Some brokers are Forex only, and others give access to cryptocurrencies, CFDs on international equities, indexes, etc. As you read on, you’ll see our top picks, get tips on choosing the best broker for your needs, and find out how to check if a broker is properly regulated here in South Africa. We’ll also walk you through getting started with Forex trading and explain a bit about the legal stuff, like tax obligations, so you’re fully prepared to dive in. With so many Forex and CFD brokers out there trying to grab your attention, finding the right one in South Africa can feel like a bit of a maze. We’ve compiled a list of the most reliable brokers in the South African market, so you don’t have to spend hours searching. Opening an account with a trusted broker is key to safeguarding your funds against forex scams.
When trading Forex, you want to be confident that your broker is operating legally and ethically and that your funds are being handled safely. Regulated Forex brokers must adhere to strict standards set by regulatory bodies, which include requirements for capital adequacy, segregation of client funds, and ongoing reporting and compliance. This means that your funds are protected, and your trading experience is fair. Further, all regulators like FCA, FSCA also have a public search on their website to check broker’s regulation & license number.
Trade multi assets and multi currencies from one account
Most of the good brokers have a terms or trading conditions page on their website regarding their execution policy. You should check the broker’s execution policy, and look for terms like market execution, no re-quotes, real-time execution etc. Read the ‘terms’ of the broker or their FAQs page (or directly ask the broker’s support), to understand the type of execution being offered to you. During our trading execution tests, 2 brokers, XM Forex with their Ultra Low Account & FXTM with Micro Account had fast order execution (as both these brokers have instant execution account types). The brokers HotForex, Exness & Tickmill also have quick market execution. JustMarkets does support local base currency, and you can choose to open your trading account in your local currency.
Why is Regulation Important?
Another aspect to consider in the FSCA licensing of the forex broker is whether they are an approved ODP (Over-The-Counter Derivative Provider). But they don’t have a local phone number in South Africa hotforex broker at the moment. Also, popular third party platforms like MetaTrader & cTrader are not available at Plus500.
MetaTrader 5 (MT5) Trading Platform is more versatile for trading different markets, but MT4 remains the top pick for beginners in South Africa due to its user-friendly design and widespread support. Our analysis of hundreds of forex brokers accepting traders from South Africa shows you normally need between 0 and 250 USD, around 0 to 4,600 ZAR, to open an account. MetaTrader 4 and MetaTrader 5 are widely regarded as the greatest trading platforms in South Africa, with extensive tools, indicators, and automated trading features appropriate for traders of all skill levels. The choice of trading platform depends on personal preferences and trading experience. Beginner traders will be better off starting with a simple platform or a mobile app, while advanced traders will likely choose MT4/MT5.
- Most brokers do not offer ZAR accounts, because the cost of the currency conversion fees on profits and losses could be a serious drain on profitability.
- If you are trading 20 lots per day, you will pay USD 240 in commissions to your broker.
- In this example, if you are trading 1 Standard Lot (100,000 units), then at 1 pip, the broker would make $10 from your trade.
- International accounts are offered by IG Markets Limited in the UK (FCA Number ), a juristic representative of IG Markets South Africa Limited (FSP No 41393).
- Some of the brokers like HFM who have large trading volumes are still not licensed ODP.
- If the broker that you are about to trade with is not regulated or has a valid complaint against it or has been fined in the past for some bad practice, then its best to stay away from that broker.
BDSwiss was founded in 2012 in Zurich, and they are a reputed forex broker. They are regulated by regulators FSC & FSA (license no. SD047), but not with FSCA. So, we consider BDSwiss to be a medium risk broker for SA traders, because they are not locally regulated. FXTM is licensed with FSCA, FCA & CySEC, so we consider them to be safe. Plus, they offer instant order execution with Micro account & fair support, but their fees is quite high with this account type. The spread is lower with their Ultra Low trading account (and it is quite competitive).
They are regulated with top-tier regulators including FCA (UK), ASIC (Australia) & CySEC. Compared to their MetaTrader account, the fees is lower fxchoice review with their cTrader account. But the commission if you choose cTrader is $6 per lot, instead of $7/lot with MetaTrader Raw spread account. AvaTrade is a European broker that is also regulated with FSCA in South Africa. We recommend them to traders looking to trade forex & CFDs at fixed spread, with a locally regulated broker.
If your broker only offers wire transfer option, then it may be difficult to fund your account, and withdrawals would also be slower & with higher fees as compared to local internet banking. Here is an example of a quote for EUR/ZAR on MetaTrader at a major forex broker. During less trading sessions like Asian session, there are generally issues with execution of orders for some currency pairs & spread widening as well. But there is no method to test the execution speed other than actually placing trades on the broker’s live platform.
We also have a report a scam broker form which we use to gather information so that we get the word out. The broker will provide you the liquidity to enter & exit your trades when you want. Therefore, you should take into consideration the regulation & the cost of your trading.
Who Regulates Forex Brokers In South Africa?
Advanced traders also can benefit from Virtual Private Server (VPS) and a wide range of research materials, including Trading Central Web TV. Based on our tests, the spreads for EUR/USD fluctuated between 0.8 and 1, whereas the spreads for WTI oil were 0.062. The best Forex brokers generally offer Metatrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. These are third-party trading platforms which you can install on your computer. They are fully customisable and have advanced charting tools, research tools, and options for automated trading or copy trading. Some brokers also have their own trading platforms, which are usually accessed via a browser or on your mobile phone.
FXTM – FSCA regulated broker with ECN account
The well-balanced asset selection includes Forex, Forex indices, and cryptocurrencies. The Financial Sector Conduct Authority (FSCA) is the South African authority responsible for regulating financial services, including brokers offering online forex trading services. Use our rankings of the best forex brokers in South Africa to find the right trading platform for you. Plus500 excels at providing a streamlined trading experience through its unique platform, which is simple to navigate for new customers. IG excels at delivering a strong trading platform with a complete collection of tools and resources, making it an excellent alternative for traders seeking a complex trading environment. Their comprehensive market coverage offers chances for trading in asset types other than Forex.
Regulation is essential for protecting your money and ensuring a fair and transparent trading experience. There are around 1000+ FSCA regulated entities dealing in FX & other derivative instruments. To make your search simple, we have checked & found that HotForex, ForexTime, Tickmill, Exness and Avatrade performed best in our ranking parameters & user reviews. You can check the updated list of licensed Over-the-Counter Derivatives Provider entities on the regulator’s website. Almost all brokers add this information at the bottom section on their websites or their about pages.