We have compiled some of the best trading practices that can help improve your binary trading experience and help make your binary options activities successful, so these are not limited to beginners at binary trading South Africa:
- Be disciplined. Have a plan and stick to it. When working with money, it’s very crucial to be very organized so that you do not lose it.
- Know when to stop. Do not be a greedy binary options trader. Invest what you can afford to lose. Do comprehensive market research on your trading asset so that you minimize losses.
- Safety is crucial. Do your research before registering an account with a binary options broker. Investigate the security factor to avoid falling into the hands of scammers like many South Africans have.
- Diversify your Trades. As the saying goes, do not put your eggs in one basket, diversifying your trades is very crucial as you do not have the same risk exposure. South African traders who diversify their trades have a higher chance of trading binary options successfully. We always advise traders to spread their investments in different assets as this helps decrease the risks level.
- Never stop learning. Strive to learn the financial trading service and market every day. Look at what the successful South African traders are doing and emulate. Ensure you don’t miss all the latest innovations on the market that come up every day. This will help you tremendously progress with your trading activities
Binary Trading In South Africa
Let’s face it; you will not become an expert South African trader overnight. You are expected to try and gain experience as much as you can and understand the risks involved.
As you read on, you will find that every single one of our featured South African binary options brokers will grant you access to a demo trading account. Still, the real adventure begins when you dive deep into the reality of binaries and start actual trading activities. What are the first things you need to do before you start binary trading in South Africa?
- Be prepared. Get well-acquainted with the basic terms and all basic information on the binary trading South Africa.
- Choose a broker. Find a broker that is regulated, licensed to operate in the market, and trustworthy. Also, make sure the binary trading platform accepts traders from South Africa, has great customer service and user privileges.
- Create an account. Find out how to create an account and register your own. Be very keen on the terms and regulations of the binary trading company.
- Set your primary budget. Once you have established your level of expertise, you can then form a proper budget that’s neither big nor small to fit your needs.
- Subscribe for the educational resources given by the broker, apply for bonuses to help you build up your strategy, and get your feet deep into the field.
- Decide on the assets you want to trade in with binary options then create a tactic that will best suit your needs.
- Be organized & Strategic. Convenience has always simplified any job. Find out the things that make your trading convenient and add it to your bucket list. For example, create a schedule when to trade (pick a time when you are free) and when the market is more profitable. Do not invest in numerous assets at once when you lack the right strategy. Have a plan and money management strategy to maximize your profits and lower the risk potential.
- Have realistic expectations. This might seem like an insignificant thing, but it cut deep. Most South African traders, both new and experienced traders, make this fatal mistake. They think they will rake in huge profits right away without any strategies in their first trades. Having high expectations is not bad, but you need to be reasonable and understand the risks that come with trading binary options.
Options Trading South Africa
South Africa has become an increasingly popular market for options trading in recent years, as more investors seek to open online trading accounts. By now, I know you’ve noticed the many choices you have when it comes to investing in securities. Whether you prefer investing in an Exchange Traded Fund or the stock market, we believe by now, you know the basics or various securities. It may seem overwhelming at first, but with a few key points, it becomes so easy to understand. Before we go any further, let’s define what options are and what options trading South Africa is.
An option is a contract giving the buyer the right but does not oblige to buy (in the case of a call) or sell (in the case of a put) the underlying asset like security, index, or even ETF at a specific price for a specified period. The most common reasons why people use the options trading are to generate recurring income or hedge risk against a declining stock market or even speculate the direction of a stock. They derive value from an underlying asset, thus the name derivatives.
There are two kinds of options;
- Call options allow the holder to buy a stock at a later time. Think of it as a down-payment for a future purpose. (A person who buys options is called holder)
- Put options allow the writer to sell a stock within a specific time frame. (A person who sells options is called writer)
With call options trading, you want the stock to go up in price for you to make profits from your contract while putting options you want the security to drop in price to rake in profits. Unlike the call options, the higher the strike price, the more intrinsic value the put option has. Note that options trading and stocks trading are two different things because buying options do not represent ownership in a company.
