Forex Trading Spreads - What You Need To Know

Forex spreads hold ample control over how you trade and have a significant weight of their own. To learn the science behind spreads, you need to understand the general architecture of a currency trade. Most Forex trades happen through brokers.

Keep in mind that these aren't exactly middlemen, but facilitators. You have to pay them in spreads - which is the difference between the bid price and the ask price. Some brokers charge both spreads and per-trade commissions, so make sure you're getting brokerage worth the money put in.

How Bid-Ask Spreads Function:

As a Forex trader, you will be paying a specific price while purchasing a currency called the bid price. Similarly, when you sell a currency pair, you will do so for the ask price. The difference between these two rates will add up as the spread which is paid to your Forex broker.

To understand better, assume that you're buying a brand new phone. Once you've paid for it and start using it, you realize that it isn't worth the money and its market value is falling. So you go back to the shop to sell it, but the dealer isn't going to buy it for the same rate, he will pay you less for it. This is called the depreciation cost. In the Forex trading markets, spread work in a similar manner to this example. 

What Do Market Makers Do?

Forex trading isn't like stock exchange that usually happens in a physical space. Currency exchange happens over-the-counter and in a decentralized environment, meaning you can trade from anywhere in the world, and your trades are conducted by specialists known as market makers. Their job is to facilitate trades, find buyers for sellers and vice versa; these market makers charge spreads, and some even charge additional commissions. They only facilitate, you will have to do the other ground work, from devising Forex Trading Strategies to analyzing markets. 

While this market maker's job seems like easy money, it isn't; there's a lot of risk involved. If the specialist accepts a buy order and the currency's value goes up before selling it, he/she has to still remain committed to the trade and find sellers. 

Even when the bid-ask difference is minimal, market makers make ample profits. But since there's an element of risk involved, they hold on to a small portion of every trade which is called the spread. For example, when trading a currency pair A/B, if A is 1.1235 times B in value, it is natural to believe that A will rise against B, which will lead to you buying the A/B pair for asking price. 

This ask price won't be precisely 1.1235, it might be a tad bit more at say, 1.1240, which you will have to pay for the trade. Similarly the sellers won't receive 1.1235, a small difference will be caught and they will get 1.1230. This difference of 0.0010 is the spread.

Learn more about currency exchange - get a stellar Forex Demo in South Africa today! Call WesternFX and work with our arsenal of knowledgeable traders to take to the top. Avail our brokerage now to see the magic happen!

4 Simple Forex Trading Tips To Succeed And Make Profits

Success is a very difficult term to define between the walls of the Forex trading markets. As a Forex trader, each person has their own perspective of success. For some it's monetary, for some it's the number of good trades made; the one thing all these traders have in common is the method employed to achieve success in their exchanges. 

Forex trading is one of the riskiest financial markets in the world, with a risk ratio that goes unparalleled. Though it has a trading value of over $5 trillion, and sees millions of traders try their hand, the risks aren't so easily avoided.

forex trading strategies

 

 

Here are 4 simple tips to see success on a consistent note and thrive in the markets of Forex: 

1) Establish Firm Goals: 

Goals help you know where you're going, and in the erratic Forex trading markets, having direction is of paramount importance. Establish a goal and work towards it; this will keep you streamlined towards success and ensure that you don't get sidetracked at any point of your Forex trading career. 

2) Devise Solid Forex Trading Strategies: 

Trading isn't random or dependent on luck - you have to strategize thoroughly if you're going to win trades in Forex. There are a number of approaches you can employ to trade currencies. From scalping to position trading, Forex Trading Strategies are available in all shapes and sizes. To pick the right one is up to you! 

3) Find A Knowledgeable Broker To Work With: 

Though there are a number of Forex brokers in the markets, reliable ones are getting scarce by the day. Partnering up with an unreliable broker can cost you a lot! So do your homework while picking a broker and make sure you're working with one who's as committed to your success as you are.

4) Demo Practice Before You Go Live-Trade: 

Get yourself a good demo trading platform to test out your strategies and practice your approach. Heading into a live trade without practice has cost many traders thousands of dollars - don't make the same mistake! 

