There are several things to successful Forex trading: the first is a solid trading strategy and the second is a good broker. One that will allow you to operate as a professional trader no matter what level of quantities you are trading with.
However, most traders make the mistake of not understanding the basics well, which is why they struggle and never reach their potential.
In fact, a lot of the negative things written about different brokers on the internet in Forex trading platforms in South Africa reviews stem from the fact that traders didn't take the time to learn the basics and develop a proper trading strategy, and then they feel bitter. when their operations do not generate anything or lose money.
There are 4 important steps to finding a good broker:
1. Low minimum account opening and trading amounts.
You should only trade what you can afford to lose. Using a broker with the low account opening and trading amounts means that traders can trade at a level that they are comfortable with.
Many seasoned traders "learned" with smaller amounts and gradually made their way.
2. Basses for spreading.
The spread is the difference between the bid and asks prices. The smaller the spread, the "cheaper" the trade will be.
3. Instant execution of orders.
A trader mustn't settle for a trader who goes back when he tries to buy or sell. This 'slippage' can have a significant effect.
Often this comes down to the liquidity that a broker can provide, which is often indicated by the volume of trades that he goes through.
Leverage consists of borrowing money to trade. For example, if you were to use 10: 1 leverage, then you would be trading ten times more money than you bet. If you used $ 1 from your account, you would actually trade $ 10.
This can be a double-edged sword because it means that the gains and losses can be much greater and happen much more quickly. A broker will give traders the flexibility to trade with as much or as little leverage as they need.