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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: Tuesday, December 17th, 2019
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
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
TheFSCA(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.
No Commission Account Spreads From (EUR/USD):
Pepperstone Is The Best Forex Broker In South Africa
Pepperstone is one of the fastest-growing CFD providers regulated by the Financial Conduct Authority and ASIC. In South Africa the broker in the process of an FSP application with the Financial Sector Conduct Authority (FSCA).
There are five key reasons why Pepperstone is the best option for South African forex trading.
Pepperstone offers the choice of the best forex trading forex platforms globally:
The most popular forex platform allowing manual or automated forex trading
A multi-asset platform designed for those looking to trade more than forex online
Advanced platform offering details charts, algorithmic trading and market depth
Pepperstone offers two main account types, standard and razor. The Razor trading account is the most popular offeringspreads similar to a true ECN brokerwith EUR/USD spreads from 0.0 pips. Some Pepperstone average spreads for major currency pairs include 0.13 for the EURO/US Dollar, 0.14 for the Australian Dollar / US Dollar, 0.22 for the Euro/Japanese Yen, 0.41 for the Euro/British Pound, 0.44 for the Pound/US Dollar. The razor account also charges acommission of $3.50 AUD per lotwhen the Australian Dollar trading account currency is chosen.
There are also further commission discounts (rebates) available for active traders with three tires:
Pepperstone offer over 60 currency pairs from the majors such as EUR/USD to minors including ZAR/USD. Up to 500:1 leverage is offered on the forex market and the Pepperstone EDGE environment ensures fast execution speeds. In addition to currency pairs, there is the ability to trade CFDs including:
(Bitcoin, Litecoin, Bitcoin Cash, Dash and Ethereum) with up to 5:1 leverage and no commissions
(Over 60 high-quality stocks) with up to 20:1 leverage and commissions from USD $0.02 per share
(Across 14 major markets) with up to 200:1 leverage and spreads from 0.4 pips
(Metals, Soft Commodities, Energy) with up to 500:1 leverage and spreads from 10 cents per pip
Pepperstone has one of the lowest minimum deposit requirements of AUD $200. The fx broker also offers fee-free funding methods from Debit Card, Credit Card, Direct Transfer, Paypal to Skrill.
Over the past decades, Pepperstone has won multiple awards for its customer service. This includes the Investment Trends customer support award, Professional Traders client relationship manager service award and the Global Forex best forex trading support award. The CFD provider offers South African traders with a 24/5 call centre, live chat and e-mail customer support. Active traders also receive a dedicated account manager to tailor the support given for their needs.Read more
Pepperstones low brokerage (spreads/fees), choice of forex trading platform and support are the three pillars making them the best broker. With a strong reputation worldwide and their FSP application pending, they are the ideal choice for South African forex traders.
Pepperstone is the best forex broker for South African traders based on five key factors:
Its regulated with the FCA, ASIC and is in the process of a South African FSP licence
It has the lowest commissions and spreads from 0.0 pips for the EUR/USD
Traders can choose from the most popular forex platforms, MT4, MT5 or cTrader
It has award-winning customer support from live chat to the call centre
There are a plethora of fee-free funding methods with a $200 minimum deposit requirement
For more details, you can view thePepperstone review.
To find the best fx broker for your needs you should be looking for a regulated fx broker that has low brokerage (spreads/commissions), a solid forex trading platform, strong customer service and easy deposit/withdrawal methods.
View ourbest forex broker sectionto see a list of the leading CFD providers.
Beginner forex traders should be looking for a CFD broker that an easy to use forex trading platform, strong customer support and risk management features such as negative balance protection and guaranteed stop-loss orders.
Ourrecommendation is Plus500which has the components a beginner trader needs.
The lowest spreads are available from providers that have ECN broker accounts. Ourreview of Pepperstonefound they had the lowest spreads with some 2019 example:
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.
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 and 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
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.
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
Each yearInvestment Trendssurveys 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 doesnt apply specifically for South African forex trading, traders in SA will experience the same level of customer service as its 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 its 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 IGs 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.
Its 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.
Its 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 Feesare 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 aZAR account.
2) Forex Platformsare 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) Leverageis 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 its critical to understand the risks of forex trading.
4) Risk Managementfeatures 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. You can check with each fx broker what percentage of retail investors lose their money.
5) Regulatory Bodies:The South African local regulatory body is theFSCA, 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.