Forex trading becomes exciting when you trade with a good forex broker. On the contrary, you might feel demotivated when scammed by a dishonest broker. Unfortunately, finding the best forex brokers in South Africa is a challenging task. After reading this article, you will be in a better position to select a good forex broker in South Africa. After a stressful research of over six nights, I finally found out four brokers that in my view are the best forex brokers for traders residing in South Africa.
Read: Forex Trading South Africa
Best Forex Brokers in South Africa
#1 Plus500
Plus500 is a multi-regulated broker that offers margin-based trading services in a wide-range of financial products including currencies, CFDs and cryptocurrencies. The broker is based in the United Kingdom, with 50 regional offices situated in various parts of the world. The trading brokerage requires only a $100 deposit to get started along with generous leverage.
Funds at Plus500 are backed by the Financial Service Compensation Scheme (FSCS). The broker offers Mt4 for desktop and hand-held devices. Customers of Plus500 love the fast trade execution, low spreads and high leverage.
- Founded:2008
- Regulation: FCA, ASIC, MAS
- Headquarter: United Kingdom
- Minimum Deposit: $100
- Trading Platforms: Online, Desktop & Mobile
Read: Plus500 Review
| PROS | CONS |
| Professional customer support Fast trade execution Low spreads | Does not accept US clients Does not offer fixed spreads Limited research tools |
#2 IG
IG is a market leader in Forex, CFD and Cryptocurrency trading. The company is a brand name of the UK-based IG Group. The broker has been in business for more than 30 years. Talking about the level of services you receive at IG, I can say you will barely like switching to another broker once you’ve tried IG. The advanced trading platform with an option of API integration for algorithmic trading suffices your trading needs. Margin requirements and volume-based rebates complement your thrust for trading. Facilitating clients through both desktop and mobile-based trading platforms, IG ensures the availability of the latest technical and analytical tools.
With a quick account opening process and multiple payment methods, traders can get started with IG right away. The education section at IG has enough resources available to learn the ins and outs of trading. The broker also provides the facility of a demo account to help traders gain confidence before going live.
- Founded:1974
- Regulation: FCA
- Headquarter: London, UK
- Minimum Deposit: $300
- Trading Platforms: Online, Desktop & Mobile
Read: IG Review
| PROS | CONS |
| CFD account has no minimum balance restriction Easy-to-use Intuitive trading platforms Multiple deposit & withdrawal options FCA regulation US Clients are accepted | No guaranteed stops for US customers Stocks & CFD spreads are higher No live support |
#3 VantageFX
VantageFX is another top-rated regulated broker offering clients access to the global forex market remotely. The broker provides regulated trading services in forex, indices, commodities, CFDs, and cryptocurrencies. The main features of the broker include low spreads, minimum deposit requirements, and high leverage. Besides offering the world’s most advanced trading platforms such as MT4 and MT5, the broker also facilitates clients looking for social trading. To make the account opening process seamless and help traders dealing with any unforeseen situation, the broker makes sure that the customer support staff is available round the clock. VantageFX offers a wide range of deposit and withdrawal options, making it convenient for traders to use the low cost payment methods. The broker also offers cash rebates and a welcome bonus to its clients on their first deposits.
Being an STP broker, VantageFX ensures instant trade execution. The provision of Islamic accounts allows traders to enjoy interest-free trading conditions. Raw ECN pricing structure makes the broker one of the best choices available in South Africa.
- Founded:2009
- Regulation: CIMA
- Headquarter: Cayman, Islands
- Minimum Deposit: $200
- Trading Platforms: Online, Desktop & Mobile (ZuluTrade, MyFXBook AutoTrade, DupliTrade)
Read: VantageFX Review
| PROS | CONS |
| Offers low spreads high leverage options Wide range of educational resources Seamless account opening Variety of trading tools | CFD portfolio lacks variety US Clients not accepted Automated trading is not allowed Confusing terms for PAMM accounts |
#4 HotForex
HotForex is a multi-regulated forex broker providing online trading services in forex, metals, indices, energy, commodities, CFDs, and digital currencies. The company has recently inducted stocks DMA and ETFs facility as well. HotForex offers premium trading resources such as multiple trading accounts, protection for clients funds, and commission-free deposits. To make clients’ trading experience memorable, the company further adds a flare of low-cost trading, multi-asset CFDs, and varying trading tools. Hotforex offers easy-to-use trading platforms with convenient payment methods.
HotForex keeps clients funds in segregated bank accounts. In addition to offering educational resources, the company also holds occasional webinars. The purpose of these webinars is to keep clients informed concerning the latest trends in the forex market. Traders can contact the company over phone or email round the clock.
- Founded: 2010
- Regulation: Cysec, FCA, FSA, DFSA
- Headquarter: Cyprus
- Minimum Deposit: $5 for Micro Account, $100 for Premium Account
- Trading Platforms: Online, Desktop & Mobile (MT4, MT5)
Read: HotForex Review
| PROS | CONS |
| Wide range of tradable assets Availability of DMA accounts Low spreads Multiple payment methods | No cTrader available Customer support isn’t responsive Limited educational catalog US clients no accepted |
#5 XM
XM is an online forex broker known for its regulated trading services in more than 10,000+ tradable instruments. The broker has managed to earn a remarkable reputation for its ten years long presence in the forex trading industry.
