This article will walk you through all of these questions step by step, so let’s hop on. We’ll get you your answers.
A little background story
Like millions of other people, you might be stuck at home in this pandemic. These reports on news or posts on social media have made you curious enough to know about forex trading, and you want to know the reason behind its popularity in South Africa.
Many people lost their jobs because of the spread of covid-19 and online jobs, and business options skyrocketed. Forex trading is also an online way to make money. Now, let’s get down to why you are reading this article. Why is it growing in South Africa at this pace?
One of the most important and greatest features of forex trading is that you can do it from anywhere, yes! Anywhere on the planet, even from the moon, if you got a good internet connection there. So, in this fast-paced modern era, where everyone is the move all the time, this kind of feature comes up huge, which is why people are gravitating towards forex trading. You can be on your way home or going outside to buy groceries and do forex trading. This feature enables many people to do forex trading easily, and it makes it easier for everyone to try it even if they work somewhere or are a thirty-five-year-old housewife raising three kids. All it requires is a smart device and an internet connection, and yes, a trader, of course.
It also allows people who don’t have many resources to make an expensive set-up or people living in small towns who can’t afford to travel to big cities for trading business. It opens up a lot of opportunities for many people, allowing everyone to be able to do forex trading.
Due to the country’s deteriorating conditions of RAND and its economic perils, Forex trading South Africa got popular because it almost guarantees high-value returns if you do it right. And like mentioned earlier, the flexibility to work at your own ours and terms make it more accessible to everyone. As compared to stocks and Bonds, trading forex offers faster returns as well,
The CFD trading in the forex market makes it possible to get more leverage and make it possible to get higher returns.
In simple words, you might wonder what leverage allows traders to trade a greater amount of money than their initial deposit. Although it is important to keep in mind that it could backfire if the trader is not competent enough. Still, overall, it allows the trader to enter the market at more affordable rates.
Low entry cost
Unlike other trading platforms, forex does not require a large amount of money to start with, and when you add leverage on top of it, it just becomes an attractive option. It doesn’t require that large deposit to be paid upfront, and you can start forex trading for as little as R5000, which makes it an attractive option for traders.
Unlike some other trading markets, forex markets are open all day long throughout the week, making it easier for people in different time zones. So, even if you have an inconsistent sleep cycle, forex trading lets you make money.
Free Forex trading courses
The most important thing is that you’re investing your money and efforts into something. No matter how small or large the amount is, it is your hard-earned money. You wouldn’t like to see it go to waste, which probably could happen if you start forex trading without any knowledge of it. But it is easier to learn forex trading, and you can learn it for free. There is tons of content available on the internet and courses which will walk you through the whole process and make you understand and learn it, so you don’t lose your money.
It is another great feature that lets you explore forex trading without risking your real money. A demo account ensures that you get an idea and see how things work from the inside but doesn’t require you to invest in the trading itself. This provides security for the new user, they can learn trading without risking their real money.
It is possible to make money on the directional movement of a currency pair, but you can also make money on the interbank interest rate. It is much like holding money in a bank and getting interested in it. Carry trading can provide profit from the difference in interest rates of different currencies.
These are some of the basic reasons that have led to an increase in the popularity of forex trading.
Frequently asked questions
Why is forex trading so popular all over the world?
Ease of entry and low margin requirements make it easier for people to enter forex trading.
How profitable is forex trading in South Africa?
It depends on the trader and whether they trade properly or not but the daily turnover of forex trading in SA is estimated to be around USD 19.1 billion per day in 2017. These are huge numbers.
How much do forex traders make in South Africa?
The average income for South Africa is approximately 45 000 ZAR per month. Many people earn more than this, and most earn less. It all depends on how much effort you put in and how competent you are.
So, in this article, we covered the basic reasons to the question of why forex trading is so popular in South Africa. It is generally very convenient, requires low start-up investment, and is open for everyone. It makes it a very attractive option in this modern era.