For most traders, the initial step is to select a trustworthy broker who can get you access to the most prominent African and other international exchanges. The good news is that no matter what sorts of assets traders desire to purchase and sell, there are hundreds of brokerage firms that can help both novice and more seasoned traders. However, if you’re unfamiliar with the concept of online trading, it’s important to understand how to compare different brokers that are vying for your business. Which of the trustworthy, well-known companies best suits your trading style, financial situation, personal preferences, and degree of experience? Use the following recommendations if you’re an avid trader who lives in Africa to choose a broker that meets your requirements.
IDENTIFY THE ESSENTIAL FEATURES AND FUNCTIONS
What characteristics should you search for? Consider a supplier with good educational materials and a respectable mobile platform in addition to minimizing costs and commissions. Easy account creation, research, and charting tools is a simulator to practice your abilities, access to a variety of markets, prompt customer support, and generally excellent ratings are further benefits.
CONSUMER SERVICE TESTING
One of the most important things you should look for is good customer service. Calling a firm at their provided number, emailing them a question, or using the chat option on their website are all ways to evaluate their capabilities. See how they respond to a straightforward, generic inquiry on how to create a new account. Consider working with a company that offers more timely customer service if it takes several minutes to even get through on the phone or if they don’t respond to emails or chat requests.
START WITH FOREX
Pick a brokerage company that provides FX accounts. Consider beginning with foreign exchange, commonly known as forex or international currencies, if you have never traded before. Whatever name you want, all you need to begin trading in South Africa or from anywhere else on the continent is a functional platform and broker. Why do forex?
This asset class is ideal for novices to the securities markets due to a number of factors. First, currency pairings like USD/ZAR (the US dollar to the South African rand) and EUR/JPY, which continually change in value, are simple to track (the Euro to the Japanese yen).
CHECK FOR SIMPLE STOP SETTINGS
Stops are frequently used by those who frequently purchase and sell stocks, options, foreign exchange, bonds, and other assets to protect themselves against significant losses and to lock in gains. It is crucial to seek for brokers who make it simple to put stops on every transaction because of this. The majority of service providers provide stops in their default tool menus. However, test out a couple of your top brokerage selections to discover how simple or challenging it is to place stops. The majority of transactions should have upper and lower bounds set. You will then be instantly removed from the deal if prices fall or increase sharply, protecting your profit or minimising your loss.
UNDERSTAND ACCOUNT MINIMUMS
Most websites will specify the firm’s needed opening balances for various accounts, so you generally won’t need to inquire. For instance, relatively low account minimums are more typical for products like CFDs, shares, and FX. It costs extra to open an account for those who wish to trade more complicated assets like futures, options, and bonds. Any service provider that does not prominently display their minimums on their front page should be avoided. The majority of brokerages currently charge extremely low starting and trading costs, so excessive ones should act as a “beware” warning flag. This is another reason to avoid exorbitant fees in this sector.
VERIFY REVIEWS
Review websites are not the most accurate indicator of a company’s quality. But you can discover some broad truths about how individuals feel. For instance, the best brokerage houses and trading platforms sometimes have thousands of evaluations online that are overwhelmingly favorable. To obtain a sense of how well or poorly the company operates, read a few.