10 Best Forex Brokers in South Africa for Online Trading 2021

Trusted and The Best Forex Brokers in South AfricaSouth Africa is arguably home to the highest number of Forex traders and Forex brokers in Africa. The financial sector is vibrant with opportunities that are usually present in first world countries. South Africa has a vibrant Forex trading industry with a regulator – the FSCA (Financial Sector Conduct Authority), formally known as the FSB (Financial Services Board). The FSCA is an independent regulatory agency responsible for regulating all the Forex brokers that want to operate in the country.

Forex trading regulation in South Africa

The FSCA regulates Forex brokers. Like any other regulator, the main mandate of the FSCA is making sure the personal information and funds of traders are kept safe. Forex brokers in South Africa must pass demanding tests and investigations before being approved by the FSCA. As the FSB, the regulator used a legal framework borrowed from the 2001 Financial Intelligence Act and the 2004 Financial Advisory & Intermediary Services Act. The current FSCA has a new mandate (as of 1st April 2018) borrowing from the 2017 Financial Sector Regulation. The regulator currently has a specific financial sector regulation model known as the Twin Peaks, which has been fully implemented.

FSB regulated Forex companies are now under the FSCA. As a Forex regulator in South Africa, the FSCA is responsible for all decisions, communication, and regulatory action. The regulator is tasked with many tasks among them being; enhancing the efficiency and integrity of financial markets, protecting customers by promoting financial literacy and fair treatment, and supporting policies that boost financial inclusion.

Top Forex Brokers South Africa in 2021

  • XM “50% +20% deposit bonus up to $5,000, Loyalty Program Bonus
    • Online Since 2009
    • Regulated by ASIC, CySEC, FCA (UK), IFSC
    • Spread From 1 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:888
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account
  • OCTAFX 50% Deposit Bonus, Real contest 1st prize Luxury Car, CopyTrading Feature
    • Online Since 2011
    • Regulated by FSA (Saint Vincent and the Grenadines) and CySEC
    • Spread From 0.4 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:500
    • MetaTrader 4 Platform
    • Free Swap & Commission
    Open Account
  • FBS $100 No-Deposit Bonus, 100% Deposit Bonus, Lucky T-shirt, iPhone 6s Plus
    • Online Since 2009
    • Regulated by CySEC, IFSC (International Financial Services Commision) Belize
    • Spread From 0 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:3000
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account
  • Exness 35% of the account Deposit
    • Online Since 2008
    • Regulated by CySEC, FCA UK, FSP, BaFin, CRFIN
    • Spread From 0 Pip
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:2000
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account

Tips for Choosing Best Forex Brokers South Africa

To ensure you find the best Forex brokers in South Africa, you must consider the following;

  1. Does the broker have regulatory approval?

The best Forex brokers South Africa are approved by the FSCA. You should never trade with any broker that isn’t regulated since the Forex market is packed with unscrupulous brokers out to scam unsuspecting traders.

The importance of dealing with regulated financial institutions today can’t be overemphasized. Forex markets have been facing stricter regulation since the 2007/8 financial crisis caused a lot of brokers to go bankrupt. The period also saw a lot of traders lose their hard-earned money because of insider trading, price manipulation, and other fraudulent practices.

It’s harder for Forex brokers to operate fraudulently today in South Africa and the rest of the world. The FSCA has strict guidelines for Forex brokers to meet of face restrictions or a complete ban from operating in South Africa. For instance, Forex brokers must meet capital and leverage requirements to reduce risk.

The regulator also has margin requirements and misleading advertising, which focuses on profits without disclosing the potential for risk is prohibited. Although the Forex trading regulation is still in the early stages in South Africa, the regulator must approve all Forex brokers. The regular also has express authority to punish brokers who don’t comply with the rules. The importance of selecting a Forex broker that is regulated can’t be overemphasized. It is the only way to guarantee the safety of your money as well as fairness and transparency.

  1. Trading software

The best Forex brokers South Africa offer the best and latest trading software available today. The importance of good Forex trading software can’t be overlooked since it can determine your profitability to a large extent. Slow software can affect your ability to use high frequency trading strategies. The Forex market moves continuously, and opportunities to make money can appear and disappear in seconds.

