For example, their typical spread for EUR/USD during normal market hours is 1.9 pips with Micro account, and this is quite high. Also, their Swap fees is very high for most of the instruments. FXTM is our #4 forex broker in South Africa as per our comparison. They are licensed with FSCA, FCA & CySEC, so we consider them to be safe. Plus, they offer instant order execution with Micro account & fair support, but their fees is high with this account type. Wide range of CFD trading instruments including 51 currency pairs & 120+ CFDs on Cryptos, Indices, Commodities & Shares.
For example, many brokers like FXTM, OctaFX etc. don’t offer Crypto CFDs. XM Trading is another popular forex broker with South African traders. But they are not regulated with FSCA, instead their parent company is regulated with foreign regulators ASIC , CySEC & IFSC. We like their fast order execution, low spread with Mt5 Demo Account Ultra Low Account and zero fees on deposits/withdrawals. In terms of fees, Tickmill has an average spread with their Classic Account, starting from 1.6 pips for EUR/USD. But their spread with Pro account is very low from 0.1 pips for EURUSD + $2 commission per Standard Lot both sides ($4/Standard lot for both sides).
- USD, EUR & GBP account base currency options are available currently.
- Their deposit and withdrawal options include credit cards, wire transfer, and wallets.
- High Non-trading charges, including Inactivity fees of $50, if the account is not used for 3 consecutive months.
- The spreads with Premium & Micro accounts are also very competitive at 1.2 – 1.4 pips for EURUSD on average with both accounts.
- If you prefer local bank deposits, then we recommend Exness, Tickmill & HotForex.
- Also overall, HotForex has competitive spread for most FX pairs & other CFD instruments like NASDAQ, Gold with Premium account.
Their number of trading instruments are limited compared to other brokers. OctaFX only offers 35 currency pairs for forex trading. Although, other CFD brokers have higher number of instruments.
Best Forex Brokers In South Africa 2022
Most of the good brokers have a terms or trading conditions page on their website regarding their execution policy. You should check the broker’s execution policy, and look for terms like market execution, no re-quotes, real-time execution etc. Another factor to consider is if the broker offers quick order execution speed. Forex brokers either offer market execution or instant execution of orders.
By trading industry-specific CFD groups, you can invest in the most relevant names in a given business field at once, benefiting from the success of each one and shielding yourself from the failures of some of them, if such companies exist. It is a great… https://t.co/FeTM1kNMMH pic.twitter.com/zPHqKb4RZz
— FOREX STRATEGY FACTORY (@FactoryStrategy) March 11, 2022
During our research, we found BDSwiss’s support to be good. But they don’t have a local phone number in South Africa at the moment. Good Live chat support, but we day trading experience a few seconds of hold time while connecting. Very Low commission of $4/Standard lot ($2 per side for open & close) & 0.1 pips spread with Pro account.
How Should You Choose A Forex Broker?
The minimum withdrawal amount is R70 with bank transfer. The deposits at BDSwiss are free of any additional charges for all transaction methods. But BDSwiss have some non-trading charges which include Inactivity charges & fees on withdrawals below limits and made via wire transfers & methods other than credit card. Also, they don’t have local Internet banking option for funding or withdrawals in South Africa.
Accept local bank transfers in ZAR for deposits in South Africa. But the amount is converted to account’s base currency like USD since they don’t offer ZAR accounts. XM has both web & mobile trading, available on MT4 & MT5 platforms. Plus, they have wide range of trading instruments including currencies & CFDs on metals, indices & commodities. They also offer choice of ZAR as the trading account’s base currency. Other than forex, you should check if the broker offers NASDAQ or NAS100, crypto CFDs, Gold CFDs etc.
Wire transfer is available at high fees, and this method can take 2-7 days to be credited. But local bank transfer in SA is available for withdrawals. Wide range of trading instruments which include 53 currency pairs & 200+ CFDs on Commodities, Metals, Indices, shares, bonds. Only USD, EUR & GBP account currency options are available.
Ease & Fees On Deposits And Withdrawals
Below example is the image of what FSCA’s FAIS Financial Service provider search interface looks like. They are not regulated with FSCA, and they don’t have a local office in South Africa. Good Risk management tools including negative balance protection & guaranteed stop loss. Local South African phone number for support (only during company’s business hours).