With multiple trading platforms supported across all windows and hand-held devices, the company has the most competitive price structure in place. Taking the trading experience to the next level, XM has recently started offering zero accounts. XM Zero account enables low budgeted traders to enjoy premium services for less cost. With zero hedged margin, traders are allowed to use hedging strategy for managing the trading risks efficiently.
XM also supports the usage of expert advisors, making it convenient for both novice & skilled traders to trade seamlessly. The broker has a wide range of educational & research tools available.
- Founded:2009
- Regulation: Cysec, ASIC, FCA, AFSL, DFSA
- Headquarter: Limassol, Cyprus
- Minimum Deposit: $5 for Micro & Standard Accounts, $100 for XM Zero account
- Trading Platforms: Online, Desktop & Mobile
Read: XM Review
| PROS | CONS |
| No fee on withdrawals Low trading costs Fast account signing-up process Variety of educational and research tools Negative balance protection | US Clients not accepted Limited product portfolio No protection for Non-European clients Slow customer support |
How Did I Select The Above Forex Brokers?
It has been more than a decade since I started my forex trading career. In the beginning of my trading career, I tried so many brokers but sadly only a few of them were legit. Some main disadvantages I noticed in dishonest brokers are as under:
- They pass on only negative slippage, you barely receive positive slippage at times of high volatality
- Spreads widening and stop loss hunting is very common
- They discourage scalping and auto-trading strategies
- They add high mark-ups to spreads and swaps
I hand-picked the above-mentioned forex brokers after analyzing their regulations, trading conditions, spreads, payment methods and customer support. The brokers listed above are in my view the best forex brokers in South Africa.
Financial Services Conduct Authority (FSCA) – South Africa
Besides several regulatory bodies involved in controlling financial markets in South Africa, the Financial Services Conduct Authority – FSCA is specifically responsible for looking after the matters related to forex intermediaries. In addition to devising a regulatory framework, the regulatory body also monitors the financial affairs of the forex companies operating in South Africa.
The FSCA, formerly known as the Financial Services Board (FSB), stipulates the guidelines for forex brokers. The authority is also responsible for having occasional checks to confirm the compliance of forex brokers with the SOPs in place. The regulatory authority requires all financial intermediaries to act in the best interest of the public. A failure in compliance with the FSCA rules might result in immediate cancellation of permits along with legal proceedings.
Read: FSCA Regulated Forex Brokers
Factors To Consider When Choosing A Forex Brokers
Considering the inconvenience you might face while searching for a good forex broker, let me share a few crucial factors that you must consider before choosing a broker. These factors might help you spend less time in search and focusing on other things to have a successful forex journey.
Broker’s Credibility
Above all other factors, the credibility of a broker is of crucial importance. Undoubtedly, you don’t want to open an account with a broker known for its bad reputation. Always check different third party websites to find out the credibility score of your prospective broker. You can also read reviews of other traders on authentic platforms such as Forex Peace Army, Reddit and Quora etc.
Regulations
Sometimes people mix up the credibility of the broker with regulations. However, both are independent elements as far as the operational procedures of a broker are concerned. Your broker might remain credible without being regulated. However, regulated brokers are bound by law to remain credible.
The regulation requires brokers to maintain minimum capital all the time while carrying out business. Further, regulated brokers need to keep funds of their clients separate from their capital investments.
Security of Data
When you sign up with a broker, you might need to share your payment details with the broker to fund your account, such as credit card information. If web-servers of your prospective broker don’t have enough security protocols in place, you might fall prey to scammers. For instance, let me share an example here;
In 2015, FXCM servers got hacked. Intruders made several unauthorized transactions from clients’ accounts. Therefore, always confirm if your broker offers a secure web-encryption protocol as well as a two-step authentication factor for your confidential transactions.
Trading Platforms
Logically, you might think the best broker is the one who offers an easy to use trading platform. That’s true to some extent, but not always the case. There are several other elements that you must check before opening an account with a broker.
Your broker should not only have a user-friendly trading interface, but it should also have the latest trading tools available. For on-the-go trading, the platform should also be compatible with Android and iOS-based mobile devices.
Trading Fees
Many business ventures come with some hidden fee charges, and the same applies to the forex brokers. You come to know about hidden charges only after signing up with a broker. Some brokers take a share out of your total profit, while other brokers might impose a fee on every single transaction. Therefore, it is suggested that you start with smaller investments with new brokers and increase your exposure gradually as you gain confidence.
Customer Support
No matter how good a broker appears to be in your first interaction, if its customer services are not up to the mark, better not to proceed with it. Efficient customer services offer you a sense of reliability. At times of need, hassle-free customer support is essential. Imagine if you are unable to close a running trade or your Mt4 platform has become unresponsive. Surely you will desperately need to speak with the support person of your broker. Therefore, professional customer support is one of decisive factors while choosing a broker.
Verdict
Above listed brokers are the best forex brokers in South Africa as per my experience and knowledge. Among the above-listed brokers, I would give Plus500 the highest rating due to multiple regulations, good reputation, tight spreads and professional customer support. So if you are in South Africa, I would advise going with Plus500 straightaway.
