If we take a look at the economic history of South Africa, it was the most mineral-rich country in the world. According to a statistic by the Best Binary Options Trading Site Binoption, millions of people are adopting online trading as a source of additional income.
You will find very well numbered financial service providers in the country. These providers are proudly offering different investment opportunities to South African Traders. However, you cannot deny that all investment opportunities will not deliver the same outcome.
The following article aims to introduce the expert-recommended 3 best investment opportunities for South Africa. Let’s start with the most popular one that ensures future financial success.
Online Investment Binary Options:
Over the past few years, binary options trading has created hype on South Africa with many regulated brokers. According to Wikipedia, a binary option is an exotic financial option that has two possible outcomes. Based on the simple “yes” or “no” proposition, a trader has to predict the future value on a particular trading asset.
At this moment, options trading is very popular in South Africa. Furthermore, the trading process is simpler than Forex trading.
On the other hand, there are some myths about binary trading and gambling is one of them. But according to the expert statement, ” all trading types is a gamble without a strategy.” There are plenty of differences between binary options and gambling. Serious binary traders can understand how to trade using a variety of trading strategies.
At the same time, the binary trading type is not an illegal practice in South Africa. So, many offshore regulated brokers offer binary options here. Unfortunately, South African companies are not allowed to become Binary Options Brokers. Of course, all brokers are not safe to trade. You should know how to choose a broker to avoid an unpleasant situation.
To make your task easy, Binoption provides a list of regulated Binary Options Broker for South African Traders. At the same time, we are mentioning a list of some regulatory bodies below that work in Africa and commonly known in the globe.
- FCA – Financial Conduct Authority (based in the UK)
- CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
- ASIC – Australian Securities and Investment Commission (Australia)
- CFTC – Commodity Futures Trading Commission (US)
- IFSC – International Financial Services Commission (Belize)
- FSB – Financial Services Board (South Africa)
It is necessary to mention that FSB is the first regulatory body that oversees the binary options trading in South Africa.
Binary Options allow you to trade on various asset types. On the other hand, those who are looking for a small investment, binary trading is a good option for them.
As the payout percentage is fixed, you will get an idea on the profit rate, before executing a trade.
Online Investment Forex:
South Africa is a good example when we talk about trading foreign exchange. Similar to the Binary Options trading, Forex trading is also a very rising market in South Africa. However, FX trading gaining its popularity before binary options. Many people turn forex trading as their full-time profession.
In forex, the one important thing that you can’t ignore is a proper trading education. You will find a lot of online resources to gather the basic knowledge of forex trading.
You may hear about the famous and successful forex trader “Sandile Shezi”. He is the youngest and most successful minds in South Africa. According to him, he started doing forex trading at the age of 21 and enjoys the fruit at the tender age of 24. This self-made millionaire is an inspiration of many traders.
Along with him, there are a lot of successful traders available in South Africa. To be honest, not every forex trader can end up with sure money.
We have already mentioned the name of the famous regulatory bodies who are offering the safest environment for traders by removing scam brokers. The trading type is very appealing due to some obvious reasons. Still, in 2020, they are planning for more regulators to regulate the country’s economy.
We have found a report, where approximately 13.9 million people are involved with online trading. In 2020, its number has increased a lot. More than 42% of women are classified themselves as experienced traders who are participating in the trading market.
Forex trading offers a lot of freedom. It will allow you to be your boss. It will help you to manage your wealth and live a better life.
South Africa Stock Market Trading:
Wall Street area is a centre of trade. But for stock traders who are from South Africa, the Johannesburg Stock Exchange (“JSE”) is a place where people can buy and sell stocks. It offers a secure capital market for all stock traders. Currently, JSE is ranked as the 19th largest stock exchange in the world.
To be an expert on stock trading, a trader needs to get updated on the financial market. There are different types of stock available that you have to know before investing. Do your research before jumping in and buying a share.
If you can manage risk, then investing in the stock market will bring all primary benefits. It will give you a chance to grow your money. The stock market also provides investment diversification.
You can also make money from stock trading in two ways. Both day traders and long-term investors can enjoy investment fruits. On the other hand, the market allows you to sell your stock at any time.
As stated by the Economist, you can turn your shares into cash quickly with a low transaction cost. This term is known as “liquid”.
According to a statistic, the finance, real estate, and business services add an approximate 2.7% value on total GDP. Unfortunately, with two-quarters of negative growth, South Africa’s economy is in a technical recession.
But the question is how much of each type of investment should you have? Here expert suggests establishing an asset allocation based on the financial goals. Many people failed to recognize the actual business cycle. It is essential to take time before expanding your investment wings.