Month: November 2022

While not as headline-grabbing as share trading in the light and the rise of a new generation of investors short-selling GameStop options, foreign exchange (forex) trading has long been a safe and reliable way to shore up capital — it just helps to know how best to get start Local may be ‘lekker’ There is no shortage of international trading platforms, and trading forex — contracts for differences (CFDs) — in South Africa has grown into a huge market over the past decade.
In short, by accessing trade in the price move in different currencies across the globe, investors are able to profit. The volatile tussle between the US Dollar and South African Rand has been one such gamble in the country for many years and is likely to remain so.
CFDs are more affordable to access than the stock market and you can also trade large positions; all you need is a device such as a PC, laptop, tablet, or smartphone, and an internet connection. But where to begin? A thorough survey of results yielded by the Google search keywords “trading platforms South Africa” quickly separates the “wheat from the chaff”.
Take some time to sift through the pros and cons the many reviewers offer on the various platforms and take a considered position. Public Finance International, for example, rates eToro the overall best trading platform in South Africa, claiming it is “… great for both beginners and experienced investors alike … and features a broad range of trading strategies to copy. This include
Scrypto currencies, forex, and CFDs trading strategies” Exciting time to be trading the markets’A drawback is that eToro’s forex and CFDs trading fees are extremely high. Local offering Khwezi Trade prides itself on trading on all the major currency pairs — as well as some minor ones — including commodities, and all major indices, and the company hasdecided not to offer derivatives on JSE-listed shares and cryptos. Forty currency pairs are available, seven commodities, 11 indices, and basic trading can begin for as little as R2000.Says Khwezi co-founder Mark Wurr: “This is an exciting time to be trading the markets, and we have gone to considerable ffort to train our clients to trade successfully. We offer online video tutorials, and we haveclients coming to our offices in Bree Street in Cape Town for personal, hands-on training and support. Visit: tradingplatforms.com/za Take a leap in your career with Wits Business School Samsung South Africa boosts SME development with its Accredited Service Centre programme The social change and development skills training essential for the future Top 10 questions parents must ask when choosing a new school A premier lifestyle event carves a corner of Italy into the heart of Jo burg Before we get more fully into how to learn Forex, we must explain and be clear about what Forex is.
Forex, or the currency market (also called FX for short) is the market where currencies are traded. In its simplest form, a currency transaction can be, for example, when you change your local currency to a new one for an upcoming vacation. In the entire market in general, about 5.3 billion dollars are traded daily between governments, banks, corporations and speculators. Knowing how the industry is Africa for the safety of your funds Choosing a broker can be confusing as they don’t charge uniform fees, they don’t give access to the same number of instruments etc. so it is important to compare the features that matter most and also consider your trading style before you settle for a broker

This is a decision that will depend on your trading goals and ambitions. The main reason for this is that the inherent risk of forex signals is that your trading decisions are determined by a third party while you take full responsibility for the outcome of the trades.
That is, if your trade ends successfully, you get to enjoy the full profits; yet if you lose a trade, the full loss is yours and not the loss of the signal provider. To ensure you take advantage of the lucrative opportunity of using forex signals, ensure you apply the following tips: Choose the Right Broker This is a no-brainer. A good broker will have a reliable platform that will ensure the smooth execution of Forex signals, and this is where Ava Trade takes centre stage.
Ava Trade is a globally regulated broker with advanced, state-of-the-art trading platforms. Choose the Right Signals Provider This is the most challenging part of using forex signals. A good signals provider will have a success rate of more than 60% that will ensure a steady account growth with minimal drawdowns. This means that providers with some history will generally be more reliable than new ones whose trading results might be skewed.
Ava Trade offers the Ava Social app that allows traders to follow and copy the trades of other, more experienced traders. You can be part of an active community and message your peers or trade mentors. Additionally, Ava Trade 3rd party providers have a long history of providing quality forex signals. Trial Period or Back-testing Before committing to a signals provider, ensure that you can ascertain their trading performance.
