Major Factors to consider while choosing a broker in South Africa today

By: Chime Amara

Meaning of brokers

Brokers are the middlemen between the forex trader and the foreign exchange market. They receive the traders' orders and execute them at the market. Generally, brokers are known to charge the trader some commissions for the services they render known as spreads. This becomes the broker's reward for the role they play between the trader and the forex market.

Major Factors to consider while choosing a forex broker in South Africa

A. Regulation: An important factor to consider while choosing a forex broker today is the broker's regulation. Every forex broker operating in South Africa today is expected to be registered first with the South African forex regulator known as Financial Sector Conduct Authority (FSCA). Added to this, the broker is expected to be registered with at least two other major forex regulators such as FCA, ASIC, CYSEC, FSA, etc. These regulatory bodies scrutinize the activities of various brokers registered with them and ensure they comply with the standards for conducting financial services within their regions.

B. Spreads: Spread is the commission charged by brokers for the services they render to their clients. Brokers with lower spreads for trading are usually the best to choose from the list of other brokers in South Africa today.

C. Customers' review: The comments from clients about a particular broker based on their experience with them is an important factor to pay attention to while choosing a broker for trading in South Africa today. Often the reviews about brokers operating in different countries including South Africa are published on the Wikifx website for traders to access them. Traders are therefore encouraged to always visit the Wikifx platforms to read the different reviews about brokers from clients using their platforms before choosing any broker for trading in the future.

D. Years of experience: Brokers with a minimum of five years experience in the industry and who have kept excellent records all through these years are the most recommended for trading in South Africa today.

E. Physical presence/offices: Having a physical presence and office within the country is an important factor that makes the broker more reliable and accessible by the clients.