Forex Traders: How to Become a Forex Currency Trader in South Africa

Forex Traders: How to Become a Forex Currency Trader in South Africa
Forex Traders: How to Become a Forex Currency Trader in South Africa 2019-10-07T18:32:26+02:00

A Foreign exchange trader, also known as a forex trader or currency trader, is an individual who trades, buys or sells currencies on the foreign exchange market. Forex traders include people who are professionally employed by financial firms to trade or various clients, but also include forex nonprofessional traders who trade to make a profit or to make a living or as a hobby.

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Forex Traders SA Guide 

If you are new to currency trading then you will find this Forex Traders South Africa guide very useful. It features the list of successful Forex traders in South Africa. It could be the motivation you need to successfully begin your journey. As we’ve seen with Instagram Forex traders showing us their flashly lifestyle on social media. 

The Foreign Exchange Currency Market

Forex or the foreign exchange currency market is the biggest financial market in the whole world. Daily trading volume on the FX, exceeds global equities trading volume by 25 times. More than $5.3 trillion are traded on average daily. The foreign exchange market is the most actively traded financial market in the world. All currencies in the world are traded through this decentralized marketplace, with thousands of professional traders and 15 regional marketplaces. 

It is easy to become an amateur Forex trader. It’s as simple as opening an account with a South African Forex broker. Some of the biggest S.A Forex brokers include:

  • CM Trading
  • FXCM
  • AvaTrade
  • XM Trading

Some of the biggest stockbrokers in S.A also offer Forex trading. If you have an account with any broker, you are more likely to start Forex trading through your stockbroker. You can do this by completing an online currency trading application. To open a new Forex account, you will be required to deposit a minimum of $100 depending on some brokers. 

Making Currency Trades 

Once you have opened a Forex account, you can start trading by choosing the currencies you want to trade. Currencies on the Foreign Exchange always come in pairs. When one currency’s value rises, the other currency in the currency pairs falls. Many starting traders are advised to trade only the most traded currencies such as the Euro (EUR), the British pound (GBP) or the U.S. dollar (USD) because they have the smallest spreads and are the most liquid. A spread in forex is the price difference where a Trader may buy or sell an underlying asset. Forex traders, who are familiar with equities, also call it the Bid: Ask spread. 

A Typical Currency Trade

You may think that the value of the U.S dollar is going to rise against the pound. For example, the USD/GBP currency pair is trading at a bid price of 1.1410 and at an ask price of 1.1411. This means that the US dollar is worth 1.1411 and that the spread is very small. The difference between the bid (1.1410) and the ask price (1.1411).

Remember that you purchase at a higher price, 1.1411 in this case study and sell at the lower price. For instance, you buy 10 000 USD at 1.1411. If the dollar rises to a selling price of 1.1522, you might want to sell your position. Your profit is equivalent to 10 000 times (1.1522 subtracting 1.1411), 111.00 Pounds. Well done, you’ve successfully made a profitable currency trade. 

It Is Rewarding to Start Trading Slowly 

Currency trades are highly leveraged as you’ve seen in the above example. Sometimes you will come across leverages such as 1 000 to 1 (1000:1). This can attract beginning traders to want to make large trades from small trading accounts. This means that even small accounts can lose a large sum of money. Deposits do not limit your losses. 

The best way to start is by opening a Forex trading demo account (practice account). Demo accounts usually open with $50 000 of fake or virtual money. Practice until you feel comfortable. If you see that you are trading profitably, you can trade in your real Forex account. 

List of Successful forex traders in South Africa

Who are the top Forex traders in South Africa? There are many successful forex traders in South Africa. You can make a living through Forex Trading if you stick to it and grow it. Some traders in SA started trading at a very young age until they become professionals. Some of these forex traders left their day job and dropped out of school and become full-time traders.

You’ve probably heard about people who are good at trading. So let us find out about the three most famous and richest South African Forex traders, who became rich through Trading Forex.

1. Sandile Shezi

Successful Forex traders Sandile SheziSandile Shezi is probably the most popular forex trader in South Africa. His success story is not different from the ones you’d find with many other traders in Europe or the US. However, it is very important to know that Sandile Shezi took a huge risk to become a young successful South African trader. Before beginning Forex, he used to sell muffins at school. One day, he decided to take all his tuition fees and invested all of it in the Foreign exchange market. 

Forex is risky, as some of the best South African Forex brokers warn people about such risky investment. After investing all his money and focusing on his investments, he made it to the list as one of the most successful Forex traders in South Africa. Today, Sandile is the owner of Global Forex Institute, where they teach people about this financial market and hopefully become as successful as him. But, this 26-year-old couldn’t have done this by himself, he was mentored by George van der Riet, who is the best Forex trader in South Africa and Africa as a whole. 

2. George van der Riet

Successful trader in South Africa George van der RietGeorge van der Riet is one of the most recognized entrepreneurs in South Africa falling into the list of the famous millionaires’ thanks to currency trading. Mr George was born and bred in Cape Town South Africa. He furthered his studies in finance in the UK, Manchester. He later found a job where he worked in financial institutions and banks as a Forex trader.

Today, George is one of the best South African Forex traders. Coming back to SA in 2010, he met Sandile Shezi and mentored him. He mentored Shezi until he becomes the youngest millionaire and the second best Forex trader in South Africa. George is also a co-founder of the Global Forex Institute which is aimed at teaching young South Africans about Forex Trading. We are not finished with the list, the next guy is Ref Wayne, maybe you are familiar with him. 

