Best Forex Trading Demo Accounts in South Africa

Forex trading is getting more and more popular with South African retail clients, with loads of platforms now active in the market. However, as most newbie investors lose money when trading forex, it’s a wise idea to start off with a forex trading demo account.

Demo accounts also allow you to try out brokers without risking money, so they’re a great option to have. Then, when you begin to get more comfortable, you can make the transition to a real money forex account.

In this guide, we review the best South Africa forex trading demo accounts of 2024. We also discuss some of the things that you need to look out for prior to getting started, such as account sizes, time limits, and trading tools, and provide a step-by-step walkthrough of how you can get started today.

Our Recommended Forex Trading Demo Account for 2024

Don’t have time to read our guide all of the way through? Below you will find our pick for the best forex trading demo account in South Africa!

The Best Forex Trading Demo Accounts in South Africa

There are many forex brokers in South Africa offering demo accounts that you can use to try out forex trading for free. With so many platforms to choose from, knowing which demo account is best for you isn’t always easy.

To help you out, we’ve reviewed the five best forex trading demo accounts for South Africans in 2024. Check them out below!

 

Step 2: What to Look for in a Forex Trading Demo Account?

So now that we have discussed some of the best forex trading demo accounts in South Africa, we are now going to explore some of the things that you need to look out for prior to signing up.

After all, one would assume that you are looking to use a forex trading demo account as a pre-cursor to real-money trading. As such, you should choose a demo account with a broker that provides top quality trading services for when you try out the real thing!

Account Size

First and foremost, it is worth exploring how much paper money the forex trading demo account will provide you with.

You don’t want to blow your demo account balance on day one, so it’s best to stick with a provider that offers a comprehensive amount. Some brokers even automatically replenish your forex demo account balance if it reaches zero.

Time Limits

Many newbie traders are unaware that demo account facilities typically come with a time limit. That is to say, after a set period of time you will no longer be able to use it. This will vary from broker-to-broker and averages 30 days.

Some brokers are known to be somewhat strict with this, meaning that you might get just 7 days to test the demo trading platform out. In our view, this isn’t enough time to get used to the ins and outs of how forex trading works, so be sure to check what time limits are in place!

Regulation

Whether you’re using a forex trading demo account or using real money, it’s always vital to with brokers that are licensed and regulated in order to ensure the safety of your funds and personal details. All the brokers we recommended are regulated by leading authorities such as the FCA (UK) and ASIC (Australia), so you know you’re in safe hands.

Social Trading

If you have virtually no knowledge or experience of trading currencies online, it’s worth taking a step back and understanding that most traders lose money. As a result, it might be a good idea to choose a platform that offers a social trading feature.

In a nutshell, this allows you to communicate with seasoned traders that are using the same platform. They might share forex trading ideas, and you can then comment with how you think the markets go.In doing so, you’ll benefit from a social trading experience that at the same time will help you build up your knowledge.

Trading Tools

One of the most important metrics that you need to look out for is whether or not the forex demo account comes with sufficient trading tools. After all, you will need to make full use of technical indicators and fundamental research tools if you plan to succeed in the online forex space.

If you don’t, you are simply ‘guessing’ which way you think the markets will go. So, a good starting point is to look at what technical indicator are available at your chosen demo account facility. Advanced charting reading tools, drawing tools, and a fully customizable trading screen are also useful.

News Feeds & Insights

Leading on from the above section, it’s also important to choose a forex trading demo account that offers news feeds. This will be relevant news developments that could potentially impact the value of a currency, our a pair of currencies.

Moreover, market insights is also a useful feature to have at your disposal, as this will allow you to extract the thought-processes of an experienced forex trader.

Step 3: Forex Trading Strategies to Try on Your Demo Account

While we briefly made reference to technical and fundamental analysis, it is equally as important that you find a trading strategy that meets your needs. Once again, most newbie traders enter the forex arena without a clear ‘plan’, which is is why they end up losing money.

As such, be sure to review the following forex trading strategies that you can test out at your chosen demo account facility.

Swing

Swing trading is somewhat of a broad term, as it is used to describe the length of time that a forex trader typically keeps a position open. It is generally accepted that this is anywhere from 1 day to 2 months. For example, the swing trader might see an opportunity on USD/ZAR, where they think that the price of pair will go on an upward trajectory for a number of days or weeks.

The swing trader is happy to keep the position open for as long as they think the trend will continue. As a result, the main focus of a swing trader is to ‘follow the trend’. In doing so, profit margin targets are typically much higher than that of day traders.

Day Trading

Day trading is arguably the complete opposite of swing trading. This is because – and as the name suggests – day traders will rarely keep a position open for more than a day. Instead, forex positions are opened and closed in minutes or hours.

This does mean that profit margins are significantly lower than those chased by swing traders. But, day traders will often place dozens of orders each and every day, so these small gains start to build up. Crucially, there is no harm in combining day and swing trading strategies – as each opportunity is independent of one another!

Scalping

Scalping is the process of entering buy and sell positions within a tight trading range. For example, let’s suppose that USD/ZAR has been trading between 17.25 and 18.25 for several days. A scalping trading will recognize this, and look to capitalize by placing orders at the end of each range.

For example, they will have a sell order placed just below 18.25, and a buy order just above 17.25. In doing so, the scalping trader will make money for as long as the price of USD/ZAR bounces up and down within the range. This particular strategy is reasonably low-risk, as a seasoned trader will know to cover both outcomes of an eventual ‘breakout’.

Step 4: Open a Forex Trading Demo Account

If you have managed to make it through our comprehensive guide up to this point, you are now ready to place your first-ever forex trade through a demo account.

In order to do this, you will need to open an account with your chosen broker and then place a buy/sell order.

Pros and Cons of Forex Trading With a Demo Account

Conclusion

Forex trading demo accounts allow you to learn the ins and outs of how trading works without risking a single rand. Instead, your demo account will be loaded with paper money, which you can then use as and when you see fit. This is great for getting to grips with market orders, leverage, and other key trading tools, and it’s also ideal for trying out new brokers. You will also have the opportunity to test out trading strategies in a risk-free environment.

FAQs