Sharenet Forex Broker

Sharenet Forex Broker - Complete Information Guide

1. Overview of the Broker

Sharenet is a prominent CFD and Forex broker that has been operational since 1988. The company is headquartered in Bellville, Cape Town, South Africa, and operates under the legal entity Sharenet Securities. As a privately-held firm, Sharenet has established itself as one of the largest brokerage services in Africa, catering primarily to retail clients who seek access to emerging African markets.

Since its inception, Sharenet has continuously evolved, adapting to market changes and expanding its service offerings. It provides clients with trading opportunities in five major asset classes: currency pairs, CFDs on indices, energy products, precious metals, and bonds. A significant milestone in Sharenet's history was its establishment as a regulated broker under the Financial Sector Conduct Authority (FSCA), which ensures compliance with local financial regulations.

The business model of Sharenet focuses on retail Forex trading, providing a single account type that offers uniform trading conditions for all clients, regardless of their deposit amount. This approach allows Sharenet to maintain a streamlined service, ensuring that clients can access the same trading opportunities.

2. Regulation and Compliance Information

Sharenet operates under the regulatory oversight of the Financial Sector Conduct Authority (FSCA) in South Africa. The broker holds the license number FSP 41688, which is crucial for ensuring the safety and security of client funds.

The FSCA is responsible for regulating the financial services industry in South Africa, ensuring that brokers adhere to strict compliance standards. Sharenet's regulatory framework includes:

• Client Funds Segregation: Client funds are kept in segregated bank accounts, separate from the company's operational funds, providing an additional layer of security.
• Negative Balance Protection: This policy ensures that clients cannot lose more than their initial investment, protecting them from significant financial losses.
• KYC and AML Compliance: Sharenet adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, requiring clients to provide detailed personal and financial information during the account opening process.

However, it is important to note that Sharenet does not participate in any investor compensation schemes, which could provide additional protection in the event of insolvency.

3. Trading Products and Services

Sharenet offers a diverse range of trading products, primarily focusing on Forex and CFDs. The broker provides access to:

• Currency Pairs: Sharenet offers trading in 41 currency pairs, including major, minor, and some exotic pairs.
• CFD Products: The broker provides CFDs on 94 indices, allowing clients to trade on global market movements without owning the underlying assets. Additionally, Sharenet offers CFDs on commodities, precious metals, and bonds.
• Special Products: While Sharenet does not currently offer cryptocurrency trading, it allows clients to invest in managed portfolios, providing a unique investment opportunity based on the Johannesburg Stock Exchange (JSE).
• Retail Trading Services: Sharenet caters primarily to retail clients, enabling them to trade various financial instruments through a single trading account.

The company is continuously updating its product offerings to meet market demands, ensuring that clients have access to a comprehensive suite of trading instruments.

4. Trading Platform and Technology

Sharenet utilizes its proprietary trading platform known as My Sharenet, which is designed to cater to the needs of both novice and experienced traders. The platform supports:

• MetaTrader 4 (MT4): While primarily using its own platform, Sharenet also provides access to MT4, a popular trading platform known for its user-friendly interface and advanced trading tools.
• Web-Based Trading: Clients can access the trading platform via a web interface, allowing for seamless trading without the need for software installation.
• Mobile Trading Applications: Sharenet offers mobile trading applications for both iOS and Android devices, enabling traders to manage their accounts and execute trades on the go.
• Execution Models: Sharenet employs both instant and market execution models, ensuring that trades are processed quickly and efficiently.
• Technical Infrastructure: The broker's servers are strategically located to provide optimal trading conditions, with a focus on minimizing latency and ensuring reliable order execution.

API access for automated trading is also available, allowing clients to integrate their trading strategies with external systems.

5. Account Types and Trading Conditions

Sharenet offers a single standard account type, which is designed to provide uniform trading conditions for all clients. Key features of the account include:

• Minimum Deposit: The initial deposit requirement is set at $3,500, which is relatively high compared to other brokers.
• Spreads: Sharenet offers competitive spreads starting from 1 pip for major currency pairs like EUR/USD.
• Leverage: The broker provides a leverage ratio of up to 1:1, which means no leveraged trading is available, aligning with its risk management policies.
• Minimum Trade Size: The minimum trading lot size is 0.01, allowing for flexible trading strategies.
• Overnight Fees: Sharenet applies overnight fees (swaps) for positions held overnight, though specific rates are not disclosed publicly.

Additionally, Sharenet offers a demo account for clients to practice trading strategies without financial risk, although the demo account is only available for a limited duration of 14 days.

6. Fund Management

Sharenet provides various methods for fund management, ensuring that clients can easily deposit and withdraw funds. Key aspects include:

• Supported Deposit Methods: Clients can fund their accounts via bank transfers, with credit cards and e-wallets not currently supported.
• Minimum Deposit Requirements: The minimum deposit requirement for opening an account is $3,500, applicable to all account types.
• Deposit Processing Time: Deposits are typically processed within 1-3 business days, depending on the method used.
• Deposit Fees: Sharenet does not charge any fees for deposits or withdrawals, which is a significant advantage for clients.
• Withdrawal Methods and Restrictions: Withdrawals are processed only via bank transfer for non-residents, and the processing time is similar to deposits.
• Withdrawal Fees Structure: There are no withdrawal fees, but clients should be aware of potential fees imposed by their banks for receiving international transfers.

7. Customer Support and Educational Resources

Sharenet offers robust customer support to assist clients with their trading needs. The support structure includes:

• Support Channels: Clients can reach support via phone, email, and the PowerChat forum, although online chat is not available.
• Service Hours: Customer support is available 24/7, ensuring that clients can receive assistance at any time.
• Multilingual Support: The support team primarily operates in English, which may limit accessibility for non-English speaking clients.
• Educational Resources: Sharenet provides a range of educational materials, including paid courses on technical analysis and trading strategies, as well as free analytical resources.
• Market Analysis Services: Clients can access daily market analysis, newsletters, and research reports to stay informed about market trends.

8. Regional Coverage and Restrictions

Sharenet primarily serves clients in South Africa and provides access to the Johannesburg Stock Exchange (JSE). Key points regarding regional coverage include:

• Main Service Markets: The broker focuses on the African markets, particularly South Africa, making it an ideal choice for traders interested in these regions.
• Regional Offices: Sharenet operates its main office in Cape Town, with no additional international branches.
• Countries Not Accepted: Sharenet is not available to clients in certain countries, including Singapore, due to regulatory restrictions.
• Special Limitations: Clients should verify their eligibility to open an account based on their country of residence.

In conclusion, Sharenet broker provides a comprehensive suite of trading services tailored for clients interested in the African markets. With robust regulatory oversight, competitive trading conditions, and a focus on client support, Sharenet positions itself as a reliable choice for traders seeking exposure to the JSE and other asset classes.