Jan 02 2022 0
Shared trading has long become very common in forex trading, especially in South Africa. It is a type of strategy that doesn’t require much knowledge and experience from the trader. Actually, this is not entirely trading but more investing. When you join share trading, you are investing your money in it. Let me explain it more clearly and show you the cheapest share trading platform in South Africa.
About share trading
Like any other type of investment, share trading has both its advantages and disadvantages.
The advantages
Like I have said above, share trading is for traders who don’t have much knowledge or experience in this market. How so? Because the principle of share trading is that you can follow another trader and do exactly what they do when trading. If they make profit, so do you. Therefore, it doesn’t require any knowledge or experience in this field.
Moreover, there are many brokers in the market who make an entire separate platform for share trading. So your options are a lot. You just need to choose a reliable forex broker and log into their share trading platform. There, you can find professional traders to follow.
Finally, on the share trading platform, everything will be done automatically for you. The only people who are really trading are the ones you follow. When they do anything, it will automatically be copied into your account. Therefore, you can just sit back and relax. Watch money pour into your balance with ease. Some other brokers can even let you be more flexible. If you don’t like certain decisions of your traders, you can just stop anytime and trade on your own.
The disadvantages
So as you can see, this is not really forex trading. It is more like you give somebody money and they trade for you. So the rules of forex trading cannot be applied here but rather the rules of investing. If you choose the wrong trader to follow, you will lose money.
In addition, these traders don’t let you copy them for free. They will charge commission. Each trader will decide a different commission rate, so you have to pay attention before choosing them so that you won’t be charged too much.
Finally, in order to participate in this type of investment, you need to have a big fund first, because of two reasons. First, most of these traders are scalpers, which means they can make only some pips at a time. They focus more on safe trading than profits. So if your initial fund is too small, and the commission eats into it, you will not make very much from share trading. Secondly, the key principle of investing is that you must never place all your eggs in one basket. Never follow solely one trader. You need to spread your money into multiple strategies at once so that if one fails, you still have some back-up.
Other types of share trading platform
Some brokers don’t have the resources and capabilities to create their own platforms. Instead, they will work with a third party, which is an outside company that provides the service. They can add the share feature to the most common and popular forex trading platforms in the market. The best third-party companies are ZuluTrade, Myfxbook or Trade Copier.
The cheapest share trading platform in South Africa
Do you know that most of the brokers who offer share trading are small and medium brokers? Those brokers are not trustworthy at all. They usually have hidden fees that can reduce your profit even more. You should only trade with the big and reliable forex brokers like Exness, eToro, or HotForex. So, which one of them is the cheapest share trading platform in South Africa?
What is the cheapest share trading platform in South Africa?
Usually, the cheapest share trading platform in South Africa is offered by the best forex brokers in South Africa:
- Exness
- HotForex
- eToro
Actually, all of them are the same. The service that these big forex brokers provide is actually free. You can just open an account and start following traders without paying anything.
The only difference is that each of them requires a different minimum deposit rate. It is the smallest amount of money you have to deposit into your balance in order to start trading. This requirement doesn’t affect your choice much because I have said earlier that this kind of investment needs big funds. So you still have to deposit a lot of money anyway. Therefore, for those who want to find the cheapest share trading platform in South Africa, the big and reliable brokers are free. Don’t worry about that anymore.
