How much money do I need to start Forex trading in South Africa?

Forex trading is an amazing way to have some additional income to your primary income. However, some people confuse it with passive income, and it most definitely is not passive income. Most traders don’t realize that they not only invest their money into trading but their time as well.

However, today we are not discussing the value of Forex trading, but are answering the question that you have definitely asked yourself – How much do I need to start Forex trading in South Africa? The simple answer would be – any amount can get you started, even if it’s 75 ZAR. However, not all brokers will let you open an account with the minimum deposit requirement allowing investments below $25. XM Forex broker is one of the few brokerage firms offering the lowest thresholds of deposits to start trading with them. The below guide will explore the broker options, opportunities to start trading at the lowest cost, and associated risks and benefits.

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What Forex trading costs

Generally, there are no special costs connected to online Forex trading, the reason is that you don’t just buy Forex, you trade Forex, meaning that the invested amount can easily be withdrawn back or made a profit on after a loss. However, most South African traders are still trying to minimize the amount of money they need to deposit in order to start trading in the Forex market. Generally, the Forex trading minimum deposits vary broker to broker on market, but there is some sort of industry standard that is rarely exceeded by a single company. In most cases, the minimum amount to start Forex trading in South Africa is around R 2,800, but there have also been occasions where people were able to start trading with an even less amount. So what is the secret of avoiding extra deposits and “costs” when starting to trade Forex in South Africa?

Choose the right broker

Forex trading minimum depositIn order to truly avoid any unnecessary deposits, you will need to choose a perfect broker for the deposit. As I already mentioned, some require more than R 2,800 and some require less. That’s how some people managed to start Forex trading with R 200 or even less. Generally, you will have various offers from forex brokers, but let’s focus on how to start Forex trading in South Africa the minimum deposit for now. In order to truly profit from your trades, the broker needs to have you deposit as much as possible, however, some avoid the volume of the deposit and just focus on accommodating as many traders as possible. Even with small deposits like R 200, it’s possible to make a profit if there are a lot of people involved. One primary example of a broker like this is XM, which allows its customers to deposit a minimum of $50 or R 700, but there are other options as well.

How to start trading with R 200

Some brokers have this feature called the deposit bonus, which is a very convenient tool in the hands of an experienced trader. They will know exactly how much they need to deposit. Using this option there is pretty much no limit as to how much do you need to start trading Forex. Let me try and explain how it works.

Let’s say that you have approached a Forex broker, whose minimum deposit is somewhere around R 200, which is a great deal. Making significant profits with a small deposit like R 200 is pretty much impossible. However, brokers understand that traders are reluctant to deposit large amounts and are therefore offering this deposit bonus. Meaning that once you deposit that R 200, you will be eligible for, let’s say, 50% of that deposit. Meaning that those R 200 will have an extra R 100 added on top of it. Now, this is still not too much, but it’s better than nothing. Furthermore, once you trade and get the hang of making profits with small amounts, you’ll be able to move on and use leverage, which basically increases your trading size. No deposit bonus minimizes how much do you need to start trading Forex in South Africa. You can start trading with the no deposit bonus on XM by following the link below.

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Brokers with best Forex Deposit Bonuses

As the Forex trading in South Africa is expanding rapidly, brokers have started offering better Deposit bonuses, to better accommodate the need of more traders. We have compiled a list of brokers in South Africa, which offer the best Forex Deposit bonuses on the market for you to choose from.

AvaTrade

Reviewing AvaTrade – Is it a legit Forex broker?

Starting Capital

$100

Financial License

CBI, BVI FSC, ASIC, FSCA, FSA, ADGM, CySEC

Promotion

Financial Leverage

1:400

Established

2006

Trading Software

MT4, MT5, WebTrader, AvaTrade Go

XM

XM broker reviews, interface, and trading tools provided

Starting Capital

$5

Financial License

CySEC, FCA, ASIC

Promotion

$30, 50%+20%

Financial Leverage

1:888

Established

2009

Trading Software

MT4, MT5, WebTrader

Plus500

Plus500 Review – A Wolf Among Sheep

Starting Capital

ZAR 1,500

Financial License

FCA, CySEC, FMA, FSCA, ASIC

Promotion

12-25%

Financial Leverage

1:300

Established

2008

Trading Software

MT4

CM Trading

CM Trading full review – How does this broker work?

