Forex Trading SA : How to Start Forex Trading in South Africa 2021-06-19T22:47:57+02:00

Forex Trading South Africa : How to Start Forex Trading in South Africa Via ForexTradingSouthAfrica.co.za

Forex Trading South Africa or Forex Trading SA is here to explain everything about Forex Trading in South Africa, how it works and how you can choose the best Forex Brokers in South Africa. What is Forex Trading? The foreign exchange market, also known as Forex, FX or FX trading, is a global marketplace where currencies are traded. When forex traders trade currencies, they exchange one currency for another with aim to make profit. Forex trading in South Africa is also on the rise since the Covid-19 pandemic. South Africa is by far the largest retail forex market in Africa. According to the data released by the Bank for International Settlements (BIS), in 2017 the daily trading volume of retail forex trading in South Africa stood at $19.1bn, making it the highest volume in Africa.

Best Forex Brokers in South Africa for 2021

South Africa Forex Brokers Comparison: Compare South Africa authorized CFDs and Forex brokers in South Africa by reading their reviews and the table below.

Forex BrokerReviewMinimum DepositVisit Site
CM Trading
Read Review$250 Visit Broker
Plus500Read ReviewR1500 Visit Broker
HYCM MarketsRead Review$100 Visit Broker
Markets.comRead ReviewR1000 Visit Broker
FXGM South AfricaRead Review$200 Visit Broker
AvaTradeRead Review$100 Visit Broker
easyMarketsRead Review$100 Visit Broker
XMRead Review$5 Visit Broker

With the increase of daily Foreign exchange transactions in the world, there’s also a rise of Forex brokers in South Africa. At Forex Trading South Africa, we make sure that we list the top regulated forex brokers in South Africa. We are here to help Forex traders in South Africa with useful information regarding Forex trading in South Africa.

South African investors have different options when it comes to the forex market. They can trade in forex spot trading through regulated forex brokers and in forex using the Johannesburg Stock Exchange (JSE) currency derivatives or through contracts for difference (CFDs).

In this Forex trading SA guide for 2021, we cover various FX trading topics and at the end, you will know exactly what currency trading is and how it works in South Africa.

🇿🇦 Amount of current traders in South Africa550 000+ ( Updated May 2021 )
🗺️Government Regulatory Body in South AfricaFSCA ( Financial Services Conduct Authority ) formerly known as the FSB ( Financial Services Board )
📍FSCA Physical Address and Details Address: 41 Matroosberg Rd, Ashlea Gardens, Pretoria, 0002
Phone: 012 428 8000
Website: https://www.fsca.co.za
Email: [email protected]
📢FSCA Official Twitter Page FSCA on Twitter
📢FSCA Official Facebook PageFSCA South Africa
📢Official Wikipedia Page of FSCAFSCA Wikipedia Page
📉Most Traded Currency*USD / EUR - USD / GBP
⚖️Is Forex Trading Legal in South Africa?Yes
💰Do you get taxed on forex trading profits? Yes
🌎Who is the number #1 Forex Broker offering ZAR denominated accounts?FXGM ZA
🕒 Best time to trade in South Africa?9am - 12pm UTC+02:00
🏆Top FSCA Regulated Forex Brokers in South AfricaPlus500, CM Trading, Markets, FXGM ZA, AvaTrade.
💳 How much money do you need to successfully get started trading forex in South Africa?$100 or R1500
📈 Fastest Growing Broker in South Africa* Plus500

Best Forex Brokers South Africa

To find the best forex brokers in South Africa, at ForexTradingSouthAfrica, we have listed all brokers that accept new customers from South Africa. These forex brokers are ranked according to their excellent services and customer care.

Here is our list of the best forex brokers in South Africa.

  • CM Trading – Best 2021 Broker
  • Markets.com – Best Online Trading Platform
  • AvaTrade – Best Overall Broker 2021, Most Trusted
  • XM – Best Forex Broker South Africa
  • Plus500 – One of the Best CFD Providers
  • easyMarkets – Top Rated Broker in South Africa

Please note that not all Forex brokers are required to become authorized by the Financial Sector Conduct Authority (FSCA) to accept South African customers.

The Financial Sector Conduct Authority is a financial institutions regulator and a successor agency to the Financial Services Board (South Africa) in South Africa.

Forex Trading South Africa Table of Contents

  • What is Forex trading?
  • How does Forex trading work in South Africa?
  • What is the Forex market?
  • Types of currency pairs
  • The main Forex currency pairs
  • Smaller Forex Currency Pairs
  • Exotic Forex Pairs
  • Cross Currency Pairs
  • Leverage in foreign exchange trading
  • Forex trading margin
  • Pip on the foreign exchange trade

500 years ago, forex trading started in the city of Amsterdam, capital of the Netherlands. Its existence has brought stability to currency exchange rates around the world. If you thought about trading Forex but don’t have a clear understanding of what it means, this Forex trading SA guide is for you.

Technological advances and the creation of computer systems accelerated the circulation of money across borders in the 1980s. This development extended monetary trade to all time zones in Asia, Europe and the Americas. Foreign exchange transactions have increased dramatically from $70 billion a day in 1980 to more than $2.5 billion a day in 2003, and now exceed $6 billion a day.

Trading Forex in South Africa

Trading Forex in South Africa

What is Forex trading?