The best Forex trading software also allows you to trade from anywhere. The best Forex brokers in South Africa offer software for both desktop and portable computing devices, allowing you to trade on the go. The software is also packed with indicators and other resourceful tools that help you make informed trading decisions. You should be able to perform fundamental and technical analysis effectively using inbuilt tools. The latest trading software today can offer live news feeds, economic calendars, trading alerts, and signals, multiple financial instruments besides currencies i.e., commodities, cryptocurrencies, indices, stocks, etc.

You should also be able to open a practice or demo account and test out the software before committing to a specific broker. The best brokers offer a variety of trading platforms to choose from including their own in-house designed software and popular third-party platforms like MetaTrader which have already been tested and proven.

The software should also be user-friendly. You should have the option of trading via a web-based platform such as a browser if you don’t like downloading or installing software on your phone or computer. Most importantly, the platforms should be secured to offer safe trading, deposits, and withdrawals. The SA Forex broker you choose should offer MetaTrader among other trading software.

You shouldn’t choose a broker that doesn’t offer the best trading software packed with all the above features and more.

  1. Spread and commission costs

You can also identify the best Fx brokers in SA by checking their spread and commission costs. Most forex brokers won’t charge you a fee for trading besides the spread (the difference between the buying (bid) and selling (ask) price of currency pairs. In a typical trade where a trader buys or sells one unit of a currency pair (one lot size) the spread is usually a pip i.e., for EUR/USD currency pair (1.1201 bid) and 1.1202 ask). The best brokers are able to offer competitive spreads. They also offer fixed and variable spread options. Fixed spreads are usually offered on 1 to 5 major currency pairs at a small fee. A fixed spread is ideal for controlling cost since variable spreads change depending on volatility. Forex brokers love increasing spreads on popular currency pairs to increase their earnings during volatile market conditions.

  1. Account variety

The best forex brokers should also be able to offer a variety of account types to meet specific needs of different types of traders and trading strategies. The best Forex brokers South Africa offer three main types of Forex accounts to traders, namely; micro, mini, and VIP accounts. The type of account available to a client is usually based on a trader’s account balance. However, most reputable Forex brokers will allow traders to upgrade or downgrade accounts at will after making sure the traders understand the risks.

The smallest account type is known as the Micro account. Most brokers offer this account type to beginners who want to trade live with a small amount of money such as $50. Mini accounts are usually available to traders who deposit $1,000 or more in the account. Mini account holders trade mini lots i.e., one pip = $1. If you like to take advantage of leverage, trade with more capital and take larger risks, the best brokers offer a VIP account. This account is recommendable to seasoned traders who understand the risk they are getting into with such an account. Brokers may go as far as offering managed accounts to clients who would like a professional to trade on their behalf. It’s also possible to get an account with automation options where traders rely on trading algorithms.

  1. Reliable customer service

The best broker in SA should also offer exceptional customer support. First and foremost, they have a physical office you can visit if you want. They also offer support services 24/7 online. You should be able to call, email, or chat to a customer representative live and get answers to questions you have in seconds. Their response times should also be great. Email complaints should be answered within one working day, and live chat representatives should be able to solve many common problems remotely. A good broker should have many positive online reviews attesting to the professionalism of customer support services.

  1. Additional services

Lastly, the best brokers don’t stop at offering basic services. They go the extra mile and offer many other free services. You should get free educational materials including videos, audio, eBooks, articles, etc., on the Forex market. Other additional services that are common with the best brokers include; live news feeds, Forex calendars, podcasts, and webinars. Free additional services are a sign that the broker cares about traders and isn’t just out to profit.

In summary, the first step to becoming a profitable Forex broker is choosing the best Forex broker. Luckily, there is no shortage of good Forex brokers in South Africa. However, you must choose carefully to identify the best-of-the-best. First and foremost, they must be regulated. Regulations guarantee credibility and security. The FSCA has strict rules that can only be met by brokers interested in running legitimate outfits. Besides regulation, the best brokers have the best, latest, and most secure forex trading platforms that have been tested and proven to be fast, safe and versatile. They also need to be reliable, and offer free resources to prove they care about empowering traders. In regards to cost, they should be transparent if they charge other fees besides the normal trading costs incurred through spread and rollover fees for trades held for a long time.

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