or loss made is only virtual. This is an invaluable opportunity to turn theory into practice and build one's professional skills in a safe environment.
4. Trading is Trendy
Brokers keep up with the times and invest in cutting-edge software. Sleek apps and powerful platforms provide maximized freedom. Currency trading is now in vogue.
5. New Format of Working
COVID-19 has deprived millions of people of their usual sources of income. Since the onset of the pandemic, lay-offs have been massive. For some consumers, online work is a matter of survival. For others, it is an extra money-making tool. Many of those who discover Forex this year are likely to continue trading the market.
Forex traders do not need to send reports or go to meetings. They are the masters of their careers, as they determine their schedules, targets, and workloads. This occupation is not for the lazy or faint-hearted. You need to be able to manage your time well and take calculated steps to achieve your goals. You can find a Forex mentor who will guide you, but there will be no boss breathing down your neck.
The Bottom Line
South Africa is already a leader on the continent in terms of FX volumes, and growth is only accelerating. This year, COVID-19 has spurred suitable remote money-making opportunities. Forex is more accessible and affordable than ever, which explains its quick popularity, particularly with the young.
Still, trading is not a risk-free activity. Lack of knowledge, impulsive decisions, or system glitches may cause losses. While technical problems may be eliminated with a reliable platform and a Forex VPS (virtual private server), nothing replaces expertise. Traders need to stick to rigid risk management strategies to limit potential losses.
