Forex Brokers Regulated By FSCA

Top MetaTrader 4 Forex Broker

Pepperstone is a top forex broker that provides South African traders access to a range of financial markets. The no dealing desk broker is well-known for its ECN-style pricing and offers ultra-tight spreads as low as 0.0 pips.

As shown in the table below, Pepperstone offers minimum spreads of 0.0 pips and average spreads of 0.16 pips for major currency pairs like the EUR/USD and USD/JPY via its Razor Account type. Standard account holders gain access to commission-free spreads starting from 1 pip and averaging 1.16 pips for the same fx pairs.

While Pepperstone offers three trading platforms (MT4, MT5 and cTrader), MetaTrader 4 is the best option for retail investors who require sophisticated trading tools.

MetaTrader 4

Released in 2005, MetaTrader 4 (MT4) is the world’s most popular retail forex trading platform thanks to its automated trading tools and large trading community.

Automated Trading with Expert Advisors

To fully automate trading, you can use trading robots known as Expert Advisors (EAs) within the MetaTrader community. EAs are algorithms that automatically monitor financial markets and place trades following your EAs pre-defined conditions. As you can dramatically reduce the time you are spending conducting analysis and opening and closing trades, EAs are becoming more and more popular.

You can write your own EAs using the platform’s programming language (MQL4), or download existing EAs from the MetaTrader MarketPlace online. Once developed, you can use MT4’s backtesting tools to test and optimise your trading strategies against historical data.

As well as algorithmic trading, when using MetaTrader 4 you can benefit from the following tools and platform features:

• An advanced inbuilt charting package for technical analysis with 30 technical indicators, 31 graphical objects plus 9 timeframes.
• MT4 servers hosted by Equinix’s New York Data Centre, allowing for ultra-fast order execution speeds and minimal slippage.
• Risk management tools with a range of pending order types.
• Smart Trader Tools add-on package that provides 28 different Expert Advisors and technical indicators.

Trading Account Types

Pepperstone offers two main trading account types that are both available on MetaTrader 4. The Standard Account is great for beginners as forex spreads are commission-free, while Pepperstone’s Razor Account offers ECN-style spreads ideal for algorithmic and experienced traders.

• Standard Account: No commission forex spreads from 1.0 pip.
• Razor Account: ECN-like spreads as low as 0.0 pips plus flat rate commission fees.

As trading forex and CFDs is a high-risk activity, Pepperstone offers demo accounts. Demo accounts allow you to test out the broker’s different account types and trading platforms prior to trading with real money and high risk.

Account Fees and Management

Setting up and managing your trading account is easy with a low minimum deposit and fee-free funding methods.  Pepperstone requires no initial minimum deposit to open either a Razor or Standard account, although they recommend at least $200.

Key account management features include:

• You can set up your account with one of 10 different base currencies (USD, CAD, GBP, EUR, CHF, EUR, AUD, NZD, SGD and HKD).
• Most Pepperstone clients can deposit and withdrawal funds with no fees.
• Funding methods include credit card (Visa, Mastercard or UnionPay), POLi, BPay, PayPal, Neteller, Skrill and bank transfer.
• A $20 fee occurs for international bank transfers.

Trust and Safety

Although Pepperstone is not a licensed financial service provider in South Africa, traders can sign up to one of three subsidiaries that are overseen by top-tier regulatory bodies.

• Pepperstone, Australia: regulated by ASIC
• Pepperstone, UK: regulated by the FCA
• Pepperstone, Global: Regulated by the Securities Commission of the Bahamas (SCB).

Each Pepperstone subsidiary offers the same account types, spreads and trading platforms, but investor protections vary between location.

In the UK, the FCA enforces leverage caps for retail traders, with a maximum leverage of 30:1 available. Additionally, the FCA requires brokers to provide Negative Balance Protection to ensure traders do not end up in debt to Pepperstone.

Elsewhere, Pepperstone provides no NBP but you can trade forex with a maximum leverage of 500:1.

Pepperstone Overall

If you prefer MetaTrader 4, Pepperstone is a great broker offering tight spreads, automated trading, and a range of add-on trading tools.

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FxPro – cTrader Trading Platform For Scalping

FxPro is an FSCA regulated forex broker that offers cTrader as a trading platform option. If you want to execute scalping strategies, cTrader provides a great trading experience with full market depth, tight spreads and fast execution.

What is Scalping?

When scalping, you are looking to make profits from small price movements. As you are performing many trades within a small time period, trading is fast-paced and you are never holding positions for longer than one day.

