- While not as headline-grabbing as share trading in the light of the controversy surrounding Robinhood and the rise of a new generation of investors short-selling GameStop options, foreign exchange (forex) trading has long been a safe and reliable way to shore up capital — it just helps to know how best to get started.
Local may be ‘lekker’
There is no shortage of international trading platforms, and trading forex — contracts for differences (CFDs) — in South Africa has grown into a huge market over the past decade. In short, by accessing trade in the price move in different currencies across the globe, investors are able to profit. The volatile tussle between the US Dollar and South African Rand has been one such gamble in the country for many years and is likely to remain so.
CFDs are more affordable to access than the stock market and you can also trade large positions; all you need is a device such as a PC, laptop, tablet, or smartphone, and an internet connection. But where to begin? A thorough survey of results yielded by the Google search keywords “trading platforms South Africa” quickly separates the “wheat from the chaff”.
Take some time to sift through the pros and cons the many reviewers offer on the various platforms and take a considered position. Public Finance International, for example, rates eToro the overall best trading platform in South Africa, claiming it is “… great for both beginners and experienced investors alike … and features a broad range of trading strategies to copy. This includes cryptocurrencies, forex, and CFDs trading strategies”
‘Exciting time to be trading the markets’
A drawback is that eToro’s forex and CFDs trading fees are extremely high. Local offering Khwezi Trade prides itself on trading on all the major currency pairs — as well as some minor ones — including commodities, and all major indices, and the company has decided not to offer derivatives on JSE-listed shares and cryptos. Forty currency pairs are available, seven commodities, 11 indices, and basic trading can begin for as little as R2 000.
Says Khwezi co-founder Mark Wurr: “This is an exciting time to be trading the markets, and we have gone to considerable effort to train our clients to trade successfully. We offer online video tutorials, and we have clients coming to our offices in Bree Street in Cape Town for personal, hands-on training and support.”