At Forex Trading SA, we provide the definition of Forex. Forex is the abbreviation for Foreign Exchange. It is the act of exchanging one currency for another. There are several currency conversion goals, and these usually include trade, speculation, or trading. Tourists have to convert to the currency of the country they are visiting in order to buy or sell. The daily conversion rate of some currencies can increase their volatility. As a result, this volatility makes Forex interesting for traders and stakeholders, and produces a more surprising possibility of making big profits, while increasing risk.

How does Forex trading work in South Africa?

Forex Brokers quote the price of the currency in pairs. A trader is simultaneously selling one currency and buying another. For example, in the EUR / USD pair, EUR is the base currency, while USD is the quoted currency. If the price of EUR / USD is 1.38, it means that 1 euro is worth 1.38 dollars. When trading in Forex, two prices are always quoted: buy and sell, and the difference between these prices is called a spread. If you believe that the base currency will strengthen in relation to the quoted currency, you can choose to buy or sell. However, if you speculate that the base currency will weaken against the quote, you go short or buy.

Currency prices are usually affected by a number of factors, such as interest rates, inflation, employment levels, government policies, and demand for imports and exports. Due to the large volume of traders and the amount of money exchanged, price movements can occur quickly. As a trader, it is essential to understand the patterns of Forex charts, as they are crucial for successful trading. Most traders place their business decisions on technical analysis. They prefer to use a platform that can provide useful graphics with several options. Trading requires an account with the broker of your choice. While a forex demo account is mainly for practice, you can trade for real money in a real account.

What is the Forex market?

The Forex market is a decentralized, over-the-counter (OTC) market in which investors, traders, banks and other financial institutions bet, buy and sell global currencies. The market is open 24 hours a day, 5 days a week.

There are three types of Forex markets:

  1. The spot / physical Forex market; in the spot Forex market, currency pairs are exchanged in cash – within a short period or immediately.
  2. The forward foreign exchange market is a contractual agreement to buy or sell a certain amount of foreign currency at a price to be settled on a future date or within a range of future dates.
  3. The forward foreign exchange market represents a legally binding agreement to buy or sell a currency pair at a price stipulated at a future date in the foreign exchange market.

Types of currency pairs

There are several currency pairs that are used in the Forex market. As the US economy is the largest in the world, it has the advantage of having the US dollar as the dominant and most influential currency in the market. It is often used as a reference or base currency in monetary transactions worldwide. While the US dollar is the dominating currency in the global retail forex market, the rand is the 20th-most-traded currency and is projected to improve. Some of the most liquid currency pairs traded on the global Forex market are:

  • EUR / USD
  • GBP TO USD
  • USD / JPY
  • USD / CHF
  • EUR / JPY
  • USD / CAD
  • AUD / USD

These pairs represent countries with great financial powers that are traded worldwide. The change in the price of these currency pairs makes the market volatile, and the spread tends to be lower.

The main Forex currency pairs

The main Forex pairs are those that include the US dollar. They are the most traded currencies in the Forex markets. They include the euro against the US dollar, the US dollar against the Japanese yen, the British pound against the US dollar, and the US dollar against the Swiss franc. (GBP / USD, EUR / USD, USD / JPY, and USD / CHF).

  • US dollar: Dominates, is the most influential in the foreign exchange market, almost all currencies are quoted in terms of US dollars. It accounts for about 86% of total foreign exchange transactions on the Forex market. Investors who trade in precious metals like gold, platinum, silver, palladium, etc. trade at US dollar-denominated prices. Therefore, any fluctuation in demand and supply for these items directly influences the dollar’s value.
  • Euro (EUR): It is the second dominant currency in the foreign exchange market and represents about 37% of foreign exchange transactions. It is widely accepted and used by 18 member countries of the European Union. Its price depends on consumer price inflation (CPI) in Germany, the European Central Bank, the unemployment rate and export data.
  • The Japanese yen (JPY): represents 20% of the global exchange rate; it is the most traded currency in the Asian money market. The JPY’s monetary risk is related to currency devaluation. Since the Japanese economy is more than an export economy, the currency is a safe haven during a period of market risk aversion.
  • The pound sterling (GBP): This is the currency of the United Kingdom, which represents about 17% of all transactions in the global money market. It is the fourth most traded currency, and is often used as an alternative to the Euro. Factors affecting the currency include inflation, the country’s gross domestic product (GDP), and the financial market.
  • The Swiss Franc (CHF) is the Swiss currency. Its price depends mainly on the central bank’s policy, and is more volatile due to the lack of liquidity.
  • The Swiss Franc (CHF) is the Swiss currency. Its price depends mainly on the central bank’s policy, and is more volatile due to the lack of liquidity. The Canadian dollar (CAD): Canada’s economy is based on the export of crude oil, which is its main export product. The price of the currency is strongly affected by the demand for and supply of crude oil (a commodity-oriented currency).

When it comes to Forex trading SA, it is necessary to choose a maximum of three pairs to trade, and the general advice is to choose the currencies that are making the rounds in the financial market.

Smaller Forex Currency Pairs

We call a currency pair that does not include the US dollar a smaller currency pair. The most traded smaller pairs include the British pound, the euro or the yen. Examples of smaller currency pairs are:

  • CHF / JPY
  • EUR / GBP
  • NZD / JPY
  • EUR / AUD
  • GBP / JPY

Exotic Forex Pairs

A pair of exotic currencies consists of one main currency and one that represents the developing economy. Some examples of countries with developing economies are Mexico, Argentina, Turkey, Thailand, Hong Kong, etc. Exotic currency pairs are rarely traded on the Forex market due to their high volatility and lack of liquidity. Exotic currency pairs include EUR / TRY, USD / HKD, JPY / NOK, NZD / SGD, GBP / ZAR, AUD / MXN.

