By Lunga Sidelo
When he was just 18-years-old Cofimvaba-born, Luphumlo Malusi started making extra money by exploring foreign exchange (forex) trading. Luphumlo started trading while he was still studying at Sinenjongo High School in Milnerton, Cape Town. He learned using YouTube videos and social media platforms. His first forays into the world of currency trading saw him scammed more than five times and losing his investment and profits. However, he didn’t give up and tried other platforms Luphumlo, who was raised by a single-mother claims to earn about $350 (R5400) a month from forex trading.
Q: Can you please brief us about foreign exchange market?
A: Forex is the foreign exchange market. It is where people trade currencies. This includes all the aspects of buying, selling and exchanging currencies at determined price.
Q: How does forex work in South Africa?
A: In South Africa forex is legal and regulated by the Financial Sector Conduct Authority to protect the industry and ensure healthy competition in the market. In South Africa the only way for individuals who want to trade on the forex market to access this market is through a forex broker. A broker provides the trader with access to the market and software and information needed in order to exchange different currencies on the forex market.
Q: What made you to start trading? is anything or anyone who inspired you to become a trader?
A: I was inspired by DJ Coach Tsekelele (Forex Broker Killer) and Lesiba Mothuphi (CEO of Forex Chasers and author of the book, Journey to R100 million). I always watch their videos on YouTube when they are telling their stories about trading and how trading changed their lives. I even watch their videos when they are explaining how they trade and they also share trading strategies. They explained it and it was easy to understand, then I decided to try it out. I also did a little research about trading. During the research, I got into a person who claimed to be a trader and account manager.
Q: What happened next?
A: (The account manager and I) came into an agreement. We started working together and made profit. When we had to split the profit, (he) disappeared with the money. I lost R1000… because I deposited R300 (with) him. After four days he said he made a profit, so I had to pay R700 tax so that I can be able to withdraw. I gave him the R700 then he blocked me.
I got scammed more than five times in trading. After losing money from scammers I decided to trade on my own. I started to learn trading from YouTube videos and social media platforms.
Q: What did you do after you have been scammed?
A:…I didn’t give up I kept on trying other platforms for trading. Last year, I got a platform called Meta Trade, in Meta Trade I started by learning on a Demo account. I traded with XaceMarket brokers where I was loaned $1000 in my real account and traded for about three months to make a good profit.
I got scammed more than five times in trading. After losing money from scammers I decided to trade on my own. I started to learn trading from YouTube videos and social media platforms.
Luphumlo Malusi
Q: How should people avoid scams in the forex market?
A: You have to read about dangers of online trading before venturing into trading. You have to first verify if the broker is authorized by Financial Sector Conduct Authority. To verify a broker go to the Financial Sector Conduct Authority’s website and check for a list of licenced brokers from their public search for regulated Financial Service Providers and check the products for which the broker is authorized, the broker’s Financial Service Provider number. Investors must also check the website, compare phone numbers and email address associated with the broker. If in doubt, contact the regulator Financial Sector Conduct Authority to ensure that the broker that you are dealing with is actually authorized. This is necessary to avoid dealing with an unlicensed Broker and also a fake broker who could have cloned an actual licensed broker.
Q: How did your parents react after you got scammed?
A: I was raised by a single parent, my mother. Since I started trading my mother supported me because she saw that I was in love with trading. After I told her that I was scammed she was disappointed I saw it in her eye but she just comforted me.
Q: How were you feeling when you got your first profit?
A: My first profit changed my life and my family because my mother was no longer stressing with groceries and clothing for me and my other two siblings.
Q: How did you manage your time between trading and academics?
A: I used to trade late nights after writing my homework (during) the week days and focus (on) my academics during the day and on weekends, since the market (closes) on weekends. Last year…at the beginning of second term I was forced to take break from trading and focus to my academics as my mother believed that school was much important.Q:
Q: What is the advantage of trading?
A: Trading helps to make extra income and gain financial freedom. It is affordable to start trading, you only need small amount to get started.
Q: What are your goals in trading?
A: I don’t really have goals in trading otherwise it is just part time thing or a side hustle to make extra money. I like trading and I enjoy trading, but I don’t want to spend a lot of time on it as it might be addictive. My main dream it is to be an accountant but due to unforeseen circumstances in Varsity I had no choice, so I had to choose BA which I will change next year
Q: What would you say to people who want to start trading?
A: …if anyone is interested in trading first … read dangers of online trading try to understand the trading platform first because there are scammers (and) South Africans because they appear to be easy targets. Also consult the Financial Sector Conduct Authority website for authorized brokers. Do a research about your broker before Depositing your money to it. Check the reviews about your broker online.