What is Forex Trading
Let’s start by looking at Forex Trading in general.
The FOReign EXchange market (forex or FX for short) is one of the most exciting, fast-paced markets around. Until recently, forex trading in the currency market had been the domain of large financial institutions, corporations, central banks, hedge funds and extremely wealthy individuals.
The emergence of the internet has changed all of this, and now it is possible for average investors to buy and sell currencies easily with the click of a mouse through online brokerage accounts.
Forex trading is made possible because different countries use different currencies. Due to international trade, these currencies need to be continually converted.
Why Is Forex Trading Growing In Popularity In South Africa?
The Forex market has been growing in South Africa in recent years due to a number of reasons
- increased internet penetration has meant that more and more people can trade online.
- reduced trading costs due to competition between brokers. Tied to this, some brokers have reduced their minimum deposits to as low as $1. You can see such brokers here.
- Trading restrictions have been tightening in Europe & Asia. These changes are reducing the profitability of brokers. As a result, brokers have had to look to Africa to expand their markets. Hotforex is one of the brokers that has set up offices in South Africa.
This is a mini introduction to forex trading in South Africa. We have created an in-depth introduction to forex for beginners in South Africa course and you can access it here.