South Africa is a Leading African Forex Industry

South Africa Forex Industry

South Africa Forex Industry
The South African foreign exchange market (Forex, FX) industry has been booming for the last couple of years. This is great news considering the fact that otherwise, the country’s economy is not fairing that well. People have started picking up trading due to the availability of a myriad of free educational data online. Apart from this, the financial regulator – Financial Service Conductor Authority (FSCA) – has been working hard on advancing the popularity of the subject as well as the overall security and quality of service that different brokers provide.

For example, developing countries in an African continent, including South Africa, have been fighting against the increase of unregulated brokers that have started providing scamming or lying services to their gullible customers. These firms are essentially trying to sign up as many people as possible and get them to make initial deposits without actually helping them in achieving their goals of successful trades. Otherwise, they flat out draw in customers with false advertisements over the internet.

These scammers lie through the whole process via setting up elaborate pitches for the customers that call their numbers and very “professionally” looking websites that do not actually offer anything of value. Apart from this, some of them even make up some kind of certification that they post on their webpages. Fake reviews are also a part of their scheme.

Due to this, the FSCA started regulating the market.

The main decision came regarding the licensing of brokerage firms that allow the market to flourish with quality services instead of fake ones. The FSCA has set up a robust set of rules for companies that want to get proper licensing and start operating on their market.

They also guarantee the negative balance protection, which means that the trader cannot by accident become indebted to the broker. This usually happens due to the leverage mechanics of the foreign exchange market. Leverage basically works in a way that allows the traders to trade with a higher amount of money than they have actually deposited making it possible to increase the earnings without having extra cash on the account.

The Art of Currency Trading: A Professional’s Guide to the Foreign Exchange Market (Wiley Trading)

However, this is a double-edged sword as it also makes it possible to lose a lot of money if the trade goes sideways effectively throwing the customer into a negative balance that needs to be returned postpartum. This is a very scammy strategy utilized by unlicensed brokers to squeeze out as much money as they can from gullible customers.

The FSCA has also implemented a number of other services like an education project where the institutions aims to teach citizens things like how to trade forex in South Africa, how to manage finances, how the market works, and etc. to make sure that the South African people have evaluated the situation as much as possible and understood all the risks associated with FX trading.

This translates to annual international conferences that are being led by the experts visiting from all across the world. The regulatory body also acts as a medium between customers and brokerages when it comes to disputing matters like chargebacks or misconduct from the broker which ended up with the user losing their funds.

The Financial Service Conductor Authority has succeeded its predecessor Financial Services Board (FSB) in a number of ways and has made significant progress and thus has bolstered the usage as well as interest all across the nation.

FOREX TRADING: THE BIBLE 5 Books in 1: The beginners Guide + The Crash Course + The Best Techniques + Tips & Tricks + The Advanced Guide To Quickly Start and Make Immediate Cash With Forex Trading

South Africa Currently

South Africa is one of the leading countries in the whole of Africa when it comes to the popularity of FX trading. As was already discussed, the major reason for this success is a well regulated and secure market. Apart from this, there is a big interest in the South African economy from outside investors. This interest makes the economy spin and thus brings in funds inside the country from foreign investors. In 2019, South Africa was leading with retail forex platforms that cost as much as $742.04 making SA investors the most valuable ones.

During the same year, the South African trading volume was as much as $2.21 billion per day netting $20.37 billion for all FX instruments commutative. This puts the country right behind giants like Russia and India that are sitting at $46 billion and $39 billion while in front of Turkey and Brazil that have $18 and $19 billion turnover respectively.

The increase has continued over to 2020 as well. Even in the face of the novel coronavirus pandemic which has impacted the world with massive nationwide lockdowns and strict social distancing laws. The pandemic goes as far as to totally shut down certain industries. One of the most massive hits that the world has ever seen is the damage to the airline industry which estimates the loss of as much as $84 billion and the tourism industry being hit with a whopping $1 trillion with as much as 100 million jobs at stake worldwide.

However, the SA FX industry is still prospering. This may be attributed to the fact that more and more people are searching for ways to make money when in the comfort of their homes. The social distancing laws that are implemented are still forcing everyone to spend as little time outside as possible so a number of individuals took upon themselves to get some education from available data online and start generating income through the foreign exchange market.

See Also : Day Trading Options: 10%/Mounth,Beginners Guide to Increase your Savings Using Options Trading, Stock, Leverage, and Technical Analysis.

Disclosure : Anunlimitedamountofmoney.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.
Some of the links in this post are affiliate links. This means if you click on the link and purchase the item, We will receive an affiliate commission at no extra cost to you. Please read our disclosure for more info.

 

 

error: Content is protected !!