For South African traders, ZAR forex trading accounts are ideal. The primary reason for this is that traders can dodge a loss of profits during currency conversion. If a South African trader picks a different currency account instead of ZAR, they will have to convert the currency every time they withdraw or deposit an amount. This will amount to a significant loss of profits.
South African traders can genuinely benefit from the various opportunities to open their ZAR forex trading account; the brokerage company of such accounts keeps all the funds in Rand currency. Thus, there are various benefits for South African traders to utilize when they open their ZAR trading accounts.
One such example would be quick deposit and withdrawal of funds in their trading accounts. The cause for the fast transaction is that since the trader’s brokerage company has all the money in Rand, it suggests the company owns a regional bank account.
This enables the company’s clients to make instant withdrawals and deposits. Several forex brokers with zar accounts can be found functioning in South Africa.
USD vs. ZAR forex trading account
Several South African traders are concerned about choosing the best currency pairs. Traders often wonder whether the USD vs. ZAR currency pair is safe and profitable. Moreover, they are worried about the risks that come with the conversion rate of this currency pair.
According to several experts, it is advised for SA traders to trade in ZAR. However, it has been noted that holding the USD trading account does not give African traders a clear advantage over ZAR account holders.
In fact, ZAR forex trading accounts pose less threat of losses to SA traders. On the other hand, USD accounts involve more risk. In addition, traders who use the USD forex trading account are generally restricted to trade in smaller amounts per pip. If you are hoping to trade in greater amounts in South Africa, opening a ZAR account with a credible broker would be an ideal choice.
Brokerage firms offering ZAR Accounts
Traders are often conflicted when choosing the ideal currency option. However, no guide or external help will be able to assist them in this situation. Choosing a suitable currency pair solely depends upon the trader since they can assess their needs better than anyone else.
One tip for SA traders deciding between USD and ZAR currency options is to convert USD to ZAR and experience it for themselves. For this purpose, traders can send money across the border to make their observations regarding USD vs. ZAR.
One easy way to send money outside of South Africa is to use Bank Wire Transfer. This payment method is getting very popular because it can be done online. Moreover, it is pretty affordable. However, some traders prefer to use Western Union, a financial services company based in America.
If you wish to experience the USD vs. ZAR trading account yourself, sending money across the South African border won’t be a problem. However, you need to be conscious of the spread charged by the bank or the financial services agency you choose to make the transaction.
What does spread mean in the Forex trading industry?
To learn about the spread, firstly, the trader needs to learn about ask and bid rate. Ask rate is the lowest cost a trader is willing to sell. Similarly, the bid rate is the highest amount a trader agrees to sell for. The difference between the bid rate and the ask rate is known as ‘spread.’
The importance of spread is demonstrated when a trader chooses a financial services agency or Bank Wire Transfer to make a transaction. Spread is applied by the bank or the agency every single time the trader deposits or withdraws money from his account.
The benefit of the ZAR forex trading account in this scenario is that it decreases the risk of exchange on the spread. It saves SA traders a good deal of funds and trouble. Since the USD ZAR currency pair is quite volatile and has less liquidity, one should expect a higher spread.
This is why it is much more reasonable for South African traders to go with the ZAR forex trading account instead.
Pros of ZAR Trading Account
For SA traders, the ZAR trading account is beneficial because it is very prompt. One can easily open a forex trading account with a broker in their own currency, make their initial deposit, and instantly begin their trading activities.
Since such traders hold an account in their local currencies, they will easily avoid any additional charges that are applied when traders withdraw or deposit funds from their accounts.
Most South African brokers offer the local traders to open their ZAR forex trading account free of cost! Besides the initial deposit (which is a pretty meager amount), traders are not required to spend any money to begin their trading process.
In conclusion, ZAR forex trading accounts have unparalleled advantages and are ideal for SA traders!