Even though futures use contracts just like options do, options are still considered a low-level risk because you can withdraw (or walk away from) an option at any point. The fee you pay for an option contract in Options Trading South Africa is called a premium while the price you agree to buy or sell price the underlying security is known as the strike price. People who buy call options have the potential of a long position in the underlying stock because they are not obligated to buy or sell; thus limited risks of premium spent. Unlike call option buyers, the put option buyers must buy or sell if the option expires in the money and are prone to immense risks as they can lose much more than the premium price.
Timeframes, price, and volatility of the underlying security play an important role when it comes to options trading South Africa. Determining the probability of future price events can help in valuing option contracts. When something is more likely to occur, an option becomes expensive that profits from that event. The less valuable an option has when the expiry time is little because the probability of a price move in an underlying stock becomes less as we draw closer to the expiry.
From the volatility aspect in options trading South Africa, the higher the volatility, the more significant the option price because the uncertainty increases the possibilities of a higher outcome. Since options prices can be modelled, it makes them less risky compared to other assets, thus making it easy to understand and evaluate. Options trading primary risks revolve around the uncertainty of the market and the levels of volatility.
There are common mistakes that even seasoned traders make in options trading. One of the most common ones is holding on to their call or put options until expiry. Exercise the contract immediately when the underlying stock goes up to reap the profits. Another most common options trading mistake (especially for beginners) is not having a good exit plan for your option or thinking that a cheaper premium is better. Remember, there’s always a possibility of a drastic change in value for the underlying security. Options trading South Africa can open a door of opportunities if used correctly but the risks should not be underestimated.
Binary Options Brokers
When choosing a binary options broker, you need to consider needs as an investor. Do you need a binary options broker that has excellent educational resources about binary trading South Africa? Are you a beginner? Are you a small or big investor? Do you want a broker that has a mobile app that will allow you to check your portfolio wherever you’ll be?
Here are some useful tips that give you further insights into choosing a broker.
- Security & Safety. The most crucial question every investor has is whether the binary options brokers is safe. You need to know that your money is going to be safe. Also, remember to check the online reviews to see what others are saying about that particular broker.
- Demo Account. This will help you determine your binary trading South Africa level and to understand various features and functions and how it feels like to trade with binary options brokers.
- Payouts. Quality payouts are a must when looking for great binary options brokers. You want to make sure you are maximizing your profits.
- Customer Service. There’s nothing more frustrating when trying to reach support, and not being able to when you have an urgent question about a product or service and binary trading South Africa is no exception. Take the quality of the customer support service as a metric when choosing among binary options brokers.
- Excellent bonuses and welcome deals. Great binary options brokers do their best to reward their new traders and work even harder to retain them.
- User-friendly interface that is easy to navigate. Only the best binary options brokers invest in the best binary options trading platforms that are easy and user friendly.
Best Binary Brokers in South Africa
With so many different types of binary brokers in South Africa’s market today, it can get overwhelming to pick on that best fits your needs. That’s why we have put the South African based brokers through a thorough review process to determine the best in the industry.
Our site’s mission is to help you make the most informed decision where, how, and when to invest. During the global crisis, financial markets have seen unprecedented changes in the market volatility and the brokerage industry, thus impacting all investors, including those in South Africa.
In turn, we have become more committed than ever to provide unbiased and expert reviews of best binary brokers in South Africa for investors of all markets and all levels.
Here are our top picks for the best binary options brokers in South Africa:
1. IQ Option
Established in 2013 and is known for its excellent services worldwide. IQ Option offers one of the lowest deposits in the industry, starting from $10, and provides a wide range of options for traders. As a South African trader, with a minimum investment of just $1, you have the privilege to trade in currencies, commodities, stock, and indices. IQ Option goes on to give its traders well-structured learning resources, i.e video tutorials, demo accounts, and ebooks. This ensures their traders’ success in the binary options trading market. Its website is simply designed and user friendly, making it enjoyable to use. You will receive a monthly trading analysis to help you maximize your earnings. Make sure to read our full IQ Option South Africa review and find out why IQ Option is at the very top of our best binary brokers in South Africa list.
