Low Spread Forex Brokers

South African Forex traders can reduce brokerage by choosing an ECN forex broker with STP that has low spreads, commissions and no funding costs. The lowest spread brokers below offer the best forex trading platforms such a MetaTrader 4 and are regulated by FSCA, ASIC, FCA or CYSEC.

By Justin Grossbard / Updated: Tuesday, February 11th, 2020

Curency Movements Image

See the complete top 7 low spread forex brokers in South Africa 2020. The lowest EUR/USD spread can start from 0.0 pips and zero commission on CFD trading:Best Forex Brokers in South Africa

  1. IC Markets – Lowest Spread Forex Broker
  2. Pepperstone – Lowest Commission Forex Broker
  3. City Index – Low CFDs Broker Costs
  4. Plus500 – Best Beginner Forex Trading Platform
  5. FXTM – Best Currency Pairs Range
  6. HotForex – Highest Leverage Forex Broker
  7. CMC Markets – Best Share and Foreign Exchange Broker

Our team of experts at Compare Forex Brokers is regarded as the go-to authority on broker review content. Below we’ve put our expertise at work to find the best South African Forex Brokers with low spread, low commissions and overall low total trading costs.

Broker Reviewed

IC Markets
Pepperstone
City Index
Plus500
FXTM
Our Rating
8.17
9.17
6.83
5.83
6
Best Spread Broker
Further Active Trader Discounts
72% of retail CFD accounts lose money
Range of risk management tools
High leverage

Regulations and Licenses

Feature
IC Markets
Pepperstone
City Index
Plus500
FXTM
ASIC (Australia)
FCA (UK)
FSCA (South Africa)
Pending

Brokerage

Feature
IC Markets
Pepperstone
City Index
Plus500
FXTM
No Commission Account Spreads From (EUR/USD):
1.0
1.0
0.5
0.6
1.3 (Standard)
Commission Account Spreads From (EUR/USD):
0.0
0.0
0.1 (ECN)
Commission (per 100k traded side trip)
USD $3.50
AUD/USD$3.50
USD$2.00
Minimum Deposit
USD $200
AUD/USD $200
$0
USD$500
Volume Commission Rebates
Has Islamic Account
No Inactivity Fees
Funding Methods
15
16
6
3
13
No Deposit/Withdrawal Fees

Markets and Instruments

Feature
IC Markets
Pepperstone
City Index
Plus500
FXTM
Forex Currency Pairs CFDs
65+
66+
84+
60+
59+
Cryptocurrency CFDs
10+
4+
5+
10+
4+
Index CFDs
16+
2+
21+
67+
11+
Share CFDs
100+
5+
4500+
1816+
180+
Commodities CFD
19+
4+
29+
17+
3+
Stockbroking
10+
Retail Maximum Leverage
500:1
500:1
20:1
30:1
1000:1
Professional Maximum Leverage
500:1
500:1
400:1
300:1
500:1

Trading Platforms + Tools

Feature
IC Markets
Pepperstone
City Index
Plus500
FXTM
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
cTrader
Proprietary Platform
Automatic / Robot Trading
MT4 only
Social + Copy Trading
Investment account only
Standard Stop Loss
Guaranteed Stop Loss Order
Guaranteed Negative Balance Protection
ESMA regulated territories only
ESMA regulated territories only
ESMA regulated territories only
Demo Account
Unique Feature 1
ECN pricing
Smart Trader Tools
Best for beginners
Trade cannabis index and share CFDs
Floating leverage
Unique Feature 2
Range of fee free funding options
Fast Execution Speed
Guaranteed stop loss trading option
Range of account types

Overall

IC Markets Is The Lowest Spread Forex Broker

In South Africa, IC Markets is one of the lowest spread forex brokers. Trading CFDs and the currency pairs can be done with tight spreads as low as:South Africa lowest spread broker

  • 0 pips on the commission-based account (aka the Raw Spread account)
  • 1.0 pips on the Standard account

In total, IC Markets offer 3 account types for SA traders:

  • Raw Spread Account on cTrader platform
  • Raw Spread Account on MetaTrader platform
  • Standard Account (with variable spread)

IC Markets Raw Spreads Accounts

The first two trading accounts are commission-based, where forex traders pay a round-turn commission of $3.5 per 100,000 units traded respectively $3.0 per standard lot. While these IC Markets trading accounts advertise zero spread, the truth is that you still have to pay the interbank market spread. In this regard, the real trading costs include the ”per lot” commission and a fixed spread. Additionally, South African residents need to factor in the inherent slippage. There is no guarantee that your order will be filled at the desired price when trading conditions aren’t normal.

