The FSCA (formerly FSB) is the South African financial regulator responsible for monitoring South African Forex brokers. FSCA-regulated brokers are required to keep client’s money separated from company operating funds and are audited on a regular basis to ensure that client funds are not misused. All FSCA-regulated brokers must also apply for an ODP licence, which further protects South African traders.

To test these brokers, we opened live trading accounts to evaluate the trading conditions, trading platforms and educational material for new traders. As part of the test, we took notes on the onboarding process to gauge the transparency of all communication to assure it is in line with FSCA rules on the promotion of derivate products. While South African traders are not required to trade with FSCA regulated brokers, local regulation can provide an extra layer of protection.  These are the best FSCA-regulated Forex brokers for 2021, according to our testing and our research.

  • Blackstone Futures - Best FSCA Regulated Forex Broker
  • FXTM - Best FSCA-Regulated Broker for Beginners
  • AvaTrade - Best FSCA Mobile Trading App
  • HotForex - Highest Leverage with Market Execution
  • Exness - Best FSCA-Regulated Trading Conditions
  • CM trading - Largest FSCA Regulated Local Broker
  • Khwezi Trade - Best Local FSCA Regulated Broker
  • MarketsX - Best Trading Platform with FSCA Regulation
  • FxPro - Best FSCA Regulated No Dealing Desk (NDD) Broker
  • IG Markets - Best FSCA Regulated MT4 Broker
English

Best FSCA Regulated Forex brokers 2021

Last updated on 14 Apr 2021
Updated 14 Apr 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
Blackstone Futures
Min. Deposit
ZAR 1000
4.484.48
FSCA Licence
49846
Trading Cost
USD 6
Platforms
Overall Rating
11110.54.48/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 and CloudTrade platforms supported. Blackstone Futures is regulated by the FSCA - FSP:49846
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Blackstone Futures is an established FSCA-regulated CFD broker based in Johannesburg, offering clients trading in commodities, cryptocurrencies, equities, energies, Forex, futures, indices, and metals. Blackstone offers ZAR and USD accounts on MT4 and the proprietary CloudTrade platforms – both with STP execution.

While trading costs are low, and spreads are tight and maximum leverage is 400:1, Blackstone Futures restricts traders by offering a limited set of 32 FX pairs. Beginner traders are well-catered with outstanding educational support for beginners, weekly webinars, and in-person Masterclass sessions around South Africa.  Unfortunately while BlackStone Futures caters to Malaysian clients, it does not offer Islamic swap-free accounts.

Pros
  • ZAR accounts
  • Tight spreads
  • Fast and free withdrawals
Cons
  • Limited platform choice
Read More About Blackstone Futures
2
FXTM
Min. Deposit
USD 10
4.174.17
FSCA Licence
46614
Trading Cost
USD 19
Platforms
Overall Rating
11110.54.17/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.90 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
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FXTM is a multi-regulated FSCA registered CFD broker offering clients trading on Forex, cryptocurrencies, indices, metals and stocks. With a complete education and market analysis section, and the unique FXTM Invest copy trading platform, FXTM is plagued by unfavourable trading conditions and platform choice limits on their entry-level accounts and charging withdrawal fees.

Beginners at FXTM will find a good overview of how Forex trading works and the basics of a beginners course in their guides and tutorials, webinars, ebooks, trading glossary and videos that cover beginner and intermediate topics. Daily market analysis will help beginners understand the real-world implications of news events on the Forex market and where the opportunities lie. However, Serious beginners should consider the ECN Account (minimum deposit 500 USD) or the ECN Zero Account (minimum deposit 200 USD) as trading conditions dramatically improve to fall in line with industry averages.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
Read More About FXTM
3
AvaTrade
Min. Deposit
USD 100
4.184.18
FSCA Licence
45984
Trading Cost
USD 9
Platforms
Overall Rating
11110.54.18/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
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AvaTrade is an internationally and FSCA regulated CFD broker offering trading on Forex, cryptocurrencies, commodities, indices, stocks, bonds and EFTs. AvaTrade has one of the best mobile trading applications in the industry and, unlike many global brokers, offers a local South African customer support team. 

AvaTrade has over 200,000 active traders on the MT4, MT5, and AvaGo platforms and provides free access to trading tools like Autochartist, Duplitrade and AvaProtect, its own innovative risk management system.

While AvaTrade is a dependable broker for beginners, professional traders looking for advanced educational material and industry-leading market research will be underwhelmed.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited education
Read More About AvaTrade
4
HotForex
Min. Deposit
USD 5
4.494.49
FSCA Licence
46632
Trading Cost
USD 10
Platforms
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
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HotForex is a global CFD broker with FSCA regulation offering a variety of trading products including Forex, commodities, indices, shares and crypto. Trading conditions are unusually good on the 5 USD (5 USD) introductory account, with fast market execution and competitive spreads. Experienced traders will be interested in HotForex’s professional account with EUR/USD spreads starting at 0.0 pips and a 6 USD commission.