Cross Currency Pairs

A cross currency pair indicates a currency pair that does not include the US dollar. Foreign currency trading allows other currencies to take the trader’s position. Some examples are:

  • CHF / JPY
  • EUR / CAD
  • GBP / AUD
  • AUD / CHF
  • AUD / JPY

Leverage in foreign exchange trading

Forex leverage is a loan granted by the broker to the investor that allows him to trade more than his initial balance. The ratio can be 2: 1, 3: 1, 10: 1, 20: 1, 50: 1, 100: 1, and 200: 1 to 500: 1. For example, if you deposit $ 20,000 and choose to trade with a leverage ratio of 100: 1, you can trade up to 100 times $ 10,000, which is equivalent to $ 1,000,000. In other words, leverage provides the means for an investor to have greater commercial capital, giving the opportunity to have the maximum possible result.

Forex trading margin

The margin is the initial deposit made by one trader on others to trade with leverage. It is usually a fraction of the actual amount of investment to be made. For example, if a trader deposits $ 20,000 into an account with a 1:25 leverage, the applicable margin would be 4%. This implies that if the trader were to buy two lots of EUR / USD at 1,200, he would need $ 9,500 (4% of $ 240,000) in his account to keep his position open.

Pip on the foreign exchange trade

A pip is a measurement unit to show a change in value between currencies. The currency change in value is equal to the pip value, and the pip value relative to the base currency. For example, if the price of EUR / USD is 1.3500, and after a period of time, it changes to 1.3501, the value of the pip is 1. Each currency has its relative value that is relative to the other currency there. We can easily calculate the value of the pip of the base currency, if the EUR / USD is quoted at 1.3500, which means that 1 EUR is equivalent to 1.3500 USD. We take the value of a pip to be 1 divided by 1.3500 EUR = 0.7 EUR Spread in Forex trade.

At ForexTradingSouthAfrica, we advise investors to trade only with Financial Sector Conduct Authority (FSCA) regulated forex brokers, to educate themselves, and to trade legally and safely to avoid being scammed by unregulated forex scams.

South African forex traders looking to trade in CFDs or spot FX can legally do so through South African forex brokers regulated by the FSCA or any foreign tier-one regulators such as the Australian Securities and Investments Commission or the UK’s Financial Conduct Authority. To verify brokers’ complaints or credentials before dealing with them at the FSCA website’s FSP search.

How to forex trading South Africa

Forex Trading SA

Forex or Stock Trading: Which is Better?

Forex and stock trading are two ventures that new investors often stumble upon as they dive into the markets. For those without knowledge, these two markets appear to be the same. But for those who are serious about investing, the two markets offer different pros and cons.

Forex market X Stock market – which is the best?

How to Compare?

There is really no definite solid answer. In fact, there are many ways to address this problem. But in the end, it comes down to how each market fits your trading personality.

It is not a matter of facts. It is a matter of opinion. So the first thing you should ask yourself as an investor is:

What kind of investor am I?

So, we can start to compare the two markets. Forex and stock trading both need you to be clear about your preferences and needs.

Size and Volume

First, we can take a look at how these markets compare when it comes to size and trading volume.

The forex market is practically the largest financial market in the world. Every day, the volume of trading and transactions reach about $5 trillion. Compared to the stock market, which trades approximately $200 billion on average every day.

Simply put, you can trade in a high volume market much more easily. Prices are closer to what value you want. It is worth mentioning, however, that price gaps and falls still happen even in the forex market.

Liquidity

Talking about the volume always comes the discussion about liquidity. Liquidity is very important in forex and stock trading.

In general, liquidity means the ease and speed at which you monetize your asset. Say, for example, that you have an asset that you want to convert into cash. Liquidity becomes a problem if you find it difficult to find a buyer for this asset.

In the markets, high liquidity is crucial. Tell yourself that you quickly find a player from the market to trade.

Forex pairs are highly liquid. The pairs generally have low spread and transaction costs. For the forex market, blue-chip companies tend to have greater liquidity. Traders often use e-minis (futures contracts) in order to trade on exchanges.

Forex Trading SA Strategies

Forex Trading SA strategies are abundant, but different strategies do not apply to the same asset.

For example, the buy-and-hold strategy does not fit for investors who want to withdraw profits quickly. This is mainly for traders and stock investors who want to wait for huge price appreciation in the long run.

So, there is day trading, which is a strategy that makes use of forex trading signals to quickly open and close a trade.

Online forex trading SA companies have trades of the day as the most common forms of trading. But forex and stock trading both make the day’s trading muse.

Generally, however, online trading platforms are in favour of the forex markets due to the flexibility of the strategies. In the forex market, you can easily implement short-term, quick trading styles.

Asset Selection

This is something very easy to see. Both forex and stock trading allows you to choose from a variety of assets to trade.

However, in the forex market, you will usually have to trade the larger pairs. There are only 8 major pairs in forex trading.

In the stock market, there are hundreds of public companies that you can choose from. When you do stock trading, you have to look at the company itself, the industry / sector it belongs to and the local economy.