Binary.com has had an outstanding record of being a trustworthy binary broker globally. A minimum deposit of only $5 is required to get started. They offer a variety of trading options ranging from long term and tough options, one-touch, high/low, 60 seconds, etc. They also have a well designed mobile app intended to give users a great experience. Traders in South Africa have unlimited access to education resources designed to turn a novice investor into an expert. Read more about this great binary trading company in our Binary.com South Africa review.
Founded in 2014, and has received various forerunner awards. Offers its customers a minimum deposit of $10. They have a system of status for its customers; starter, advanced and expert providing traders with flexible trading conditions. Traders in South Africa are allowed to trade more than 80 assets from stock indices, cryptocurrencies, commodities, popular currency pairs and they are always expanding the list of assets. OlympTrade platform has a user-friendly interface and very easy to navigate. How and why did we list them # 3 of our best binary brokers in South Africa list, find out in our Olymp Trade Review South Africa.
Despite being in the market for a while, Deriv. com has strived to maintain its name among the top broker list by consistently keeping up with the market and doing what its competitors are doing. The biggest advantage Deriv has over its competitors is its long history which has seen them continually rebranding and upgrading its services, making it a frontrunner in the market. They are not only reliable but trustworthy as well. Just like its competitors, Deriv offers a wide range of trading options in South Africa, such as commodities, CFD Spreads, cryptocurrency assets, and forex and binary options. Traders are offered three accounts when they sign up; opt DTrader, DBot, and SmartTrader. Explore the various options revealed in our detailed Deriv.com Review South Africa .
24Option broker was established in 2014 and rapidly gained popularity among traders. 24Option boasts of great customer support services. Their support is readily available to answer your questions and respond to your queries promptly, in over 15 languages. Aside from over 130 different commodities offered in their trading platform, read our 24option Review South Africa and find out what other outstanding features you can expect from this binary options broker.
6. Ayrex Broker
Established in 2014, Ayrex is one of the few unregulated binary options brokers that exist in the industry. With a minimum deposit of only $5, Ayrex offers binary options contracts on over 30 different underlying assets. Ayrex specializes in short-term contracts and you can expect maximum returns up to 85% on successful binary options trades. Ayrex also offers binary options trading signals. Their customer support team is also very helpful as well. Read all about this great binary trading company in our Ayrex Review.
Binary Trading Platforms South Africa
There are several software companies which design and sell binary trading platforms South Africa to binary options brokers. Many brokers will lack the personnel or resources to create their own, proprietary platforms and will instead turn to those software providers. These brokers will prefer to receive and customize an already developed software solution, which will save time and allow them to focus entirely on the service they provide. Currently, there are several software companies which offer white-labelled products and the three most popular ones are SpotOption, Tradologic and Tech Financials. Other white-label platforms are the MarketsPulse, OSystems, KeyStone, ParagonEX and PandaTS platforms and many more, differing from one another in the number of assets offered and the count of distinctive trading feature each has to offer.
On the other hand, proprietary platforms are trading platforms which are designed by the respective brokers themselves. Developing their own trading software allows these brokers to add unique features, such as options types which are not available on the white-label platforms. Proprietary binary trading platforms also offer a wider range of expiry settings compared to white-labels.
One of the most popular proprietary binary trading platforms is the one developed by Binary.com. It offers payouts ranging between $1 and $100 000 and also the possibility to choose your own strike price. One of the best binary trading platforms is definitely the proprietary software offered by IQ Option.
Binary Trading Company South Africa
Regardless of the fact that South Africa is one of the fastest-growing binary trading markets, there is still a very few binary trading companies that are regulated, headquartered and/or operating in South Africa to date. Nevertheless, this opens South Africans up to a wide range of brokers worldwide, to entrust their trading with.
Each binary trading company South Africa, as well as the entire financial market, is controlled and observed by the FBS, Financial Services Board. The Board’s primary duty is to regulate and supervise activities on the South African binary options market and the Johannesburg Stock Exchange. If you are looking for a regulated binary trading company South Africa, consider reading our CMTrading Review South Africa. This broker is operated by Blackstone Marketing Proprietary Limited which holds the South African FSB license # 38782.