3. Ref Wayne

Best South African Forex Traders Ref Wayne

Ref Wayne real name Refiloe Nkele is Sandile Shezi’s biggest competitor. He became a millionaire at the age of 22. Today, he is one of the most successful and richest Forex traders in South Africa.

He is good at Forex trading and managed to found his own business called the African Forex Institute. Besides being one of the top Forex traders in SA, Ref Wayne is also the creator of the first SA cryptocurrency called Pip coin.

There are probably more forex traders who make it to the above list of successful forex traders in South Africa. Besides these top 3 traders. We also have some of the most successful female Forex traders in SA. The likes of Nelisiwe Masango, Reabetswe Shongwe, Nobuhle Catherine Ndlovu, Paballo Nkwe and Danielle Lester share successful Forex trading testimonials in South Africa.

Top 10 richest Forex Traders in South Africa

This is the list of top 10 successful South African Forex Traders in no particular order. We’ve already discussed some of the Forex trading success stories in South Africa including Sandile, Ref Wayne and George’s stories.

  1. Sandile Shezi
  2. Jabulani “Cashflow” Ngcobo
  3. Louis Tshakoane Junior
  4. Ref Wayne
  5. George van der Riet
  6. Simz D’ Mandla 
  7. Mike Ndlovu
  8. Nelisiwe Masango
  9. Paballo Nkwe and Danielle Lester
  10. Reabetswe Shongwe

How to Become a Forex Trader in South Africa

The below steps are steps to become a Forex trader South Africa. Anyone with patience and little money can become a Forex trader. But the patience and skill needed to become a profitable or successful trader needs limiting losses while making the best trades. Let’s have a look at some of the steps for becoming a FX trader. 

1. Capital Trading

South African Forex traders don’t need to have a huge capital to trade in SA because they can trade on margin. An average Forex broker only needs about $250 to open a Forex account and start Forex trade online. A recommendation is to have at least $1 000 to sign up for a mini-account, $2 000 ideally. 

For Forex trading beginners these amounts may sound very high but they allow beginners to trade for a while in case of losses. 

2. Using A Demo Account

As mentioned above, a FX trading demo account or practice account, is a trading account with virtual money but connected to the live market. You can use a Forex trading demo account to practice how trade Forex for beginners works. Trades can be made in real time and you will be able to see what would have happened if the money was real. Demo accounts give starting traders an opportunity to trade without the pressure. 

3. How to Practice Forex Trading Before Trading Live

Besides from practicing, you may need some advice on Forex trading, find books for forex trading strategies or a mentor. As a trader, you will need to develop your own trading style and strategies. You can also download online Forex trade for beginners pdf or strategies for Forex trading online.

4. How Trend Traders Find Profit Targets on Their Trade

Before you open a real trading account, you need to see if you make profitable trades or your practice account. You should have a good track record of at least more than 3 months, ideally 6 months. After you find profit targets on your trades, you won’t stop trading and experience in Forex trading really counts. Hard work pays. 

5. Are You On The Right Track With Your Trading?

After using a demo account for a few months, getting some Forex trading education, read learn to forex trade books, developing strategies for forex trading and making profit constantly, you can start making live trades. Although it is different have the real money on the line, if you continue using the same profitable strategies you were using in your demo account, you will become one of the richest forex traders in South Africa.

The foreign exchange market comes with a lot of opportunities. If you stick to your profitable strategy and use these tips, you will be added to the list of the best forex traders in South Africa.

Top Apps for Forex trading used by Forex Traders

Active currency traders always prefer to be kept updated about the market news, charts, quotes and their trading accounts. This has seen the rise of mobile applications among currency traders. Majority of currency pairs traded in Forex are volatile and very active and traders see opportunities anytime and everyday. Below are some of the top Forex trading apps to help you trade.

Best Forex Trading Apps for iOS & Android

The Trading Game – Best Platform For Practice & Experience

This is one of the most popular trading apps available on both iOS & Android devices. This free app gives users an opportunity to practice and experience how it feels like using a real forex account. The trading platform is recommended for both novice and professional traders. Forex tutorials and quizzes are available to help you understand the Forex market. 

The eToro Mobile Trading App – Best Forex App for Social Trading

The eToro trading app is available for both Android and iOS devices. It allows traders to perform all the activities available on the investing and trading platforms. It also notifies you about market events. This social trading real money platform is the best forex trade app. 

Go Forex – For Learning The Basics

GoForex is one of the leading forex trading learning applications. The app is your guide to currency trades and Forex market. It serves as your trading hub. The app is best suitable for starting traders and it also comes with quizzes to test your knowledge in the foreign exchange market. Go Forex app is a quick way to master Forex fundamentals and strategies. 

Bloomberg Business Mobile App – For Financial News

Bloomberg trading app gives traders access to financial business news, stock market and data. Choosing this app will help you know what’s happening in the financial market and in-depth analysis of the markets. Also, it allows you to read about trending topics such as cryptocurrency and bitcoin.

The Forex Hours App – For Trading Alerts

The Forex Hours is an app for both Android and iOS smartphones which provides services in a foreign exchange field such as forex market hours, real-time charts, forex tools, forex calendar and central bank interest rates. Furthermore, this best app shows the exact time of when the market opens in a particular timezone or country.

Tips for Forex trading

The best traders online hone their trading skills through discipline and practice. They come up with strategies for Forex trading that help them become successful. To see what drives their trades, they also conduct self-analysis and learn how forex trade works. The below are the skills every Forex trader should know. 

  • Know the Markets
  • Develop a trading strategy
  • Practice using demo accounts
  • Know your limits
  • Practice patience
  • Choose the right trading partner for yourself
  • Feel free to explore the market
  • Choose the right broker and trading platform