If you prefer a market with a narrower focus but more liquidity, you can choose forex trading. But if you prefer a more diverse portfolio, it is a good idea to try stocks.

Other Considerations

In addition to these things, it is smart to consider market hours. The forex market operates 24 hours a day, partly because the interbank market is responsible. A central exchange is not traded. The stock markets, on the other hand, are traded at different times through major indexes around the world.

Commissions are also important. Most online forex trading companies charge little or no commission. They must charge for other services, such as forex signals. On the other hand, stock traders generally need to pay higher spreads with the commission to the broker.

Forex and stock trading are two different beasts. In general, the choice depends on when you think you understand and fear these beasts. The main thing is to trade with ease, comfort and as much confidence as you can.

Get the latest news on economics, trading and forex at ForexTradingSouthAfrica.co.za. Check out our comprehensive forex trading SA instructions and the list of the best forex brokers in South Africa.

Forex Trading South Africa for Beginners

Forex stands for “Foreign exchange” or let’s simplify it even more-it means the exchange of different currencies. It may be a bit confusing for beginners, but it’s not that difficult to understand. Everyone at some point has participated in a forex trade, even if you don’t realize it.

For example, you’re going on a vacation and you live in the USA. You want to go to Europe and you want to get some of your money converted to euros. You will probably go to a change bureau to do it. There you can see that your 1 USD gets you something around 0,906 EUR. Let’s say that you have 200 USD and you convert them all to EUR, which means that you will get around 181 EUR.

After the vacation is over you notice that you only used your credit card and now you want to convert the money back to USD, so you go to another change bureau and there your 181 EUR are converted back to USD, but there is something weird- you end up with more money from where you started- 205 USD.

That’s happening because while you were at a vacation the USD lost some value compared to the EUR and vice versa.

So let’s summarize, “FX” or Forex trading is about selling and buying currencies. It can be influenced by a lot of factors, for example even politics play a huge role in this market. We should also mention that the Forex market is the biggest financial market in the world! Go look it up on Google!

Best Forex Brokers for Forex Trading for Beginners

Why Forex Trade?

That’s only one example for beginners, trying to understand how forex trade works exactly. There are a lot of benefits in the forex trade, which may make it extremely appealing for you. However, we will keep it simple, since this is directed towards beginners and people who already have experience may find this not that helpful.

1. It’s a 24-Hour market for five days

That means that the forex market is pretty much worldwide, so the trading is possible as long as there is an open market somewhere in the world. The forex market doesn’t just close at the end of the day, it just shifts to different centers around the world!

2. High liquidity

“Liquidity” in the forex world means the ability of one asset to be converted into cash quickly, which is one of the main advantages that forex has against the other trades. The high liquidity also means that the taxes are often very low. That’s what we call spread.

3. Low taxes

The spread is measured in pips, so here is an example for the beginners:

One pip is the smallest move that a currency can make. Usually, a pip means 0.01% of a single unit of currency, but that’s not the case with the Japanese yen for example. In EUR/USD a move from 1,0001 to 1,0002 is considered one pip, but in USD/JPY a move from 120.01 to 120.02 would be a single-pip move.

4. Volatility

The forex market is not stable, such as the stock market, allowing the traders to gain huge profits if they know what they’re doing. You can potentially have a great success, but you should keep in mind that this may be a double edged sword and you can lose your money quite as easily. This can create a very good opportunity for short-term traders, looking for a quick profit.

5. Leverage

The leverage allows you to control more money from what you currently have, so for example if you invested 1 USD into a forex trade you can possibly gain control over 50 USD and the profit or loss you make affects the full value of the money you hold, so except from quick profit you can also make losses, exceeding your invested money.

6. A lot of trading apps and tools

You can find a wide variety of apps offering great tools or even demo accounts, allowing you to practice without investing money into the forex trade whatsoever! There are tools, keeping track on the currencies in which you invested and selling them in case of a big drop in prices, saving you a lot of money!

Final thoughts

Yes, the forex trade is great, there is a lot of info about it out there, but you shouldn’t put all of your money there, because the chance of something bad happening to them is HUGE! However, if you take your time to fully understand it you can build your own trading style. We highly recommend using a demo account before even thinking about putting your money into the market! The always changing prices provide great starting opportunities and possibly some quick profits, but the market can quickly turn against you as well!

How To Start Forex Trading In South Africa?

Let’s learn the most striking points to be considered before you select a forex broker.

How to start forex trading in South Africa. This depends on the forex broker you use but in most cases it is R5000 or even less. After the transition from EST to EDT in March, the London session opens at 09:00 South Africa standard time and the U.S. Best multi asset broker South Africa 2018, fastest growing forex provider South Africa 2018 and 2019, best forex broker 2019 and 2021, best stock forex broker 2021.

There are multiple ways you can start trading forex online in South Africa. Some of these rules include: Here’s how to open a plus500 forex trading account in South Africa.

This is because forex apps provide traders with the best trading experience. Click on “start trading now ” to trade with real money or “try free demo” to sign up for a practicing account. Since forex trading is, in fact, a very lucrative and promising way to earn, choosing the right broker will obviously help you to get greater profits.

