Our Top Brokers in South Africa
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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.
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!
Top 5 Best Forex Brokers in South Africa
Below are the top 5 forex brokers in South Africa. At forextradingsouthafrica.co.za, we’ve carefully reviewed and selected these brokers so that both beginners and experienced traders can profit from Forex trading in South Africa.
Plus500 – For experienced traders
Plus500 review summary
As you can see in the review, Plus500 is respected as an innovative and reliable broker worldwide. It offers customers a highly efficient and easy-to-use platform to conduct their trades, along with many other exclusive services that make trading easier and more profitable. If you are interested in starting to trade in the CFD market, open a Plus500 demo account and get to know the platform and tools offered.
XM – The best broker for beginners in South Africa
XM review summary
It is true to say that XM has all the features that make its platform an ideal environment for those who want to trade. The broker pays close attention to its clients and offers a variety of differentiated services. XM is proud to put all of its 1.5 million customers first, no matter how long they have been trading or how big the account is. The reason for this is the focus on human values to stand out among the large number of brokers in Portugal.
Also, customer service on the 5 days of the week was rated as good, but it could be better if it was expanded to 7 days a week. In this way, traders could also get the help they need during the weekends. XM offers a virtual balance of $ 100,000 for its demo accounts and 16 different platforms for traders to choose from. That way, the customer can safely test the services, anywhere and still use any device. When all of this is combined with the high leverage of 1: 888 and the low deposit, the client testifies that XM is really excellent for new traders.
IronFX – Best Forex Broker in South Africa
IronFX review summary
IronFX is considered a market leader and completely reliable broker and has many unique features and services to offer. It provides a highly efficient business environment with reliable services that still facilitate negotiations. For more information, you can visit the IronFX website and open a free demo account. Take a look at all the services that the broker is offering.
Markets.com – For traders on the go
Markets.com review summary
As with any company that places customer service as one of its main objectives, it is likely that customer comments will be taken into account, well answered and triggered as something for the company to work on. Markets.com is an excellent broker with a strong and established brand in the market. This is mainly due to the unique name that they have created for themselves through their exclusive services.
Libertex – One of the best Forex Trading South Africa sites
Libertex review summary
Analyzing Libertex’s history of success and the awards it has already received, we can say that it is a great broker. In addition to having a modern and easy to use platform, it works with all currency pairs, as well as cryptocurrencies.
It is interesting to visit the Libertex website and point out the benefits offered by this broker. You can also open a free demo account and start testing the services available through this broker now.
How to choose a Forex broker in South Africa
Forex is a global market that operates 24 hours a day and handles more than 4,000 billion dollars a day. It is also a market where thousands of investors come to exchange currencies, hoping that these operations will bring them a profit.
But to carry out these transactions, they need to go through an intermediary. This intermediary is the forex broker. An indispensable element of the chain that allows the functioning of this global market. And all the more important since Forex is not a regulated market, as the stock market can be, by organizations responsible for passing orders and ensuring their settlement-delivery.
It is therefore necessary to be sure of the quality of its intermediary before launching. This is not always the case: for example, there are brokers who prefer to display a Ferrari on their home screen than basic information on the solidity of their site and the guarantees they have taken out… Beyond rates, bonuses and dreams that some sometimes put forward, here are the four points to check to select the right broker.
The legality of the forex broker
Before transferring your money to the account you have opened, you must be sure that it will not vanish into thin air. The first precaution is therefore to check that the broker is subject to European legislation . To do this, you will need to check if it is authorized in one or more countries of the European Union or if it operates off-shore. ¨First reflex: go to the website of the AMF (financial market authority) to check that it is not on the blacklist of unauthorized brokers canvassing French savers .
Normally, your broker does not actually collect the money you deposit into your account. It is actually deposited with a third party institution, usually a bank, which is responsible for guaranteeing its availability. A licensed broker also benefits from the bank guarantee fund, which assures you, in the event of bankruptcy, that you will remain the owner of your funds and that you can dispose of them at any time.
The trading account
The first element to check is the quality of the platform: is it practical and complete? Is it slow, did your demo account crash? Then you have to look at the costs. Many brokers offer immediate account opening, followed by a first deposit, through transfers or more or less known payment methods. You should immediately find out about the conditions for withdrawing funds: in some cases, these withdrawals are accompanied by high fees or unbearable delays. In addition, the use of the account may be accompanied by special commissions.
It is therefore necessary to review all the costs related to your Forex activity: financing costs, rollover costs, level of spreads without forgetting the fixed flat-rate commissions, such as withdrawal costs, closing costs and even sometimes the costs of ‘inactivity. Because you should know that some brokers ” punish ” their clients when they notice the absence of transactions within 30-60 days.
Also pay attention to the trading conditions between demo account and real account. Some brokers offer very attractive trading conditions on their demo account but apply a completely different policy to their real accounts.
Transactions and prices
The pricing conditions of a broker are not fixed by decree, but freely according to its commercial objective and the level of competition. Some, for example, may add fixed commissions (or very high minimums) to all transactions, while others may not. You have to be particularly vigilant, because there are many ways to tax the customer: transaction fees, spreads, account management fees, etc.
Mistrust especially towards brokers who display zero spreads and too high welcome bonuses. This is fortunately not the most common case: generally, brokers are remunerated through transaction fees and the spreads they display.
But here too, you have to be careful. The higher the spread (the difference between a currency being bought and sold), the higher the broker’s compensation will be. however, some are posting low spreads. But which may vary over time: these flexible spreads may seem attractive at first sight, then suddenly deviate when the broker has detected higher volatility or sudden market interest in a particular currency. Brokers also offer a choice of accounts with fixed spreads and accounts with variable spreads.
Customer reviews of forex brokers
Last but not least: testimonials from past clients. They are crucial. Their comments are essential to understand how the broker works. Moreover, and this is a constant, a broker who has several satisfied customers on a forum is theoretically more serious and reliable than one who is entitled to the most derogatory comments. Beware all the same of false opinions from members… The number of messages posted by the member who has published a positive or negative opinion can be an element to be taken into account to “validate” or not the reality of an opinion on a forum
Regulation
All foreign exchange transactions in South Africa are subject to exchange control regulations, governed by the South African Reserve Bank.
Forex regulation is a crucial component that South African traders must verify before they deal with forex brokers. Regulation involves licensing and authorization from market regulators such as the Financial Sector Conduct Authority (FSCA) in South Africa, Financial Conduct Authority (FCA) in the United Kingdom, and several others.
The FSCA is a reputable and trusted regulator that oversees all Financial Service Providers and provides South Africans with the support and protection that they need.
The forex market is flooded with many unregulated brokers who offer trading accounts and competitive trading conditions to South African investors, but who cannot prove that client fund security is secured and that South African traders are safe when they trade foreign currency and other financial instruments.
When trading forex, South African traders must verify regulation and authorization as regulators overview the trading activity of FSCA-regulated brokers, whether they can meet their financial obligations, and whether they can provide a fair and safe trading environment.
