The Most Reliable Online Trading Platform South Africa has Ever Seen
In this article we are looking at the best online trading platform in South Africa. Exploring the finer details of the online trading platform IQ Option, and how to start investing immediately. We will also discuss some strategies that can be developed along the way.
Easily the Cheapest Online Trading Platform in South Africa
There are a couple of aspects that make IQ Option a top trading platform. The primary one of these is the flexible trading options. From Crypto, to Forex, to Stock, and even their newer Options, there are a wide range of choices across a large number of assets. This flexibility in investment opportunity allows traders to diversify their strategies and create a unique approach to dealing with the market.
On top of this, traders can get going with a minimum of just $10 entry deposit, with investments on the platform going as low as just $1. This makes starting out much more inviting since there are not massive requirements or commitments to begin trading.
There is also a demo version that allows practice accounts to be created and can be used to learn the ropes of trading online. With this starting flexibility it is easy to see why this is the cheapest online trading platform South Africa has on offer.
Amongst the variety of investment options there is a vast amount of information for the traders to utilise in their efforts. With a range of statistics about each stock and filters to search and discover the wide varieties, there are endless combinations to create. This also enables the option of focusing on more stable assets that will not see much change or switching it up and going with more risky assets and investments that could see substantial growth, or severe losses.
Let us look at one such investment that traders can take advantage of on this platform. In the picture below, there are the available investments, accessed by the drop-down menu. The Option investment is a binary option, which is one of the simplest variants available across any online trading platform. This is because it only has two possible outcomes, which the trader must try and predict.
As is clear from the image, the list of binary options for trade are currency pairs, placed against each other. With a binary option such as this, traders must select one of these assets and then attempt to predict which way the market will move. Instead of buying stocks and then selling them when they gain value, the binary option investment operates more like a wager. Here traders will be predicting the direction of the market’s change, instead of the amount as well.
A big factor when it comes to binary options, is the amount of time involved. Traders are trying to predict the direction their chosen security will move, and this is determined after a certain amount of time. Once the chosen time has passed, the position of the trade is measured against the starting point, also known as the strike price.
If the trader estimates the correct direction after the time has passed, then they successfully win that trade and get a return based on how much they invested.
The adjacent trade to the binary option we are discussing on this platform is the digital option. Sharing many qualities of the binary option except that instead of a flat, fixed return, this option can be a bit more extreme.
Based on how far away from the strike price, or starting price, the trader gains an amount relative to this. As a result, the time frame is significantly shorter, locked between 5 and 15 minutes. If timed correctly, this investing method can be highly rewarding. It also offers a nice change to the other binary option whilst still being roughly similar in nature.
Making the First Investment
In the picture above, the first highlighted box refers to the end time of the trade. This can be just 60 seconds after the investment was placed, or even up to as long as a month. With trades like these, the longer the time involved the lower the return, because it becomes easier to predict a change like up or down over a longer period.
The second block shows the end time again, with a countdown to when it will happen. This is what makes the IQ Option online trading platform so user-friendly, by providing traders with as much information as possible all in a neat space. It also makes developing strategies more intuitive, allowing for more complex choices and investments.
In the example above, an investment of $400 has been placed down on the given asset. Beneath this amount is the anticipated return, should the prediction be right. Given the time frame involved, the return is fairly high, getting close to a full doubling of the investment. If the prediction is incorrect then the trader will lose the entire amount invested, in this case $400.
The large green and red buttons are the ‘call’ and ‘put’ buttons. Often referred to as the high and low options, this is the final step in the process of binary options. Here, traders will make their prediction on the direction of the stock. After the chosen time frame has elapsed, the outcome is decided, and any profits are distributed.
Another benefit here is that there are several different banking methods accepted through this platform. Many of which make it a very accessible online trading platform in South Africa.
Cashing in and Refining the Craft
Following on from the example above, let us look at what happens when the investment succeeds. If the trader selects a time frame of five minutes and invests the $400, they receive a fixed amount of that investment back, on top of the initial investment.
So, if they pick the ‘put’ option and, after the time runs out, the stock they are investing on has increased, then they will have earned their return. In the example this would be the $372, which would come with the initial $400 investment, equalling a total of $772.
If the trader chose ‘put’ and the result at the end of the time frame was lower than the starting point, then they lose the initial investment. The upside of this is that even with a loss there is no negative balance. This makes binary option trading like this, very appealing to the newer traders looking to learn the ropes.
Now that we have looked at our first trade, it is good to discuss the available tools involved with this trading platform. IQ Option is designed to provide traders with an easy and intuitive way of dealing with the stock market, and one such avenue is a surplus of information. The most evident of this is the graphs and layout of the trading page.
While looking at the market page, traders can map out the trajectory of their investments along the provided graph. There are options to zoom in, providing greater detail and more clue on subtle changes taking place. This makes placing investments on binary options all the more appealing because traders can use these tools to accurately predict where the market might be going.
Additional Tools to Help Learn
Alongside this, there are news related tools. These provide traders with up to date news on the markets they are trading in, allowing them to develop strategies. Following the market is one of the best ways to improve the chances of investments and understand whether there will be movements up or down and most importantly when these might happen.
Like with anything, practice makes perfect. The more traders’ experiment with the market and using the IQ Option platform, the better they will get. There are risks to investing and always will be, but by using the tools available to improve, traders can work to slowly mitigate some of these risks.
The previously mentioned demo account also helps in this regard, allowing traders to practice without any of the risks. This latter part is a primary reason why this is the best South African online trading platform and just how it helps its traders grow and improve.
There are also ways of filtering the available market options, helping traders find the most suitable assets to trade with. Things like spread show how much an asset’s value might move around. The lower the spread, the less volatile the asset and more likely to hold its value.
This can either be a blessing or a curse when playing with binary options and the ‘call’ or ‘put’ investments, as the objective is to predict which way they will move. With less movement in general, this can be harder to guess.
Overall, there is much to learn with this trading system. The online trading platform IQ Option makes perfect sense, as it is a country filled with opportunity and that is exactly what this offers its users.