Funding your Forex trading account from South Africa is a relatively straightforward process as long as you use a credit card or a prominent local bank account. With that said, financial regulations in a country can sometimes get in the way if someone is trying to fund an international account from their domestic bank account or with a lesser-known credit card. However, in recent years, such problems have arisen less frequently. These measures are aimed at reducing illegal activities such as money laundering.
Foreign transfer limits
Forex traders from South Africa should be aware that there are limits on the amount of money they can transfer overseas. Each country’s citizen can move abroad for no more than R10 million per year for foreign investment purposes. You have to provide a certificate of insolvency. There is also a discretionary foreign currency surcharge of up to R 1 million, which does not require a tax clearance certificate.
Other than that, South Africa-friendly brokers make various funding solutions that you can use to transfer money to your live trading account. E-wallets like Skrill, PayPal, and Neteller are some of the most convenient options out there. They can help you work around the problems that sometimes arise when paying with credit cards or bank accounts. You need to register, verify your account, top up your e-wallet balance, and you’re done.
Some brokerage companies also work with other locally available methods such as PayFast and PayU. Be sure that your chosen broker supports the banking solution you intend to use. Check if there is a handling fee.
Popular trading software in South Africa
One of the key benefits of doing business in the Forex markets is that you can trade any currency pair from the comfort of your home. You can open positions whenever you want. However, you will need good Forex software to do this. One of the critical features of a quality trading platform is its intuitive design.
The platform should be easy to use to suit traders of all experience levels. Complexity is annoying because it makes it difficult to navigate, but it can also lead to trading errors. The golden rule is ‘the simpler, the better. The platform should also support various market analysis tools to open multiple windows on the same chart station. Backtesting and multiple timeframes are always a big plus.
If you are not sure if a given South African broker meets these criteria, you can always open a demo account. Thus, you can test the trading software to make sure you feel comfortable with its interface and functions.
Forex Trading in South Africa is not different than trading in any other country, the vast majority of brokers in South Africa use the MetaTrader 4 platform. MT4 was officially launched back in 2005. The fact that it is still used today says a lot about its quality. The platform meets all the quality criteria listed above.
There are different timeframes and technical indicators for market analysis and the ability to view charts and place notes on them. The platform is popular with novice traders for its intuitiveness. It is also possible to trade automatically using the so-called advisors.
Many brokers in South Africa offer MT4 in conjunction with its successor MetaTrader 5, which supports additional instruments such as stocks, bonds, futures, and options. Any version is usually available in browser format through a dedicated WebTrader. The latter offers roughly the same features as the downloadable software but requires no additional installation.
Mobile trading in South Africa
Traders from the country have a world of trading opportunities in the palm of their hand as all good brokers in the local market offer innovative mobile apps for iOS and Android devices. In addition, the apps can be downloaded free of charge, either from the respective broker’s website or from mobile content platforms such as Google Play and the App Store.
There are many advantages to trading on the go. First, the apps give you instant access to real-time news, allowing you to immediately track the latest market trends.
The apps are optimized for use on devices, rendering it much easier to place orders on the fly. It is usually possible to enlarge all the details. Mobile traders also can manage multiple charts on their smartphones and tablets. Training materials are generally available for aspiring mobile traders.