Scalping on cTrader

cTrader is a popular platform among scalpers due to the platform’s excellent trading environment with depth of market pricing. To achieve ultra-tight forex spreads on cTrader, FxPro sources its liquidity from several liquidity providers such as top financial institutions and banks.

As well as full market depth, you can enjoy the following features when executing scalping strategies cTrader:

• Strong charting tools vital for successful scalping strategies with 26 different timeframes and advanced technical analysis tools powered by Trading Central.
• Risk management tools such as take profit and stop-loss order types, along with time settings like Good till Cancel (GTC) and Good till Date (GTD).
• Unlike most brokers, FxPro enforces no restrictions on limit orders. This means you can place stop loss and take profit orders as close to the current market price as you like.
• An economic calendar and online calculators.
• As long as there is depth on the financial market you are trading, FxPro promotes no requotes with guaranteed execution.
• Fast order execution that averages less than 11.06 ms.
• Minimal slippage with 91% of orders filled with positive or no slippage.

Although predominately a forex trading platform, you can access CFDs derived from three major asset classes on cTrader – foreign exchange, commodities and indices. When trading indices and energies on the platform you pay no commission fees, while forex and metal CFDs incur a $4.5 commission fee per side, per 100k traded.

When using cTrader you can trade across devices from one trading account. As well as a web trader platform, trading apps are available for Android and iOS mobiles and tablets. To get started, you can easily sign up for a live or demo account online. FxPro recommends making an initial minimum deposit of $1000, yet you can fund your account with as little as $100.

FxPro Overall

FxPro provides an excellent trading environment for scalping on cTrader with fast execution speeds, no requotes, minimal slippage and advanced technical analysis tools.

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FXTM – Good Social Trading Platforms Available

FXTM, also known as ForexTime, is an FSCA regulated broker that accepts South African traders. As an FXTM customer, you can trade a range of fx and CFDs on either MetaTrader 4 or MetaTrader 5.

The broker offers an array of account types for CFD and forex trading with varying minimum deposits, spreads and trading platforms. Both ECN and commission-free pricing structures are available.

Social Trading – FXTM Invest

If you want to automate trading using social trading tools, you will need to use MetaTrader 4 and sign up to an ECN or ECN Zero account type. After making a $100 minimum deposit, you will gain you access to FXTM Invest, the broker’s social trading and account mirroring service.

As with other copy trading platforms, FXTM Invest allows you to copy the strategies of experienced traders (known as Strategy Managers). You can easily filter through different Strategy Managers, finding traders that match your risk tolerance, trading style and objectives.

A major benefit to the social trading platform is that you only pay your Strategy Manager a fee when they make profitable trades, with no fees for unsuccessful strategies.

FXTM Overall

The broker offers copy trading via their FXTM Invest social software. The account mirroring service lets you copy the trades of experienced traders (Strategy Managers), allowing you to fully automate trading on the MetaTrader 4 platform.

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IG – Largest Forex Broker For Retail Traders

Established in 1974, IG is one of the oldest and largest fx brokers. In South Africa, IG holds an FSCA financial services license as well as operating subsidiaries in the United States, the United Kingdom, Switzerland, Dubai, Singapore, Japan, Australia, New Zealand, Bermuda and Germany, which caters to European traders.

On top of a strong global presence, IG offers impressive market access to over 17,000 different financial products:

• Forex – Major, minor and exotic currency pairs starting from 0.6 pips.
• Cryptocurrencies – 8 major cryptos such as Bitcoin, Ripple and Ether
• Indices – Includes major Australian, US and UK stocks as well as technology and cannabis stocks.
• Commodities – Precious metals, oil and gas commodity CFDs.
• Stocks – Over 12,000 share CFDs.
• ETFs – Stock index, currency and industry exchange-traded funds (ETFs)
• Options, Interest Rates, Bonds, Sectors, Digital 100s and Knock-Out Options.

Trading Platforms and Tools

As an IG customer, you can use the broker’s proprietary trading platform or third-party software like MetaTrader 4 (MT4) or L2 Dealer.

Beginner Traders:

• IG’s Trading Platform: The broker’s proprietary platform is great for beginners with easy-to-use trading and account management tools. You can stay up to date with financial markets via the platforms economic calendar and newsfeed while depositing or withdrawing funds without leaving the platform. Available as a desktop or web trader platform as well as mobile trading apps.
• MetaTrader 4: MT4 is great for all levels of experience, yet the large trading community and marketplace make it ideal if you are new to forex trading. Benefits include automated trading with Expert Advisors, comprehensive analysis tools plus add-on features such as AutoChartist plus additional EAs and indicators. Offered as a desktop or web trader platform and mobile apps.