Retail forex trading involves speculating on the rise and fall of currencies with an aim to make a profit. *to keep it simple, we only consider U.S. Learn how to open a forex trading account in South Africa.

how does forex trading work in south africa photo

How does forex trading work in South Africa

South Africa has a population of more than 50 million people. The law requires the citizen to find a genuine broker that will aid in the transaction Forex trading tips that have helped thousands of South Africans launch profitable trading careers.;

Fxcm South Africa (pty) ltd is an operating subsidiary within the fxcm group of companies (collectively, the fxcm group). It may also surprise you that some brokers only ask for as low as $10 as a minimum deposit to start trading forex! The margin rate of this currency pair is 3.17% and you want to purchase.

In most cases, the minimum amount to start forex trading in South Africa is around R2,800, but there have also been occasions where people were able to start trading with an even less amount. It is easy to invest in forex in South Africa if you have the ability to own your emotional and financial stress levels. It is not surprising that the popularity of forex in South Africa and the continent at large has pushed universities to introduce sort courses on it.

The daily turnover of forex trading in SA is estimated to be around $19.1 billion USD per day in 2017. According to the bis, trading in foreign exchange (fx) markets reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier. The first step is to sign up with a reputable forex broker and we can highly recommend any of the two following brokers.

To start trading forex in South Africa, the trader in question will have to select a broker through which trading can be done. There are various brokers who cater for South African traders. You must have knowledge about currency pairs to begin forex trading. I will finally start trading tomorrow!

Forex Trading in South Africa

Forex South Africa

This young man will make you embrace online trading South Africa platforms as you seek to learn from the best. The question of how to start forex trading has been asked quite a few times and we are going to provide a simple way of starting the forex trading process. step 1: For one to engage in this type of trade in South Africa, he/ she must follow the specific set of rules created by the governing body.

In fact, some brokers do not charge more than $250 as a minimum deposit on their trading platforms. As it is known, choosing a reliable and trustworthy broker is one of the most important tasks when it comes to trading, especially in the case of beginners. How much do you need to trade forex?

So what is the secret of avoiding extra deposits and “costs” when starting to trade forex in South Africa? Forex trading example in South Africa let’s say zar/usd is trading at 0.05780/0.05790, and you think the price will rise. From finding the best regulated broker, trying out their demo account, to opening and funding a live account, you will find exactly all the steps you need to take to start trading safely and confidently.

Education which covers every aspect of forex trading, from market hours to advanced trading strategies. South Africans can legally trade in the foreign exchange market via any FSCA regulated forex broker authorized for offering derivative instruments to traders in South Africa. This population, as well as the nation’s growing economy, has made forex trading a preferred option among the traders.

Luckily for you, we’ve already made that article and you can give it a glance. The even bigger advantage is that most brokers give you a demo or dummy account to practice using their platform / software without risking your own money. The awards have been received from multiple agencies that cover the South African market.

Complete Forex trading tutorial for beginners

Complete Forex trading tutorial for beginners

It is important to know this because many traders start trading when the London session opens or when the London and U.S. How to start trading on forex with 50 usd forex is an amazing place to make money at — some strategies offer up to 100% monthly returns, provided that you are ok with reasonable risks. How much money do I need to start forex trading in South Africa posted on august 31, 2020 (December 17, 2020) by Louis Schoeman the most effective means of successful forex trading entails the use of a forex broker , which is a faster, more streamlined and more cost effective way of trading forex than through a traditional bank account.

We’ve covered all the vital steps you need to take to open an account. How to start forex trading in South Africa. Fxcm South Africa (pty) ltd is an authorized financial services provider and is regulated by the financial sector conduct authority under fsp no 46534.

Just by the look of it, he appears to have made it, thanks to fx. All references on this site to fxcm refer to the fxcm group. Virtually everybody in South Africa can now trade forex since you may not need more than $500 to open a forex trading account.

Forex trading apps in South Africa have increased in popularity. But all of them require quite a lot of analysis and going into detail. What are the rules to engaging in forex trade in South Africa?

Forex Trading South Africa

Forex Trading South Africa Signals

A pair is a combination of two currencies for example the euro and us dollar. The most independent and accurate reviews of forex brokers in South Africa.; How to start trading in South Africa with a forex broker.

South Africa’s rand is ranked as the 18th most traded currency in the world by the bank of international settlements (bis).

Best Forex Brokers South Africa

Forex Brokers South Africa are the entity that connect the investor with the trading market. In this guide, you will learn how to choose the right Forex trading broker for you. The most important criteria for choosing the best Forex broker in South Africa. Objective reviews of regulated Forex brokers best in South Africa.

Best Forex Brokers South Africa 2021

Forex BrokerReviewMinimum DepositVisit Site
CM Trading
Read Review$250 Visit Broker
Plus500Read ReviewR1500 Visit Broker
HYCM MarketsRead Review$100 Visit Broker
Markets.comRead ReviewR1000 Visit Broker
FXGM South AfricaRead Review$200 Visit Broker
AvaTradeRead Review$100 Visit Broker
easyMarketsRead Review$100 Visit Broker
XMRead Review$5 Visit Broker

What is a Forex Broker?

The Forex broker is the entity that functions as an intermediary between investors and the trading market. Forex Brokers that perform such processes are licensed and approved by the responsible institutions.

ForexTradingSouthAfrica provides South Africans with a list of regulated Forex brokers with verified reputations. You will also find complete guides about each of them, with useful information and steps you need to follow to open an account. We always emphasize the importance of opening a Forex Demo Account – the place where you can practice your strategies, whether you are a beginner or an experienced trader. Inform yourself thoroughly, from verified sources, that your decision will be one based on study and reasoning!

