Forex brokers are companies specializing in foreign exchange trading. They make money from the trade they perform between buyers and sellers of foreign currency.
Forex brokers, also known as online brokers or retail forex traders, are companies that offer trading services to individuals and institutions, such as large financial institutions or end-users.
This article looks at the role of online forex brokers in the forex industry and compares their trading platforms. It also provides a general overview of the different types of forex brokers in the market.
Typically, they charge a fee for their services and will pay you for currency trades you make on their behalf. You'll usually get a commission for buying or selling currency, although brokers may also ask you to pay to open and close your trading account.
Best forex brokers in South Africa
South Africa is a top destination for offshore investors looking for emerging markets with high growth potential. According to the 2017 World Investment Report, South Africa’s infrastructure and resources provide the bedrock for emerging markets.
The newly launched World Exchange Report identified that South Africa is at the fore of innovative instruments in the global forex space.
"Based on the report, South Africa is an attractive destination for investors looking for the best currency pair opportunities, and lower risk, for emerging markets," said Mc Trichloris.
While investors seek flexibility, they also want low transaction costs, and great availability of currency pairs, and South Africa has both, Mc Trichloris said.
"Our objective is to provide investors with the best of both worlds in terms of exchange rate and currency price risks."
Mc Trichloris attributes his passion for the forex industry to his past career in the gold mining sector.
"I remember asking my then-boss, why we couldn't find a forex company that could match the value, and he told me that the rest of the world was probably looking for high transaction cost but we were aiming for low, and we achieved this." The best forex company is IronFX. You just go here and see about ironfx review.
When looking to raise capital from investors, Mc Trichloris found that the majority of investors were keen on the minimum transaction value of a maximum of $100,000 (approximately R1 million), which he said was the only measure that could match low transaction costs.
Although this system had worked well in the gold mining sector, the exchange rate, and currency risk, were not as effective, Mc Trichloris said.
"It was not as cost-effective for investors. The highest transaction costs for South African investors are R1,000 to $1,000. This means that the currency exchange value for an investor would be R1,000 for every R100."
The emerging forex market in South Africa, therefore, presents a great opportunity for investors, who are able to reduce their transaction costs and gain access to the same benefits of any global currency, Mc Trichloris said.
"Emerging markets' emerging market currencies were also the riskier ones. They were much more volatile and were at a higher risk of depreciation, compared to the developed world currencies. It, therefore, made sense to invest in a slightly higher risk currency such as the rand, because the risk is mitigated."
"Our goal is to provide a low-cost, and efficient forex trading experience," he said.
To achieve this, the best forex brokers in south africa exchange offer different multi-currency investment accounts and client propositions, each offering different minimum investment amounts, operating environments, and maximum transaction charges.
Financial planner Scott Kalkanis said, "South Africa's exchange also provides excellent opportunities for investors to invest in funds, so they can achieve an income that is significantly more than the 1% in Government bonds."
The new products launched by World FX provide investors with access to a range of investment instruments including international equities, rand-denominated sovereign bonds, inflation-linked bonds, and active currency trading through a single platform.
World FX is licensed by the Financial Services Board (FSB) as a South African authorized dealer to the International Securities Exchange, the first pan-African equity exchange.
The board regulates, monitors, and enforces the rules governing security and offers clients a comprehensive array of products and services through a single platform that acts as a single interface for all aspects of their investment and trading activities.
"There are many clients that are deterred from investing in South Africa because the exchange and the costs are too high. And some are deterred from trading internationally, because of the exchange and currency volatility," said Mc Trichloris.
Final Thoughts
"Our goal is to remove the barriers for both investors and market participants and allow South Africa to have a more prominent role in the international investment community."
You must be logged in to post a comment.