Experienced Traders:

• L2 Dealer: Offers direct market access (DMA) to forex and stock markets in addition to OTC trading. Compared to other platforms, L2 provides improved pricing and liquidity with full market depth. You can develop complex trading strategies on par with professionals using advanced orders types such as pegged and good for auction orders.
• ProReal Time: An advanced technical analysis package that can be integrated into the broker’s proprietary platform. The online charting software provides tools to conduct sophisticated analysis with 100+ indicators, as well as automate trading using algorithms.

IG Overall

Established back in 1974, IG is known for its large trading community and impressive market access. You can trade over 17,000 different financial products, ranging from forex and cryptocurrencies to interest rates and knock-out options. The broker offers a range of trading platforms, with an option for each level of trading experienced.

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Plus500 – Best Broker With Risk Management

Plus500 is a multi-regulated broker that highly regarded for its risk management tools and features. As a Plus500 trader, you are limited to its proprietary platform, yet you gain access to premium order types offered by few brokers along with negative balance protection. Key features of Plus500 include:

• Commission-free forex trading (Plus500 is a market maker broker).
• A user-friendly proprietary trading platform available as a desktop or web trader platform along with mobile trading apps.
• Strong risk management features with premium order types, negative protection and tier-1 regulation.

The broker operates multiple subsidiaries around the world that are overseen by local financial authorities. In South Africa, the broker operates under FSCA regulation (license number 45746) and offers investor protections like segregated client funds and negative balance protection. To supplement the broker’s global tier-1 regulation, Plus500 is listed on the London Stock Exchange.

Risk Management Tools

Plus500 recognises the high risk that comes with CFD and forex trading and provides a good selection of trading tools to assist with risk management. Plus500 allows you to place both basic and premium orders on its proprietary platform. Basic orders like stop losses, stop limits and trailing stop losses are free, while guaranteed stop-loss orders (GSLOs) entail a small fee. The difference between basic stop-loss orders and GSLOs is explained below.

• Stop loss: helps you cap potential losses by specifying a market price that the order should be closed, if markets move in an unfavourable direction. If markets are volatile or gapping occurs, slippage may occur.
• Guaranteed stop loss (GSLO): The small premium paid eliminates the risk of slippage that may happen with basic stop-loss orders.

In addition to premium and pending orders, you can minimise the high risk of trading with the following Plus500 features:

• Negative Balance Protection (NBP): ensures you do not end up in debt to Plus500 by closing all positions when your trading balance hits zero. While a requirement by financial authorities like the FCA in the United Kingdom, the FSCA in South Africa does not require brokers to provide NBP. Plus500 offers NBP to all traders, including in South Africa.
• Alerts and notifications to help you keep up to date with changing market prices.
• Traders sentiment data shows you the percentage of market participants that are buying or selling a specific financial instrument.

Plus500 Overall

The market maker broker offers commission-free trading on its proprietary trading platform. A greater selection of risk management features is available with Plus500 compared to competing top brokers, such as guaranteed stop-loss orders and negative balance protection for all clients.

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*Your capital is at risk ‘76.4% of retail CFD accounts lose money’

FXCM – Good Fundamental Analysis Tools

FXCM is a subsidiary of Forex Capital Markets Ltd that operates in South Africa under FSCA regulation. Key features promoted by the broker include:

• Minimal slippage with 88% of orders executed with positive or no slippage.
• Average execution speeds of 27 ms.
• No requotes and no restrictions on stop-loss or limit orders.
• Quality liquidity providers including financial institutions, global banks and other market makers.
• Discounts for active traders trading high volumes, offering reduced spreads as low as 0.2 pips for the EUR/USD.

Fundamental Analysis Tools and Trading Platforms

A range of fundamental analysis tools is offered by FXCM through their trading platforms and online. The broker’s website provides knowledge and insight sections, where you can find an economic calendar, markets news, live charts and articles explaining significant economic events.

Three third-party trading platforms provide access to the broker’s excellent trading conditions and fundamental analysis tools. Both Trading Station and MetaTrader 4 provide advanced trading and analysis tools, while ZuluTrade offers social-copy trading services.