Avail the best Forex Demo in South Africa, and master your grip over currency trading. Reach out to our experts at WesternFX today! We will equip you with top-tier strategies, platforms and ensure you see unparalleled success in your trades. Assisted by our veteran traders, finding victories will happen swiftly. Call us now to know more!

How To Save More And Lose Less While Forex Trading?

As a beginner, Forex trading is undoubtedly one of the most adventurous journeys you will undertake. A decentralized market with trillions in value, foreign exchange brings in thousands of aspiring traders into exchanges every day. While the profit aspect of Forex is indeed a sight to behold, there's an underlying catch. If you aren't adept enough while trading, you will burn out your entire trading account in mere minutes! 

The erratic Forex trading markets are profitable, but not lenient; since they are deep-rooted with a country's economy, even the smallest of changes leads to huge repercussions, which when not aware of, can lead to losses. Money management is a skill every trader has to acquire if they want to thrive in the currency markets.

Here are 5 incredibly effective money management steps for you to follow:

1) Research The Markets Thoroughly: 

Market research is one of the most elementary requirements to succeeding at Forex trading. Given that Forex is always volatile, you will have to research market trends to figure out profitable movements to capitalize. When you have market clarity, managing your investments will happen smoothly.  

2) Have A Realistic Approach: 

Losing money in Forex Trading often happens when you have unrealistic expectations from trades. When your goals aren't achievable, you will be investing money on outcomes that will never happen! Keep real and clear goals, and you will be able to seamlessly move towards victory. 

3) Don't Invest Instinctively: 

At times while trading, your instincts might tell you to make unwise investments, don't give in! Forex trading is a field where research and analysis are vital. Only when you have thoroughly studied the markets and have a firm grasp of the movements will you be able to draft sharp Forex trading strategies, invest on the right trade and make consistent profits. 

4) Learn From Your Peers: 

There are several professional traders you can follow. Always look up to the successful traders in the market and go down their path! 

5) Employ Sharp Atops: 

Stop-loss orders will keep your trades from crashing down abruptly. You will be forcefully exited from a trade whenever a predetermined amount of loss is incurred. This ensures that your trades don't fall into losses when you aren't noticing the charts! 

The assistance of an experienced broker and the backing of proven Forex Trading Strategies will help you see victories come by in no time! Partner up with WesternFX today, and ace your exchanges. Our experts will provide you with an arsenal of stellar approaches and top-tier Forex platforms to work with. Call us today to get started!

How To Make The Right Trading Decisions In Forex?

The decisions you make as a trader have to be firm. In a domain as erratic as Forex trading, it is easy to lose track of oneself. Forex trading will stir many emotions within you, most of which will work against you. Fear, overconfidence and enthusiasm will often manifest on the wrong side of the line and lead you towards overtrading. This is why as a Forex trader, you have to take firm decisions and stand by them. Many a player has allowed aloofness to get the better of him!

Forex Trading Strategies

Here are 4 simple tips to help you make better trading decisions:

1) Learn From Your Losses: 

The losses you make are all lessons in disguise. In Forex trading, you lose either due to the markets being mercilessly volatile or due to your own mistakes. While the former can't be controlled, you can always work on the losses incurred as a result of your mistakes. Most Forex traders only cry over spilt milk instead of dealing with the repercussions. Don't make the same mistake; once you lose money, let bygones be bygones and focus on learning from the loss. 

2) Don't Be Hasty: 

Hastiness leads to unpreparedness, which will completely hinder you from making viable decisions. Patience is one of the most important traits Forex traders need to have. When dealing with big money on risky markets, getting impatient will lead to your swift downfall. Be it making trivial changes to your Forex Trading Strategies or major financial decisions, be sure to take your time and remain guided by knowledge rather than instinct.  

3) Observe Professional Traders: 

One of the best ways to better your decision making skills is by observing professionals. Traders who have long years of experience know best! Keep in mind that you merely need to observe, mimicking them completely isn't a wise thing to do either. Just learn how a professional would approach a situation, and put yourself in their shoes. 

4) Have A Disciplined Mindset: 

Lastly, a disciplined mindset is what will guide you towards success. Discipline in Forex trading is only honed with time. After a good amount of losses and bad trades, you will start obtaining clarity on your own! And when you have a clear mind, the decisions you make will be sharp. 

