Standard bank trading forex

Standard bank trading forex

Posted: Oleg Date: 20.06.2017

Maya on Money is a collection of articles by financial journalist Maya Fisher-French; contributions from other authors and questions posted by readers.

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If you really want to get into foreign currency trading, you can do it for a faction of the cost.

Last year we wrote about companies offering courses on foreign currency trading through online adverts and social media. There are many companies offering to teach you the secrets of trading at a substantial fee.

Mostly they target foreign currency trading but some may also advertise similar services for trading on the JSE. One company that has been very aggressive in its marketing has been Knowledge to Action. They offer an intensive weekend course for R18 and once you start trading you have to open an account with a minimum deposit with an overseas trading platform called ETX Capital.

You also have to subscribe to charting software at R USD a month. What they do not tell you is that you can obtain all of this for free by going directly to the broker. These advertised businesses are built around legitimate overseas trading platforms. James Saulez, head of online trading at Global Trader explains that legitimate offshore brokerages sign contracts with local introducing agents or partners in other countries who receive a kickback off revenue earned.

Saulez says these agents go on to build businesses around these agreements. These businesses offer educational seminars, courseware and access to a platform all at very inflated prices.

standard bank trading forex

If you went directly there would be no minimum deposit or monthly fee, it is so competitive overseas. It is the local partners that have put in all the costs.

Foreign Exchange | Standard Bank - South Africa

One way to know whether or not you are dealing with a legitimate broker is the marketing. If you look at websites like Global Trader, World Spread Trading or Standard FX Trader, there is no aspirational marketing, no promise of getting rich quick. The reality is that you can lose a lot of money trading forex.

Apart from the fact that you are being taken for a ride, you may also be breaking the law. Many of these companies allow you to trade using your credit card. This is against the rules of our exchange controls. If you want to trade overseas you have to get foreign exchange approval and it must form part of your foreign investment allowance. Global Trader, World Spread Trader and Standard FX Trader are three South African based companies with global ties that allow you to trade currencies and you only pay a fee when you trade.

There is no fee to access the platform; they provide charting tools, technical analysis and educational support for free. So rather than blowing R15 to R20 on signing up to dubious platform, use it to kick start your trading portfolio.

Global Trader and World Spread Trader both offer spread trading which allows you to trade currencies with rands so you do not have to use your foreign investment allowance.

They also offer offshore trading capability for investors with offshore funds. Standard FX Trader offers foreign currency trading offshore so you will need to apply for your foreign investment allowance. Rupert Brown, head of collateralised foreign exchange trading at Standard FX Trader says the advantage of dealing with an institution like Standard Bank is that you are dealing with a large reputable bank and you know where your funds are should you encounter a problem.

Good brokerages make their money through long-term relationships so the focus in on educational support. They cannot grow their businesses if customers are losing money.

How to trade forex for free - Maya on Money

Any good brokerage offers simulated accounts which allow you to trade without using real money until you are comfortable to begin. Brown says Standard FX Trader offers a 3y risk-free no obligation demo account.

Currency trading: How I turned k into 1m – Joburg auditor

This allows first time traders to get a real feel for what trading is about and the risks that are involved. Clients are encouraged to phone the team and ask for help and advice.

Brown says they also encourage people to go onto the website which provides detailed educational information such as video tutorials.

Although Standard FX Trader does not provide advice on what to buy, once you become an active client you have full access to their global research to help you make your own decisions.

Global Trader has a trading desk that will assist clients with trading ideas and clients will receive regular phone calls from the team to offer support. Saulez says one of the biggest problems with the seminars offered by the marketing companies is that they cram your head full of information over a weekend and then tell you that you are ready to start trading, there is no follow through or on-going support.

Saulez says only brokers that are registered with the Financial Services Board FSB can offer advice. If you receive trading advice from someone who is not registered you will not be protected under the FAIS Act. One of the selling points the marketing companies use is that local trading platforms are too slow to take advantage of international markets and therefore you have to use international platforms.

Saulez says the difference is literally milliseconds and only makes a difference to institutional or highly professional forex traders who are using algorithmic based trading and rely on high end technical analysis techniques. Global Trader does offer these services through its London partner, however for the average retail customer it makes absolutely no difference and those more complicated platforms are not a good place to start.

Even if you did want to trade on those platforms, it is also free! Standard Online Trading offers free day seminars on various aspects on investing including: Contracts for Difference, Warrants, understanding company financials, trading futures, technical analysis. Truth is I tried Standard Bank FX, I must say it not easy to trade on their platform and another thing it limited only few branches have forex trainers and sometimes you walk in a branch and no one knows about forex but only forex travel not currencies.

I studied through these companies blamed but I gained experience and got face to face training. I like all your comments and suggestions as I feel this is as good advice as one can get rather being robbed or cheated.

I would like to know where can I go if I want to study forex trading and how much will I pay for that course. Rather save your money and use it to start your trading porfolio. So it would depend on how much your total savings are worth. You would need to speak to the brokers offering the platform as to how much you need to be cost effective but it is probably around R Therefore you would need to have around R50 of savings in lower risk investments before starting to trade currencies.

You do not need to register a company to trade but you need to open an account with a broker like Standard Bank or Global Trader. I would recommend that you start using simulated trading — ie: Sharenet is a good company and R is not unreasonable, if you have the money and you also have saved money to invest then it is probably worth it.

Just do not borrow money to invest! You must be logged in to post a comment.

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Never Miss A Post Again! Recent Articles Financial Sense Home. Financial Sense , Financial Sense Home. Financial Sense Home , Retirement. How to trade forex for free January 13, How they operate These advertised businesses are built around legitimate overseas trading platforms. The aspirational sale One way to know whether or not you are dealing with a legitimate broker is the marketing.

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Breaking the law Apart from the fact that you are being taken for a ride, you may also be breaking the law. How to access trading for free: Trading speed One of the selling points the marketing companies use is that local trading platforms are too slow to take advantage of international markets and therefore you have to use international platforms.

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