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Broker of the Month Top 10 Cryptocurrencies What is Bitcoin? How to buy Bitcoin in South Africa Buy Bitcoin Legally Open a FREE Bitcoin Wallet Cryptocurrency Converter What is Ethereum? What is Ripple? What is Litecoin? What is Bitcoin Cash? Is Luno Safe? Best Brokers.

Forex No Deposit Bonus. FSCA Regulated Forex Brokers. Luno is a digital currency exchange facility that offers clients a technology platform to buy, sell and store digital currencies as well as pay for products and services using a cryptocurrency wallet.

Digital currency is also known as a cryptocurrency and the two most famous examples are Bitcoin and Ether, the latter being the digital currency used to power Ethereum. Formerly known as BitX, the company headquarters are in London, United Kingdom; and the company is represented in 40 countries around the world. However, Luno is focused on developing countries which have proven to be lead adopters of cryptocurrency.

This includes South Africa, Nigeria, Indonesia, Zambia and Malaysia. How does Luno exchange currencies? How to buy Bitcoin or Ethereum through Luno? Where does Luno store my cryptocurrency? Does Luno support Ethereum? Is Bitcoin Cash available to trade on Luno? How much does Luno charge?

How to download the Luno app on your device? Is Luno safe to use? Where is Luno available? Please note: Naspers and Rand Merchant Investments have sold their stakes in Luno to Digital Currency Group. Naspers-backed cryptocurrency exchange Luno has been acquired by Digital Currency Group DCG , a US based blockchain investor, for an undisclosed sum.

Luno was established in and is one of the early industry pioneers. By end of , Luno had processed more than 8 billion dollars in transactions; offering exchanges between traditional global currencies and cryptocurrencies like Bitcoin and Ethereum. A cryptocurrency exchange platform facilitates the exchange of cryptocurrencies for traditional fiat money.

Companies that operate exchange platforms came into being in with the launch of a decentralised cryptocurrency called Bitcoin. Many more cryptocurrencies have been launched since then, including the second most-popular one called Ether which is used to power Ethereum and Bitcoin Cash which was created through a Bitcoin Hard Fork.

The business accepts credit card payments and electronic fund transfers in exchange for cryptocurrencies. You typically access a cryptocurrency exchange platform by signing up on a website such as Luno, downloading an app from the App Store or you access it via Google Play.

Luno offers its clients a simple and secure way to buy and sell Bitcoin and Ethereum using a built-in cryptocurrency wallet. It supports several global fiat currencies such as the US Dollar, Euro, Pound Sterling and the South African Rand. Luno offers a brokerage service as well as offers training and consultancy services to help the general public understand the complexities of cryptocurrencies such as Bitcoin and Ethereum.

The cryptocurrency trading platform is core to the Luno website and is designed to facilitate the electronic process of buying and selling digital currency using fiat currency such as US Dollars, Euro and Pound Sterling. The trading platform creates a linked account with your bank and you can immediately start trading Bitcoin or Ethereum as soon as your Luno account is verified. Luno clients with registered accounts can trade digital currency with each other and Luno earns commission on all sales.

A Luno wallet is the software programme app that stores private and public cryptographic keys and interacts with the blockchain technology so that Luno clients can buy and sell cryptocurrency, store it and monitor transactions. Basically, if you want to buy or sell any cryptocurrency, you need to have a cryptocurrency wallet.

A Luno broker connects sellers with buyers and pairs them for a sale. Cryptocurrency is sold or bought at a quoted exchange rate which includes a brokerage fee. The fee percentage varies according to market conditions. The Luno brokerage service is the preferred option for larger trades as it tends to provide both parties with a better price and is more flexible and convenient.

Luno API provides developers with financial information and trading capacity in the digital currency market. This functionality allows developers to work with Bitcoin and Ethereum to access blockchain technology which is required for tasks such as accessing current and historic cryptocurrency market data. The apps promoted in the Luno Store have been pre-screened and carefully vetted so they are safe to use.

Step 1: Sign up for a free Luno Wallet. Access Luno through your web browser or Smartphone and follow the easy registration process to set up your Luno profile. Deposit any fiat value into your Luno Wallet using your preferred method of payment. This could be an electronic bank transfer or credit card payment.