Implement your decisions on a Forex Demo Account first; going live directly is a costly move. Reach out to one of the best Forex brokers today - WesternFX, and avail our stellar Forex trading solutions! With our backing through your many trades, success is assured. From Forex trading strategies to platforms, we have all you need to see victories in your exchanges! Call us today to know more.  

4 Important Questions To Ask Yourself To Succeed At Forex

Achieving trading success in the chaotic domain of Forex is easier said than done. With a huge number of hurdles ahead of them, traders often lose a huge amount of money right off the bat. The risky nature of the foreign exchange market gives off an aura of impossibility, and yet we see a lot of traders emerge successful through their ventures! This is because succeeding at Forex trading requires a lot of focus, discipline and patience. While the more technical aspects like strategizing and analyzing do carry equal importance, some factors outweigh them. 

Forex Trading

 Here are 4 things to consider if you want to see consistent success in Forex:

1) What Are Your Strengths?

Forex trading is a domain of tremendous flexibility. From timeframes to strategies, to currencies, there are a number of categories and you can't perfect everything overnight. So find out your strengths first; if you are good with shorter strategies, stick to day trading, scalping and so on, similarly, if long-term, patient trades are your strengths, go long. 

2) Where Do You Fall Short?

Identifying and analyzing failure is important while Forex Trading. Many novices fail to get back up once they are down because they don't analyze why they fell! In the Forex trading markets, you are bound to lose on one occasion or the other. Instead of crying over spilt milk, analyze your mistakes; see where you went wrong and how you can avoid it. This self-analysis will help you mitigate a number of silly errors and see a greater profit chance. 

3) How Can You Improve?

Improvement should always be your first priority as a Forex trader. Given that you are bound to make frequent mistakes in the currency trading market, you will have to keep bettering your techniques and hit back harder! This is where good Forex brokers come in handy, with their guidance, you will be able to improve on your techniques swiftly and hit the ground running. 

4) Is Risking Affordable?

This question you should ask yourself before each trade made. Taking risks is necessary, hence the need for gauging their necessity and viability. Going over the board with risks often leads to irreparable losses! 

If you are able to get a positive answer to these queries, open up a Forex Demo Account today and get started with currency exchange! Our experts at WesternFX will back you through each trade, provide excellent guidance and ensure you see victory. Work with some of the greatest Forex minds and power your trades with world-class Forex trading strategies - call us today!

3 Tips To Start Forex Trading On A Successful Note in 2019

Forex trading is a domain where finding a good start is often considered impossible. Given the massive amounts of volatility surrounding this field, it is no surprise that only 20-25% of Forex traders see success! The physical requirements to start off trading are easy - all you need is a laptop with internet, a trading platform and a good broker. 

However, once you're in the Forex trading markets, things take a drastic turn. The beginning is always the most difficult part while currency trading, solely because as a beginner you will have very little knowledge and the markets around you will be overwhelming with information.
 

Here are 3 trading tips for aspiring Forex traders to find success:
 

Tips to Beginners for a Successful Forex Trading

1) Watch The News: When you're a novice Forex trader, no one will tell you the importance of reading/watching the news. Every bit of information, small and large, is often conveyed via the news. Currency trends, political disruptions, economic events etc. - you will find the information on all these if you go through the news on the regular! And as a Forex trader, it is important to have this data on your fingertips. Most, if not all of your trading decisions, will rely on these factors. A country's economic state, for example, plays the most vital role in deciding its currency value. 

If a country isn't doing well economically, its currency will see a staggering fall! Watching the news will help you stay a step ahead.
 

2) Get Reliable Brokerage: Time and time again, the importance of a good broker is stressed on. Every trader needs the backing of a good broker, especially novices. When you first start off trading currencies, you don’t know much about trading. It is your broker who will guide you through trades, let you learn on a Forex demo account and help you devise winning Forex trading strategies! So make sure to avail knowledgeable and reliable brokerage.
 