Starting Capital

$250

Financial License

FSB

Promotion

Financial Leverage

1:200

Established

2012

Trading Software

MT4, SIRIX

Exness

Exness Review – Reliability Guaranteed

Starting Capital

10 USD

Financial License

FSA

Promotion

N/A

Financial Leverage

1:2000

Established

2008

Trading Software

MT4, MT5

IQ Option

IQ Option detailed review, user feedbacks, and background

Starting Capital

$10

Financial License

CySEC

Promotion

Not available

Financial Leverage

1:30

Established

2013

Trading Software

WebTrader

RoboForex

RoboForex Review – Multifunctionality

Starting Capital

€/$ 10

Financial License

CySEC, IFCS Belize, ICF

Promotion

30 USD

Financial Leverage

1:2000

Established

2009

Trading Software

MT4, MT5, cTrader

EagleFX

EagleFX Review – Fresh Perspectives

Starting Capital

$10

Financial License

N/A

Promotion

N/A

Financial Leverage

1:500

Established

2019

Trading Software

MT4

AMarkets

AMarkets Review – Orders Under 0.03 Seconds

Starting Capital

$/€ 100

Financial License

FSA

Promotion

25%

Financial Leverage

1:1000

Established

2007

Trading Software

MT4

OspreyFX

OspreyFX Review – Fast and Purposeful

Starting Capital

$10

Financial License

N/A

Promotion

N/A

Financial Leverage

1:500

Established

2019

Trading Software

MT4

HotForex

HotForex Review – 5 Industry Regulations

Starting Capital

5 USD

Financial License

FCA, FSA, DFSA, FSCA

Promotion

100%

Financial Leverage

1:1000

Established

2010

Trading Software

MT4, MT5, WebTrader

ForexMart

ForexMart Review – Your Trusted Broker

Starting Capital

15 USD

Financial License

CySEC

Promotion

30%

Financial Leverage

1:500

Established

2015

Trading Software

MT4, WebTrader

Tickmill

Tickmill Review – the most trusted broker

Starting Capital

100 USD

Financial License

FSA, FCA, CySEC, FSCA

Promotion

30% Welcome Bonus

Financial Leverage

1:500

Established

2014

Trading Software

MT4, WebTrader

FXOpen

FXOpen Review – maximum trading flexibility

Starting Capital

1 USD

Financial License

ASIC, FCA

Promotion

Forex Cashback

Financial Leverage

1:500

Established

2005

Trading Software

MT4, MT5, WebTrader, TickTrader

No deposit Bonus – A.K.A trade without a deposit

If you are still unsure as to how much money do you need to trade forex, it may be worthwhile to go for a no deposit bonus. It is a perfect way to start trading Forex with $100, which aren’t even yours, meaning that you don’t have to deposit, some brokers just give it to their customers for them to start trading. It may sound like a scam, but it is a standard strategy for Forex brokers to attract beginner traders. Sure, it’s usually not good to be influenced by marketing tactics, but if they offer some sort of value, why not follow them? Even though there is much value in the Forex no deposit bonus, we still need to discuss how it works and what it is exactly.

Make money trading Forex in South Africa

It’s quite simple so I won’t bother you with too much information.  As soon as you learn how to trade Forex in South Africa, register with a Forex broker and find out that there is a no deposit bonus available. All you have to do is apply for it, provide some extra information, usually in the form of your ID card, and you’ll receive it within an hour or so.

But there are some things to consider with no deposit bonuses. The thing is, you can’t withdraw the bonus, for obvious reasons, and you can only start withdrawing the profits you make using that bonus after you’ve traded a specific amount. A no deposit bonus is a great way to start making money trading Forex in South Africa, which many traders have already taken a shot at. Claim your no deposit bonus of 30 USD with XM now.

Try XM with a $30 Bonus

Just going with the flow

Ok, let’s say that you have absolutely no intention of using any trader benefits and want to just deposit your way towards the promised profits. Exactly how much money do you need to start trading Forex? Well, that depends on what type of trader you are. Are you willing to take large risks? Then a small deposit, something around R 1,500, is enough for you to grow your account at a rapid pace. There are even cases when people were able to make 30% of their deposit within a single trade, but there is an immense amount of risk associated with this.

The second option is if you want to be as safe as possible. With this type of mindset, it is very hard to make significant gains in the Forex market. In order to truly make money trading Forex in South Africa, you need to have at least some risky trades, but let’s stick to the topic for now. As for how much to start Forex trading, in order for you to avoid risks and still be able to make a sizeable profit, I believe that a deposit of R 14,000 is quite enough. even smaller gains made with this deposit would be enough to amount to at least some type of profit, a result you’d be happy with at the end of the day.

Ways you can increase profits in Forex with small deposits

One of the best ways to increase your profits when trading Forex is to use the leverage that the Forex broker offers. If you don’t know what Leverage is, I’ll try to give a small description, but you can check our guide “forex trading for beginners” to have a more in-depth explanation, in case you do not know much about how does Forex trading work in South Africa?