Purchase the amount of cryptocurrency you desire. It can be securely stored in your Luno Wallet or you can transfer it out of the Luno exchange. Luno is different to many cryptocurrency exchanges in that it is designed primarily to simplify the process of buying Bitcoin BTC and Ethereum ETH with fiat currency, as opposed to trading one cryptocurrency for another. Buying Bitcoins or Ethereum through Luno is a straightforward process but trading fees and conditions do depend on your country of residence.

Certain countries require you to provide a unique reference number or deposit account as a security measure. To buy Bitcoin and Ethereum, you first create a Luno account and go through a verification process to link it to your bank.

Follow the easy steps to sync your bank account with your Luno account. When your Luno account is verified and officially created via an email address of social media platform; you will be directed to WALLETS in the main menu. Find the right wallet for your currency needs and make your first deposit.

Depending on your location and whether there are further requirements to sync your bank account with Luno; you should be able to make an immediate fiat transfer from your bank to your Luno wallet. When the funds have been transferred successfully, you will receive an email from Luno.

From here on, you will be able to buy Bitcoin and Ethereum through Luno. You might like litecoin and ripple. Any Bitcoin, Bitcoin Cash or Ethereum that you receive is stored in your Luno wallet. Cryptocurrency coins and cash are stored on the blockchain.

The latter is a decentralized network that records digital currency transactions in much the same way as an old-fashioned accounting ledger. The individual blocks contain transactional information and can be thought of as pages of the ledger.

As of November , Luno clients can create an Ethereum wallet which operates independently of a Bitcoin wallet. Bitcoin Cash is now available to trade on Luno. To create a Bitcoin Cash BCH wallet, you select your BCH trading pair on the exchange and place an order. A new BCH wallet is automatically created for you which you can use to buy, sell or store your BCH. You can also create a BCH wallet manually by adding the function to your Luno account.

You send BCH to and from Luno wallets in the same way you send Bitcoin and Ethereum. You need to provide the sender or receiver with an appropriate address or your QR code.

You can find these in the WALLET tab in the main menu. Bitcoin Cash was launched in August through a community-activated update to the protocol or code from the Bitcoin blockchain; otherwise known as the Bitcoin Hard Fork. A fork occurs when a group of miners run a different version of the software. The purpose of the Bitcoin Hard Fork was to increase the block size so more transactions could be processed per block. Bitcoin Cash is designed to be used for everyday cryptocurrency transactions and is cheaper and faster to trade than Bitcoin.

Essentially, Bitcoin Cash is designed to be used as digital cash for regular currency transactions and competes with the likes of PayPal and Visa. The fees Luno charges vary depending on your location, the currency you are trading and how active the cryptocurrency network is at the time of the trade.

The fee to send Bitcoin or Ethereum to a wallet is dynamic, meaning it is adjusted according to the cryptocurrency network traffic. A fee is charged to receive Bitcoin or Ethereum via an address.

Sending and receiving Bitcoin and Ethereum via a mobile platform or an email address is free. There is a fee charged for all fiat withdrawals and it differs depending on the country where the trade occurs. Likewise, Luno trading fees differ based on the national currency and the size of the transaction. Once it was launched in , Luno has established itself as a trustworthy exchange website. The company offers an advanced level of security where a Luno wallet is secured via two-factor authentication and the account passwords are stored in a hashed form.

SSL encryption is used across the trading platform and Pretty Good Privacy PGP encryption is used to secure Luno wallets. The exchange continued to make steady progress despite intensifying competition from international derivative exchanges and over-the counter OTC alternatives. By Safex reserves had grown sufficiently to allow a significant reduction in fees it levies per future or options contract.

Consequently all fees were reduced by 50 per cent that year and in the changes on allocated trades were removed. In the Equity Derivatives Market was established to provide a secure environment to trade derivatives in South Africa.

It was formally known as SAFEX or South African Features Exchange. In the exchange was acquired by the JSE Securities Exchange, with the JSE agreeing to keep the Safex branding. The exchange is a Self-Regulatory Authority and exercises its regulatory functions in terms of the Financial Markets Control Act of and its rules.

