Online trading has received attention from quite a huge number of traders that have gotten stuck into thinking more about the growth of their trading. In this scenario, when they try to think about their trading accounts, they see a wide range of companies offering many features that confuse them and they don’t get the clear-cut idea. Besides, another problem can also occur if the company they tend to choose without having significant information, they might fall into the trap of scammers! To avoid any such risk, one must dig deep into the informative platforms and search out the best for them.
Among these categories, one of the accounts offered and widely used in the world of forex brokers – is the Zar account. It’s seen from the past years that many of the traders have been attracted by the Zar account and have been using it extensively due to its immense benefits. Especially in South Africa, where it has gained a lot of attention from the traders.
One such benefit of Zar account includes – to go with the flow while depositing or withdrawing amounts without any fear of falling into loss. Using the Zar account simply means that the funds you make with the brokers will be safely placed in the Rand. This would more likely help the forex brokers with zar accounts to withdraw or deposit using the local bank account – making it more convenient for him. One important thing to consider is that the account you are using should be licensed and regulated by authentic authorities to avoid scam. Moreover, Zar accounts are considered best for especially inexperienced traders, as they wont be interacting with many risks that other accounts might have and that are only tackled by the most experienced traders.
No matter what, there are many Zar accounts that offer slightly different features which one needs to know before choosing the one. So, here we would talk about some basic Zar account features that forex companies offer. By this, you will get an idea where to head along.
Table of Contents
What else is important for a new trader to know about Zar Accounts?
As mentioned above, Zar accounts are the best choice for the new traders. Here we’ll highlight some more of its advantages in detail.
1. Certain conditions rely upon the trading instrument which is the most-traded!
This point is validated if the funding in the account is made with the quote currency which is traded with high frequency.
Let’s take an example: if the quoted currency is ZAR and you are more prone to trade Rand pairs in South Africa, then there might be significant advantages to having your account open with ZAR currency. For instance: EUR/ZAR, USD/ZAR, or GBP/ZAR.
Other than that, your account balance will remain as ZAR if it has been funded in ZAR after you are done with the closing of trade. Even if you are likely to trade many quote currency pairs in ZAR, you will not be required to convert the transaction. Interestingly, you will also not be charged even if your broker wants to charge a commission while converting or switching the base currencies.
Preferably, your account currency is supposed to be likely as the quote currency of the currency pairs you have mostly traded. In case it isn’t alike, you might lose each time while re-converting your funds during trading. This might lead you to pay an amount if the broker charges you commission for conversion – which can eventually add up and make a bigger amount that certainly would be favorable.
2. When you go for conversion, you are charged
When you take a withdrawal decision, you definitely would want to withdraw from the local bank. In this situation if you are a ZAR account holder, you’ll receive your direct withdrawal in Rand from your broker.
But if you request a conversion, then you’ll be charged a fee for converting your withdrawal, let’s say in USD. Your bank may charge you about 2% to 6% during the currency conversion. In case, the exchange rate of USD/ZAR is 15, it is more likely that your bank will charge you the least by giving you 14.8. This might also lead the broker and bank to charge you a bit more.
But when you have a ZAR account, you are safe from such charges if you get your withdrawal in Rand. The withdrawal transfer in Rand from the broker in this scenario will be from South Africa’s local bank account. To cut a long story short, there are plenty of advantages to opening a ZAR account. One as discussed, trading in the Rand can save you from any conversion losses that you might face if you prefer to open an account in USD.
Click here for more information.