Some providers offer a trial period, which ensures you only continue if you are impressed by its performance. For automated strategies, you should be able to perform back-testing to observe how the software would have performed in different market conditions. It is also prudent to try out the signals provider on a demo account (for forward testing purposes) before putting real money on the line. Ava Trade offers an intuitive and easy to use demo account, so this is an excellent starting point. Customisation A signals provider may not have the same investment objectives as yourself, which may mean that the signals provided may not be suitable for your trading account. Both Zulu Trade and Dupli Trade have high customisation capabilities to ensure that you can align a profitable signals provider to your trading goals and ambitions, with reasonable risk.
you understand that forex signals can boost your trading activities and accuracy, Ava Trade is here to make your dreams come true. Forex Signals main FAQs How can I get free forex signals? If you go searching for free forex signals you’ll probably come up with a load of results, but unfortunately what you’ll also have is primarily a load of rubbish.
The problem with free signals is that they often come from disreputable sources. Or maybe they are simply bad sources. Unfortunately, when it comes to something as potentially lucrative as signals, there are very few people giving away the good ones for free. If it’s worth trading on it’s worth paying for, and the signal providers know this.
What are the components of a forex signal? f you’ve never seen one before you’ll think a forex signal is brief and basic, but there’s a load of information packed into those few lines of data. The signal begins with either a Buy/Sell designation after which the forex pair is shown. The pair might be shown with its designation such as ‘Cable’ or ‘Aussie’. At the end of the first line is the strike price.
In some cases that might be it. Other signals could have a second line adding orders like stop loss (SL) and take profit (TP) targets. Some will even give trailing stop (TS) values, but this isn’t too common.
Who provides forex signals? Anyone can be a forex signal provider as long as they are part of the Metaquotes Community. That doesn’t mean everyone will be a good forex signal provider. In general signal providers fall into three groups: traders, affiliates, scammers. The first group is the most trustworthy and reliable. If you find trader signals there’s a decent chance, they could be good in the long-term. The second group of affiliates are publishing their signals in hopes that you’ll click a link and create an account at a broker, for which they will receive a commission. This group might or might not be reliable, so be sure to investigate the signals and use with care. The last group of scammers are simply trying to use you in some way to profit themselves. They may try to get at your money in some way, or could just want something as simple as your email address, which they will then sell to others.

Forex signals came about as a natural innovation of the financial industry. They effectively solve the most daunting activity any trader has to perform – to identify the right trading opportunities at the right time. By definition, a forex signal is a trading idea or recommendation on a specified financial asset, to be executed at a predetermined price and time. No matter your level of trading skill and experience, forex signals can help you enhance your trading activities. In addition, experienced traders have the chance to widen the scope of their profitability and experience using forex signals.
For new traders, forex signals are beneficial, as traders can make money while still learning about the markets and profitably. The signals can also help shorten their learning curve because, as they attempt to understand the logic behind any trade suggestion they receive, they can get full insight as to which trading options the signal is based upon. It is important to note that, in a fast and dynamic market such as forex, a trading signal is only as useful as it is timely.
This is because a signal can become untenable if a trader receives it too late. To ensure traders receive relevant trading signals at the right time, providers send them to traders via convenient communication channels, such as SMS, email and push notifications. Some traders can also install platform add-ons to receive their forex signals Manual vs Automated Forex Signals This is a classification based on how trading signals are generated. Manual forex signals are generated by a person who can be a professional and/or seasoned trader. Paid vs Free Forex Signals This is a classification based on the price of a signal service provider
. Some providers offer free signals (this can be unlimited or for a trial period), while others require payment. Paid signals can be charged as a one-time fee or based on a subscription model. Entry vs Exit Forex Signals This is a classification based on the level of detail of a trade suggestion. Some signal providers may provide only entry signals, which is a signal to open a trade position in the market, while others provide only exit signals, which is a signal to close any relevant open trade position you may have running on your trading account. This is mostly the case with long term trading signals on financial assets that trend for long periods of time. Usually, on short term intraday trading signals, a trade idea will contain both entry and exit signals Why Do People Use Forex Signals?
The best forex signals can enhance the trading activity of all types of traders. To start with, they allow traders to apply different strategies in the market. There are numerous technical, fundamental, and sentimental strategies, and forex signals allow traders to track market opportunities of all types. For instance, a technical trader will be able to track and take advantage of forex signals generated using fundamental analysis. In this way, traders can uncover high-quality, high probability opportunities across different assets at all times. Forex signals also save trading time. The FX market is open 24/5, and there are countless opportunities available round the clock.
