These are the best Forex brokers available to South African traders that we put together as a guide. These are all trusted international brokers which take South African accounts and credit card deposits. While what brokers offer traders are very similar at the core, there are a couple areas that set them apart.
My Experience With These Top Brokers
During my time as a Forex trader, I try new brokers and review them. Comments below are my own and based off my experience with these brokers. I hope it helps you choose a broker by sharing my experience and insights into what matters and what does not in comparing brokers.
If I were new to trading forex and choosing from this list, I would look to see if a broker takes lower deposits, if the broker has social trading in a web-based application, if the broker charges commissions on the trades and also the bonuses that each of them offers first-time depositors. Primarily, it is most important that you understand how forex trading works, and understand that you can opt to sign up for a demo accounts which you can use to find the right broker before making a deposit. If the regulatory jurisdiction of a broker is important to you, here is our list of only FSCA regulated forex brokers.
I appreciate FXTM for the flexibility in accounts offered and the choice of the MT4 or MT5 platform. Compared to other brokers, the low minimum deposit is attractive along with local FSCA regulation and customer support 7 days a week, but if you are going to trade heavily in cryptocurrency (available in FT Global Limited) you might find yourself short of options. That said, I feel comfortable trading with FXTM and have always felt like I receive the support I need, when I need it.
Markets is a brand that has been around longer than I have been a trader. It is a reliable, loved by its many members, a and well-regulated brand. You can feel that when using the platform and using the customer service support. Now that Markets has started a South Africa only brand, I am really happy to be able to share with our audience. Everything is local and they are working hard to make South Africans happy. The spreads are not the tightest on the market, but the minimum deposit is just right for this market, and the winning mentality of the customer support will keep you happy.
I like Avatrade because it is a well-established broker that covers all the basics, and does them well. AvaTrade is regulated in South Africa by the FSCA, they offer training for beginner traders so you can learn, and they also support all major trading software so you don’t have to change software because you change brokers. If you are a beginner looking to start trading in South Africa, AvaTrade is highly recommended.
I am a big fan of CM Trading because they are regulated fully by the FSCA in South Africa with a local office in Sandton. CM Trading have numerous advantages for us South Africans, in addition to the offices, because I am able to easily transfer funds to a local NED bank account directly from our local bank accounts. Being in South Africa is often frustrating when we have to wait for Europe to open to make deposits, so if you are looking to have more flexibility, CM could be good for you. If you are a bigger trader, CM uses Intercash so that funds are moved in and out of the trading account as fast as possible – but I have not yet tried this.
If you have traded with the MetaTrader platforms before, then you should like this broker because you don’t have to go through much of a process of configuring up your account. While the website and the sign-up process could be easier, the staff are welcoming and helpful if they are called upon to help out. If you want a broker with good leverage, Easy Forex is probably not for you, but if you want to start off a trading career with low risk then that low leverage does play in your favour.
I first started using XM when I was trading binary options, and really appreciated the advanced uses of this broker. This broker has huge leverage, and tight spreads but to mitigate risk hedging is allowed. If you are a seasoned trader or want to learn with many of the features at your disposal then Trading Point is for you. This broker has no minimum on the micro and zero accounts making it hugely attractive for newcomers too.
How To Compare Forex Brokers?
How We Compare Brokers
- We only list brokers which are regulated by one of the major regulators. We believe that FSCA regulated brokers are the best for South Africans and we actively request brokers that we do feature to become members of the FSCA. These regulations make your funds more secure.
- The option of a low initial deposit is important to some traders. We appreciate brokers who offer micro-accounts to beginner traders and allow trading in micro lots so that traders only need to risk what they feel is acceptable.
- Traders must understand if the broker is a Market Making or Non-Market Making broker. This makes a difference in how the broker makes money and also makes clear where a conflict of interest could occur.
- The best brokers offer free educational materials that a trader may need to get started.
- We like to review the spread, commission, and leverage of forex brokers. These could also be things like the types of Forex market orders available, the trading costs, and try to identify those with a larger range of currency pairs available to trade.
We have worked for many years in the industry, and we are well connected with the brokers and the reputations of the brokers in the community. We believe that a forex trading experience should be safe, and fun.
Regulation of Forex Brokers
Looking For Other Brokers?
Here are some other lists of brokers that take other aspects of the brokers into consideration.
Forex Broker Types & How They Make Money
Forex Broker Reputation, Conflict of Interest and Trust
Can You Trust Forex Broker?
Even if your Forex broker is regulated and has an outstanding reputation, it’s best to spread your eggs in different baskets. In other words, while you can certainly trust a regulated Forex broker you can’t protect yourself from the possibility of your broker going bankrupt. In this regard, it’s best to do your own research and spread your hard earned money across multiple brokers. We have compiled a list of Forex brokers regulated by the FSCA here.
Do Forex Brokers Trade Against You?
In the case you’re trading through a Market Maker Forex broker then, in this particular case, the broker might trade against you and take the other side of your transaction. All you need to understand about market makers is that there isn’t someone at the other end of your trades doing their best to stop you out, that doesn’t happen.
What a market maker is doing is that they are simply taking the other side of your position since it’s assumed that most retail FX traders lose money. This makes total common sense for the broker to be on the other side of your trade because they can profit from that.
Different Services Forex Brokers Offer
What platform will my broker offer?
Some brokers have proprietary software while others use popular platforms like MetaTrader4, cTrader, and other software packages. Most brokers also have forex trading mobile phone apps. No matter which type of platform it is, however, every broker is going to offer something to you. If you do choose MetaTrader 4, we have a guide to setting it up here.
What types of currencies and commodities should I look for?
A good broker is going to have between 30 and 50+ currency pairs, gold and silver, CFDs and other commodities you can trade with. You don’t have to settle for currency alone just because you’re seeking a Forex broker.
I need a managed account. Do brokers offer this service?
Some brokers will do operate a managed account for you, but it is rare. There are also independent money managers who will be able to manage your trades while he/she is trading for themselves. It is important that you read our piece on managed accounts, and understand the risks involved. It goes without saying that you would look into the performance of the trader, but this is something they are very transparent about.
What is Scalping?
Forex scalping is a strategy where a trader seeks to profit from the small currency exchange fluctuations. Usually, a scalper enters and exit trades several times a day and the trade holding time period is very small (generally few minutes).
What is Hedging?
Currency hedging is a way of attempting to protect yourself against a negative event that can send the market moving against your initial position. You can think about hedging as a form of insurance if something goes wrong with your trade. Direct hedging is when you buy a currency pair and then at the same time you sell the same pair. If you are looking for brokers that allow hedging, we have a list here.
What Forex Broker should I choose?
Choosing a Forex broker can be an intimidating task when you have at your disposal countless options to choose from. Consider five important elements and requirements to look for when choosing a Forex broker:
- Regulation, is your Forex broker regulated? All brokers on this site are.
- How does your broker make money: spread and commission or by trading against you?
- Does your broker have a minimum deposit you are comfortable with?
- Are the spreads and commissions reasonable compared other brokers.
- Does your broker allow scalping and hedging?
If you have managed to answer YES to all five questions there might be a chance you’re dealing with a reputable Forex broker. Our list above gives you our thoughts, and will help you make this decision.
A Final Note
Every Forex trader is different in his or her needs and desires, so there is no one-size-fits-all broker. To find the right fit, make sure you’re reading reviews and vetting the broker properly. Take your time to choose the best platform, the best account, and make sure you understand the risks involved.