Regulated By The Financial Service Board of South Africa (FSB), SA forex traders have a choice of local forex brokers South Africa including Forex Time (FXTM) and Khwezi or global brokers such as IG, AvaTrader, FXCM and Saxobank which may also have FCA, CySEC and ASIC regulation.
View the top forex brokers in South Africa below.
By Justin Grossbard / Updated: Friday, December 06th, 2019
Top 8 Forex Brokers For South African Forex Trading
The best South African forex brokers that are currently or in the process of FSCA regulation are:
Pepperstone – Best South Africa Forex Broker
FXPro – Best Automated Forex Trading Platform
FXTM – Best Social Trading Platform
IG – Largest Retail Foreign Exchange Brokers
Plus500 – Best Forex Trading For Beginners
FXCM – Best Fundamental And Technical Analysis
Hot Forex – Highest Forex Trading Leverage Broker
AvaTrade – Best Forex Trading Academy
The FSCA (Financial Services Conduct Authority of South Africa) replaced the FSB (Financial Services Board). An FSCA regulated forex broker must meet capital requirements, have a local office in South Africa, meet professional indemnity insurance requirements and have a local director.
Pepperstone Group Limited with FSP Number 49497 is in the process of been regulated by FSCA with an application made in 2018. This is the most awards Forex broker in Australia based on there low spreads, advanced Forex platform, award-winning market service and leading-edge technology leading to fast execution speeds. Read more…
2) FxPro – 8/10 Rating – FSP No 45052
FxPro headquarters are in the UK and have offices across the world offering no dealing desk allowing fast execution speeds and low brokerage for automated trading.
3) Plus500 – 7.5/10 Rating – FSP No 47546
Plus500 holds an Authorized Financial Services Provider licence with the Financial Service Board of South Africa. The global CFD Provider is suitable for all investors with strengths in customer service an easy to use Forex trading platform and a range of markets from Shares, Indices, Cryptocurrencies and Forex with an assortment of currency pairs. Read more…
4) AvaTrade – 8/10 Rating – FSP No 445984
Like Plus500, AvaTrade is a global Forex broker that also has a SA subsidiary (Ava Capital Markets Pty) meaning it is regulated by the South African Financial Services Board. They have over 200,000 Forex traders using the fx broker and have won the ‘best customer service award’ in past years and offer both their forex platform and MT4.
5) IG – 4.5/10 Rating – FSP No 41393
As one of the largest global foreign exchange retail broker, IG offers CFD trading on global products including over 8000 international shares using margin. IG was voted as the best South African CFD broker in 2012 and 2013 through the Business Day and Active Day Traders gave it the ‘best Online Broker’ in both 2015 and 2017. Read more…
Brokers Regulated By FSB - South Africa Forex Brokers
SA Forex Broker
FSB Pending, ASIC, FCA
MT4, MT5, cTrader
FXTM (Forex Time)
FCA, CySec, IFSC
MT4, MT5, Web
ASIC, FCA, MAS
Sirix Web, Mobile
FCA, FSA, ASIC
FSB, FCA, CySEC
MT4, MT5, FxPro, cTrader
FSB, FCA, CySEC, ASIC, FMA, FSCA
Plus500 Platform Plus500 CFD Platform
Pepperstone – 5 Stars
IC Markets – 4 Stars
IG – 4 Stars
Plus500 – 2.5 Stars
AvaTrade – 1.5 Stars
Each year Investment Trends surveys retail foreign exchange traders to find out which forex broker they rate the best in specific categories. Customer service is one of these categories and Pepperstone has won this several times as well as the best spreads, execution speeds and forex trading platform. While this doesn’t apply specifically for South African forex trading, traders in SA will experience the same level of customer service as it’s global as is their liquidity offering.
Customer Service is offered 24 hours a day, 5 days a week ensuring customer support is available when currency markets are open. Local SA support may be available once the regulator licence is approved for Pepperstone.
The customer service category is one Pepperstone has regularly won and with a 24 hour customer service offering, SA traders will experience this unique strength of the broker.
When a SA forex trader opens account they will have an account manager who will be in touch. High volume forex traders will also be given a dedicated account manager help trade forex through either the MT4, MT5 or cTrader fx platform.
IG offers a plethora of Forex platforms for South African Forex trading including their own platform, MT4, and advanced Forex platforms including L2 dealer. The latter Forex platform allows for direct market access allowing IG Forex traders to access directly liquidity pools worldwide.
IG has it’s own platform which has the lowest spreads and unique features only available through that fx broker. If you prefer the other platform options such as MT4 the spreads may be higher and features unique to IG may not be available.
Generally most South African traders will choose to trade with IG’s forex platform. The other platforms such as MT4 may have a better offering from other forex brokers in South Africa such as Pepperstone or IC markets.
It’s important to consider that if you use the IG forex trading platform it will be difficult to switch fx brokers in future as you will need to learn a new platform. This is why many brokers prefer to choose MT4 or cTrader brokers making it easier to switch between South Africa fx brokers in future.
IC Markets is an ECN pricing forex broker which means through their ‘RAW Account’ forex traders can have spreads from 0.0 pips. Below shows how USD spreads against major currencies as low but a commission is also charged on each pairing. This works based on volume but combined with low spreads still leads to lower brokerage. The RAW account with ECN pricing avoids interference when trading. This can improve execution speeds reducing slippage in volatile markets. Many automated trading programs can improve success when using an ECN pricing forex broker account.
There are other fees that can apply when trading such as overnight holding fees. Deposit methods and withdrawals are mostly fee frees but institutions may charge additional fees which should be considered.
The RAW account is the most popular IC Markets trading account based on lower brokerage and faster execution speeds.
It’s important to always measure brokerage and other fees to understand potential profit and losses when trading. A demo account is an excellent way to do this and simulate past and present market conditions.
South African forex trading success is partially dictated by the fx broker chosen and five criteria should be considered:
1) Spread and Commission Fees are the forms of brokerage that apply to a forex broker in South Africa. Some brokers will only have a spread while others may have narrower spreads but also charge a commission. Some other fees may apply to advanced features such as guaranteed spreads, an overnight holding of a position or licencing fees. Fees can also be reduced by choosing a ZAR account.
2) Forex Platforms are the way online brokers allow South African forex traders to trade with currency markets. These have different interfaces, features and integrations. On the South African forex broker table above you can view how MetaTrader (MT4) is offered by most brokers giving the flexibility to change brokers if you choose this fx platform. Other platforms, on the other hand, may have unique features not available on MT4 or MT5.
3) Leverage is critical when currency trading in SA. As currency market movement is modest compared to other markets, leverage makes these more substantial to make real profits or losses. A trader needs to afford to take the high risk of losing money rapidly due to leverage. Therefore, leverage needs to be aligned to a South African forex traders risk profile. Remember, losing your money is a real possibility on currency markets so it’s critical to understand the risks of forex trading.
4) Risk Management features take into account how CFDs are complex instruments. They help control risk such as determining when a trader exits a trade (eg a guaranteed stop) or to prevent a trader from not only losing your money but also from going negative through negative balance protection. Even with risk management, you can lose money when trading so the amount put into a deposit is critical.
5) Regulatory Bodies: The South African local regulatory body is the FSCA, this is also referred to as the FSB (Financial Service Board). This regulator reviews the financial services industry excluding the banks. This regulator works towards protecting South African investors including forex traders and has powers to enforce their policies. They also work with the Ombudsman to investigate customer concerns in regards to forex trading brokers.
Published by Justin Grossbard
Friday, December 06th, 2019
Top 8 South Africa Forex Brokers
CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.