5 tips to avoid failure in the South African forex trading market
Posted on 10th March 2017
Do you have it in you of what it takes to succeed in the forex market? Of course, you need to be a mindful investor, be well-informed about global market news and updates and use the right strategies. In the digital era online forex trading has become accessible to anyone residing in any part of the world. The returns from trading are limitless; but on the reverse you can lose all your invested capital just as easily too. But the old adage 'No risk, no gain' holds true for currency trading too. South Africa like other countries has its own distinct set of regulations which have a direct impact on forex trading also. Here we take a look at few things to be borne in mind to avoid failure in the South African currency trading market.
- Choose a FSB-regulated broker: Opting for a brokerage under the aegis of a financial regulatory agency like the Financial Services Board (FSB) gives you some kind of assurance over its legitimacy and authenticity and lets you trade with more confidence. Or else you are likely to fall prey to bucket shops or any other kind of scams.
- Transfer funds only into your own trading account: To start investing first and foremost you need a forex trading account. After that gets opened all transactions must be executed through that account only.
- Your broker must have a physical address: Any well-known and registered brokerage firm will have an office address where you can easily locate them. You can in that way schedule a visit and get to know more about them. If that's not the case then you may be in for something fishy.
- Be reasonable in your expectations: Due to its infinite money-making potential a lot of people get lured to forex trading. But if truth be told it's almost impossible to become a millionaire overnight. Some Forex trading firms make unrealistic claims to attract customers but trading is also a business venture that can lead to losses as well as gains.
- Be aware of tax laws: In order to invest successfully in the South African FX market you need to know about the amount of tax applicable on your trading activities. A country's tax laws are subject to change anytime. It is best to seek expert advice to avoid any problem and use the legislations to your advantage.
