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Trading CFD contracts may seem difficult, but this is the best way to buy and sell assets without their physical delivery. Traders from South Africa can gain access to various financial instruments like stocks, indices, metals, cryptocurrencies without buying them directly from exchanges. CFDs are one of the easiest ways to access financial markets as you don’t need to have large amounts to start trading.
How to Start CFD Trading
To buy and sell your first CFDs, you don’t need to go to various stock or commodity exchanges. The only thing you need to do is to find a Forex brokerage firm, offering those contracts for the assets you want to buy and sell.
Finding the best broker is not an easy task. You need to consider many aspects including trustworthiness, fairness, trading conditions, platforms, etc. Traders Union experts will help you with this complex task anyway.
What is the Amount to Start with
First and foremost, the easiest way to set the amount you want to start with is to look at the minimum deposit requirements that a particular broker sets for its customers. You will find those companies requiring from $100 to give you access to all their features.
Some companies do not have any minimum deposit requirements at all, allowing you to choose the amount you can start with. If this is your case, it is recommended to start with a comfortable sum that allows you to control your emotions and stay within your budget.
Choosing a Trading Platform
CFD Trading South Africa requires a special piece of software called a trading platform. The most popular trading terminals are designed by the famous Metaquotes company. Most CFD brokers allow you to start with Metatrader 4 or 5, which are the latest versions of the known trading platform nowadays.
Those trading platforms offer various useful features, including:
- Math indicators. They allow you to analyze markets and find out more about the current market tendencies, reverse signals, corrections, volumes, etc.
- Graphic tools. By using them, you will find out more about the support and resistance levels, current trends, find retracement points, etc.
- Trading bots and strategy testing features. If you want to automate your trading journey a bit, Metatrader platforms allow you to use various experts advisors. Moreover, you can also test any of your strategies.
- Various types of charting. Metatrader gives you access to a variety of charts, including lines, bars, and Japanese candlesticks.