Spread Forex Brokers

Below we’ve listed the average spreads on the most popular currency pairs:

  • EUR/USD average spread of 0.1 pips
  • GBP/USD average spread of 0.4 pips
  • USD/ZAR average spread of 23.9 pips
  • EUR/ZAR average spread of 442.5 pips

Comparing Spreads with other South African Forex Brokers

 IC Markets (RAW)Pepperstone (Razor)Plus500IG
EUR/USD0.10.160.60.6
AUD/USD0.20.270.60.6
GBP/USD0.40.491.10.9
USD/ZAR23.9108590

IC Markets Variable Spread Account

The Standard Account can be considered a type of variable spread account. IC Markets can offer low spreads on the Standard account due to its wide network of tire one liquidity providers. In total IC Markets source its quotes from over 25 different liquidity providers. Unlike the ECN pricing model, the standard account comes with markup spreads.

The lowest spread on EUR/USD is 1.0 pips but the average spread is 1.1 pips. At the same time, the USD/ZAR minimum spread is 1.0 pip while the average spread is 24.9 pips. You can view below a more detailed picture of the lower spreads that come with IC Markets trading accounts.

South Africa lowest spread forex brokers

The bid-ask spread, which is the difference between the buy price and sell price is higher on the Standard Account. That is how IC Markets is able to generate a profit. You can view it as the cost of doing business in the foreign exchange market.

Summary of IC Markets Spreads

South African residents can trade with IC Markets’ competitive spreads on over 232 financial instruments including Forex currency pairs, indices CFDs, commodities CFDs, stocks CFDs, bonds CFDs, futures CFDs and cryptocurrencies CFDs. Additionally of being a low spread broker, IC Markets offers SA traders the following advantages:South Africa trading instruments cTradersouth Africa best forex brokers

  • Ultra-fast order execution (under 40ms)
  • 1ms latency
  • Reduced slippage
  • Tight spreads around the clock

For a complete review of IC Markets spreads, make sure you check out our industry-leading experts’ review here:  IC Markets Spread – Fees Analysis and 2020 Comparison.


Our Rating

The overall rating is based on review by our experts

8.67
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
9 / 10
Risk Management
5 / 10
Range of Markets
8 / 10
Customer Service
10 / 10

Low Spread Broker FAQs

IC Markets is South Africa’s lowest spreads broker with no commission. The Standard account offered by IC Markets comes with low variable spreads across 232 instruments and tight spreads 24/5. South African traders can enjoy minimum low spreads of 1.0 pips on most currency pairs.

ForexTime FXTM offers South African residents, instant withdrawals through the QIWI Wallet. Additionally, most other E-wallets solution (Neteller, Skrill, Dotpay, etc.) supported by FXTM has a low processing time of 2 hours. Credit card withdrawals are also processed during the same business day.

The lowest spread Forex broker in South Africa is Pepperstone. SA traders can enjoy tight spreads that start at 0.0 pips on the EUR/USD pair. The Papperstone Razor Account offers the lowest USD/ZAR spread – the minimum spread is 10 pips.

Final Verdict – Lowest Spread Forex Brokers in South Africa

Our team investigated the top 20 forex brokers in South Africa and around the world and put together this list of lowest spread brokers operating in South Africa. For this review, our industry-leading experts also evaluated brokers like Oanda, Forex.com, FxPro, Dukscopy, Alpari, EXNESS, Oanda or Octafx but they didn’t make the cut into the lowest forex spread brokers in South Africa. You can view our South Africa best forex broker list for our overall best brokers.

Best Forex Brokers in South AfricaNot all forex brokers that advertise low spreads are able to provide you with lower trading costs. Our best-in-industry methodology also factored in the hidden trading costs that may come in the form of:

  • Higher commissions
  • Higher swap rates (overnight financing rate)
  • Higher rollover rates
  • Rebates
  • Percentage commission fees
  • Higher borrowing costs on selling shares CFD
  • Additional costs

Every South African forex broker, we surveyed went through our proprietary star scoring system of evaluating the top forex brokers. Our team of industry-professionals hand-check for accuracy the spreads and commissions offered by all South African FX brokers’ names listed through this review.

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