Contact a JSE-registered stockbroker to advise you on how to grow your wealth.
Contact a JSE-registered stockbroker and start investing tax free today!
Learn about the world of investing with the JSE Investment Simulator.
Forex trading is trading currencies. There are two ways to do this.
The first is via currency futures, which are traded on the JSE. These are regulated products that most local stockbrokers can offer and you can make a profit by taking a view on whether the rand will be strengthening or weakening against another currency, such as the US dollar or the euro.
The other way to trade forex is on the FX spot market. This is a huge and very liquid market, but there is some real risk here. Firstly, there are many fly-by-night operators who may go bankrupt, or worse, just disappear with your money. Also, the level of risk is at times as much as 100x geared, meaning your R1 000 cash is able to generate exposure of R100 000. Great if you get it right, but you are liable for the full R100 000 and huge losses are frankly the norm.