• Trading Station: Offers advanced technical and fundamental analysis tools for CFD and forex trading. The HTML5 platform provides automated trading features, a comprehensive charting package and tools for fundamental analysis like an inbuilt economic calendar and sentiment data.
• MetaTrader 4 (MT4): The trading platform is popular for its algorithmic trading capabilities, known as Expert Advisors (EAs). To help you develop robust automated trading strategies, MT4 has an inbuilt charting package with numerous indicators, objects and timeframes.
• ZuluTrade: The account mirroring service allows you to copy and follow the trading strategies of experienced traders. The social-copy trading platform offers access to a wide trading community that includes a diverse group of traders, meaning you can learn from the best and save time by fully automating trading.

FXCM Overall

If you are looking to develop trading strategies using fundamental analysis, FXCM useful tools on both its trading platforms and online. The broker’s website provides an economic calendar, markets news and economic news articles to help you keep up to date with changing markets.

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HotForex – Broker With High Leverage

HotForex is an FSCA regulated broker that provides access to a range of financial markets. To trade forex and CFDs, MetaTrader 4 or MetaTrader 5 is available.

The broker offers various account types suited to different styles of trading, including accounts specifically designed for micro and automated copy trading. HotForex’s most popular account types are:

• Micro Account – Designed for micro trading with a low minimum deposit of $5, no commission fees on spreads from 1.0 pip and minimum trade sizes of 0.01 lots.
• Premium Account – Commission-free trading with forex spreads from 1 pip.
• Zero Spread Account – An ECN-style account with forex spreads as low as 0.0 pips.

Each of the above HotForex account types is available on MetaTrader 4 or MetaTrader 5, with access granted to the broker’s full product range. You can trade a diverse range of CFDs with HotForex, including:

• Forex
• Energies
• Precious Metals
• Soft Commodities
• Indicies
• Stocks
• ETFs
• Bonds
• Cryptocurrencies

As well as Micro, Premium and Zero  Spread Accounts, HotForex offers Auto, PAMM (Premium) and HF Copy Accounts, all of which offer no commission spreads from 1 pip.

Leverage and Risk Management

If you want to trade CFDs and forex with high leverage, HotForex is a good option, although it is important to note that high leverage comes with high risks.

Under FSCA regulation, HotForex offers South African traders maximum leverage of 200:1. If you prefer even higher leverage, you can sign up to an offshore HotForex subsidiary that offers leverage up to 1000:1, much higher than any competing brokers.

Although high leverage can help magnify your profits, it also magnifies your losses. Leverage should be used wisely, as it further increases the high risk of CFD and forex trading.

HotForex Overall

HotForex is an FSCA regulated broker that offers high maximum leverage of 200:1 when trading forex. If you want even higher leverage, the broker’s offshore branches provide leverage up to 1000:1.

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AvaTrade – Best Forex Trading Education Academy

AvaTrade is a CFD and forex broker that is overseen by six different regulatory bodies, including the FSCA in South Africa.

As a market maker, AvaTrade sets its own fixed bid-ask prices, meaning you pay no additional commission fees on top of the spread. Commission-free spreads start from 0.9 pips for major fx pairs like the EUR/USD.

The broker offers a selection of proprietary and third-party trading platforms for forex and CFD trading. The broker’s proprietary software, AvaTradeGO, is available as a  web trader platform and mobile trading app. MetaTrader 4 and MetaTrader 5 can be accessed through desktop and web trader platforms as well as mobile apps.

To help you learn about forex markets and trading, the broker offers a comprehensive education centre with resources for all levels of trading experience.

Educational materials cover four key topics:

1. Beginner Traders
2. Advanced analysis and trading techniques
3. Economic indicators and fundamental analysis
4. Risk management and order types

AvaTrade offers a free ebook that discusses trading strategies, along with trading platform tutorials for both beginner and experienced traders using MetaTrader 4.

If you require even more educational resources, AvaTrade provides free access to Sharp Trader, a third-party forex education provider. Sharp Trader offers features to boost your trading knowledge, such as:

• Educational materials exclusive to AvaTrade clients
• Webinars and video tutorials
• Technical and fundamental analysis provided daily from the broker’s in-house experts
• Analytical videos
• Trading and analysis tools like calculators and an economic calendar.

AvaTrade Overall

AvaTrade provides you with various educational resources to enhance your trading knowledge. Whether you are a beginner trader with little forex trading experience, or a seasoned pro wanting information about complex strategies, AvaTrade offers suitable educational courses and materials online.

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