Traders in South Africa currently have many opportunities to start taking advantage of the high rates of return that binary options provide. Trading isn’t always as simple as it seems, though. A lot of binary options brokers and the websites that promote them will make trading seem like the answers to all of your problems. While binary trading can be profitable, you need to approach it in a smart way.
This step by step guide is designed to help you look at your choice for binary options brokers—South Africa.
What You Need
There are certain things that you need out of a broker. You need a reputable broker, one that is fully licensed and will do what they say they will do with your money. You need a broker that offers competitive rates of return, gives you access to the trading tools that you need to be successful, has more than an adequate number of assets available for you to trade, and has a customer service department that is able to help you and answer your questions in a timely manner.
You also need to have expendable income. There’s risk involved in binary options trading, and even though you might have the market knowledge to be successful, you need to be able to invest your trading money for the long haul, even if you are a short term or day trader. If you set aside 1,000 euros for trading, you shouldn’t need that money anytime in the foreseeable future. This means that you have more than enough money set aside to pay bills, take care of your needs, and some left over for emergencies. Yes, you might need that money eventually, but you should take precautions to make sure that you won’t need to tap into this money. Many traders don’t find that they are successful enough to take out a withdrawal for at least 4 to 6 months. Plan accordingly.
As far as basic materials go, you should have a computer, the appropriate software to look at charts and analyze them, and other tools to help you be more profitable. A lot of people find that having access to a smartphone gives them more opportunities to profit, especially if they have a signals service set up where trading alerts are sent to them, letting them know what to trade and when. Others like binary options trading robots because it helps them to reduce the amount of trades that they need to make, hedges against risk, and boosts their profit rate automatically. Once you get going, these are all things worth considering.
Setting Up Your Account
You also need to establish a binary options South Africa login account. Let’s say you select a major broker like 24Option or IQ Option. Creating an account and a login is the first step after you’ve selected which broker to use. Create your account, being sure to fill in all the required information accurately. You’ll need your name, address, email account, the currency you wish to trade in, and your country of residence. They may also ask for a phone number, depending on the broker. Major brokers like to have this information to help protect you and serve you more effectively.
This information is all that’s needed to create your login, but you won’t be able to start trading until you fund your account. You can use a credit card, a wire transfer, or a major online wallet, like Skrill, Neteller South Africa, or PayPal. Whatever method you do decide to use, remember that you will most likely need to use that same method for your withdrawals. In South Africa, e-wallets are fairly accessible and because of the low cost of doing service with these and the quick access to your cash, this is one of the best methods to use. If your e-wallet offers access to a debit card, this makes the process of using one of these even easier. We highly recommend this as your funding method, granted it is also what you have determined is best for you.
What to Trade
Now that you have an account setup and you have all of the things needed to be successful, the next logical question is: “What do I trade?” This is really up to you. We recommend starting with what interests you. It will make your trading more fun.
South African traders naturally have a unique set of interests. They might have a heightened knowledge about certain commodities, like gold and silver. They might be interested in companies that are more culturally relevant in their cities. They might have superior knowledge of African market indices. Binary options brokers carry all of these assets, and you should select a broker that carries that assets you wish to trade.
Start here, and then move into how to trade. If you want to trade the price of gold, how do you measure the changes in price that occur? If you are looking at the end of the day projections per ounce, then you will naturally take a different route than if you are thinking about where gold will be in a month or in a year. If you think that gold will hit a new high today and then back down dramatically, maybe a one touch or another type of exotic binary option is best. Look at the asset, evaluate your current knowledge of it, look to see what tools your broker offers you, and then plan out a strategy with this knowledge in mind. There are many variations of what you can do, and we encourage you to customize your trading routines so that you are as profitable as possible. This will be developed more with experience, but this is a great way to get the ball rolling.
Many people wonder about paying tax on binary options South Africa. As a general rule, binary options are a nebulous area when it comes to taxes, but that doesn’t mean that you are not legally obligated to pay them. Your binary options broker might not be located in South Africa and they will most likely not provide you with any documentation of your tax burden, but these are still considered to be a taxable profit when you make money. You would need to report this yourself to the South African Revenue Service (SARS). If you have questions about taxation of your profits, or how to write off any losses you might experience, speak with your tax professional to establish what the best way to handle your tax situation might be.