The Exchange in turn is supervised by the Financial Services Board. The JSE clearing house clears al contracts to reduce credit risk from over-the-counter transactions. The profit or loss on JSE Equity Derivatives are paid on a daily basis once the instrument is sold which is known as a variation margin and is equal to the day-to-day difference in the value of the Derivative.

Closeout dates exist on all JSE Equity Derivatives with the expiry of contracts. This occurs quarterly at 12h00 on the third Thursday in March, June, September and December.

An auction process determines the closeout prices of JSE listed Equities between 12h00 and 12h JSE Clear clears all transactions in line with international requirements in order to reduce counterparty credit risk. Definition : A Derivative is a financial security with a value that is reliant upon or derived from an underlying asset or group of assets — a benchmark.

A derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset. Example : A Derivative is an instrument whose value is derived from the value of one or more underlying, which can be commodities , precious metals, currency, bonds, stocks, stock indices etc. Key Purpose : The Key Purpose of a Derivative is the management and especially the mitigation of risk.

When a derivative contract is entered, one party to the deal typically wants to free itself of a specific risk linked to its commercial activities, such as currency or interest rate risk over a given period. Use : Derivatives are used to hedge a position protecting against the risk of an adverse move in an asset or to speculate on future moves in the underlying instrument.

Risk : Counterparty credit risk arises if one of the parties involved in a derivatives trade, such as a buyer, seller or dealer, defaults on the contract. The risk is higher in over-the-counter or OTC markets, which are much less regulated than ordinary trading exchanges. Derivatives can be used to mitigate the risk of economic loss arising from changes in the value of the underlying.

This activity is known as Hedging. Alternatively, derivatives can be used by investors to increase the profit arising if the value of the underlying moves in the direction they expect. Trading Derivatives : Derivatives can be bought or sold in two ways: over-the-counter OTC or on exchange. OTC derivatives are contracts that are made privately between parties, such as swap agreements, in an unregulated venue while derivatives that trade on exchange are standardized contracts.

Derivative Options: Options are a type of derivative security. An option is a derivative because its price is intrinsically linked to the price of something else.

If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a specific date. Futures: are Derivative financial contracts that obligate the parties to transact an asset at a predetermined date and price.

Valuation: Derivative valuations are based on three components: future cash flows, the present value of future cash flows and the valuation model used. Margins : In Finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty most often a broker or an exchange to cover some or all of the credit risk the holder poses for the counterparty. Derivative Clearing Houses : A clearinghouse acts as an intermediary between a buyer and seller and seeks to ensure that the process from trade inception to settlement is smooth.

Its main role is to make certain that the buyer and seller honor their contractual obligations. Clearinghouses act as third parties to all futures and options contracts, as buyers to every clearing member seller, and as sellers to every clearing member buyer. Definition : Producers and other users of Agricultural Derivatives often use them to Hedge price risk. They are used for Hedging or to diversify a portfolio, both of which are ways of managing risk.

They are also often used to speculate on price, which is a way of profiting from price movements in the grains market. This instrument was developed for the grains market in South Africa as a platform for efficient price risk management. Future expiry date of Future Contracts ensures that both parties honour their position on the traded date.

Corn Corn Futures and Options are derivatives contracts that give investors exposure to the international price of corn. The underlying contract is the corn derivative contract as traded on the Chicago Board of Trade CBOT. The product gives local investors an innovative tool to hedge international price risk and the opportunity to better assess patterns in the global corn market. Contracts are cash-settled in Rand and easily accessed via JSE commodity derivatives members. Soy Complex Futures and Options Beans, Meal, Oil Soy Bean, Meal and Oil Futures and Options derivatives contracts reference the Soy Bean, Meal and Oil contract traded on the Chicago Board of trade CBOT.

The product gives local investors an innovative tool to hedge international price risk and the opportunity to better assess patterns in the global soy market. Hard Red Winter Wheat These derivatives contracts give local investors exposure to the international wheat market. as determined by the Kansas City Board of Trade KCBT now owned by CME Group. Soft Red Wheat The underlying instrument meeting specifications as listed and traded on the Chicago Board of Trade CBOT , a division of the CME Group.