3) Stick To Your Plan: Lastly, it is of paramount importance that you stick to your plan. Being a newbie will often leave you overwhelmed with negativity, causing you to see the grass on the other side as greener. This will lead to you jumping strategies and not staying disciplined! Profiting in Forex will take time, make sure to give enough. Stick to your Forex trading strategies and see them through; discipline always brings in success.
 

Start practicing today with a good Forex demo account, and once you're adept at it, move to the live markets. Several novices filled with a zest for trading enter the markets enthusiastic, but due to the lack of professional support, fail early. Avail WesternFX's world-class brokerage and you will see raging success come swiftly! Our experts will provide you with excellent Forex trading solutions and see to it that your trades are well-guided. Try a demo today and see for yourself, call us!

4 Of The Best Forex Trading Platforms In 2019

Without a Forex trading platform, trading is impossible. There are a variety of brokers today offering different trading platforms. Each one is unique in its own way, and classifying one as the best is difficult due to trader preference! Despite of this diversity, some boxes have to be ticked to classify a platform as a good one. This includes efficiency, system support, mobile-compatibility, and other tools like indicators and charting devices that help conduct a trade successfully while Forex trading in South Africa. 

Forex Trading In South Africa

Today we can choose from a variety of Forex trading platforms, and here are the top 4 for you to pick from: 

1) MetaTrader 4: 

MT4 is universally accepted as one of the best Forex Trading Platforms in the game today. With mobile, desktop and automation support, MT4 comes equipped with all the means to conduct a trade. You can effortlessly place your trades on this platform and ensure your trades have the necessary stop orders too! 

To top things off, the MT4 platform has impeccable levels of data protection to make sure your accounts are in safe hands. 

2) MetaTrader 5: 

While many believe MT5 to be an enhanced version of MT4, the truth says otherwise. MetaTrader 4 was designed solely to equip traders with Forex trading means, an essentially a Forex-only tool. 

The MT5 however, serves as a trading platform that comes with improved fundamental, technical and financial trading functionalities, while also providing means to trade other exchange-oriented assets like equities and commodities. 

3) cTrader:

 The winner of the best trading platform award in 2018, the cTrader comes pre-installed with stellar indicators and charting tools. This tool also lets you devise your own strategy and approach! Integrated with the cloud, on cTrader you can watch as many trades as you want and invest in the best ones. 

4) fxTrade: 

Known worldwide for its swift execution, the fxTrade platform was designed to cut down trading costs while improving the functionality. Another incredible advantage of fxTrade is that it covers an extensive range of markets right from currencies to bonds. 

Loaded with easy one-touch trading means, stops and a number of technical, fundamental Forex trading tools, this platform is undoubtedly one of the best. 

To dominate the grounds of Forex Trading In South Africa, you will have to get yourself a good trading platform to work with. 

A platform alone, however, won't do much. With the help of a reputed broker like WesternFX, you can master the art of trading currencies and work on the best trading platform. Call us today to get started! 

6 Myths That Haunt The Forex Trading Markets

Rumors and myths always find a way into the Forex trading community. As a new trader, you will often wake to a barrage of misconceptions that are meant to confuse you and drive you off-track. Following rumors blindly will only lead you further and further away from a good trade. A market this voluminous is bound to have some misconceptions going around, bouncing on the walls into traders' ears! Being a Forex trader, you can't let yourself get caught off-guard by such myths and fall to fake beliefs. 

Forex Trading In South Africa

Here are 6 Forex misconceptions you should be aware of and stay a good mile away from: 

1) Analysis Helps Predict The Future: 

While speculating is one thing, making precise predictions is a whole new ball game. While Forex trading in South Africa, you will see many traders talk about predicting the future through in-depth analysis and making profitable trades continuously. Don't buy this argument. If predicting things were so easy, every Forex trader would be bathing in riches! 

The reason analysis is so stressed on, is to allow traders to assess the various possible outcomes for a trade and make a decided call. With proper use of indicators and aided by a good trading strategy, you can narrow your trades down to a handful of outcomes and make a move accordingly.  

2) Complex Strategies Yield Better: 

You can make a good winning with the simplest of strategies, so long as you implement it right. People tend to believe that complex strategies do better in trades, because of the misconception that a detailed approach helps you bag more wins. Things don't work based on complexity while Forex Trading In South Africa! Normal day trading strategies have the same impact as a complex swing trading approach might. 

