Future of forex trading in South Africa

Future of forex trading in South Africa

 Forex trading (sometimes called FX trading ) is a trade that obtains operations related to buying and selling of currencies. And the forex market is a digital platform that operates 24 hours a day and seven days a week. Many countries in the world acquire forex markets and pursue FX trade. Yet, South Africa is a region that has managed to gain a reputable position in the world forex market. 

The Forex market in South Africa is one of the world’s most liquid, fastest, and profit-generating markets, holding a turnover of more than $6.6 trillion US dollars. So, will this market remain the profit-generating market, or are there some changes to come? Let’s find out the answer. 

South African forex market overview

It is crucial to first understand the south African forex market, in general, to understand its future better. With that said, forex trading in South Africa includes speculating on the fall and rise of currencies to generate maximum profit. The residents can legally trade in the foreign exchange market via an FSCA regulated forex broker. Regulated forex brokers involve those forex brokerage houses legalized by local governing authorities such as FSCA to serve the traders.

However, choose an efficient trading platform for entering into the forex industries, such as Deriv. The platform is known for providing some amazing services, including the Deriv Demo account that lets you practice forex trading without putting your real money at risk. 

South African currency is known as Rand- and it is one of those fortunate currencies that are included in the list of the top 20most traded currencies in the world, with an annual trading volume of USD 70 by 2016. 

Future of forex trading in south African markets

Below are some significant factors of forex trading that are likely to get affected in the future. Let’s have a look at those.

Government spending

Due to structural and cyclical challenges in the south African economy, government capital and operational sending have been curtailed since 2016. 

The deficit budget suggests that economic decline may accelerate over the short term. The currently resurgent Rand currency indicates a twenty-year record current account surplus based upon robust commodity exports and muted imports. 


There is an increasing concern about a political host of economic and regulatory factors that adversely impact foreign business. It includes all the reports related to corruption and mismanagement, violent crime, and poor government service delivery to impoverished communities. 

However, now, the government is planning to make programs to reform state-owned enterprises. 

Exchange rates 

The highly volatile Rand-dollar exchange rate can complicate planning in the future, especially for smaller or new-to-market films. Although the forward cover is available, and the Rand is one of the most heavily traded currencies, the cost does reflect. 

Interest rates tend to be higher than in the United States and developed markets. 


The Forex industry in South Africa is one of the world’s most liquid industries. It offers high-profit generation along with a variety of currencies. 

Three significant factors are most likely to be impacted in the future: government spending, management, and an exchange rate discussed in the above content. 

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