Before you begin though, its best that you read this free beginners course that my mentor has published so that you can get a good idea about trading and see if it is something for you.
I’ve written an ebook that summarises all the key points and gives simple links to all the resources that you need to start trading safely and successfully.
If you liked what you’ve read and are ready to take it to the next step, then pay attention.
This is what you need to do:
Step One: Find A Broker
The first and most important decision to make is who to choose as a broker.
You see this industry is rife with scams and people collaborating and out there just to get your money.
There are a few brokers that I recommend and trade with, you can find them here.
After you’ve done your research and chosen a broker, its time to open your account.
Stop. Fill in this form if you want me to help you get started.
Step Two: Try A Demo Account
First start with a demo account and make sure you understand how to place orders (market orders and limit or stop orders), and know how to place a stop loss and take profit levels.
Be aware that a demo account is not the same as a live account from a technical perspective, brokers sometimes use different servers than the ones used for live trading.
The emotional impact of trading with a live account is also much different for trading on a demo account, more on this in later posts.
Step Three: Open A Live Account
Once you’ve gotten used to practicing trading on your demo account
ALL registered and legal brokers will want some form of FICA from you.
Mostly that means sending them a copy of your ID and proof of address.
The admin process takes a few hours to a few days, the compliance department works to see that you are who you say you are and when they give you the all clear, they’ll send you the login details for y our platform (the better ones use MT4, one of the most popular platforms around.
Now its time to fund your account.
Step Four: Fund Your Account
Its more convenient to have a broker that’s resident in South Africa, you can make a local EFT into their bank account and receive EFTs when you withdraw.
Most of the international brokers also allow you to fund your account with Skrill, Paypal or some of the other online payment processors.
After your EFT or funding clears and the broker receives your funds, your platform with that amount and you’re now ready to trade.
Start trading and good luck.
Optional Step Five: Get Training
If you are a total beginner, you may strike it lucky and get a string of profitable trades.
But like most beginners, you will either get too cocky and over leverage or risk too much of your account and lose money. Get some training, is my advice and learn from a professional trader.
My Favourite Brokers
I have a few favourite local brokers. They are:
Blackstone Futures – They’re an STP broker, no dealing desk and they won’t trade against you.
I’ve also met the CEO to have a conversation with him and their level of service is great to see in this country.
They have Rand Accounts.
I trade a live account with them myself, and I think that they’re just great. I have had no problems thus far.
I highly recommend them.
GT247 – They’re a very uniquely South African broker.
They allow you to trade a CFD (contract for difference) on JSE stocks so if you’d like to make money on trading some of your favourite local companies and brands, then this is the account for you.
They’ve also recently launched an MT5 platform (instead of the own proprietary platform which was unique, but a bit dated.
I’m looking forward to trading a new live account with them.
Khwesi Another STP broker
A broker that will train you personally if you fund your account with R50,000 or more.
If you fund with at least R15,000, you’ll get a handful of one on one sessions with them.
Unlimited sessions with the R50K deposit.
Well worth checking out, I think.
(You also get a tablet, T&Cs apply)
CM Trading – Sharing an FSP number with Blackstone.
CM Trading is known to be a broker that’s perfect for beginners.
Their telephone agents and support staff are always there for you to make your life easier.
They have a special bonus for traders from this site, check it out.
- IronFx – They’ve had some trouble recently but they remain a broker to investigate to see if you would like an account with them.
- ACMGold – I hear that they’re not accepting retail clients any longer. So don’t bother signing up with them, rather try somewhere else.
I hope that you have an effective strategy to give you an edge in the market, proper money management techniques so that you win big and lose small and the mental skills to put in trades in a clear and carefree state of mind.
If not and you’re still looking for a mentor, then contact me.
And finally, if you’re a South African broker and would like to make yourself known to readers of this blog, then please do the same.
Good luck and happy trading.