These Options give exposure to the international crude oil price. It is a product that can be used to hedge against diesel price risk of local users and contracts are settled in Rand. The most important feature is that it provides investors with hedge and exposure factors purely of the fact that oil is highly sensitive to political and socio-economic influences making an investment in oil extremely risky.

The underlying traded product is denominated in a foreign currency and settled in a domestic currency at a fixed exchange rate. Examples of Soft Commodities : Sugar, Corn, Coffee, Cotton, Cocoa, Soya Beans, Fruit and Livestock. Soft Commodity refers to future contracts where the actuals are grown rather than extracted or mined. Soft Commodities represent some of the oldest types of Futures known to have been actively traded. They are often referred to as tropical commodities or food and fibre commodities.

Soft Commodities play a major role in futures market. They are used by farmers wishing to lock-in the future prices of their crops, and by speculative investors seeking a profit.

Due to the uncertainties of weather and other risks of farming, soft commodity futures tend to be more volatile than other futures. Whether a contract is classified as a soft commodity or not, is less important to a futures trader than the understanding of the underlying commodity and its historical trends.

Because of their volatile nature and differing supply and demand cycles, soft commodities can be more challenging to trade than hard commodities. As with any derivatives trade, investors should understand the market they are entering as well as the implications of the contract they are using to enter well in advance of putting real money on the line.

Examples of Energy Commodities : Brent Crude Oil, Natural Gas, Gasoline and Heating Oil. Energy Derivatives are financial instruments in which the underlying asset is based on energy products including oil, natural gas, and electricity. They trade either on an exchange or over the counter OTC.

Energy derivatives can be options, futures or swap agreements among others. The value of a derivative will vary based on the changes in the price of the underlying energy product. Energy Derivatives can be used for both speculation and hedging purposes. Companies, whether they sell or just use energy, can buy or sell energy derivatives to hedge against fluctuations in the movement of underlying energy prices. Speculators can use derivatives to profit from the changes in the underlying price and can amplify those profits through the use of leverage.

Energy Derivatives trade both over-the-counter OTC and on commodity exchanges. OTC trading occurs directly between two counter-parties outside the framework of an established commodity exchange. Energy Derivative traders are a type of commodity trader. A commodity trader focuses on trading futures or option contracts in physical substances like oil and gold. Most often these traders are dealing in raw materials used at the beginning of the production value chain, such as copper for construction or grains for animal feeds.

Energy products such as oil, natural gas and electricity are part of this commodity complex. In addition to commodity price risks, energy companies can also use derivatives to hedge against foreign exchange risks and interest rate risks. Derivatives serve a vital purpose in the energy market to reduce risk, providing all parties with the price certainty needed to plan business operations. Examples of Metal Commodities: Gold, Silver, Platinum, Copper and Palladium.

Base Metals are common metals that tarnish, oxidize, or corrode relatively quickly when exposed to air or moisture. They are widely used in commercial and industrial applications, such as construction and manufacturing. Base metals include lead, nickel, zinc and copper. Precious Metals include Gold, Silver and Platinum. Several exchanges around the world offer contracts to trade in base metals.

But the hub of international trading remains the London Metal exchange. Risks and Return: These commodities are settled in Rand and produce the same payoff as an investment which is dollar-denominated. Go here for a comprehensive explanation of Safex. Price and trade data source: JSE Ltd All other statistics calculated by Profile Data. All data is delayed by at least 15 minutes. Telephone number: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Top 4 Brokers. Read Review. Comprehensive support and training, Global presence with a local feel, Uncompromising security, Advanced trading platforms. Forex Brokers. Forex Trading Platforms. Trading Platforms. Brokers by License.

