By: Chima Amara
There are four basic demands that every trader must make adequate provisions for in order to begin forex trading in South Africa. These requirements are:
· Mobile Device
· Internet connection
· Broker Platform
· Start-up capital.
Mobile Device: The acquisition of a portable mobile device such as: smart phones, macbook or laptops; always comes as the first basic provision to be made by the new beginner. The advent of technology has brought the market down to the traders home and doorstep. Hence, anyone can comfortably participate in the global exchange market by simply acquiring a good mobile device and downloading the required apps such as the Meta Trader 4 or 5 (MT4 or 5) and any other trading platforms that would enable him/her access the exchange market.
Internet connection: Apart from acquiring a mobile device, it is recommended that all such devices must have good access to the internet. It is always the internet that links different traders up across the globe and without it no access may be granted. The internet is used to download the required trading apps on playstore for android phones and apple for iphones. Also to login to ones trading platform the internet is always very necessary. Above all, the internet makes deposits and withdrawals very fast.
Broker Platform: The third step to begin forex trading and often a very crucial step is the selection of a trusted broker. Brokers are intermediary financial service providers that link the traders up to the global markets. They bridge the gap between the trader and the market hence they are called brokers. Their services are very indispensable and without them individuals may not be able to participate in forex trading today.
Similarly, many scam brokers exist today and for this we recommend that every new trader should always the wikifx.com website and download their app to see list of their recommended brokers and choose from the lists.
Start-up capital: The fourth requirement no doubt is the start-up capital otherwise known as the initial deposit or investment. The minimum amount required as initial deposit varies according to the broker. Some set the minimum at $100 while others allow a lower amount below it from $10 – $100. However, beginning with such lower amount is often not recommended as it reduces the available margin for trading. Hence it is always good to begin with a $100 and above.
Finally, apart from obtaining these four basic tools mentioned above, it is very necessary that the beginner takes time to acquaint himself with the necessary knowledge about forex trading as to increase his success rate and reduce risk exposures.