What matters is the actual implementation. Even with a simple approach, if you can't place a trade right, success will be far beyond grasp.

3) Forex Is For The Rich: 

Unlike what many people believe, you don't have to be rich in order to establish yourself as a Forex Trader. Truth be stated, you can start off with just $100 and still pocket ten times the amount! Foreign exchange is made to sound as a posh domain, but things only boil down to how you perform. You can grow your trading account to a 5-6 digit value with just a few hundreds, to begin with. 

Don't let the myths kill your ambition to become a Forex trader! Several rich individuals, who start off pompous, with thousand dollar investments, are often the ones who suffer a major fall. 

4) Trading Is A Shortcut To Money: 

Forex trading is definitely not a get-rich-quick scheme. Many people believe this to be true and enter the markets with no interest in trading at all! Agreed that you can make a good amount as a Forex trader, this doesn't come for free. 

To see success on these grounds, you will have to hone your skills and shift your focus from making money to thriving amongst the competition. If you enter trades believing money to be the only outcome, it is that very money you will lose! 

5) Long-Term Strategies Are Less Effective: 

The domain of Forex trading is incredibly beautiful in that strategies of all sorts are just as lucrative as the other. You have short-term plans like scalping, where trades barely last a few minutes, all the way up to position and swing trading, which can take months. 

Many a trader thinks that longer strategies are more profitable, but there is no such thing. Implemented right, you can make money from strategies small and big. 

6) Trading More Gives More Profits: 

Trading more only eventually leads to overtrading. Driven by this misconception, traders rush into trades blindly and don't know where to draw the line. Profits aren't obtained by simply trading! You can make a hefty winning from a single trade if you do things right, rather than aimlessly trading! 

With these myths debunked, you can now go on to dominate the fields of Forex trading in South Africa. The art of dodging the rumors and staying focused on the goal is also something you have to master in order to become an agile and sharp trader. 

Reach out to WesternFX today, and pair yourself up with the best of Forex Brokers! Our experts will provide you with the A-Z of currency trading necessities and see to it that you reign supreme through all your trades. Call us now to know more!

5 Subtle Qualities You Can Notice In Successful Forex Traders

With enough research, you will find that though a number of traders enter the Forex markets, only a few walk back with profits. This erratic win-lose pattern is a result of an insufficient approach and sometimes due to the sheer volatility of Forex trading. One thing you will notice is that irrespective of how the markets act, some traders have a healthy profit-loss ratio. With a disciplined approach and a good strategy, they manage to minimize losses and capitalize completely on all profitable opportunities! 

Forex demo in South Africa

Here are the 5 qualities you will find in these successful traders that you should adopt too: 

1) They Work With Undivided Focus: 

Dedication will radiate around successful traders in the most scintillating manner. Success is achieved as a result of continuous learning and working. These Forex players have reached the top by continuing to practice day in and day out, and not stopping the learning process.

2) They Research Thoroughly: 

Studying the markets is vital to improving as a Forex trader. That's how a trader reaches success! Forex trading is a field that can never be fully learnt. New concepts are developed each day, strategies evolve and techniques modify. With consistent studying, you can stay abreast of the latest developments and draft winning Forex Trading Strategies. 

3) They Shift According To Markets: 

Adapting to the situation is something you will have to do frequently, keeping in mind that Forex markets are tremendously volatile. A trade can get lopsided at any point in time, leaving you no choice but to make moves accordingly! Professionals adapt to a trade rather than letting trades catch them off-guard. 

4) They Don't Overtrade: 

A strict limit is placed, in mind and in trades, keeping traders away from overtrading. When you give in to emotions and start trading more than necessary, failure will be imminent. A professional trader knows where to draw the line, and adheres to it. 

5) They Have A Good Grip Over Tool Usage: 

As a Forex trader, you will have a variety of tools you can implement in your trades, to help catch trends and land lucrative deals. A good trader has the perfect grip over indicator usage and implementing the right charting and analytical tools. 