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Nasdaq Brokers FTSE Brokers FTSE Brokers. Forex Trading Sessions What time the Forex Market opens in South Africa Forex Trading Tax in South Africa Best banks for Forex Trading in South Africa. How to Buy Shares Best Shares to Buy on JSE JSE Top 40 JSE All Share Index A-Z Shares List Top Shares A-Z Funds List How to make your first trade. Buy MTN Zakhele Shares Buy Solbe1 Sasol Shares Buy Sasol Inzalo Shares Buy Sasol Khanyisa Shares Buy Phuthuma Nathi Shares. Buy Sasol Shares Buy MTN Shares Buy Vodacom Shares Buy Capitec Shares Buy Shoprite Shares Buy Naspers Shares Buy Phuthuma Nathi Shares Buy Steinhoff Shares Buy Woolworths Shares Buy Old Mutual Shares Buy Anglo American Shares Buy Sibanye Stillwater Shares Buy Telkom Shares Buy Purple Group Shares Buy Sanlam Shares Buy Thungela Resources Shares Buy Prosus Shares Buy Kumba Share.

Buy Amazon Stock Buy Apple Stock Buy Tesla Shares Buy Meta Shares Buy Google Shares Buy Pfizer Stocks Buy NVIDIA Stocks Buy AMD Stocks Buy Microsoft Shares Buy Pepsico Shares Buy Adobe Shares Buy Intel Shares Buy Paypal Shares Buy Starbucks Shares Buy Netflix Shares Buy Moderna Shares Buy Zoom Shares Buy eBay Shares. JSE Top 40 JSE All Share JSE Top Industrial Index Industrial 25 Index Financial Index Financial 15 Resource 10 Index. Satrix40 STX40 Alt-X Index Wall Street Index DJIA FTSE Index UK DAX Index Germany Nikkei Index Japan.

Dollar to Rand Euro to Rand British Pound to Rand Canadian Dollar to Rand Australian Dollar to Rand Rand to Rupee. Broker of the Month Top 10 Cryptocurrencies What is Bitcoin? How to buy Bitcoin in South Africa Buy Bitcoin Legally Open a FREE Bitcoin Wallet Cryptocurrency Converter What is Ethereum? What is Ripple? What is Litecoin? What is Bitcoin Cash? Is Luno Safe? Best Brokers. Forex No Deposit Bonus. FSCA Regulated Forex Brokers. The South African Futures Exchange SAFEX is the futures exchange subsidiary of JSE Limited, the Johannesburg based exchange.

It consists of two divisions; a financial markets division for trading of equity derivatives and an agricultural markets division AMD for trading of agricultural derivatives. Safex was formed in as an independent exchange and experienced steady growth over the following decade. In a separate agricultural markets division was formed for trading of agricultural derivatives. The exchange continued to make steady progress despite intensifying competition from international derivative exchanges and over-the counter OTC alternatives.

By Safex reserves had grown sufficiently to allow a significant reduction in fees it levies per future or options contract. Consequently all fees were reduced by 50 per cent that year and in the changes on allocated trades were removed. In the Equity Derivatives Market was established to provide a secure environment to trade derivatives in South Africa. It was formally known as SAFEX or South African Features Exchange. In the exchange was acquired by the JSE Securities Exchange, with the JSE agreeing to keep the Safex branding.

The exchange is a Self-Regulatory Authority and exercises its regulatory functions in terms of the Financial Markets Control Act of and its rules. The Exchange in turn is supervised by the Financial Services Board. The JSE clearing house clears al contracts to reduce credit risk from over-the-counter transactions. The profit or loss on JSE Equity Derivatives are paid on a daily basis once the instrument is sold which is known as a variation margin and is equal to the day-to-day difference in the value of the Derivative.

Closeout dates exist on all JSE Equity Derivatives with the expiry of contracts. This occurs quarterly at 12h00 on the third Thursday in March, June, September and December. An auction process determines the closeout prices of JSE listed Equities between 12h00 and 12h JSE Clear clears all transactions in line with international requirements in order to reduce counterparty credit risk.

Definition : A Derivative is a financial security with a value that is reliant upon or derived from an underlying asset or group of assets — a benchmark. A derivative itself is a contract between two or more parties, and the derivative derives its price from fluctuations in the underlying asset.

Example : A Derivative is an instrument whose value is derived from the value of one or more underlying, which can be commodities , precious metals, currency, bonds, stocks, stock indices etc. Key Purpose : The Key Purpose of a Derivative is the management and especially the mitigation of risk. When a derivative contract is entered, one party to the deal typically wants to free itself of a specific risk linked to its commercial activities, such as currency or interest rate risk over a given period.

