BH Report discusses the current position of forex brokers in South Africa, with the number of active brokers and clients in decline and the future of the industry. The South African forex industry has witnessed many changes over the last few years. The online broker industry has grown significantly. Even though established brokerages have been able to adapt to these changes, the declining number of active brokers and clients in South Africa is a cause for concern.
The Decline in the Number of Brokers:
The current online forex industry in South Africa has over 250 brokers, and the number of active clients has dropped from over 8300 to 5000 between 2010 and 2015, according to market research by Statistics South Africa. Even though the number of active brokers has decreased over the last few years, there has been a steady increase in the number of individuals and companies using online forex brokerages to buy and sell currencies across the different major markets.
It is for this reason that we believe that the online broker industry in South Africa is in good shape for the foreseeable future. However, we would like to think that the underlying reasons behind the decline of the industry are not just a result of changes in technology but also a result of the current economic climate that is affecting South Africa. One of the best working brokers is xm trading in South Africa.
Current Economic Climate:
The current economic climate in South Africa is a factor that we cannot ignore. The longer it takes for the South African economy to recover, the more clients will find it hard to use traditional brokers. The falling number of active clients in South Africa is a sign that the overall sentiment towards brokers and the industry is changing.
Many clients now prefer to use brokers that offer them all the convenience of online trading at a time when fewer and fewer people are using brokers. Consequently, this will result in brokerages experiencing decreased activity, particularly as more and more people turn to mobile apps and live web pages to make their currency exchange investments.
Exciting Place to Trade Currencies:
It is clear that the online brokerage industry in South Africa has a lot to offer, and it remains one of the most exciting places to trade currencies. This is especially true for investors that are looking to invest their money and for the ones who want to explore a new way of investing. In this instance, online brokers allow investors to have complete control of their money with no constraints and no geographical boundaries.
The good news for investors is that there are several online brokerages in South Africa that have a long-term future. Even though the number of active brokers is on a steady decline, there is no evidence to suggest that the market is in bad shape. We believe that the overall forex broker industry in South Africa is still in good shape. South Africans are always interested in forex trading.
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