Forex Brokers Accepting South African Clients

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 deposits. While what brokers offer traders are very similar at the core, there are a couple areas that set them apart.

If I were new to trading and choosing from this list, I would look to see if a broker takes low 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. You can always sign up and use the demo accounts to find which setup you prefer before depositing.

My experience with AvaTrade

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 FSB, 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.

My experience with CM trading

I am a big fan of CM Trading because they are regulated fully by the FSB 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 branch directly. 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.

My experience with Easy Markets

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.

My experience with XM

I first started using XM (formerly Trading Point) 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.

My experience with Plus500

I like Plus500 and there is no doubt that they are a world leader in online CFD trading in my mind. The platform is easy to use, and thus it is not a big problem that I can not trade with MetaTrader.  I am not always an advocate of trading using mobile apps, but this app seems to do it better than most on both mobile and tablet – which makes it ideal for trading from the couch. What has stood out most to me with Plus500 beyond the platform, is the commission free trading, very tight dynamic spreads and the feeling that this broker stable and reliable.

My experience with Etoro

Etoro has an extremely successful user base which has enabled it to create an effective social trading tool which encourages traders to follow other successful traders in the brokerage. I would recommend this broker to any beginner because the practice accounts have a lot of money in them to practice with, and their software makes trading simpler and removes a number of the complexities. I would also recommend it to an advanced trader because of the high 400:1 leverage, making larger trades easier. Though Etoro is not perfect, with some downtime and lag of it’s software, the pros of this broker far outweigh the cons.

Q ‘n’ A Session for Would-Be Traders

What choices do I have?

The range of Forex brokers available is impressive. You can find brokers to work with you on any budget, using a wide range of platforms, and offering multiple account types. As long as you’re willing to put in the research, you can find a lot of options per your category of investment.

What should I focus on?

Focus on finding a broker that matches your needs. This seems generic, but it’s very particular to your specific set of demands. For instance, if you don’t have a lot to invest, focus on a broker offering a micro account, tight security, a lot of support, and other features. If you’re after a managed account with a mobile platform and high leverage, then this is obviously what you want to focus on in any broker.

How can I vet my broker?

Every broker is going to claim to be the best, but the trick here is finding out what real people say about them. Leave those short 40-word reviews alone and focus on blogs and forums dealing with real, experienced Forex investors who give their take on the broker you’re looking at. The people using the broker will speak truth to power.

Why do I need a broker in the first place?

Having a broker gives you access to different charts and analysis, constant reports on the market, someone to help you or handle the trades for you, and it basically allows you to be more of an investor than a trader. This minimizes risk and maximizes profit.

Are brokers honest?

Not every broker is going, to be honest. This is where vetting comes into play. However, on principle, brokerages are businesses and businesses need to profit. So you will find that a legitimate broker is honest and is very concerned about helping you make money.

Will my broker help me earn money?

Yes. A good Forex broker’s number-one goal is to ensure that you earn money. They’re either going to give you the tools to achieve or manage your account for you (with you still calling the shots, of course). If you don’t earn money, they won’t earn money. Your success is in their best interest.

I need a managed account.  Do brokers offer this service?

No.  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 platform or software will my broker offer?

Some brokers have proprietary software while others use popular platforms like MT4, cTrader, and other software packages. No matter which type of platform it is, however, every broker is going to offer something to you.

What’s the deal with South Africa and Forex brokers?

South Africa has a lot of rules and regulations in place making it difficult for investments, but not impossible. You won’t find a lot of brokers in South Africa, and if you do it doesn’t matter as long as you vet them properly. The money is exchanged elsewhere. Just be careful of scams.

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.

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.