What the Forex Open Live Trading Account Gives You

forex chart

South Africa is the continental leader in terms of forex trading. Even before the pandemic, its residents were buying and selling the largest daily volume of currencies in Africa. Now, as conventional employment is falling apart due to COVID-19, trading is more alluring than ever.

Forex gives the ultimate freedom of being one’s own boss. As a trader, you may choose when to work, what instruments to trade, and what strategies to adhere to. Everything relies on your knowledge and skill set. Those who foresee market trends cash in. Through a live trading account, they can earn a steady profit and forget about office cubicles.

What Is Live Trading

Forex brokers offer two kinds of accounts — demo and live. The first system is used for training purposes. A demo login and password unlock trading software in its simulator mode, which allows the unlimited practice.  

Beginners get used to all the features and controls before risking real capital. It is a priceless opportunity. Even experts resort to demo trading. It is a great way to test out new strategies and explore more instruments.

A live account connects you to the real financial market. The global foreign exchange is a gigantic marketplace where over 6 trillion US dollars circulates daily. Large banks, corporations, and hedge funds participate in forex trading. Institutional activities account for the largest share of this immense volume. Individuals partake as retail traders. 

Brokerage in South Africa

Major banks offer forex trading services, too. These require substantial investment, so they are out of range for ordinary traders. Therefore, retail brokerage services are a blessing. In South Africa, you may open live trading account with as little as $10. The main problem is finding a reputable legal broker that will not let you down.

Local residents may choose between international brands like ForexTime and homegrown brokers. Global firms have a competitive edge because they are regulated by several monitoring organisations at the same time. For FXTM, these are the FCA in the United Kingdom, the CySEC in Cyprus and the FSCA in the country.

Avoid unregulated brokers at all costs. Unfortunately, forex scams are quite common, so make sure the company has a license. Responsible organisations comply with industry standards, including negative balance protection. It means even the clumsiest traders never lose more than their current balance. You can be sure your investment is safe, so the only risks are those connected to the market. 

Tips for Successful Trading

Theoretical knowledge is not enough to ensure profitable trades. To succeed, you need the right mindset and a detailed strategy which includes rigorous risk management. You cannot trade on a hunch. Calculate every step carefully, and it is advisable to risk no more than 1% of capital per trade.

Delegation and Automation

Brokers provide a few tools that allow passive trading. First, there are Expert Advisors. These are forex robots — pieces of software that may either provide cues or trade on your behalf. 

Besides, there is copy trading. You may choose a strategy manager on your broker’s site and have your accounts connected, so their decisions are replicated with your money. Brokers compile ratings of copied traders based on performance, customer feedback, and other objective criteria.

Trading Psychology

The right mindset is what sets winners apart from losers. In trading, failures are inevitable, so you will have losing trades sooner or later. It is an integral part of the game. Successful forex traders perceive missteps as opportunities to perfect their strategies.

Impulsive decisions are also impermissible. Every step you take must be based on technical or fundamental analysis and objective market conditions. Strong emotions often cause mistakes. Alas, humans are irrational beings. Brokers recommend clients refrain from trading if they are feeling sad, overly excited, or frustrated.

Trading Journal

Keep a record to follow your traits with essential details like entry and exit, instrument, motivation, and financial result. This will help you to talk to regular reviews — for example, weekly. Performance assessment is essential, as no strategies guaranteed to work by default. You need to choose a system considering your resources and personal style. 

The Bottom Line

A live trading account is your pass into the largest financial market in the world. With strong analytical skills, composure, and good foresight, you can make profitable decisions with any currencies. As long as your broker is regulated, success depends on your abilities and objective market dynamics.

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Ashley Macdonald
Ashley has recently joined the FeedsPortal content writing team and brings with her a wealth of journalistic experience, which we believe our readers will find extremely useful.

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