Forex trading is quite popular in the South Africa trading community. Furthermore, with advancements in technology and smartphone usage, online trading platforms have amassed a significant client base.
The benefit of Forex Trading is that it is accessible to anyone across the world. Trading platforms enable traders worldwide to come together and make the best use of various trading and investment opportunities.
One of the conflicts traders often struggle with during Forex trading is selecting the base currency for their trading account. You can find several Forex brokers with ZAR accounts in South Africa. However, it is essential to study the comparison of ZAR accounts with USD accounts to arrive at an ideal decision.
Choosing a suitable base currency
Traders need to make a major decision when it comes to selecting the base currency. This is before they open their trading account with a broker. Generally, SA traders are torn between three significant options: ZAR Trading account, GBP (Great British Pound) Trading account, and USD (United States Dollar) Trading account.
Most traders are worried about the threat of profit loss during the conversion of international currency pairs. Therefore, when traders use USD or GBP as their base currency, all of the funds in their trading account are deposited as either USD or GBP.
For such traders to withdraw their funds in SA, there is a requirement to convert the international currency into ZAR.
When traders attempt to exchange their funds for Rand, they lose a significant amount during the conversion. This is why it is essential to know such details before choosing your base currency.
How these trading accounts can be a secure option for traders from South Africa
One thing that Foreign Exchange trading experts have noticed is that the success of an online trader depends upon their technique, education, and intuition, rather than picking a more widespread, international base currency for their account.
Traders should strive for security and stability if the pros of choosing USD or GBP as their base currency are limited. These are the traits that traders from South Africa can find with the assistance of Forex brokers with ZAR accounts.
When a trader’s base currency is Rand, and they mostly trade using a combination of Rand currency with some other pair such as USD or GBP, this means that all of the money in the account of the trader will be in Rand currency.
This enables traders to withdraw or deposit their funds easily and use them without any conversion of currency. When the need to convert currency pairs is eliminated, it also saves the trader the money spent on the transaction as well as the currency conversion itself. This is why traders consider such trading accounts as much safer and stable.
Advantages of Forex Brokers with ZAR Trading Accounts
There are many advantages for traders to opt for trading accounts:
ZAR trading accounts make the entire procedure of funds deposition and withdrawal very prompt. As a result, traders can withdraw money from their trading accounts at any time and enjoy the profits gained through trading.
Since in this situation, SA traders have a local broker, they receive funds directly in Rand. This eliminates the waiting period to send and receive money. Traders with foreign currency pairs do not have this advantage.
It takes time to send or receive money across international borders. However, with ZAR accounts, the transaction method becomes fairly easy for traders.
Unique trading account offers
Local Forex brokers with ZAR accounts have several beneficial offers for traders. These trading account offers are unique and specifically designed for local traders. These trading accounts assist the local traders with all of their trading needs.
Traders can utilize the services of local brokers offering such trading accounts. They can make the most of the familiarity and comfort of interacting with a broker who shares their nationality.
Moreover, SA traders can receive money from their brokers at any time since the traders and brokers both use a regional banking system.
Avoiding Wire Transfer fee
The greatest disadvantage of USD trading accounts is the additional charges traders have to clear in order to receive their funds. Local brokers with ZAR accounts can send money to the traders directly through the local bank. However, international brokers use methods like Wire Transfer.
The traders will have to pay the Wire Transfer every single time. This is for whenever they send and receive money from their international broker. Thus, such a method will end up being quite expensive.
Some banks charge up to a 6% commission fee upon funds withdrawal and deposition. Since online traders value every single penny they earn as a profit through trading, this commission fee is pretty significant.
Traders who wish to avoid spending additional money on transaction methods and make the most of their trading profits can utilize the advantages of Forex brokers with ZAR accounts.