IC Markets has been operating since 2007, and we consider them safe for traders in SA since they are a reputed broker & are also regulated with multiple regulators. Plus500 was found in 2008, and we consider them to be safe for South African traders as they are regulated with 2 top-tier regulators & are also publicly listed. High Non-trading charges, including Inactivity fees of $50, if the account is not used for 3 consecutive months. Exness offers the latest MT5 platform with both their Standard & Pro trading account types. They have very competitive spread even with their Standard accounts (on average 1 pips for EUR/USD). Very low spread with Zero Account i.e. on average 0.3 pips for EUR/USD.
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For South African traders, every forex broker that we have listed here are compliant & licensed by 1 or more Government regulators i.e. Plus500 is a popular CFD trading platform, that is also listed on London Stock Exchange. They are regulated with top-tier regulators including FCA , ASIC & CySEC. XM Group is a part of Trading Point of Financial Instruments Ltd that was founded in 2009. They are now one of the leading forex broker in terms of daily trading volume. Trading Point of Financial Instruments Ltd is regulated by CySEC & ASIC , so we consider them to be moderate risk broker.
So, you should also check is the exact commission for currency pairs that you want to trade. Their spreads are extremely competitive for forex pairs, and on average it is around 1 pips for EUR/USD , even with their Standard account. The spread is 0.6 pips on average with their Pro account, and it is as low as 0 pips with Zero & Raw Spread accounts. Overall, we found Exness to be a broker with one of the lowest spread for Standard accounts, while Tickmill has lower overall fees for commission based account types. Exness is FSCA & FCA regulated, which are 2 Top Tier regulators, so we consider them to be safe. We like Exness because they have very low spread , higher number of trading instruments, good support & instant withdrawal methods.
They are a Metatrader broker, but offer cTrader platform also. XM offers 11 base currency options including ZAR & USD base currency accounts. Plus, they accept indices quotes local online bank transfer in SA, and even offer instant withdrawal methods. Very competitive typical spread of 0.7 pips for EUR/USD with MT4 & MT5 accounts.
ForexBrokers.co.za is a broker comparison & education website for South Africans. We aim to help traders in South Africa find the best forex brokers. However, there are some general guidelines that you should check before depositing your money with any broker. Most forex brokers have a page on their website where they list the range of available instruments & contract specifications for each instrument. Normally, brokers create separate pages for each type of CFD instrument like Forex, metals, indices, commodities etc.
AvaTrade is an European forex broker that was founded in 2006. They are regulated with FSCA since 2015 under the company name ‘Ava Capital Markets Pty Ltd’. Exness is FSCA (FSP No. 51024), FCA regulated broker, so trading with them is considered to be safe. HotForex, or HF Markets a 100% STP forex broker in South Africa. They were founded in 2010 & have been regulated by FSCA as HF MARKETS SA LTD since 2016.
Moderate typical EUR/USD spread of 0.8 pips with Ultra Low Account. On Average 1 pips spread for major pair EURUSD with their Standard Account. Only USD, GBP & EUR are the available current currency options. Wide range of CFD https://forexanalytics.info/ trading Instruments including CFDs on 1000+ stocks, indices, metals & commodities. Plus they have bot chat for quick answers to most frequently asked questions. Funding is free with all methods without any extra charges.
Almost all brokers add this information at the bottom section on their websites or their about pages. Also, as another rule, never choose a broker that is not regulated with at-least 1 top regulator i.e. For this, you should search for your broker’s name or their regulation number, on search on Regulator’s websites, as most of them have public search available.
— Anthony Osae-Brown (@osaeB) March 8, 2022
The lowest spread for EUR/USD is around 1.5 pips, while the typical is 1.9 pips. The lowest EUR/USD spread is 0 pips plus USD 4.88 commission per 100,000 lots. The commission decreases to as low as 0.4 USD with volume. FXTM was founded in 2011 & it got regulated with South Africa’s FSCA in 2016.
Another factor that you should consider is the number of CFD trading instruments available on the broker’s platform. Many traders now trade CFDs on metals, commodities, indices etc. Always check beforehand if the instrument that you want to mostly trade is not available at the broker or not. The most popular base currency options are USD & EUR, but as per our research ZAR trading accounts are very popular among traders in South Africa. You should also carefully look into the withdrawal fees, because some brokers offer zero fees on deposits but charge high fees during withdrawals. IC Markets does not have any local funding options in SA like Bank transfer, and they also don’t have ZAR account base curreny available.