Ten Major Steps towards identifying a good broker for South African traders.

By: Chime Amara

The following are ten major factors to consider while choosing a broker for in South Africa.

A. Must be registered with Financial Sector Conduct Authority (FSCA).

The first major step in identifying a good broker in South Africa is that such broker must be registered with the Financial Sector Conduct Authority (FSCA) which is the main body that checkmates the activities of Forex brokers operating in South Africa. If a forex broker is authorized by Financial Service regulators known as FSCA, then they will have a registered FSP number.

FSCA generally provides a safety for investors by ensuring the safety of funds and protection against any disputes and malpractices by brokers. This regulator also ensures that the investors money is not misused in any form by the broker & the provider has to comply with the policies set by the FSCA.

Above all, always try to check the regulation information of any forex broker by visiting their website to confirm.

B. Must have a permanent and visible office.

It is very necessary that every Forex broker must have a permanent physical office accessible to the clients to prove their genuineness. Customers must have ready access to this office whenever they need clarification.

C. Must be recommended by Wikifx

Apart from a broker being registered with FSCA, it is important too that such broker should have Wikifx approval and recommendations. Thus, Wikifx is the next in importance after the one's own country regulatory body. Hence, Wikifx is called global Forex regulators independent of the different countries regulators and can hardly be biased or politicized on their assessments. Wikifx takes the extra pains to visit the different brokers at their offices to assess their services.

D. Must have existed for years with good records.

Similarly, it is expected that every good broker must have existed for years and kept a track record of excellence without absconding with investors fund.

E. Must have a very good customer service

The quality of the customer's service offered by the broker is very necessary in choosing a broker. It is expected that the broker would offer a 24hrs customers service to clients and make themselves very transparent and accessible.

F. Must have a swift deposit and withdrawal scheme.

This is very necessary in choosing a Forex broker. All broker must make it very easy for investors to deposit and withdraw their funds.

G. Moderate spread

Good brokers are known to offer moderate spreads to encourage new traders.

H. Direct Order Executioners.

A good Forex broker is one that always executes the traders trades directly at the market without manipulations.

I. Demo Accounts.

Good Forex brokers always provides a practice account known as demo account for learners before they can apply for a real account.

J. Multiple options for trading Accounts.

Above all, good brokers always provides different types of trading accounts for investors to make their choice such as Standard account, ECN and Cent Account.