Best Forex Brokers in South Africa for 2021

  • XM Trading – Fast Execution & low spread
  • CM Trading – One of the Best South African Forex Brokers
  • AvaTrade – Fixed spread forex broker in SA
  • FXTM – FSCA regulated Forex broker with Instant execution
  • FXCM – Good Overall FSCA Regulated Forex broker in South Africa
  • Plus500 – Good Crypto CFD platform
  • IC Markets – Best ECN Forex Broker
  • Tickmill – One of the Best Forex Brokers in South Africa
  • Hotforex – One of the Best Forex Traders in SA
  • Interactive Brokers – Great for professionals and institutions
  • FOREX.com – Great all-round offering
  • IG – Best overall broker 2021, most trusted

Forex Brokers South Africa

What role does the Forex broker play in the trading process?

To better understand the role of the Forex broker, we can start from an analogy. When you want to buy a home, you will probably go to a good real estate agent. He will use his contacts to facilitate the meeting between the buyer and the seller.

Like a real estate agent, the broker acts as an intermediary.

The market is, however, made up of currencies, and the sellers are the largest investment banks in the world.

Given their size, banks do not manage transactions directly with individual traders. Thus, when you want to trade a certain currency pair, you need a broker that gives you access to the instruments you want.

What is the real help that the broker offers you?

A good FX broker will provide valuable services, will work for your benefit and will help you reduce your risks.

  • The broker functions as an intermediary, facilitates the sale and purchase operations and allows you to use technical analysis to forecast market movements.
  • A reliable broker will give you the tools and resources you need to make a profit from trading.
  • Access to a trading platform allows you to quickly find the currency pairs you want to trade before placing orders.
  • You will be able to keep track of transactions, profit, but also losses.

How do you choose the right trading broker for you?

In order to choose the right Forex trading broker for you, it is important, first of all, to know your objectives, then to compare, classify and make a decision.

In the analysis of the market offer, you must pay attention to parameters such as security, transparency, broker experience, account details and trading conditions (commissions, initial deposit, available currency pairs, etc.), license and regulations.

We will discuss in detail about the aspects to take into account when choosing your Forex broker, without the list being final. It is important to identify the best brokers on the market, but it is equally important to detect disadvantageous situations.

Best Forex Brokers in South Africa

In recent years, the number of Forex brokers SA has increased significantly on the South African market. The vast offer offers the investor a greater freedom, but also an increased responsibility. Choosing a reliable broker is not an easy task, especially since, like any financial market, Forex is not deprived of scams!

There are some criteria that we recommend you to consider when choosing your Forex trading broker.

A regulated broker

Probably the most important aspect you need to check is the legality of the activity carried out by the broker.

Before it is officially listed on the market, any Forex broker will receive a license from a financial authority. Only in this way can the trading platform that it makes available to the investor be considered legitimate. Forex brokers in SA that are not regulated on the market or do not have a valid license carry out a fraudulent activity and may expose you to a risk.

When you work with an authorized broker, you are sure that you are safe from potential fraud and that your money is safe, in segregated accounts, in the event of losses.

If you want to investigate further, the year in which the broker obtained his license can be a good indication of the market experience and experience.

In South Africa, you can check if the broker is regulated on the FSCA website.

The reputation of a Forex broker

Reputation is a good parameter for the broker’s confidence level. Of course, no brokerage firm will have 100% satisfied customers, but it is important to check the rating charts and the opinions of other traders.

A simple internet search can bring to light more important information than you think. Forums are a useful source of information in this situation. Here you will often find the opinions of real traders, clients of trading platforms. The rating pages also contain expert feedback and ratings and can help you make an easier decision.

In general, a South African Forex broker with a good reputation will not have problems regarding opening a trading account, withdrawing funds, deposit, etc.

Security of your funds

When you open a trading account, a lot of personal and financial information reaches your broker. Check if the broker has a security provider against online threats.

Also, make sure it uses SSL technology, an encryption protocol that secures information about the financial data you transfer. In most cases, site security and verification criteria indicate an investor-oriented approach.

It is equally important to make sure that the funds are kept in segregated accounts, so that, in the event of a possible bankruptcy of the company, the money remains safe.

Broker commissions and spread

Normally, this information should be available on the broker’s website. Reduced spreads and commissions involve a lower trading cost. Check if the broker perceives a fixed spread or a variable spread. The lack of commissions or any form of customer taxation can also mean the existence of possible hidden costs.

We do not recommend choosing a strict Forex broker based on the bonuses they offer you. Many are just marketing initiatives and do not reflect the true value of the broker.

The commissioning policy is not, however, the only differentiating element. It is equally important to look for information about the broker ‘s relationship with the banks.

Forex Brokers

Tools provided by the broker

Set your goals and see to what extent your broker can help you meet them. Does it give you access to a demo account? Does it allow you to trade in those markets that are of interest to you? Does it provide you with the trading strategy you want to use? Can you adjust the leverage ? There are some Forex brokers high leverage in South Africa.

Also, if learning and continuous evolution are important to you, you will want to check if the broker offers you the necessary tools in this regard: trainings, advanced courses or a demo account, which I have already mentioned.

The trading platform provided by the broker

The trading platform is, in fact, a stock exchange software provided by the broker, in which you place trading orders.

Its usefulness is not limited to this operation. The trading platform helps the trader to perform the technical analysis and to verify the price movement, so that he can make the best decisions.

