Online FX Trading

 

Currency trading is a big business, and experts estimate the value of this market to exceed $5 trillion on a daily basis. South African traders are no strangers to FX trading, otherwise known as Forex trading. The incredible popularity of Forex trading has come about with the advent of online trading platforms such as AvaTrade.co.za.

Now, it’s entirely possible for novices and expert-level traders to utilize top-tier online trading platforms to generate profits. The Forex market presents incredible opportunities to traders with markets open 24/5, with high levels of liquidity. Such is the technological prowess of Forex trading today that institutional brokers have largely become redundant as traders take the proverbial bull by the horns!

Why Trade Forex with AvaTrade?

  • 100% trust and credibility We are an internationally regulated online brokerage
  • 50+ currency pairs to trade These include major pairs, minor pairs and exotic pairs
  • Highly competitive spreads Our spreads begin at just 0.8 pips.
  • Dynamic trading platforms Use automated trading or trade manually.
  • Incredible leverage available We offer a 400:1 leverage on FX trading.
  • Powerful educational resources Enhance your knowledge and maximize your trades with daily market analysis and educational material.
  • World-class customer service Put us to the test; we’re always on the ball.

What is Forex trading all about?

In a Nutshell

When you trade currency pairs, Forex or FX, you’re essentially buying 1 currency and selling the other currency. In other words, you are trading pairs not individual currencies. Let’s take the USD/ZAR , When you buy this pair, you are buying the greenback (USD) and selling the South African rand (ZAR). When you sell this pair, you are selling the USD and buying the ZAR.

Currency rates

Whenever you look at a currency pair like the USD/ZAR, you will see it in the form of a rate. This is the ratio between the US dollar and the South African rand. Let’s take the current exchange rate as an example: 1:15. This means that you can exchange USD$1 for R15.

What about FX Pairs Groups?

Currency pairs are divided into 3 major groups. These include major pairs, minor pairs and exotic pairs. They are differentiated by the liquidity in each grouping. Major pairs are the most heavily traded pairs in the world and they include the EUR/USD, USD/JPY, GBP/USD etc. They typically contain the US dollar and another currency. Minor pairs will usually include non-USD currencies such as the JPY, EUR or GBP.

You’re welcome to check out our education section, which provides valuable information about Forex trading. We also feature webinars, a comprehensive glossary and trading video tutorials for your convenience.Use these resources and make the most of your trading experience at AvaTrade.co.za!

Getting started with Forex trading at AvaTrade.co.za

Forex Trading Platforms

Here at AvaTrade we offer you plenty of variety when it comes to trading platforms. These include manual trading options and automated trading options. A variety of tools and features is available to help you optimize your trades. You can copy the trades of experienced traders, trade independently, or anything in between.

What is leveraged trading?

As a trader, you do not want to be limited by the size of your available capital. Leverage allows you to trade a far greater position than the funds you are holding. We offer SA traders 400:1 leverage on the majority of FX pairs. What this means in practical terms is that you need just 0.25% of a position size for you to open a trade in currency pairs.

Let’s take an example to illustrate how powerful leverage really is: suppose we are trading the USD/ZAR pair. Let’s assume that the buying price is 15. If we open a position size of 100,000 units, a trader would typically need R1,500,000 to purchase this pair. With leverage however you just need 0.25% of that position which equates to R3,750.00. In other words, you can take out a massive position with just a fraction of the required capital. Leverage can be of great benefit, or highly detrimental depending on which way the trades go.

Calculating the costs of FX trading positions

The only cost that you have to bear when you open a position at AvaTrade is the spread. This is the difference between the buy/sell price which is represented by pips. These are the 4 digits after the point, for example 0.0000. If we assume that the buying price of the USD/ZAR pair is 15.2501, and the selling price is 15.2493, the spread is 8 pips.

The spread in any FX position will be multiplied by the size of a position to determine the spread charged. South African traders have the option to choose between FX trading with fixed spreads, or FX trading with floating spreads (flexible spreads) starting with 0.8 pips.

What markets are available to you?

You’ll be pleased to know that AvaTrade offers 50+ currency pairs for you to trade. These include minor pairs, major pairs and exotic pairs. You also have the option to trade cryptocurrency like Bitcoin as well. Take some time to check out our trading conditions & charges for more information on leverage, spreads, pips and other data.

For more information regarding leverage and spreads for all FX pairs offered by AvaTrade, please take a look at our trading Trading Conditions & Charges.

Trade FX at AvaTrade and Fatten up your Wallet with Plenty of Cash!

You are assured of a professional, exciting and rewarding trading experience at AvaTrade.co.za. Register an account today and trade for real, or practice on our ZERO-RISK demo account and fine-tune your trading skills.