Your Forex Trading career might be going slow, but when fuelled with the right approach, you can turn things around and see swift profits. Call WesternFX today and pair yourself up with some of the best Forex experts worldwide. 

Our professionals will equip you with everything from a Forex demo account to a flexible trading platform. Reach out to us now and get started! 

Forex Trading 101 - The Basics Behind Brokerage And How It Works

Forex brokerage is a world in itself within the currency trading market. On the outset it always seems as though only the trading fields are competitive; however, brokers face just as much competition in today's markets. Truth be told, the competition is intense to the point where some brokers end up scamming novices to make quick money. This is why it is important to know how to differentiate a genuine broker from a scammer!

How Brokers Make Money

Spreads are known to be the prime source of a broker's income. The difference between the buy and sell bid is what they earn, or so everyone thinks. Several brokers trade against their own clients; these types of individuals are known as market makers. Initially, traders are made to think that they are trading against other Forex players, while it is actually their broker on the other side! Novice traders fall into this trap and end up losing a good sum of money before quitting.

Straight-Through Processing

STP brokers follow a vastly better model when compared to market makers. These traders make money off of the spreads, and here you are trading against other traders rather than the Forex Brokers themselves. This is a win-win for you because the broker will not be against you in this scenario! Liquidity providers give the market rates and with a small added markup, STP brokers charge their spreads.

True ECN Brokers:

The vastly used brokerage model is the true ECN. Much like STP, traders here deal against other traders, with the only difference being that instead of earning through spreads, brokers earn through commissions charged on each trade individually. There is no separate spread demanded! Their transparent and minimal/zero-spread nature makes them the best choice for traders new and experienced.

A Forex broker should want you to improve on your trades and help you grow. Several in the industry today scam brokers with false claims of profits and lead them into losing trades on purpose. This had made finding a good broker a challenge for traders worldwide. Being an extremely volatile field, Forex can topple your trades and effortlessly throw you into losses; without a reliable broker to work with, currency trading is nightmarish!

Don't settle for the average, and don't fall for false claims - sign up with the world-class Forex broker, WesternFX, and master the art online trading in South Africa. With us there are no hidden costs, no claims and promises; we strive to serve you the best of brokerage possible, equip you with adept platforms and back you up with proven strategies. Open a Forex Demo Account with us and try for yourself!

A Beginner's Guide To Getting Comfortable With Online Trading

Do you know that today you can trade from home with just a laptop with an internet connection? This is the beauty of online trading. You can start your career trading any commodity from anywhere in the world! Let this not confuse you with the fact that the risks are constant, irrespective of whether you trade physically or online. And beginners always have starting troubles! Understanding how the markets work takes time; considering there are several markets today, it means there's all the more knowledge needed!

This generation gets to avail a number of technological benefits the previous ones didn't have. In the field of trading, there are signals; trade bots and a plethora of strategies that you get to apply in your trades today! With the basics learnt, anybody can start trading today.

For beginners, the first information is pertaining to the various markets that exist, and here are 3 of the most prominent:

1) Stock Markets:

As a stock, share or equity trader, you will be holding, buying or selling stocks of securities.

2) Foreign Exchange:

Forex Trading is the simple art of exchanging one currency for another, and profiting from the difference in value.

3) Options:

Without owning the underlying asset, you trade contracts for buying or selling said asset at a predetermined price.

The First-Most Important Element - A Trading Strategy:

The trading plan you implement will govern the outcome of all your trades, and also set the standard for your trading career. Strategizing is an art, no matter which market you take into consideration; and it is no easy task. From picking security to studying its past behavior, speculating the future behavior up until selecting the most strategically profitable entry and exit points - you will have to work on multiple elements to craft a good trading plan.

What Not To Do As A Beginner:

Following the rules is always a boring task. While not many like playing by the book, in the field of online trading it is absolutely essential to do so. Starting off, you will be venturing into the wilderness of trade markets, and discipline will be immensely important. Here are 3 things you should avoid:

1) Jumping Strategies:

The most tempting and easy move to make when your trade plan doesn't work immediately is to jump and change to a new plan. Give time to your strategy; nothing happens overnight! Only if a losing trend is spotted should you change.