Use : Derivatives are used to hedge a position protecting against the risk of an adverse move in an asset or to speculate on future moves in the underlying instrument. Risk : Counterparty credit risk arises if one of the parties involved in a derivatives trade, such as a buyer, seller or dealer, defaults on the contract.

The risk is higher in over-the-counter or OTC markets, which are much less regulated than ordinary trading exchanges. Derivatives can be used to mitigate the risk of economic loss arising from changes in the value of the underlying.

This activity is known as Hedging. Alternatively, derivatives can be used by investors to increase the profit arising if the value of the underlying moves in the direction they expect.

Trading Derivatives : Derivatives can be bought or sold in two ways: over-the-counter OTC or on exchange. OTC derivatives are contracts that are made privately between parties, such as swap agreements, in an unregulated venue while derivatives that trade on exchange are standardized contracts. Derivative Options: Options are a type of derivative security.

An option is a derivative because its price is intrinsically linked to the price of something else. If you buy an options contract, it grants you the right, but not the obligation to buy or sell an underlying asset at a set price on or before a specific date. Futures: are Derivative financial contracts that obligate the parties to transact an asset at a predetermined date and price.

Valuation: Derivative valuations are based on three components: future cash flows, the present value of future cash flows and the valuation model used. Margins : In Finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty most often a broker or an exchange to cover some or all of the credit risk the holder poses for the counterparty.

Derivative Clearing Houses : A clearinghouse acts as an intermediary between a buyer and seller and seeks to ensure that the process from trade inception to settlement is smooth. Its main role is to make certain that the buyer and seller honor their contractual obligations. Clearinghouses act as third parties to all futures and options contracts, as buyers to every clearing member seller, and as sellers to every clearing member buyer.

Definition : Producers and other users of Agricultural Derivatives often use them to Hedge price risk. They are used for Hedging or to diversify a portfolio, both of which are ways of managing risk.

They are also often used to speculate on price, which is a way of profiting from price movements in the grains market. This instrument was developed for the grains market in South Africa as a platform for efficient price risk management.

Future expiry date of Future Contracts ensures that both parties honour their position on the traded date. Corn Corn Futures and Options are derivatives contracts that give investors exposure to the international price of corn. The underlying contract is the corn derivative contract as traded on the Chicago Board of Trade CBOT.

The product gives local investors an innovative tool to hedge international price risk and the opportunity to better assess patterns in the global corn market.

Contracts are cash-settled in Rand and easily accessed via JSE commodity derivatives members. Soy Complex Futures and Options Beans, Meal, Oil Soy Bean, Meal and Oil Futures and Options derivatives contracts reference the Soy Bean, Meal and Oil contract traded on the Chicago Board of trade CBOT.

The product gives local investors an innovative tool to hedge international price risk and the opportunity to better assess patterns in the global soy market.

Hard Red Winter Wheat These derivatives contracts give local investors exposure to the international wheat market. as determined by the Kansas City Board of Trade KCBT now owned by CME Group. Soft Red Wheat The underlying instrument meeting specifications as listed and traded on the Chicago Board of Trade CBOT , a division of the CME Group. These Options give exposure to the international crude oil price. It is a product that can be used to hedge against diesel price risk of local users and contracts are settled in Rand.

The most important feature is that it provides investors with hedge and exposure factors purely of the fact that oil is highly sensitive to political and socio-economic influences making an investment in oil extremely risky. The underlying traded product is denominated in a foreign currency and settled in a domestic currency at a fixed exchange rate.

Examples of Soft Commodities : Sugar, Corn, Coffee, Cotton, Cocoa, Soya Beans, Fruit and Livestock. Soft Commodity refers to future contracts where the actuals are grown rather than extracted or mined. Soft Commodities represent some of the oldest types of Futures known to have been actively traded. They are often referred to as tropical commodities or food and fibre commodities. Soft Commodities play a major role in futures market. They are used by farmers wishing to lock-in the future prices of their crops, and by speculative investors seeking a profit.

Due to the uncertainties of weather and other risks of farming, soft commodity futures tend to be more volatile than other futures.

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