The best offshore broker, how much money you need and the quickest way to profit in pounds!

by Timon Rossolimos, Head of Trading, FSP Investment Research, 17 January 2018
The best offshore broker, how much money you need and the quickest way to profit in pounds!
Q. Which broker can I trade offshore CFDs and do I need a lot of money?

A. Just two years ago, you needed around $2,500 (R34,000) to open and trade offshore accounts.

Fortunately for you, those days are long gone.

We understand that finances are tight nowadays. And with the ever increasing costs of transport, food and living expenses, we've tracked down the most affordable offshore brokers we can find in South Africa.

I'm talking about RandSwiss.co.za and ProTrade.co.za.

You can start trading Offshore CFDs with the tiny start up portfolio of just R5,000.
 
We recommend these brokers as well for our brand new trader service called Pickpocket Trader. You can read more about them here…

Just in: 850 people ALREADY have my number in their address book - and since I started SMS’ing them, they've made R8,589 profit.

Q. Timon, with offshore CFDs do I still need to phone up my broker to place a trade?
 
Answer by Timon Rossolimos
 
A. You’ve jogged my memory back to 2014 John…
 
I remember every time I wanted to buy an offshore stock, I needed to phone my broker, give my details and ask them for charts to decide what to buy.
 
The entire process took around one hour to action a trade.
 
But no more…
 
The answer to your question is a big fat NO.
 
Today, you can trade offshore and local CFDs with our recommended brokers trading platform with a mobile phone or on another device.
 
It’s as easy as opening a stock’s chart, placing your levels and pressing submit.
 
You really don’t ever need to phone your broker again to do anything really, unless you want to say hello. 
 
Q. What are you actually buying when you trade offshore CFDs?
 
Answer by Timon Rossolimos
 
A. The short answer is “nothing”.
 
The offshore CFD market is purely a speculative market. There is no physical exchange of stocks taking place.
 
To see why, we need to break up what a CFD is.
 
A CFD is an acronym for Contract for Difference. This is where you’re basically buying a contract which allows you to speculate “bet” on whether the price of an instrument will rise or fall.
 
If you wanted to buy Sainsbury’s CFD, you won’t own part of the company like you do with shares.
 
Instead you’ll be betting on where you expect the Sainsbury price to go. And that’s where you’ll place your take profit.
 
If you go long (buy) you expect Sainsbury’s price to rise. And if you go short (sell) you’ll only profit if the Sainsbury’s price drops.
 
Q “Are the Offshore CFD share symbols codes the same as for the JSE CFDs? How do you distinguish between them?
 
Answer by Timon Rossolimos
 
A. To answer this question you need to know that the CFD is just the derivative of the underlying share whether it be offshore or local.  
 
The only code you need for the offshore CFD is the underlying share codes.
 
The share code for Offshore stocks and Local stocks each have their own combination of three letters.
 
Let’s take two insurance companies for example.
 
In South Africa the share code for Discovery is (DSY). 





And in the UK, a share code for the insurance company Admiral Group is ADM.





 
The share codes are different but the number of letters are the same.
 
 
PS: If you’re thinking of taking your money offshore to trade and earn in pounds in just two minutes - join our new Pickpocket Trader service right here.
 



The best offshore broker, how much money you need and the quickest way to profit in pounds!
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