Many retail traders have other obligations that significantly limit their trading time. This means that they are exposed to limited trading opportunities. Forex signals can help traders to better utilise their trading time. A typical forex signal will provide comprehensive trading suggestions (entry, stop, and take profit price levels), and will require the trader to only perform the execution of the trade.
In this way, traders are able to manage their trading times so as to take advantage of the best opportunities in the market. While they have practical benefits, it is important to understand how to use forex signals effectively for online trading. Forex signals are also subject to market risks, and there are some tips that can help limit them.
It is vital to first determine your risk tolerance, which will entail only staking what you can afford to lose as well as the appropriate lot sizes for different forex signals. For instance, high volatility assets, such as gold, should be traded with smaller lot sizes, whereas less volatile assets, such as the EURCHF currency pair, can be traded with larger lot sizes. It is also important to avoid executing forex signals during the release of high-impact data. Overall, traders should ensure they stick rigorously to their trading plan even when trading with the best forex signals.

Volatility in the country’s foreign exchange market yesterday intensified further amid scarcity of the greenbacks, forcing travellers to buy a US dollar at up to Tk 102, the highest in Bangladesh, in open markets. Importers had to pay a maximum of Tk 97 per dollar to settle their import bills, up from Tk 95-96 on Monday at many banks, even though the Bangladesh Bank injected $96 million into the market to bring back stability For all latest news, follow The Daily Star’s Google News channel The central bank has injected a record $5.31 billion this fiscal year to ease dollar shortage faced by banks. Although the central bank had instructed lenders to charge Tk 87.60 per dollar on importers, banks were compelled to ignore the directive in the last few days due to the falling supply of the US currency against surging demand to settle import bills With the market facing instability, the Bangladesh Bank depreciated the taka twice within a week. Economists said the fall of the local currency against the dollar will help exporters and remitters, but it will fuel inflation further by increasing the cost of imported goods immediately, leading to extra burden on people already bearing the brunt of rising commodity prices.
So they suggested the government expand open market sales (OMS), provide cash assistance to the poor and strengthen the social safety-net programmes to protect the lower income groups. The soaring import payments, now hovering around $7 billion per month amid the price hikes in the global market, are the pivotal reason for the shortage of the US dollar in the banking sector. There is no other scope but to devalue the taka against the dollar to subdue the high import cost. This subsequently helps reduce the trade deficit, which will keep the economy sound,” said Md Habibur Rahman, chief economist of the central bank. The trade deficit reduced the reserves to $41.92 billion last week in contrast to $46.15 billion on December 31.
The reserves had surpassed $48 billion in August. If the central bank devalues the taka against the dollar, you [people] have to feel the pinch from inflation. In the greater interest of the economy, the central bank is doing its job,” Habibur said Between July and March, import payments escalated to $61.52 billion, up 44 percent year-on-year while exports grew 33 percent to $36.61 billion.
This inflicted the highest-ever trade deficit of $24.90 billion on Bangladesh during the period. The trade deficit caused a fall in reserves to $41.92 billion last week from $46.15 billion on December 31. The reserves had surpassed $48 billion in August .Against this backdrop, Habibur said, the government should take different measures including expanding OMS to insulate the poor households from the price increases Another central bank high official, on the condition of anonymity, said the BB might not devalue the inter-bank exchange rate further this week just after the latest depreciation of local currency by 0.91 percent to Tk 87.50 a dollar, the sharpest single-day fall in the past one decade. The taka was devalued five times this year.
The exchange rate stood at Tk 85.80 a dollar on December 30 and Tk 84.80 on May 17 last year. We will observe the situation in the next couple of days, after which the central bank will take decision whether it will devalue the taka further,” he said. But managing directors of three banks, wishing not to be named, said BB should decrease the inter-bank exchange rate to Tk 92 a dollar in the quickest possible time in order to restore discipline in the foreign exchange regime Some banks are now offering Tk 95 a dollar to hunt remittances, but the rate is supposed to be Tk 86-87 in line with the central bank instructions. Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said the BB was on the right course of direction as it was now depreciating the local currency based on the market demand. But more depreciation is required,” he said.
