Forex Brokers In South Africa

IC Markets: Lowest Forex Trading Cost FX Broker

The forex market has the unique advantage of offering extremely low transaction costs when trading currency pairs. South African traders can buy the South African Rand or other major currency pairs through an FX broker. Online brokers will normally charge a fee, for executing buy and sell orders, which is the cost associated with doing business in the currency market.

Forex brokers in South Africa can offer four types of fee structures:

• Fixed Spread
• Variable Spread
• Commissions
• And a combination of the above

This is how forex brokers South Africa make money by facilitating forex trades in the foreign exchange market. Leading forex brokers will offer their clients different trading account types based on their initial deposit. Usually, the bigger the minimum deposit is the lower the forex fee structure can be.

The market maker brokers tend to charge spread with all their costs bundled into a wider spread. On the other hand, ECN brokers (Electronic Communication Networks) or STP brokers (Straight Through Processing) give forex traders direct access to their liquidity providers and charge FX traders a commission for that privilege. A commission is a dealing fee charged each time you place a trade on the foreign exchange market.

Not all FX brokers are created equal and retail investor accounts can be charged different types of spreads and commissions. IC Markets is among the best forex brokers offering competitive spreads for South African residents.

IC Markets – Lowest Spread Forex Broker in South Africa

Our team of experts reviewed the top forex brokers in South Africa and concluded that IC Markets offers the lowest spreads on major currency pairs and CFDs financial instruments. The IC Markets execution model offers South African traders the advantage to scalp the FX market with raw spreads and no mark-ups.

IC Market offers three different types of forex trading accounts:

1. IC Market cTrader Raw Spread:

• Spreads from 0.0 pips, no mark-ups
• Commission per lot $3 (or $6 round-turn)
• Main trading platform: cTrader
• Suitable for day traders and scalpers

2. IC Market Raw Spread:

• Spreads from 0.0 pips, no mark-ups
• Commission per lot $3.5 (or $7 round-turn)
• Main trading platform: MetaTrader 4 and MT5
• Suitable for EAs and scalpers

3. IC Market Standard account:

• Spreads from 1.0 pips
• Commission-free trading
• Main trading platform: MT 4 and MT5
• Suitable for discretionary traders

Retail investors can enjoy on the IC Market ECN trading accounts low spreads due to its diverse pool of liquidity providers. On the Raw Spread account, you can benefit from the tightest spreads in the FX industry that are close to zero.

In the table below you can examine the typical IC Markets spreads for the major currency pairs including the USD/ZAR exchange rate.

The average spread on the most popular currency pair EUR/USD was 0.1 as measured for their ECN Raw Spread account, while the South African Rand average spread was 23.8 and it can go as low as zero spread. The commission amount is charged per each $100,000 traded (1 standard lot) and you can be charged either $3 or $3.5 per one side depending on your account type.

The table below compares the spreads of the most popular currency pairs traded by South African forex traders.

Comparing Spreads with other South African Forex Brokers

Additional Forex Cost Bonuses of IC Markets

IC Markets single stock CFD products that are exclusively available through the MetaTrader 5 platform can earn you dividends. South African residents need to be aware that non-US residents are required to be taxed on dividend earnings. The applicable withholding taxes are automatically deducted by IC Markets so you don’t need to handle them by yourself.

The ECN market environment allows SA Forex traders to save on the extra cost that comes with the market maker brokers, as no dealing desk is involved in the trading process.

Additionally, the deep pool of over 25 different liquidity providers guarantees no slippage on your buy and sells order fills. This can be another major trading cost in forex that can be avoided if you trade with IC Markets forex broker.

South Africa Lowest Spread Broker – Conclusion

The spread and commissions you will be charged will be determined by the account types and trading platforms you’re using. Our team at Compare Forex Brokers was impressed by the extensive range of trading CFDs instruments available for South African residents. It’s safe to say that South African traders can trade with the tightest spreads in the world by choosing IC Markets.

For more details please read our complete review here: IC Markets Spreads and Fees Review.

You can test the IC Market spreads by opening a demo account. To enjoy the full benefits of the IC Markets demo account, make sure you register with them by clicking the button below.

FxPro: Great FSCA Regulated Forex Broker

FxPro puts a lot of awareness on the high-risk factors involved with the use of high leverage. Our team of experts considered this to be critical for high leverage FX brokers operating in South Africa. FxPro offers the standard leverage of 500:1. Other CFD brokers offer lower levels of leverage. AvaTrade only offers 400:1, while FXCM accounts come with a 400:1 leverage on FX and 200:1 leverage on CFDs.

