From online start-ups to thriving online trading platforms, South Africa stands at the threshold of a new era. Below are some trends and factors that are making traders and businesspeople take notice.
As someone who has been observing South Africa’s business environment for several years, you would have noticed that among all the changes, there is one thing that stands out. Today, everything becomes more digital, more competitive and somewhat more unexpected. Whether it is running small businesses or South Africans making investment decisions, there has been a massive shift.
But amongst some of the brightest areas within these changes is the online trading sector. It has proven to be quicker than some might have originally thought, aided somewhat by advances in internet usage and also due to people wanting to get more directly involved with accumulating wealth. The services are more user-friendly, and there are measures within some governments to make sure that traders have as many opportunities as they want.
This article will explore the recent business trends seen within South Africa and examine the recent popularity of online trade platforms.
The bigger business picture in South Africa
Adopting digital cannot be optional anymore
South Africa represents some of the more extreme corners of the digital divide. But without a doubt, one trend that hits you immediately as soon as you get there is the adoption rate as far as digital technologies are concerned. Whether it’s walking into a coffee shop or talking to a medium-sized transport business, digital technologies are everywhere. Point-of-sale software, cloud-managed operations and online banking and retail platforms are no longer an optional extra but something businesses couldn’t afford not to be using.
Load shedding and issues with infrastructure have also driven businesses to rely on more reliable tech solutions. Telecommuting has become a permanent phenomenon for many white-collar workers, online meetings have replaced lengthy board meetings and businesses are spending a lot on cyber security.
A movement towards side businesses and diversified income streams
A trend that should also be monitored and noted is that of blended income. It is no secret that many South African citizens have side businesses aside from their main occupations. The uncertain state of the economy has brought about an entrepreneurial spirit, and people are thinking outside the box to have more sources of income.
And it has seeped into the world of investments as well. Rather than counting on traditional savings methods exclusively, everyone has been looking at alternative sources for building their wealth and online trading platforms have jumped into the gap.
The evolution of online trading in South Africa
The platforms at the forefront
It would be hard to discuss online trading in South Africa without mentioning the sophistication that exists within the online platforms. Some of these online platforms offer functionalities that were previously available to professional traders.
A case in point would be Exness South Africa, which is an online platform that has managed to fit into South Africa’s emerging online trading scene. It provides traders with an opportunity to trade on global markets, including gold, oil, indices and a variety of cryptocurrencies. At the same time, it empowers traders with tools that will make it easier for them to navigate. Fast withdrawals, no swaps and 24/7 customer services have become some of the selling factors. It should be noted that it puts safety first.
And then for those who would like a bit more technical sophistication, the presence of MetaTrader 5, which is pretty much recognised as a solution adopted by all serious traders today, would make the package extremely attractive. Also, South African traders have totally overtaken MetaTrader 5 as it has impressive capabilities.
What drives these changes?
Online trading in South Africa has literally gone haywire, particularly due to the pandemic years when people were stuck at home with ample time on their hands and more opportunities to check out online financial services. It hasn’t shown any signs of abating even after things were normalised. There are several very clear reasons for this momentum:
Accessibility: Trading applications and platforms are more accessible. One does not need a finance degree.
Better regulation: South Africa’s financial sector regulators have strived to make online trade as safe as it can be.
Easy entry: You can start small. Many platforms will allow you to open an account with very little capital.
Global market access: Buyers and sellers get access to markets for assets such as gold, oil, indices, and cryptocurrencies without having to leave the living room.
South Africans have become more curious about money and more open to exploring different ways of trading. Learning materials and practise accounts have made it easier for new traders.
Why traders are sticking with it
Once people get accustomed to the fact that they can trade global markets using their phone and laptop, it will be difficult for them to let it go. Secondly, traders get more control when they use online trading. You get to decide what you will trade, when you will trade and how you will control your risk.
The interesting thing is that this interest and enthusiasm are not confined to young tech-savvy people. Increasing numbers of older South Africans, including people who have retired, have entered the online trading arena as an alternative method for working their savings harder.