Forex Trading in South Africa

Forex trading is the exchange of currencies against each other. The exchange takes place directly between two parties and one can conveniently access the market from anywhere in the world. One can also trade precious metals like gold, commodities and indices. South Africans have now entered the Forex market using forex brokers such as Forex Factory, because it is a chain breaker from normal planned long jobs, it is exciting, they trade from anywhere and above all it is well paying with an illusion of huge and quick returns on investment.

Why Forex trading is popular in South Africa

Ease of access

Originally the Forex market was seen as a thing for the rich. This has gradually changed presenting the trading as a low entry cost affair where one can trade with R6000 or less. With this realization over the past 5 years, South Africans have massively embraced the idea leading to its popularity.


The use of Contacts for difference (which allows traders to take advantage of prices moving up or down) led to introduction of leverage in the currency market which allows traders to trade larger amounts of money than they deposit. This is also a great plus that has boosted the affordability of the market.

No geographical limit

This is arguably the most alluring fact of the currency market. One can trade from anywhere as long as you have internet connection. People tend to want freedom in their work area and this is just one of the best solutions for South Africans.

Advantages of Forex trading in South Africa


High volumes of trade lead to high liquidity. With liquidity one is able to buy or sell the currency pair one is interested in.

Risk is controlled

Traders are able to set the maximum amount one is prepared to risk. This is majorly known as stop loss.

Commission free

Commissions are not charged. The market maker makes its money from the spread which is the difference between the buy and sell price and any rolling fees made when one keeps a trade open overnight.

High profit opportunities

The markets conditions change at any time in reference to real time events. Although one should be aware of the risks it can pose, there is increased opportunity in volatile markets.


It is an expert market

Forex trading is not something that one can just jump into and start making random trades without proper training


It is mostly referred to as a double edged sword. As much as a trader can make huge profits, he or she can lose the same amount of money too.

Who trades?

There are majorly two parties always involved in an online Forex deal: the trader and the market maker. The trader is you while the market maker is the legal company that helps in trading by asking for a bid price on a certain currency. Other players in the market may include: Banks, security dealers, multinational corporations and hedge funds. The South African government is very welcoming to traders thus anyone can trade. As long as you have the mind, method and money, go for it!

Rules and regulations of Forex trading in South Africa

The South African exchange control regulations apply only to South African residents and not citizens or permanent residence holders. All foreign payments must be reported to a Reserve bank. One has to be an authorized dealer to effect any currency transfer. For a legal entity to effect a transfer they must have prior approval.

Why train?

Forex trading is more of a game of analyzing. Without proper training then analyzing different markets can be a great challenge and lead to great loses. This trading also has a lot of vocabulary that one needs to understand. Words like leverage, pip, spread, longing and shorting just to name a few are not very self explanatory and thus needs ones dedication in training.

Success stories

Though Forex trading is a highly volatile venture, some South Africans have emerged very successful. For instance the story of Hoosain Harnekar who rose from rags to riches cannot go unmentioned. Sandile Shezi is another South African who became a millionaire at a tender age of 23 years. He went ahead to establish the Global Forex Institute- A Forex training school in South Africa.