One of the most popular trading platforms on the market is MT4 (short for Meta Trader 4). Almost all Best Forex brokers in South Africa offer MT4 because it has been widely adopted by the trading community.

The trading platform is not an element that significantly differentiates brokers from each other, unless they develop their own platform. Of course, it is often easier to offer investors a familiar tool, so it can happen that South African forex brokers who have their own trading platform also offer MT4.

What are the types of Forex platforms

It would be almost impossible to name all the platforms available on the market, but it is much easier to describe them depending on the category they belong to.

Depending on the type of activity, the platform can be:

  • Web based – when you can trade from an internet browser. Although not the most popular option, it has some advantages. One of these is that you can trade from anywhere you have internet access, without having to download and install the software.
  • Desktop based – involves downloading a program to your computer before accessing the trading platform. It is ideal for those who trade from one place. It allows easy navigation, is more complex and gives the trader the ability to monitor market positions and movements more easily.
  • Mobile – works as an application and can be installed on your smartphone or tablet.

Trading platforms can be free or paid .

If you are new to the Forex market, we recommend that you start with a free platform. As you advance in the trading activity, you can also try a more complex platform for a fee.

How to determine which are the best Forex platforms

It is difficult to answer the question “What is the best Forex platform?”, Given that each trader will have different objectives and preferences.

So, the most important thing is to identify the important issues for you and to do this, you can start with a few questions.

What is the cost of the platform? Although the price of a platform should not be very high, you may want to go for the types of software offered for free, especially if you are just starting out. If you need certain functions that you only find on paid platforms, then this may be a better option for you.

What is the type of software? As we discussed earlier, there are several possibilities to access the trading platform. Do you need mobility, or are you used to working in one place? Depending on the answer to this question, you will decide if you prefer web based or desktop based platforms.

What are the additional benefits? Do you have access to online trainings and courses? Can you program trading robots for free? Can you trade directly from charts? Check which platforms on the market offer you these options.

It is important to remember that there is no “best Forex broker” or “best trading platform” without important goals and criteria for you. For this reason, it is important to define your investor profile, to establish on which markets you want to trade, what strategies to use, and other aspects related to your trading style.

Forex Broker South Africa

The Best Forex brokers South Africa we recommend are tested

Our reviews of Forex Brokers best, and more, are 100% objective.

The ForexTradingSouthAfrica team provides you with valuable reviews, with information meant to help you as an investor. We provide the most valuable guides, which contain verified data. Thus, we take into account some important aspects in our reviews about Forex brokers regulated in South Africa, such as:

The registration process tested

Every step of the registration on the Forex brokers’ platforms is tested, in order to see both the details about the transactions and the customer relations service.

ForexTradingSouthAfrica reviews are documented

Our reviews contain everything you need to know about a broker, from the positive details to the negative aspects of it. The articles in the form of guides published by ForexTradingSouthAfrica experts are structured intuitively and easy to understand, so that the decision is made as objective as possible.

Transparent information

Following the transparent information we provide you, your decision will be as objective as possible when it comes to reviewing South African Forex brokers.

Read the materials available online both on the ForexTradingSouthAfrica website and on other platforms.

Broker platforms also contain contact details. Do not hesitate to contact a company representative to receive the answers you need.

In search of the best broker in South Africa, you will be able to form an investor profile, which will make finding it easier.

List of the best Forex Brokers in South Africa for 2021

We have reviewed the prominent and most influential forex brokers registered with the South African financial regulatory agency; The Financial Services Conduct Authority (FSCA).

CM Trading

CM Trading is considered the biggest stakeholder of the SA Forex market, offering all registered clients daily market review analysis of active currency exchange rates, financial global news, and diverse information relating to gaining active representation across the forex trading base in South Africa.

As an innovative host, CM Trading’s CopyKat trading system provides every trader, irrespective of their experience level, the unique feature of duplicating the trade signals, financial instrument data and currency pair trades of expert users on the platform. Strictly regulated by the FSCA, this broker gained clients easily in significant numbers as it also provides personalized trading solutions and manages clients financial inputs in separate accounts.

In South Africa today, the prevailing trading orientation easily shifts forex rookies to trade with CM Trading.

Forex Time Trading

FXTM controls another notable chunk of the forex traders base in South Africa. Operating on the philosophy of quality global representation of clients, this broker makes forex trading an interesting experience for clients with no upright confidence in the fluid money market by offering a Cent trading account operating at a minimum deposit of $5!

This gesture in its entirety sharply contrasts the minimum balance account regulations of competing brokers as the uniform minimum deposit for other brokers stands at $250.

The FXTM demo account allows new clients to register a virtual account that operates on the real time market analysis for free. This feature also produces virtual earning, records trade history, and match each demo account trader with an account manager; a perfect simulation of live forex trading, reckoning with all trading variables. Over 250 financial instruments are available for users to choose from, with a live stream of marketing research information provided on affiliate media outfits by the FXTM research team.

Today in Africa, FXTM is championing the race for advanced forex trading with the potential to trigger renewed interest in forex trading on the planet, and become the biggest stakeholder in the nearest future.

AvaTrade

AvaTrade’s reputation in the SA Forex climes”’ has been closely linked to its user friendly, easy to use AvaTradeGo app, providing a wide selection of financial instruments as a bundle of innovation made available on  generally applauded interface.

