Forex has taken over the world due to its unique concept. After watching people succeed at it and making it their full-time career, new users are learning and practicing Forex Trading consistently.
This flux of new traders has led to various questions. Since South Africa is one of the most prominent regions for Forex, the most frequently asked question is How much money to start Forex Trading in South Africa?
Well, the answer is not that simple. But, we have prepared this article to give you a clearer picture.
Here’s How Much Money Do You Need to Start Forex Trading in South Africa
There is not a single figure that we can tell you about the required money. To answer, How much Money to Start Forex Trading in South Africa, we have to discuss some factors surrounding it. So, let’s get started.
- Brokerage Companies
The first and foremost decisive factor in finding out the required amount is the broker. There are more than 200 Forex brokerage companies operating all across the world. Most of them are available to various countries, while others are limited to only a few.
Every broker has a different requirement for the initial deposit. You will find many to your convenience. They cost as low as $5, so that newcomers can signup with them. On the other hand, many cost $100. But, they are more aimed towards experienced traders.
Then, a large number of brokerage houses are between this wide area of $5 – $100. In fact, there are some with intial deposits of up to $5,000.
If you are a newcomer in Forex, you can look at all the popular brokers on the Internet and their minimum deposit. This way, you can estimate a solid amount to answer your question, How much money to start Forex Trading in South Africa.
- Account Types
In South Africa, brokerage houses offer more than one type of account. That is mainly to provide convenience and attract new users—these range from the demo, standard to pro.
On average, standard accounts start from $5 – $10. On the other hand, pro accounts require an average of $100. The demo accounts are usually free of cost. They are for new traders to check the conditions of a broker. Although there are Islamic accounts, their minimum deposit is not lower than other types of accounts. They differ only in spreads.
- Currency Exchange Rates
Since Forex is all about trading in different currencies, this plays an integral role in deciding your initial investment. For South African traders, 1 USD = 14.51 South African Rand. Hence, $5 = 72.54.
Considering the currency exchange rates, you can come up with the correct figure to decide your initial deposit.
They fluctuate almost everyday, so it is recommended to monitor them daily.
Hopefully, this article will help you find the appropriate answer for How Much Money to Start Forex Trading in South Africa. All of these factors will help you throughout your Forex career as well. You can make better decisions considering them.