HERE IS A GUIDE ON HOW TO CHOOSE THE BEST TIME TO TRADE NASDAQ
Best time to trade NASDAQ in South Africa
Nasdaq 100, or Nas100 or USTech 100, is one of the most popularly traded indexes in the world. It acts as a benchmark for the performance of the largest non-financial companies listed on the NASDAQ stock market. This index covers a broad range of industries, from manufacturing and technology to healthcare and beyond. However, it excludes financial institutions. Nonetheless, as its constituent companies perform well in the market, it can offer great potential for high returns to traders. This is one of the reasons why this index is very popular among South African traders. But for those taking the plunge, a crucial question arises: When is the best time to trade the NASDAQ 100 from South Africa? In this article, we are going to explore the best time to trade NASDAQ in South Africa.
Optimal Times to Trade NASDAQ in South Africa
As the NASDAQ exchange is located in New York, the New York trading session has the most activity for the Nasdaq index and significant economic news from the US can impact its movement. Evidently, this is the session that investors usually trade Nasdaq 100. However, this session still has some dynamics that affect how traders engage in Nasdaq trading. Let’s take a brief look.
NASDAQ Opening Hours in South Africa
The NASDAQ opening hours are at 4:30 PM (South African Time Zone) or 3:30 PM (SAST) depending on whether it is in the US the Daylight Saving Time. Unlike in South Africa where Daylight Saving Time is not observed, it is in most parts of the US. And because NASDAQ is quoted in the USA, we have to consider the daylight saving time in regards to the opening and closing hours in South Africa.
Daylight saving time in the U.S. always begins on the second Sunday of March and ends on the first Sunday of November. For the rest of the year, there is Standard Time. So during the first time period, the opening NASDAQ hours are 3:30 and during the rest of the year, it is 4:30 PM (South African Time).
The first two hours of the NASDAQ's regular trading session are typically the most volatile as eager traders jump into trading. As such, this period presents significant opportunities for traders. It is characterised by high trading volumes and rapid price movements as investors react to overnight news, earnings reports, and economic data. For South African traders, this translates to the late afternoon to early evening, which can be convenient for those with day jobs or other commitments. NASDAQ is open for trading Monday through Friday, on weekends it is closed.
Midday Calm
The middle of the Nasdaq trading session (two hours after NADSAQ's opening hours and two and a half hours before closing) often experiences a decrease in trading volume and volatility as traders take a break. Nonetheless, this period can present opportunities for those looking for less volatile markets. Notably, it might not be as lucrative for traders seeking rapid price movements.
NASDAQ Closing Hours
The NASDAQ closing hours are at 11:00 PM (South African Time Zone) or 10:00 PM (SAST). Again the closing hours depend on whether the Daylight saving time is in effect in the US or not (as we described in the opening hours paragraph above).
The final two hours of the trading session can also be highly active (9:00 PM - 11:00 PM SAST), with traders adjusting their positions before the market closes. This period is crucial for day traders and those looking to capitalise on end-of-day price movements and trends.
The Bottom Line
The optimal time for trading the NASDAQ 100 index in South Africa depends on the trading strategy of an individual trader and their trading goals. It is important to understand the different trading periods and their characteristics. This will help South African investors make informed decisions about when to enter and exit the NASDAQ trading market to align with their risk tolerance and trading goals. But which are the best brokers to trade this index? Let’s take a look.
Best Brokers with NASDAQ In South Africa
HFM
HFM is a reputable broker that avails of NASDAQ 100 to South African traders. On this broker site, this asset is available both as a spot CFD and as a futures CFD under the tickers US100 and US100.F respectively. The spreads for trading this index on HFM are competitively low, starting from as low as 10.2 pips* for the spot CFD on all HFM accounts.
In contrast, they start from as low as 30.0 pips for the futures CFD on all HFM accounts. HFM offers a wide range of trading options beyond the US100 index. This includes forex currencies, ETFs, metals, additional stock market indices, individual company stocks, energies, commodities, and even bonds.
Regulatory oversight is a major advantage of HFM. The company is regulated by several well-respected financial authorities, including the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, and CySEC in Cyprus.
Exness
South African traders looking to access the NASDAQ 100 index can do so on Exness under the ticker symbol USTEC (CFD). The spreads for trading the USTEC are dynamic and vary with market conditions. As of this writing, the average spread for the USTEC on the Standard account is 58.7 pips, which is relatively high. However, the spreads can be lower on the three Exness professional accounts. On the Pro account, the average spread is 36.7* pips with no commission charged. In comparison, the Zero account offers this index with an average spread of 8.2 pips plus a commission of $1.25 per side per lot. Lastly, the Raw Spread account has an average spread of 20.6 pips with a commission of $0.625 per side per lot.
Additionally, the NAS100 is not the only index available on Exness. The broker offers 10 different indices for traders to invest in. Furthermore, Exness provides instruments from other asset classes, enabling traders to diversify their portfolios. Other available market products include CFDs on forex, metals, commodities, and cryptocurrencies. Finally, Exness is regulated by the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, the CySEC in Cyprus, and more.
Trading the NASDAQ 100 index from South Africa offers significant opportunities for investors. However, traders need to understand the optimal trading hours and strategic approaches for this asset. The time difference between South Africa and the United States necessitates careful planning and time management. The opening and closing hours for trading this asset have the most activity, providing potential for high returns due to increased volatility and trading volumes. However, the optimal trading times can vary based on individual strategies and goals. Nonetheless, selecting a reliable broker can positively influence your trading experience.