AvaTrade’s big guns procured for a knife exhibition are all mobile app enabled features branding step-by-step online tutorial for clients, easy-to-use ebooks, carefully prepared tutorial videos.

This broker hoist the flag of incorporating Cryptocurrency in forex trading on the African planet, securing a relatable position with the tech-savvy young personnel interested in forex trading right in South Africa and beyond its coast.

Other notable features offered by AvaTrade include CopyTrade, SharpTrader; a forex academy, AvaOptions; a compilation of financial solutions and trading instruments, and DupliTrade; a pioneer social trading platform.

With AvaTrade, Technology leads the way! It is also one of the best Forex brokers in SA.

IronFX Solid Trading

Banking on cliche chant of transparent trades, IronFX provides a list of trading options bordering on stocks, spot metals, commodities and spot indices with a future option of incorporating push alerts as with other brokers.

IronFX provides a tempting range of non-withdrawable bonuses for all registered client’s. The ease with which tradings are made, the unique customer service, and a swift order execution system are the basic selling point for IronFX.

The IronFX card provide the idea of fund security by offering the client a fund withdrawal service anywhere around the globe at a meagre currency conversion charge. Trading over 100 liquid money pairs, the clients on this platform have a choice account types ranges from a spectrum of VIP premiums; at $20,000 or more. IronFX is one of the best Forex brokers with bonus in South Africa.

Standard premium; at a deposit of $2,500 and the Minimum account fund of $100.

FXCM

FXCM easily leads the pack of international forex brokers in South Africa with their presentation package of trading many products with the same forex fund account. This broker also provide a personalized trading experience with the TradeStation feature. This feature provides an easy integrated access to a host of carefully selected chart tools, market level indicators and financial instruments peculiar to chosen currency trade pair.

Flaunting a $20 dollar registration bonus, FXCM is moving the border of conventional forex trading ideas to a futuristic angle by providing trading community referral programs, free workshop at different localities, and a demo account for potential big time forex traders.

In the SA Forex arena, FXCM is clearly dominating the recruit story headlines! It is one of the top South African Forex brokers. 

Conclusion

The trend of forex trading in the African continent has been an interesting subject of many intellectual assessments for the past few years, though with different narratives. With the biggest Economies on the planet (Nigeria and South Africa) advocating for diversification and infrastructural development, it is commendable to notice that the digital money market is growing in Africa, and the number of forex trading enthusiasts registered with different forex brokers across the continent currently increases steadily. It is advisable to verify if a broker is really one of the best Forex brokers in South Africa or not. We’ve also written a guide for the top 8 Forex brokers in South Africa.

About Forex Trading South Africa (ForexTradingSouthAfrica.co.za)

Forex Trading South Africa (ForexTradingSouthAfrica.co.za) is not an online broker. At ForexTradingSouthAfrica, we simply review and list our top regulated forex brokers in South Africa. We do not offer financial advice to anyone who visits our website. Make sure that you read the reviews and understand Forex before signing up with any Forex broker in South Africa.

Forex Trading South Africa FAQs

Below are the answers to some of the most frequently asked questions (FAQs) about Forex Trading South Africa:

What is Forex?

Foreign Exchange (Forex or FX), is the currency trading market. Forex is the largest and most liquid market in the world, being open 24 hours a day, five days a week across major financial centers across the globe. In comparison, on the New York Stock Exchange, the largest stock exchange in the world, about 169 billion dollars are traded in transactions daily, while the foreign exchange market exceeds the volume of 5.3 trillion dollars traded daily.

How does the Forex market work?

In the Forex market, currencies are traded only in pairs. The best known pairs are: Euro / Dollar, Japanese Dollar / Yen, British Pound / Dollar, Canadian Dollar / Dollar. When you buy one currency, by default you sell the other. The goal is to make a profit by buying and selling currencies when their value increases or decreases. There are many economic or political factors that influence exchange rate fluctuations, which traders and analysts try to decipher.

Is Forex trading in South Africa legal?

Yes, Forex trading is legal in South Africa.

What does ECN mean?

ECN stands for Electronic Communication Network. Specifically, an ECN account gives you direct market access, so you can trade directly with all market participants.

What is a Forex broker?

A Forex broker is an intermediary between the investor and the interbank market. A Forex broker offers clients the prices received from banks that act as a liquidity provider for that broker. Admiral Markets has as liquidity providers the largest banks to offer the best price quotations and the fastest execution.

What is a spread?

The spread is the difference between the selling price and the buying price of an instrument. The bid price is the price at which you can sell an instrument, and the ask price is the price at which you can buy an instrument. With us, you can trade a wide range of instruments with variable spreads. This gives you more transparency in trading.

What is the spot market?

Spot markets refer to the markets in which the current price of financial instruments is traded. Instrument prices coincide with the current market price.

Is Forex Trading SA profitable?

Forex trading in SA is profitable. However, In order to achieve profits, you must apply some strategies to adapt to and you need to understand Forex market and what drives it, and efficiently manage risks.

What are the best Forex South Africa Brokers?

The best Forex South Africa brokers have been listed above. At ForexTradingSouthAfrica, we only partner with the best Forex brokers in South Africa.

How can I start trading in the Forex market?

The fact that you are reading this chapter of questions and answers is already a first step! Creating a demo account is definitely the first necessary step towards successful trading. Both novice and advanced traders use the demo account, practice, either to familiarize themselves with the platform, or to test various strategies or trading conditions. Demo accounts open for free and involve no risk.

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