The foreign exchange market in South Africa is larger than ever, with new traders emerging daily as they try their hand at speculating on the price movements of major, minor, and exotic currencies in the largest, most liquid market amongst several other major markets in the world.
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Expectations from the Forex market in 2022
The forex market has seen rollercoaster highs and lows in the past two years with the emergence and spread of Covid-19 around the world. In addition, the impacts that followed were also driving factors in an already volatile market space, where retail traders kept their hands firmly on safe-haven assets to diversify their portfolios and keep their capital safe.
For 2022 analysts predict that the forex market is set to be driven by two major factors, namely inflation and (as no surprise), Covid-19. These factors are set to drive the monetary policy decisions of central banks around the world.
This relates to the fact that the forex market is consistently evaluating inflation data to provide clues of when central banks are set to raise or cut interest rates. This is attributable to the fact that high interest will boost a currency while lower interest rates will cause a currency to depreciate.
Forex Trading and the Law in South Africa in 2022
South Africa has one of the best and most reputable market regulators that oversees all forex trading, the Financial Sector Conduct Authority (FSCA). The FSCA is busy rolling out a new license, the Over-The-Counter (OTC) License for Derivative Providers
With this new regulatory framework, the FSCA can reduce the risk that retail and institutional forex traders in South Africa face, effectively creating a safe environment for market participants, subsequently ensuring that South Africa is aligned with the G20 requirements in terms of OTC derivatives market regulation.
Khwezi Trade – The Best Trading Partner in 2022
South Africa has a bustling forex trading scene and traders must remember that while countless forex brokers offer traders the sun, moon, and stars, trading with a trusted and well-regulated forex broker can make or break a trader’s trading career, even before it started.
One of the factors that all forex traders must confirm when they review brokers relates to regulation and Khwezi Trade is one of the first non-bank financial entities that has already obtained an OTC license from the FSCA in South Africa, making it one of the safest brokers that ensures a client-centric approach.
Other reasons why Khwezi Trade stands out as the best trading partner for forex traders in South Africa in 2022 relates to the following:
- There is no minimum deposit requirement when traders register a live account. Traders have the freedom to deposit funds once they are ready.
- Traders have unlimited access to a demo account that can be used as a practice account for beginners and a risk-free environment for experienced traders, allowing them to test their trading strategies.
- A safe, fair and transparent trading environment where traders know that their client funds are safe and that they are receiving the best possible trading and non-trading pricing.