There are three key reasons why FxPro is the best high leverage South African forex broker.

Negative balance protection

Inappropriate use of leverage can lead to your losses exceeding your account balance. When evaluating forex brokers in South Africa, it’s important to consider a broker that offers a negative balance protection account. All FxPro forex account types come with negative balance protection, ensuring SA traders won’t lose more than the total deposits.

Flexible Leverage

Overleveraging is a big issue amongst retail traders, which is why it’s important to have flexible leverage, which allows SA forex traders to adjust the level of leveraged being used. Trading complex instruments such as leveraged CFD products carries a high level of risk. The FxPro live account comes with flexible leverage starting from 1:1 up to 1:500.

Additional Risk Minimization Features

CFD trading comes with a high risk of losing money rapidly due to leverage. FxPro additional risk minimization features to combat losing your money comes in the form of reduced leverage for exotic pairs like ZAR and only offers maximum leverage of 100:1 for the South African Rand.

Summary Of Why You Would Choose FxPro

FxPro Financial Services Limited is licensed and regulated by the South Africa Financial Sector Conduct Authority FSCA formerly known as the FSB (Financial Services Board). Financial regulation was the focal point in our review process, as leveraged instruments such as Forex and CFDs carry a high risk to lose money when trading.

While local regulation is not necessary, it’s far more important that FxPro enjoys global recognition from top-tier financial institutions:

• Financial Conduct Authority (FCA)
• Cyprus Securities and Exchange Commission (CySEC)
• Dubai Financial Services Authority (DFSA)
• Securities Commission of The Bahamas (SCB)

South African forex traders have their rights protected when trading with a regulated broker. Regulated forex brokers have an extra layer of trustworthiness because you can have access to independent dispute resolution systems to solve any conflict between SA traders and the FX broker.

View FxPro Review >>Visit FxPro >>

Hot Forex: Highest Leverage Forex Brokers

Forex trading is a lucrative business that offers SA forex traders a great opportunity to make quick money due to the high level of leverage offered by FX brokers. Trading leverage CFD instruments also carries an inherent risk because any small change in the foreign exchange rate may translate into big loss or damage resulting in your account balance.

Leverage can differ in size and can be controlled by three main factors:

• The forex account types you have
• The FX broker you trade with
• And the standard leverage imposed by South Africa regulation.

Trading forex in South Africa doesn’t have the same strict regulations that can be found in the USA or Europe when it comes to imposing a limitation on the leverage used by South African traders. Different South African forex brokers offer a different level of leverage.

The standard leverage in the Forex markets available for South African residents is 500:1. Forex brokers in South Africa offering astronomical leverage as high as 3000:1 can be portrayed as scams.

Forex accounts are not suitable for all investors due to the increased risk to lose money when trading CFDs. The best South African Forex brokers additionally to the standard leverage offered, they should also provide forex traders with the right risk management tools to cope with the high degree associated with trading CFDs. Before opting for a high leverage FX broker, SA residents should consider if they can afford to take the high risk of losing money rapidly due to leverage.

IG Markets: Top Range Of Financial Instrument Broker

IG one of the oldest forex brokers and the world’s top CFD providers with over 16,000 markets is another option for SA forex traders that our team of experts endorses. IG range of markets can give you access to:

• 26 major world stock indices
• 80 FX pairs
• Over 12,000 shares
• 6 cryptocurrencies
• 6 hard and soft commodities
• Other markets, including bonds and interest rates

While IG markets South Africa only offers maximum leverage of 200:1, it should be noted that SA traders can have access to a wide range of trading markets that can’t be found anywhere else. Additionally, IG share trading comes with its stockbroking services.

View IG Markets Review >>Visit IG Markets >>

Plus500: Great Forex Broker For Beginner Traders

The anatomy of a retail Forex broker that accommodates beginner traders need to come with several key features and benefits. We evaluated all forex brokers in South Africa for its regulation, educational section, and trustworthiness. Our winner, Plus500 offers unlimited access to educational resources. Furthermore, FX broker Plus500 offers easy access to training guides that provide a trading course to understand how CFDs work.

       1) Forex Educational Videos

Plus500 also has a rich library of trading webinars that will keep you up to date with the latest developments in the forex markets so you won’t lose money when trading. Additionally, Plus500 offers one of the best video forex trading guides library that will equip the novice trader with the right knowledge to navigate the forex markets.

       2) Easy-to-Use Forex Platform

Key points about Plus500 include the fact that it has an easy-to-use proprietary trading platform designed for beginner traders. Plus500 trading platform offers a portfolio of over 2,000 instruments, which are also accessible through one of the highest-rated CFDs trading Apps.