HotForex supports both the MT4 and MT5 platforms and provides 18 trading tools to further assist traders. Unfortunately, access to better trading tools like Autochartist, which other brokers offer as a free service, requires an account balance of 6500 ZAR – well above the required minimum deposit.

HotForex offers a structured beginner course and webinars to help newcomers get started, but customer support is closed on the weekend, leaving novices stranded when they may need help the most.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
Read More About HotForex
5
Exness
Min. Deposit
USD 1
4.324.32
FSCA Licence
51024
Trading Cost
USD 7
Platforms
Overall Rating
11110.54.32/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.
Show Details

Exness is an FSCA and internationally regulated CFD broker offering trading in Forex, cryptocurrencies and metals. Exness has some of the tightest spreads in the industry and a relatively low minimum deposit, but its selection of financial instruments is limited compared to similar brokers.

Exness has market and instant execution accounts and full support for MT4 and MT5 on both standard accounts. An optional ZAR account is available to South African traders, deposits and withdrawals are free of charge, and customer service is 24/7.

While Exness’ trading costs are well below the industry average, its education and market analysis are poor compared to other major brokers.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • 24/7 customer service
Cons
  • Limited education
  • Limited market analysis
  • Unavailable in Europe
Read More About Exness
6
CM trading
Min. Deposit
USD 100
3.243.24
FSCA Licence
38782
Trading Cost
USD 15
Platforms
Overall Rating
1110.503.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.
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CM Trading is a major South African CFD broker offering trading on Forex, indices and commodities.  South African traders will be pleased that CM Trading is fully licenced by the FSCA, but should be aware that trading and withdrawal costs are high.

The minimum deposit is 250 USD and CM Trading offers both MetaTrader4 and Sirix trading platforms on desktop computers and mobile devices. A variety of promotions and bonuses are available for new accounts.

The local customer service is generally excellent, but wide spreads and only basic market analysis might discourage traders.

Pros
  • Good for beginners
  • Great customer support
  • Copy trading accounts
Cons
  • Expensive withdrawals
  • Local regulation only
Read More About CM trading
7
Khwezi Trade
Min. Deposit
USD 100
3.473.47
FSCA Licence
44816
Trading Cost
USD 6
Platforms
Overall Rating
1110.503.47/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Only MT4 platform supported. Khewzi Trade is regulated by the FSCA - FSP:44816
Show Details

Khwezi Trade is a South African FSCA regulated broker headquartered in Cape Town. As is common with other STP brokers, Khwezi Trade uses MetaTrader 4 as their single choice of platform, as it provides fast and reliable market execution.

Khwezi Trade offers four account types depending on minimum deposit but all accounts come with a personal account manager.  Leverage is less than is offered by other international brokerages, and currency pairs are more limited, but the clear appeal with Khwezi Trade is their competitive trading conditions that rival other local players.

For beginner traders with higher deposits above R15,000, Khwezi Trade awards clients five trading sessions led by a professional trader as well as more profitable trading conditions. For deposits over R50,000 unlimited training is provided.

For a South African trader looking for a genuinely local broker, Khwezi Trade has local regulation, local offices, local staff, and uses local banks.

Pros
  • ZAR Accounts
  • Fast and free withdrawals
Cons
  • Local regulation only
  • No swap-free account option
Read More About Khwezi Trade
8
MarketsX
Min. Deposit
USD 250
4.394.39
FSCA Licence
43906
Trading Cost
USD 6
Platforms
Overall Rating
11110.54.39/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.
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Marketsx is a premium trading platform. It’s operated by Markets.com and offers traders fast, low-cost trading on over 2,200 financial instruments. Marketsx provides CFD trading on global stock, forex, commodity, indices, cryptocurrency, ETF and bond markets. Clients in the UK can also use spread bets on applicable instruments.

The proprietary Marketx trading platform is packed full of features and trading tools and is optimised for lightning execution. As well as in-depth charting and asset comparison tools, Marketsx also gives traders a wealth of decision-supporting data with sentiment tools, tutorials, and regular live-streamed, expert analysis.

Owned by Tradetech Markets (South Africa) Pty Ltd., a subsidiary of Playtech PLC, Markets.com (South Africa) SA is one of the best-recognised Forex brands.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
Read More About MarketsX
9
FxPro
Min. Deposit
USD 100
4.214.21
FSCA Licence
45052
Trading Cost
USD 15
Platforms
Overall Rating
11110.54.21/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA
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FxPro is one of the most respected Forex brokers in the industry. Regulated by the FCA and CySEC and with over 870,000 client accounts in 173 countries, FxPro is a truly global powerhouse.

