The foreign exchange market is one of the most volatile in the world. Forex traders often accumulate or lose staggering amounts of money faster than in any other market. Changes are swift, and the scale may be tipped with a minimal incentive. Despite that, this market is very much sought after. If you play your hand correctly, you can gain much with seemingly little effort.
During the coronavirus pandemic, forex trading becomes even more popular. Millions of people lost their jobs and have been surviving using their life saving thus far. Lots of traders suffered significant losses as well. However, there were those who managed to gain against the odds.
The number of active traders rose by about 20% around the world instead of reducing. It seems many people moved on from trading as a hobby to trading full time for a living as they were forced to stay home during the lockdowns. Meanwhile, the foreign exchange market was externally volatile due to the pandemic, offering opportunities that typically do not come along every day.
South Africa boasts more new traders than in other regions. Why’s that?
People are looking for alternative ways to earn money as the pandemic caused the deepest economic recession since World War II. As a result, the number of active Forex traders surged in South Africa.
This region is more or less the hub of trading as many people there wish to earn some extra money. The majority of them develop a keen interest in trading, as this industry does not discriminate. If inclined, anyone with or without a degree can trade. This is one of the main reasons for the exponential growth in FX trading in South Africa.
Furthermore, South African traders can invest directly in native currency – Rand, and get back their money in Rand. They don’t need to use a foreign currency allowance, which makes trading even more convenient.