HotForex – Best Forex Webinars

HotForex was our second pick for the best forex broker offering robust educational content for South African novice traders. The Forex educational resources offered by HotForex can be broken down into three sections:

• HF markets eCourse in forex, which is the complete forex guide for beginners
• HF markets video tutorials provide a great range of Forex educational videos
• Live Webinars provide you with the latest market news, forecasts, and constant market analysis reports

HotForex is a safe broker for South African traders being regulated by major regulatory bodies, including CySEC, FCA, DFSA, FSA and has a licence from the Financial Sector Conduct Authority (FSCA) in South Africa. On top of that, HF Markets (Europe) Ltd has registration in other jurisdictions all across Europe.

South Africa’s Best Forex Training Broker – Conclusion

With offices around the world, Plus500 is regulated in South Africa and registered as an Authorised Financial Services Provider #47546 with the Financial Sector Conduct Authority (FSCA). The FSCA regulation adds an extra layer of trustworthiness which was included in our evaluating process of the best forex training broker for beginner traders operating in South Africa.

You can read the full Plus500 Review to learn more about the other key features and advantages for beginner traders.

View Plus500 Review >>Visit Plus500 >>

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

FXCM: Best Social Trading Broker Using ZuluTrade

FXCM is one of a handful of brokers offering social trading. Their social trading platform is ZuluTrade and designed for forex traders who rare time-poor. There are three main features of this social trading platform

1) Peep to Peer

A trader can subscribe to other traders signals to automate their trades.

2) Selection Features

The platform helps sort between prospective traders to copy to find the one most suited to a traders requirements.

3) Risk Management

ZuluTrade has a Call-o-meter for margin and other settings so traders can manage their exposure to the market.

Once an individual uses the social trading broker platform the signals provider chosen trades will be executed for the trader. The exception will be if margin requirements can not be set or if the trader’s settings don’t allow it. With a minimum deposit requirement of $50, decent spreads and leverage, FXCM is one of the best social trading brokers in the market.

View FXCM Review >>Visit FXCM >>

FXTM: Top Foreign Exchange Broker Customer Service

The forex customer support service is the cornerstone of a respected FX broker. All forex brokers offer customer service for their clients, but not all forex brokers in South Africa can be proud to offer high standards for client satisfaction and customer service. Our team of experts has chosen award-winning broker ForexTime FXTM as the best foreign exchange broker because it’s offering superior customer support.

Three key features make ForexTime FXTM customer support service an excellent experience:

• Super-Fast Client Approval Process

Your Forex account will get approved very quickly after a successful verification process that complies with the domestic financial regulatory body. FXTM prides itself on processing all forex accounts in less than 12 minutes. ForexTime (FXTM) follows the standard registration process that required some basic IDs for identification purposes.

• Funds Processed in 5 Minutes

Funding an account with ForexTime is fast and can be done through different deposit methods. FXTM prides itself on processing more than 84% of the funds within 5 minutes.

If you have any questions in regards to the deposits and withdrawals, FXTM client support team will answer all your queries.

• 90% Positive Feedback

FXTM’s award-winning customer service enjoys recognition from its customers receiving more than 90% positive feedback. Help desk and live chat FXTM representatives offer exemplary customer service. FXTM team provides unmatched technical support which helps ForexTime clients better understand the products and services offered by FXTM.

• Multilingual Customer Support

As an international broker,  FXTM has a dedicated customer support service that comes in over 30 languages. There is no language barrier, which enables FXTM to answer effectively to your needs. The ability to communicate in your native language may lead to fast response times and your need to be resolved more efficiently.

There is a range of methods you can contact the FXTM customer support including:

• Email
• Live chat
• Phone
• Messenger
• Telegram
• WhatsApp
• Including various social media

On the other side of the spectrum, eToro offers a poor customer support service. If you’re a self-reliant trader with no need for outside help then this won’t be a negative factor. However, if you are a beginner trader that needs additional help in understanding all the products and services that come with online trading, FXTM is a better fit for your needs.

South Africa Best Foreign Exchange Broker Customer Service – Conclusion

Our team of experts at Compare Forex Brokers concluded that FXTM is the best FSCA regulated broker in terms of customer service responsiveness and client satisfaction. Overall FXTM is the winner broker of the best customer service category due to the outstanding service that is supervised by the local South African regulation. ForexTime (FXTM) is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614.

The FXTM statistics are transparent and verified by PwC, one of the world’s biggest auditors.

View FXTM Review >>Visit FXTM>>