The growth of discount brokers and online trading has made it easier than ever for investors to try day trading like professionals. It may be a dangerous and profitable game. If you want to be a day trader, how to start?
The First and most important for day trading is you need comprehensive knowledge about trading. The second is that you need a low-cost trading portfolio coupled with a stable trading platform with effective trading tools.
Today, we will choose the best trading platform for South Africa. It is not an easy task, as there are so many forex brokers that accept South African traders.
In order to find the best day trading brokers in South Africa, we created a list of all brokers that accept new clients from South Africa, and choose the best ones.
We compared their fees, minimum deposits, platform convenience, quality of customer support, reputation, etc., and selected 10 of the best day trading platforms for South Africans regulated by FSCA, FCA, ASIC, or CySEC, etc.
This is our list of forex brokers as the best and cheap day trading platforms in South Africa. The list is not in any particular order.
IG - The best-integrated forex trading platform with a long history
Mitrade - Simple Forex CFD platform for beginners
Exness - Low spread forex broker with the low minimum deposit
Tickmill - Userfriendly forex broker in South Africa
FXTM - Well-function regulated forex broker
HotForex - South African forex broker with multi-accounts
Plus500 - Trustworthy forex CFD Trading Platform
eToro - Best CFD Trading Platform for Social Trading
Interactive Brokers - International trading platform for advanced day trader
ICmarkets - Best ECN Forex broker with low spreads
Note: The best online trading platforms usually have competitive fees, stable platforms, and sufficient functions. No worry about which is the best for day trading, we have picked the main features for you. let's start finding.
#1 IG - The best-integrated forex trading platform with long history
FCA, ASIC, FSA, CFTC, FINMA
CFDs currency pairs, commodities, indices
IG is one of the world's largest and oldest forex CFD providers. There are many financial instruments that can be leveraged, almost everything. IG Group was established in 1974. It is well regulated by many countries and has a local office in South Africa, but it does not provide ZAR-based trading accounts.
#2. Mitrade - Simple Forex CFD platform for beginners
Mitrade is a forex CFD trading platform, this platform is easy to use and friendly for beginners. You can open an account with only 100USD. It is very convenient for those who want to invest in overseas markets such as U.S. stocks. A good feature is that leverage can be adjusted and controlled from 1 to 200, so whether you prefer low-risk or high-risk, you have choices. Click here to start trading>>
#3 Exness - Low spread forex broker with the low minimum deposit
Founded in 2008, Exness is one of the world's largest forex brokers. Since the company's establishment, they have had an impressive development. Exness has brokerage licenses in the UK, Cyprus. It is one of the main brokers that accept ZAR accounts.
#4 Tickmill - Userfriendly forex broker in South Africa
Tickmill was established in 2014 and is regulated by many financial institutions around the world. Tickmill's transaction fees are very low. Account opening is fast and all transactions are carried out quickly. I really like trading with Tickmill.
#5 FXTM - Well-function regulated forex broker
FXTM was established in 2012 as a forex trading platform established in the United Kingdom. It has multiple regulations of the British FCA, Cyprus CySEC, and South Africa FSCA. Currently, it has offices in many places and is one of the fastest-growing forex brokers in recent years. A major feature of the platform is sufficient promotions and sufficient educational resources such as videos.
#6 HotForex - South African forex broker with multi accounts
HotForex is a forex brokerage company in Cyprus that provides trading services and tools for retail and institutional clients. HotForex provides micro, premium, zero spread, AUTO, and PAMM premium accounts as well as Islamic accounts.
#7 Plus500 - Trustworthy forex CFD Trading Platform
Plus500 is an online trading platform focused on providing contracts for difference (CFD). It was established in 2008 and has more than 2 million active customers. It has been listed on the London Stock Exchange. Plus500 has sufficient regulation, transparent and open handling fees, also with an easy-to-use and specially designed platform.
#8 eToro - Best CFD Trading Platform for Social Trading
eToro is a well-known Israeli financial technology company and social trading broker, established in 2007. Regulated by FCA and ASIC, eToro has innovative features such as social trading, allowing you to copy the strategies of other traders. Its advantage lies in its simplicity and good interface design.
