The popularity of Forex Trading has risen a lot in the past few years. That is mainly because of the convenience. Unlike physical trading, it can be done from home. All it requires is a PC or a smartphone to start. Plus, you do not need to trade during a specific time. The no-time constraint policy makes it much better for people already busy with their 9 to 5 jobs. They can trade whenever they are free and with whoever they want because there are no geographical limitations. Needless to say, all these factors make Forex a much better option than traditional trading.
However, people often overlook the rules and regulations of Forex Trading. One of the most prominent countries to witness the popularity of Forex in South Africa. It resides one of the largest numbers of users. Since the regulations vary with regions, South Africa has its own rules for Forex. Its regulation is considered to be a supportive one. That is why it is able to attract many brokers in these last years. But, people often wonder why are regulated Forex brokers in South Africa a must?
Well, you do not have to worry. We have gathered the points to provide you with the right answer. It will help you get a clearer picture of the entire scenario of Forex Trading in South Africa. Let’s get started, without any further ado.
The Need of Regulated Forex Brokers at Every Step
In many regions, setting up an account requires a broker. The same can be said for South Africa. If you want to start a new account, you need to look for brokers. They help you with the process by providing you the guidelines. Following those simple steps, you can set up your account. The role of a broker does not end there. For investment, you also need one. Brokers help you fund your account so that you can get started with forex trading.
You may be wondering that you can do all this work yourself right? That is where the need for regulated Forex brokers comes in. If it were that easy to create a new account, almost everyone would have multiple accounts for scamming. That is why you need to provide full identification to a broker in order to start. This is very helpful for beginners as it already keeps most scammers away from the platform.
Keep a Strict Supervision
Forex is an online trading method. Hence there are a lot of opportunities for scammers. You would find many unregistered brokers who would ask you to invest your money with them. Therefore, having certified ones regulate the trading much better. It reduces the chances of fraud and keeps people’s money safe.
However, it still does not mean that you are completely safe. There are still many open windows for scammers. That is why it is best to find registered brokers. Plus, you can look up the best brokers in your region on the Internet. This way, you can trade more carefully.
Moreover, South Africa does not allow traders and brokers who are not certified by both national and international regulatory bodies. At the national level, FSCA and FSB are responsible of registering brokers. You can check whether you are on their list or not. It is recommended first to get the certificate to make yourself eligible for Forex Trading in South Africa.
Also, offshore brokers are supervised at the international level to make sure they follow the regulations. It is also necessary because there are many offshore brokerage houses that operate without registration.
Choosing the Right Broker
When you look for a broker, there are many factors to consider. For instance, if you are a newbie, then you need to find a beginner-friendly one. Similarly, for experienced traders, a broker who can afford to take risks is recommended. Either way, it is best to do research to choose the right broker.
As mentioned earlier, a broker also needs to have be certificated by FSCA and other regulatory organizations. Many local brokerage houses are operating without registration and scam new traders. For beginners, it is recommended to only select from the trusted ones.
Best Regulated Forex Brokers in South Africa 2021
With the points mentioned above, you can understand the necessity of regulated forex traders in South Africa. Not only to keep the trading inflow but also to offer safety to traders. They ensure that scammers stay far away from the platform so that people can operate with no hesitation.
Now, it is time to move to the next step, finding the best regulated broker. We have prepared a list of some of the best regulated Forex Brokers to choose from. It will be helpful for both beginners and experienced individuals. Here are 5 of the best ones of 2021.
These are some of the most trusted and reputable brokerage firms of 2020. They are the top choices for Forex brokers in South Africa. However, every broker has its plus points and demerits. That is why it is recommended to read what a broker is best known for. This way, you can choose the right one according to your needs. Picking the right broker will also help you make the right start in your Forex Trading career. And, a good beginning can take you places, to say the least.
Conclusion on Forex trading
This article will tell you the importance and benefits of regulated brokers. These points will help you understand why are regulated forex brokers necessary in South Africa or any other region. Also, the list of the best brokers of this year will help you select the right one. It is safe to say that you can never go wrong if you have understood everything about Forex trading regulations for your region.
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