You have probably seen these weird numbers appear with Forex brokers, numbers like 1:100, 1:500. What do they mean? Well, these are the numbers that specify leverage. 1:100 leverage means that once you engage in a trade with let’s say R 100, the broker will multiply it by 100, meaning that your trade will become R 10,000, ultimately growing your profits. Leverage renders the “How much do I need to start trading” question redundant, as there are pretty much no distinguished numbers. Some brokers offer leverages as high as 1:900, so you can imagine how big those numbers can get.

How to start Forex trading with R 200

However, several aspects need to be considered here. For example, in order for you to get a profit, the trade needs to be a success. After a successful trade, the broker takes a part of the profit, usually in proportion to the number of funds he gave you, but at a point where it’s still profitable for you to continue using leverage. One of the risks to consider is an unsuccessful trade. This could be very damaging as you may lose funds you don’t have, therefore it’s always important to set a stop-loss at a point where you can afford to lose.

Here’s how to start trading Forex in South Africa as an expert on the matters of leverages. Let’s say you engaged a trade with R 1,000 with leverage of 1:10, which sets your total trade on R 10,000. It’s best to set the stop-loss at about R 9,500 because not only will it stop you from losing more than you can afford, but also the total amount of your initial deposit.

Let’s wrap it up

As you can see, it is not that difficult to understand the logic behind the starting amount of deposits in the Forex market. There’s no defined amount of how much money you need to start trading Forex in South Africa. It all depends on your style of trading, and furthermore, you have different tools at your disposal that you can use at any time. Make sure that you are ready for the risk and invest only the amount that you are ready to lose, and above all, make sure to pick a certified broker, suited perfectly for you.

Open trading account with XM for free

FAQ for trading without much money

How much do Forex traders make in South Africa?

You would be surprised to find out how much famous and experienced Forex traders make in South Africa. There are more than a dozen of the “pro traders” who are now self-made millionaires earning more than an average person per 5 years in just a month. For example, one of the best Forex traders in South Africa, Sandile Shezi has an estimated current net worth of 2.3 million US dollars and he earned a great majority of his fortune through trading Forex for years. He has been one of the brightest figures in Forex history, who was a very risk-taker trader in the beginning and gradually stabilized his methods of trading over time. If you were to ask young Sandile how much money to start Forex trading in South Africahis answer would be “everything you’ve got”, since it is exactly what Sandile did in his youth. He was living in a ghetto until he decided to risk it all and put all his financial resources in Forex trading. Even though it is not advisable to do so, he survived the risk of losing everything he owned and is now the richest Forex trader in the region.

Can I start Forex trading with $100?

You can start Forex trading with almost any amount that you would like. It all depends on your trading goals, your strategy, and the broker that you choose for trading. There are some brokers globally which have minimum deposit limits as low as $5 for the real trading account, however, generating significant profits with that much investment is extremely difficult. So, if as a South African beginner trader I wonder can I start trading with r200 then the answer is of course! can I generate massive profits with it? probably not. However, if you find a decent broker which has bonus programs, such as the deposit bonus scheme, then it might be easier to plan for larger profits. There are several reputable brokerage services that offer a 30% or even 50% deposit bonus, meaning that when you deposit r200 you get an additional r60 or r100. However, it has to be pointed out that you cannot withdraw the bonus deposit amount without trading with it first. After your trades, you will be able to retain all the generated profits. So, first I have to find a broker with a bonus program, and then I know how much do I need to start trading Forex.

Who is the richest Forex trader in South Africa?

The richest Forex trader in South Africa is Sandile Shezi, a self-made millionaire who obtained most of his wealth while trading in the Forex market. Sandile Shezi’s estimated net worth is over 2.5 million US dollars as per last year’s information. Sandile Shezi has one of the most unique strategies when it comes to trading Forex, however, he started with the most unorthodox and unadvisable method – risking everything he got. He lived an extremely poor life as a child and in his teenage years, he decided to invest all of his fortunes into trading, which is the number one rule not to do. As soon as he gained more experience as a trader, he learned to minimize the risks and began trading with much more patience and discipline, making him one of the most prominent and successful traders in South Africa. Sandile Shezi is a perfect example of how much can you make with Forex in South Africa.

Which is the best bank for Forex in South Africa?

FNB is one of the top choices when it comes to bank accounts suitable for Forex traders. FNB has been South Africa’s best foreign exchange provider for more than 5 years now and it remains the most popular option for traders. One of the reasons for its popularity is the Global Payments Solution and the Global Account that the bank offers. Global Payments solution enables traders to invest money offshore using its secure platform and the Global Account is used for starting saving in a foreign currency. Moreover, FNB has a user-friendly and simple online platform and application which makes it easier to use for the first-timers in Forex trading. The clients of FNB can also find a guide for beginners on how to open a Forex trading account in South Africa.

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