Forex trading has exploded in popularity throughout South Africa, with many local traders benefitting from the ease of access to the Forex market, which is the largest decentralised financial market in the world.
Along with this increase in online trading in the country, excellent South African-based and regulated brokers like Khwezi Trade have appeared in the market to provide South African traders with competitive trading conditions, transparent pricing with low bid/offer spreads, and comprehensive trading tools.
For South African traders, using a locally based Forex broker like Khwezi Trade also provides the significant added benefit of being able to conduct their online trading in Rands. In this article, we take a closer look at the advantages for investors to trading in their local currency.
1. Trading in Rands removes expensive currency conversion fees
When using a broker that has offshore based trading accounts, such as in USD, South African traders will have to pay a conversion fee on their deposits and withdrawals. These fees can rack up over time and affect their withdrawable profits.
Rand-based trading accounts like those from Khwezi Trade do not necessitate a conversion fee, since traders are able to access the Forex markets in their local currency, resulting in significant savings throughout their trading activities.
2. There is no need for an exchange control allowance
Exchange controls are government-imposed limitations on the purchase and/or sale of currencies. These controls allow countries to better stabilize their economies by limiting in-flows and out-flows of currency, which can create exchange rate volatility.
When using a Rand-based trading account from a broker like Khwezi Trade, there is no need for your money to leave the country, removing these limitations on your trading capacity.
3. South African traders benefit from local regulation
When using a Rand-based account from a local FSCA-regulated Forex broker like Khwezi Trade, your deposits are stored in segregated bank accounts with top tier South African financial institutions.
This provides extensive deposit security, with your funds being locally stored and traceable, as opposed to being held with offshore financial institutions.
South African brokers also provide comprehensive trading courses that will allow you to improve your trading and achieve greater success on the Forex market.
4. Deposits and withdrawals are cheaper
Making deposits and withdrawals from a local Rand-based account like those offered by Khwezi Trade are significantly cheaper when using popular methods such as EFT.
Added to this, South African traders are able to benefit from bonuses and promotions offered by local brokers, which allow them to start trading with boosted funds. They will also be able to benefit from favourable leverage ratios of 1:200, as offered by brokers like Khwezi Trade.
Khwezi Trade provides several compelling bonuses and promotions to new and existing traders, as outlined below, which provides a significant boost to your trading funds when used alongside leveraged trading.
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5. Traders benefit from faster deposits and withdrawals
When conducting deposits or withdrawals into offshore-based trading accounts, there is usually a delay of up to 7 days before these funds are able to reflect.
Deposits and withdrawals into local trading accounts will reflect much faster, allowing you to continue trading at your desired pace and enjoy your profits immediately.
6. You will know where your deposits are held
When trading with an FSCA-regulated South African Forex broker, local traders have peace of mind knowing that their deposits are held securely with a company the required ODP licensing for CFD trading in South Africa.
Using Khwezi Trade is local, allowing ease of communication if anything unforeseeable were to happen. No need to wait for an email response or international calls. South African account managers are available to assist immediately as there are no call centre gatekeepers.