Potential risks in trading Forex in South Africa

Although retail Forex transactions in South Africa are growing, risks are also increasing with the market. For the traders who are keen on investing in forex and CFDs, the risks are mainly from high leverage, which can increase their risk exposure beyond the actual fund. Forex novices often overlook the risks of leveraged forex transactions. In the end, they often face a situation of capital loss.

As the demand for retail foreign exchange transactions is growing, scam cases related to foreign exchange and cryptocurrencies are also entwined with the market exploding. There are more and more scam cases involved in foreign exchange and cryptocurrency investment, and many foreign exchange novices have become the victims of Ponzi plan. These scammers commit financial frauds by investment projects related to foreign exchange, cryptocurrency, and international markets and promise traders high returns, and their funds always disappear suddenly. Due to the existence of these risks, the education of investors becomes important. Through Forex related investment education, all investors can learn the basic knowledge of investment to identify the authenticity of investment opportunities.

For this reason, South Africa is vigorously developing various trading education websites and online learning resources to help traders understand the basics of investment and foreign exchange trading. Currently, the WikiFX has created a series of courses in investment on its website and App.

WikiFX recommends that beginners who want to invest in the foreign exchange market should learn the basics of foreign exchange and CFD investment by understanding the risks and applying appropriate trading strategies before investing. Most brokers provide demo accounts, so investors can open a demo account at any trading platform regulated by FSCA to test their trading strategies.

WikiFX is a global Forex inquiry platform and provides real-updated rankings of

Forex brokers. So if you are seeking for a broker to start your Forex trading journey, please search the detailed information about the broker on the WikiFX.