Finding the right broker as a Forex trader in South Africa can be extremely difficult. Currently there is no proper regulatory system in South Africa to ensure brokers do what they are supposed to do, or no supposed to do. This leaves room for many traders to be scammed and lots of people to lose a lot of many. Choosing a broker wouldn't be this difficult if it didnt make or break your trading career. It is imperative that traders choose the correct broker, as broker have a lot of power over traders that they are not aware of.
In the past off-shore brokers used to dominate over local brokers, due to their long standing professionalism and trustworthy practices. Being off-shore does come with many difficulties and challenges. One of the biggest challenges is not being able to truly understand their clients wants and needs. Off-shore brokers often take long with customer service requests, as well as, taking taking long with deposits and withdrawals. All of these things makes Forex trading at longer than it truly needs to be. In recent years more and more local brokers have been emerging and aiming at filling this gap in the market in South Africa. Local brokers can appeal to the market on a more personal level and can allow for instant deposits and withdrawals, even adding bonuses to their attributes. However, local brokers come with many problems, they are not long standing, they are not trustworthy and they do not have proper regulatory authority. This leaves room for many traders to get scammed and give up on trading forever. Many local brokers have be known to serve the client in the best possible way, but many have been known as scammers and stolen billions of Rand. Local brokers are best suited to serve their clients in South Africa and stand to make a lot of money doing so. However, they are losing to the competition of broker scammers, who are not regulated correctly. Local trustworthy brokers are hard to find, and offer less attractive services than the scammers, however they are brokers who can be trusted and used for a long time.
It is important to vet all brokers, offshore or local, to make sure that traders are not scammed and can get use as little brokers as possible. Key aspects to look out for in brokers are; long standing relationships with clients, attractive attributes and regulatory services. It is important that all brokers have a good third party regulatory service and are regulated often. Brokers are the cornerstone of a Forex traders career, South African traders should choose wisely as their are many to choose from.
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