Emranul Huq, managing director of Dhaka Bank, echoed the same, saying the market is yet to be stabilised, which is why the central bank should think of weakening the local currency further. Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, said the central bank should have followed a gradual depreciation of the local currency much earlierBut it did not do so, as a result of which it is now compelled to depreciate the local currency drastically,” he added. The exchange rate came under pressure against the dollar since the final quarter of 2021 when imports bounced back due to the pent-up demand and price hikes in the global market following the improvement in the coronavirus situationIn this context, the depreciation will help exporters and remitters, but it will further fuel inflation due to price hike of the imported items,” said Mustafizur. Inflation in Bangladesh rose five basis points to 6.22 percent in March, driven by higher food prices, according to data from the Bangladesh Bureau of Statistics. Mustafizur suggested the government strengthen the OMS to shield the poor from the price hike stemming from the taka devaluation. The depreciation will encourage remitters to send their hard-earned money through formal channels as it will slash the exchange rate gap between formal and informal channel. Many remitters are preferring hundi, an illegal cross-border transaction system, as they get a higher rate of the taka than what banks offer.
This has left an adverse impact on the inflow of remittance, which is also squeezing the forex reserves. Between January and April, remittances stood at $17.307 billion, down 16.2 percent year-on-year. Zahid Hussain, a former lead economist of the World Bank’s Dhaka office, said the central bank should increase its repo (repurchasing agreement) rate to rein in inflation.
Although money supply to the market has decreased, slashing the repo rate will create a psychological barrier among businesses to hike the products. The repo rate is the rate at which the central bank lends money to banks in the event of any shortfall of funds. The BB also uses the means to reduce the money supply in the market to check inflation. He suggested the government provide cash assistance to the poor in the wake of inflation. Selim Raihan, executive director of the South Asian Network on Economic Modeling, says more devaluation of the taka is needed but the government also should lay emphasis on tackling inflation. It takes time to reap benefits from weakening of the taka, but the inflationary pressure hits the commoners immediately, he said. The coverage of social safety nets should be widened in the next fiscal budget to helpthepoor, Selim said.

Though it is possible to buy and hold a currency if you believe in its long-term appreciation, many trading strategies capitalize on small, rapid moves in the currency markets. For these strategies, it is common to use automated trading systems that provide buy and sell signals, or even automatic execution, across a wide range of currencies. The use of any such system requires specialized knowledge and comes with its own risks, including a misunderstanding of the system parameters, incorrect data that can lead to unintended trades, and the ability to trade at speeds greater than what can be monitored manually and checked.
Fraud. Beware of get-rich-quick investment schemes that promise significant returns with minimal risk through forex trading. The SEC and CFTC have brought actions alleging fraud in cases involving forex investment programs. Contact the appropriate federal regulator to check the membership status of particular firms and individuals. Special Risks of Off-Exchange Forex Trading as described above, forex trading in general presents significant risks to individual investors that require careful consideration. Off-exchange forex trading poses additional risks, including:
There Is No Central Marketplace. Unlike the regulated futures and options exchanges, there is no central marketplace in the retail off-exchange forex market. Instead, individual investors commonly access the forex market through individual financial institutions – or dealers – known as “market makers.” Market makers take the opposite side of any transaction; for example, they may be buying and selling the same foreign currency at the same time. In these cases, market makers are acting as principals for their own account and, as a result, may not provide the best price available in the market. Because individual investors often do not have access to pricing information, it can be difficult for them to determine whether an offered price is fair.
There Is No Central Clearing. When trading futures and options on regulated exchanges, a clearing organization can act as a central counter-party to all transactions in a way that may afford you some protection in the event of a default by your counterparty. This protection is not available in the off-exchange forex market, where there is no central clearing.
Regulation of Off-Exchange Forex Trading the Commodity Exchange Act permits persons regulated by a federal regulatory agency to engage in off-exchange forex transactions with individual investors only pursuant to rules of that federal regulatory agency. Keep in mind that there may be different requirements or treatment for forex transactions depending on which rules and regulations might apply in different circumstances (for example, with respect to bankruptcy protection or leverage limitations). You should also be aware that, for brokers and dealers, many of the rules and regulations that apply to securities transactions may not apply to forex transactions.
The SEC is actively interested in business practices in this area and is currently studying whether additional rules and regulations would be appropriate Related Information National Futures Association Investor Information on Forex Trading CFTC/NASAA Investor Alert on Foreign Exchange Currency Fraud Press Release: SEC Charges Forex Ponzi Operator Who Fled After Scheme Unraveled the Office of Investor Education and Advocacy has provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law.