Want to jump straight to the answer? The best forex broker for most people is definitely FOREX.com or CedarFX.
Botswana was once known as the 2nd poorest country in the world. Today the southern African country is 1 of the few middle-income countries in sub-Saharan Africa. A rising middle class income has spurred retail interest in the financial markets and greater interest in forex trading.
Forex traders in Botswana have an important advantage over many other countries on the African continent. According to Transparency International’s Corruption Perception Index, Botswana is ranked as the least corrupt country in Africa. The ability to trade forex is difficult in some parts of the continent, but investors in Botswana have an inside track and government support. If you’re ready to begin forex trading in Botswana, here are a few steps to be sure you’re prepared.
Here are the initial steps to lay your foundation for forex trading:
Take a look at the high level strategies that most traders use to form a successful forex career.
Day traders look for fast profits. These profits are usually not very big, but the high frequency of this strategy makes up for that. You’ll need a great Internet connection as well — some day trades are held for seconds only, if that. This is the playground of some of the best traders in the world, complete with automated software and sophisticated setups.
You need to be extremely fast in order to be successful as a forex day trader. Having a strategy is important, but so is the correct reaction to events. You need to know how to manipulate the spread to your advantage and use important indicators as signals.
Trend trading may send you into a trade for days or weeks before closing. Trends take a bit longer to form than day trades, and the profits are usually larger. Having a reputable broker is essential because you need to trust the financial entity that holds your trades. This is especially true if you plan on using margin in your account.
In order to be a successful trend trader, you should know about support and resistance levels for range trading. These are signals that tell you when to buy and sell. A trending currency is moving in a discernible direction, and you should be able to time your entry and exit profitably.
Positional traders follow the larger economic and political conditions that rule the larger forex market. You may be in a trade for years as a position trader. You must be extremely patient and confident in your research. Short-term news cycles don’t mean much except to provide opportunities for the positional trader to profit from trader emotion.
If you enjoy logically assessing the market, then positional trading may be for you. In the long term, currencies tend to return to their true value in the marketplace. This is what the position trader is counting on.
Let’s say BWP/ZAR is trading at 0.07501/0.07823 and you think the price will rise. The margin rate of the currency pair is 2.45% and you want to purchase 15,000 P. You will need R28.75 in your account.
In 2 hours, the BWP/ZAR pair does move up. The currency pair is now trading at 0.08215/0.08322. This is a move of 39 points. Your total profit would be (15,000 P*0.08215) – (15,000 P*0.07823) = R58.8.
Finding a trading strategy that matches your personality is the best way to make money in the forex market. There are many trading strategies to choose from:
One of the most important decisions you will make is the forex broker you choose. Let your research guide you in finding the right fit.
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Founded in 2012, South Africa-based online broker CMTrading gives clients award-winning access to more than 150 tradable assets, including the foreign exchange market (forex), contracts for difference (CFDs), commodities, indices and cryptocurrencies.
In addition to the globally recognized MetaTrader 4 (MT4) trading platform, CMTrading also supports the Sirix Web Trader platform and a social trading platform called CopyKat. The broker provides a wide range of trading tools on its website as well as mobile trading apps for the Sirix and MT4 platforms. CMTrading offers extensive educational resources for less-experienced traders that include live seminars, webinars, e-books and training videos. While CMTrading services clients in more than 190 countries, the broker does not currently accept U.S.-based customers.
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders.
Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.
There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.
A basic knowledge of forex vocabulary will help you enter trading with confidence. Take a look at the definitions below:
Pip: the smallest gain or loss you can make in forex, also known as a basis point.
Lot size: a standard lot represents 100,000 units of currency. A mini lot is 10,000 units of currency; a micro lot equals 1,000 units and a nano lot represents less than 1,000 units of currency.
Orders: you have the option to use various types of orders for forex trading. An order refers to the way you enter or exit trades in the market.
Calls: if you buy a call, you are purchasing a currency pair contract to control a certain lot size until or before a specific date at a predetermined strike price.
The forex market gives individual investors in Botswana new opportunities to stabilize their personal finances and those of the country. As 1 of the promising emerging economies of the world, Botswana should continue to offer an expansive selection of financial tools, including forex, to retail investors.