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Long Term Forex Trading in South Africa

Forex trading is extremely popular in South Africa these days. There are social media accounts with photographs of successful forex traders that really make it appealing for many. Most of these traders carry out long term forex trades rather than short term trades in order to maximize their gains. So, firstly, what is forex trading and how do you do it in the long term?

Long Term Forex Trading offers in SA

Deriv logo

Deriv

4.5
Demo account Yes
Minimum deposit $50
Minimum Deposit: $50
Deriv is an offshore broker offering both binary options and standard forex and CFD trading
Binomo logo

Binomo

4.9
Demo account Yes
Minimum deposit $10
Minimum Deposit: $10
Operational since 2014, Binomo may be a CROFR regulated binary broker which offers service packages for all kinds of monetary traders.
Exness

Exness

5
Demo account Yes
Minimum deposit $ 150
Minimum deposit: $ 150
Exness is FSCA & FCA regulated, which are 2 Top Tier regulators, so we consider them to be safe.
Quotex logo

Quotex

4.5
Demo account Yes
Minimum deposit $10
Minimum Deposit: $10
Quotex is a new digital options broker, innovated in 2020. The platform offers dupe trading and request signals.
olymp trade logo

Olymp Trade

4.6
Demo account Yes
Minimum deposit $30
Minimum Deposit: $30
Olymp Trade offers its customers a full range of monetary services within an equivalent account.
FXCC logo

FXCC

4.9
Demo account Yes
Minimum deposit $250
Minimum Deposit: $250
Forex Trading with FXCC, a leading regulated and Award winning ECN Forex broker - Start Trading today with our risk-Free Demo account
markets.com logo

Markets

4.8
Demo account Yes
Minimum deposit $250
Minimum Deposit: $250
Markets.com was established in the year 2010, being the best Forex trading company in South Africa the company grew tremendously.
BlackBull Markets logo

BlackBull Markets

4.5
Demo account Yes
Minimum deposit $250
Minimum Deposit: $250
BlackBull Markets was founded with the goal of becoming the leading online Financial Technology and Foreign Exchange broker.
Hycm Logo

Hycm

4.6
Demo account Yes
Minimum deposit $100
Minimum deposit: $100
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider
plus500

plus500

4.2
Demo account Yes
Minimum deposit $250
Minimum Deposit: $250
Plus500 is a popular CFD trading platform, that is also listed on London Stock Exchange. They are regulated with top-tier regulators including FCA (UK), ASIC (Australia) & CySEC.
markets logo

coinsraw.com

4.5
Demo account Yes
Minimum deposit $50
Minimum Deposit: $50
Between 74-89% of retail investor accounts lose money when trading CFDs with this broker.
Avatrade logo

Avatrade

4.5
Demo account Yes
Minimum deposit $150
Minimum Deposit: $150
Ava Trade, established in 2006 and originally referred to as AvaFX, may be a pioneer within the online trading industry.
IQ Option logo

IQ Option

4.6
Demo account Yes
Minimum deposit $150
Minimum Deposit: $150
IQ Option was first introduced to the binary options traders across the world back in 2013.
Vantage fx logo

Vantage Fx

4.9
Demo account Yes
Minimum deposit $200
Minimum Deposit: $200
Vantage Global Prime Pty Ltd, broker Vantage FX became available for binary options trading in 2009.
Easy Markets logo

Easy Markets

4.8
Demo account Yes
Minimum deposit $150
Minimum Deposit: $150
Easy Markets is an award-winning forex and CFDs trading platform launched in 2001 as the world’s first web-based trading platform.

Forex trading is all about speculating on the worth and value of matched currency pairs, for example US Dollars to South African Rand. Forex traders sell in one currency (in this case US Dollars – USD) and buy in another (in our example, South African Rand –ZAR). Traders do this in the hope that the ZAR value will increase. When it does increase, the trader then sell the currency (ZAR) in order to make a profit. Foreign Exchange trading is done online with a Forex broker in order to connect you to the money markets internationally.

In terms of Long Term Forex Trading, this is also known as positional trading. It means that you make fewer transactions to produce larger separate gains. Traders aim to make more money this way but the opportunities to do so are more limited given the infrequency of them. Usually, traders who follow this method of Forex trading in South Africa have to prepare for a while and need to have significant knowledge of the markets already. Traders need to be able to identify trends and follow these trends for weeks or even months at a time. Some traders have even been known to follow trends for more than a year.

There’s one rule that long term forex traders swear buy: you should buy currency based on your expectations and sell currency based on the facts in hand.

You need to become an expert in predicting trends. For example, if there’s an up and coming election in either country, this will affect interest rates and currency exchange rates. To carry out long term forex trades in South Africa effectively, you need to pay attention to any such events and how they are predicted to affect this. Furthermore, you need to also pay close attention to events in the other currency’s country of origin too as the effects are felt in both directions. If you are confident that the currency will move in the way that you predict, you can start a long-term forex trade and open a pair position to reflect this. However, you also need to consider how stable the other currency is in your pair as, like we have mentioned, the scales can be tipped either way depending on the stability of the other currency too.

As an example, you could open up a long term trade of USD/ZAR based on the idea that ZAR the market conditions predict that ZAR is going to take a slump against USD. Forex traders will then place a purchase order on ZAR with the knowledge that when the USD takes its slump, their ZAR will buy them a higher number of dollars. To do this in the long term you need to take consideration of certain political and economic events on a long term basis.