ZAR Forex Trading Accounts are very useful for South African traders. This will help you in avoiding losses due to currency translation costs on deposits or withdrawals. Having a ZAR Account means that you will keep all of your funds with the broker in Rand. In most situations, this means that the broker has a local bank account through which you may make quick and convenient withdrawals and deposits by bank transfer. However, just a few brokers in South Africa now provide ZAR accounts. The majority of them claim to offer a similar trading environment and features. Choosing the finest ZAR account broker is thus a difficult task. Even if you consider a ZAR base currency account, you must still trade with brokers well regulated by the FSCA or other top-tier authorities such as the FCA or ASIC.

Why choose a ZAR Forex Trading Accounts

There are three compelling reasons to open a RAND trading zar accounts broker:

• You will avoid currency conversion when opening and completing traders if you trade FX pairs with ZAR as the quotation currency, such as USD/ZAR or EUR/ZAR. This will save you money because most brokers charge a commission for currency conversions when trading and frequently provide a poor exchange rate.
• When you deposit ZAR into a standard US Dollar (USD) trading account, your Rands and first converted to USD. There is normally a cost for this currency conversion, and you may also lose money due to the exchange rate. To make matters worse, when you withdraw from your trading account, you will be charged another conversion fee. You won’t have to bother about fees or currency rates with a ZAR Trading account.
• If your broker offers ZAR trading accounts, your funds are most likely held at a South African bank. This means that deposits and withdrawals from your bank account will be faster and less expensive.

Why are there so few brokers who offer ZAR accounts

Forex brokers that provide ZAR accounts are rare, and most firms still only offer USD OR EUR accounts, owing to a lack of ZAR liquidity sources. Forex brokers with ZAR accounts require access to many Rand or Rand liquidity pools to cover their client’s trades. There are currently not many banks in South Africa willing to give the necessary funding.

Another reason for the lack of ZAR accounts is that most international brokers charge their fees in USD. They expose themselves to currency rate risk by converting huge sums of USD to finance ZAR accounts, as the broker would lose money if the Rand devalued.

Conclusion

There are certain advantages, but it all depends on your preferences. If you primarily trade Rand pairs such as USD/ZAR, opening a ZAR account with the broker is best. As a result, you could retain money on conversion losses. The plus point of opening a ZAR account over a USD or EUR account is making deposits and withdrawals in Rand. In this situation, there will be no exchange rate losses or transfer fees that your bank (or broker) would impose if you made a transfer to your broker in USD.