#9 Interactive Brokers - International online trading platform for advanced day trader
Interactive Brokers (IBKR) remains my top choice for advanced day traders, established in 1978. The broker is regulated by many financial institutions around the world. It covers a wide range of markets and product choices and provides a variety of excellent research tools.
#10 IC markets - Best ECN Forex broker with low spreads
IC Markets is a global forex ECN trading platform, founded in 2007, Sydney, Australia. IC Markets' trading fees are very low. The account opening process is simple and fast. Different account types have different cost structures.
Fast order execution: Day traders value the speed of the platform orders, if there are jams and delays in placing orders, then day trading is bound to lose money.
Low transaction costs: Active trading can lead to high transaction costs. so it's important to focus on your trading fees.
Availability and ease of use of information: Day traders pay close attention to information about the assets they are trading. Not all brokers and trading platforms have easy and quick access to relevant news.
Advanced charting and technical data: Day trading requires a strong familiarity with technical analysis, as well as many tools to assist in improving trading success rates.
Day traders usually use large amounts of leverage and short-term trading strategies, take advantage of small price fluctuations in highly liquid stocks or currencies, and often actively buy and sell multiple times throughout the day, and will not hold any open positions the next day.
Day traders usually have a deep understanding of the market and sufficient funds.
Everyone can easily access the world of online trading, but only a few can become successful day traders.
Here are the steps for a beginner to become a day trader:
Accumulate market knowledge and experience
Arrange sufficient funds
Set up a trading strategy
Perfect trading plan
Simulation and backtesting
Start small, then expand
Day traders try to make money by taking advantage of small price changes in stocks, currencies, cryptocurrency, etc. What markets would a day trader choose?
There are popular markets with the most day traders.
Day trading forex
Day trading and forex are the perfect matches in terms of investing money and taking profit from volatility and short-term time frames.
Forex tools are very suitable for short-term day trading, because the forex market operates 24/7, with high volatility, high liquidity, low capital requirements, and low transaction costs. Day traders should choose a currency pair they are familiar with
Day trading stocks
Day traders like highly liquid stocks because it gives them the opportunity to change their positions without changing the stock price. If the stock price goes higher, traders may buy. If the price falls, the trader may decide to sell short in order to make a profit when the price falls.
For example, a speculative trader may spot a technical uptrend in Microsoft stock (MSFT) at 10:15 am, establish a long position and close it within 45 minutes to make a quick profit.
Day trading cryptocurrency
Day traders seek to take advantage of more direct profit opportunities. The crypto market has become an increasingly popular destination for day traders. Unlike traditional markets, the crypto market will never close, and there are obvious volatility and liquidity.
Day trading stock index
One of the most liquid and most traded trading tools is popular indexes such as the SP500 index.
Day trading is a risky job, it involves potential high risks, but it also represents many uncertainties and many possibilities to lose your money. Think that studies have shown that most traders burn their accounts in just six months after starting day trading.
So, the million-dollar question: How to avoid that?
If you really think that trading is right for you, remember to start small.
Keep clear your profit targets
Focus on a few stocks instead of heading into the market
Keep clear your profit targets
Stay away from low-priced stocks. The liquidity of these stocks is extremely low
Use limit orders, limit orders can help you trade more accurately
Don't let emotions dominate, control you and you will control your transactions.
Study risk management at first
The strategy will change as the market changes, always following the market.
Time to go ahead and start your day trading career
As a trader, the best way to become a day trader is to start practicing in a demo account. Then master your strategy and choose your tool with a winner mind.
Remember to train yourself consistently, trade at the same hours every day, and cash in your profits while the market is funny enough to let you take it.
But take your time, remember, Rome wasn't built in a day.
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. *CFD trading carries a high level of risk and is not suitable for all investors. Please read the PDS before choosing to start trading.
Risk Warning: Trading may result in the loss of your entire capital. Trading OTC derivatives may not be suitable for everyone. Please consider our legal disclosure documents before using our services and ensure that you understand the risks involved. You do not own or have any interest in the underlying assets.