How to trade forex: An opportunity to profit from the world's major currencies
Trading forex is about trying to profit from currency price fluctuations.
As a South African forex trader, if you want to trade the world's major currencies, like the dollar, the euro and the pound, the easiest way to do this is by spread trading.
So how does this work? And how can you get started?
Read on to find out…
How to trade forex with spread trading
When you spread trade forex
, all trades are in rands. This means you benefit from trading the most liquid international currencies without having the bother of taking your money offshore.
Spread trading forex combines trading the currency spot market with local currency futures.
And with spread trading, you decide how much risk you take on by deciding how much to stake per pip move.
The costs to spread trade forex comes from the spread between the buying and selling price of a currency pair. Once you cross the spread, any profit you make is yours.
Using a trading company’s platform you can place your trades. As well as entering and exiting trades, you can also load stop loss and take profit levels.
How to open a spread trading account to trade forex
Once you’ve found a trading company offering forex trading, it’s a case of completing an online application form and submitting your FICA documentation.
FICA documents include:
A certified copy of your ID;
Proof of your income tax number;
Proof of your physical address; and
Proof of your banking details.
Once you’ve opened your account, you’re ready to start trading international currencies. You just need to deposit some money into your trading account. Minimum starting balances of R500 are available.
Some trading companies also have demo accounts for you to try your hand at forex trading before committing your cash.
So there you have it. An opportunity to profit from the world’s major currencies.
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