Today, mobile apps help users to achieve very different goals. Some of these systems are focused on spending (for example, shopping apps), while others allow you to grow your wealth. Online trading is increasingly popular around the world. This year, since COVID-19 shook the very foundations of economic stability, consumers in South Africa have been looking at alternative ways of money-making.
Online trading is more accessible than ever before. You may start with as little as $10, education is free, and you may even trade from your smartphone. Versatile apps enable users to trade on the go, whenever and wherever they want. Here is how to get started quickly.
Where to Begin
To start trading, you need a registered account. It may only be provided by a brokerage. Traders in South Africa may choose between local and international brands.
Regulated companies with a positive reputation and a vast audience are most preferable. The allure of Forex is exploited by scammers who set up fraudulent websites to steal money.
Choose brands authorized by the FSCA — Financial Services Conduct Authority in South Africa. Global brands may also have licenses from other jurisdictions — for instance, approval from the FCA in the United Kingdom or the CySEC in Cyprus.
Why is choosing a broker the first step? Because it defines whether you will be able to withdraw your profits. A legal MetaTrader 5 broker complies with all industry norms, including negative balance protection. This guarantees you will never lose more than your balance even if your trading decisions are awful. If the company goes bankrupt, you will also be entitled to compensation.
What Apps to Choose
The broker will recommend some apps to its clients. These may be mobile versions of desktop terminals or proprietary products. For instance, MetaTrader 4 and MetaTrader 5 are both portable versions of popular trading terminals. They offer similar functionality but allow users to work on the go. Those who are familiar with the full-size system will adapt to the mobile environment easily.
On the other hand, there are unique apps like the FXTM Trader app devised specially for the ForexTime broker. It gives access to over 250 financial instruments, real market quotes, account management tools, and more.
Thus, the broker usually dictates the choice of an app. However, as MetaTrader 4 and MetaTrader 5 are so wildly popular, they are offered by a vast majority of brokers in South Africa.
How to Learn
Forex education is free. Brokers offer a wide range of resources to their clients — these may include articles, video tutorials, books, webinars, etc. Even YouTube, the world’s largest video sharing site, features dozens of channels dedicated to the subject. Some of them are hosted by world-famous experts and deliver priceless insights into the inner workings of the market.
Beginners start with a market background and common approaches to analysis. Traders aim to foresee market movements and capitalize on them. For this purpose, they may either look at financial news (fundamentals) or apply technical indicators to price charts. Indicators allow them to identify patterns that are likely to reoccur.
A wide range of strategies accommodates traders with different needs. There are short-term systems and long-term methods. For example, scalping is the most hurried style — it requires that you open a series of small trades throughout the day. Position trading, on the other hand, allows you to keep a position open for days or even weeks.
Financial analysis may sound daunting, but it is not rocket science, and you do not need a Ph.D. in economics either. Finally, brokers offer copy trading opportunities. You may delegate decision-making to an expert and watch them invest a portion of your funds for a small fee.
Secrets of Success
Theoretical knowledge alone is insufficient. Open a free demo account and apply your vision to simulated trades on the trading platform. This mode is possible in both MT4 and MT5 apps. You may practice as long as you need, as the money will be only virtual.
Get familiar with the controls and features of the system, so you are not distracted by technicalities when you start working with your own money. When you are ready for real action, switch to a live account through the same broker, and start trading!
Anyone willing to learn and make a consistent effort may master Forex trading. To make a regular profit, you need a solid strategy, a strict risk management system, and a calm attitude to mistakes. Treat them as learning opportunities, review performance regularly, and perfect your methods to achieve more. Forex requires intellectual work, but you do not have to be a genius to master it.
This content is sponsored by Uday Tank.