2) Avoiding Stop-Losses:

Without proper stop orders in place, losses will blow your account up. Always place them, not randomly, but precisely; doing otherwise will cause you to miss out on profitable positions.

3) Lack Of A Solid Plan:

The biggest mistake beginners make while online trading in South Africa is not trading with a plan. As much as adventure thrills, it can prove costly all the same. Always keep a good strategy in place, and cover all the elements of trade.

Your career in Online Trading In South Africa can blossom tremendously when done right! Get the best of brokerage to assist you and take your trades to the next level. Call WesternFX today, and master the art of online trading. With our experts guiding you, you will transition from a beginner to a pro in no time!

Methods of Analyzing Trades in Forex Trading

For those who are aspiring to start forex trading in South Africa, there is something very important that should be borne in mind - trading without planning is akin to gambling. Online trading is an activity that involves traders speculating about the market and its ongoing trends and utilizing the same to place informed investments. This requires traders to understand the charts thoroughly and discern the trends before placing a bet. This can be accomplished by analyzing the charts and learning about the price action. 

Types of Forex Analysis

There are two ways in which traders can analyze the market and make their position. The two types have their relevance on different time frames and are influenced by different factors.

Fundamental Analysis: Fundamental analysis is the process in which traders use fundamentally market altering factors such as events and news to read the behavior of the forex trading market and discern its future trend. Traders in South Africa that engage in fundamental analysis usually use news such as financial updates, government policy decisions, GDP figures, etc. to predict where the market could be headed. Looking out for cues that influence the market and using the same to discern the direction currencies would take can help traders place open positions that may react positively to the news and thereby bring profits to the traders.

Technical Analysis: Technical Analysis, as the name points out clearly, refers to the type of analysis in which traders use technical factors that influence the flow currencies in a market. These are factors that usually reveal insights on trader psychology and currency logistics in a market. They are highly relevant in short-term online trading as they usually follow trends that get replicated in every market cycle. 

Both these analyses have their significance in forex trading as they suit different trading styles. While Technical Analysis is suitable for traders looking to engage in short-term trades such as Scalping, Fundamental Analysis is used for long-term trading where market factors dictate the flow of the currencies. For novices who are looking to take up forex trading in South Africa, partnering with reputed brokers like WesternFX can help them master both these types of analysis and use them to good effect in trading.

What is the Minimum Money Required to Start Forex Trading?

For aspirants that are looking to enter the online trading scene in South Africa, this has always been an important question. The amount with which one should get started in forex trading is a question that has never been answered satisfactorily. A reason for this could be the fact that there is no right answer.

The forex trading industry is one which is quite open and welcoming to its traders. Unlike the stock exchange, online trading in currencies does not require a huge investment. If traders spend some efforts on locating the best forex brokers, they can usually get accounts for as low as $25 as the minimum deposit. With this being the case, most professionals can reach out to brokers like WesternFX to set up an account.

Is it wise to set up an account based on the lowest investment?

No. Setting up an account should be based on the purpose it has to serve. The amount of investment one should invest in the trading account should factor several criteria.

• Style of Trading: Traders engage in different styles of trading. While some of them may engage in short term trade activity such as scalping and swing trading, others may engage in forex trading that is long term.
• Purpose behind trading: Some traders may be in the trading business to learn how it operates before they move forward and use it as a means to diversify their portfolio. Others may be pursuing it as a career. In the first case, it is advisable to open an account with a small investment and test the waters. In the second scenario, it is wise for the trader to open an account with enough liquidity that he or she can experiment and at the same time make some profits on the go. This will also ensure that even if they face a few initial losses they can still have capital left in their account.
• Profit Targets: This is yet another deciding factor on the initial investment. For traders looking to make good profits out of their forex trading platforms, they need to invest in positions that are large enough to reap decent profits. While leveraging allows them to open large positions, having a large account can help them devise trading strategies that will produce maximum profits with minimum movements in the market.

For forex traders in South Africa, the best way to solve such tricky problems is to get the support of acclaimed brokers who can guide traders to make the right decisions. WesternFX is among the best forex brokers and has helped thousands of traders succeed on the market. Partnering with them can help understand the market better.