FxPro offers a no dealing desk execution model on MT4, MT5, cTrader and a browser-based platform. A reasonable 100 USD opening deposit and outstanding customer service are combined with competitive spreads – often as low as 0.6 pips – to match profitability with security.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
Read More About FxPro
10
IG Markets
Min. Deposit
USD 250
4.694.69
FSCA Licence
41393
Trading Cost
USD 6
Platforms
Overall Rating
11110.54.69/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
Show Details

IG Markets is an extremely well-regulated CFD broker with world-class trading conditions and a massive variety of trading assets: Traders have access to Forex, indices, shares, commodities, cryptocurrencies, ETFs, digital 100s, interest rates and bonds. While IG Markets is well suited to professionals with its advanced custom trading platform and powerful charting tools, it also offers industry-leading educational support to beginners through the IG Academy.

IG Markets supports MT4 and its own superior L2Dealer platform, which offers direct market access, improved liquidity, faster trade execution and advanced order management. Experienced traders can activate L2Dealer’s ProRealTime extension for advanced charting, trading automation, and detailed technical analysis to enhance the trading experience.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
Read More About IG Markets

How to compare FSCA Regulated Forex Brokers

The FSCA, formerly the FSB, is the government agency responsible for regulating South African brokers. While international brokers can attain FSCA licenses, it is more common for local brokers to have this licensing. If you are choosing between FSCA regulated broker, here is what to consider:

Regulation: We list the FSCA license number for each SA regulated broker to make it easy to verify each broker’s regulatory status. Traders can use this number to confirm the licensing and verify that the license number belongs to the broker in question and is not being loaned by another regulated company. While the FSCA is a respected organization in South Africa, there is additional security in a broker being regulated by international tier 1 regulators like the FCA (United Kingdom) and ASIC (Australia).

ZAR accounts: South African and International brokers can offer ZAR accounts. In this case, when a client deposits with the broker, the funds are kept in Rands and not converted to USD, EUR, or GBP. ZAR accounts have both advantages and disadvantages, but should you wish to keep your funds, you will need a broker with ZAR base currency support.

Segregated accounts: FSCA regulated brokers must keep all client funds in segregated accounts, which keeps client money and company operation money separate and makes client funds more protected from abuse. However, just because the broker must have segregated accounts does not mean they are using South African banks, so if you would rather your money be kept in South Africa, it is wise to register a ZAR trading account with a local broker. 

Trading costs: As with comparing brokers of any regulation, it is important to look at what it would cost to trade with any specific broker. When we compare trading costs, we consider what trading one lot of EUR/USD on the entry-level account would cost a trader. 


🏆BlackStone Futures – Best FSCA Regulated Forex Broker

Blackstone Futures is a proudly South African, established FSCA-regulated broker based in Johannesburg providing ZAR accounts on both the MT4 and CloudTrade platforms, SA’s tightest spreads, responsible client care and negative balance protection and fast and free withdrawals. All clients have negative balance protection, EUR/USD as tight as 0.6 pips at times, and as an STP broker, the broker will never be the counterparty to your trades.

Blackstone Futures also has a responsible approach to leverage. On the MT4 platform, leverage is also initially limited to 100:1 but can be increased to 400:1 once clients have a steady track record. Blackstone Futures also processes all withdrawals on the same day, with no charges attached, and aims to have client funds back in their accounts within 24 hours.

AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 and CloudTrade platforms supported. Blackstone Futures is regulated by the FSCA - FSP:49846

🏆FXTM – Best FSCA-Regulated Broker for Beginners

FXTM is the best FSCA-regulated broker for beginner traders. FSCA regulation guarantees local protection, and low minimum deposits and tight spreads reduce risk. Weekend customer support allows part-time traders to get set up when they’re not working, and FXTM’s education section is ideal for those who want to get up to speed quickly. 

While FXTM’s Standard Account is good with a minimum deposit of 100 USD and spreads starting at 1.3 pips, FXTM also offers a Cent Account with a minimum deposit of only 10 USD but only slightly wider spreads, starting at 1.5 pips. Clients can use FXTM’s best in class copy trading system with all account types, meaning that new traders can follow professional strategies and learn from the best traders in the business.

AlertAccepts South African Clients. Average spread EUR/USD 1.90 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

🏆AvaTrade – Best FSCA Mobile Trading App

Winner of the Award for Best Broker of 2020, AvaTrade offers the best overall trading environment of all FSCA regulated brokers on a mobile app. AvaTrade features low spreads on a single account, award-winning customer service, an excellent mobile trading platform, AvaTradeGo and great trading tools like AvaProtect, allowing traders to purchase loss protection for a time directly from the AvaTradeGo app.

Maximum leverage at AvaTrade is 1:400, and spreads are some of the tightest we have seen for an account with only 100 USD minimum deposit and no commission – as low as 0.9 pips on the EUR/USD. AvaTrade has no fees for either deposits or withdrawals and a commitment to processing your funding request as fast as possible. The customer service team is available 24/5 via telephone, live chat, and email.

AlertAccepts South African Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

🏆HotForex – Highest Leverage with Market Execution

An STP broker regulated by the FSCA in South Africa, CySEC and the FSA, HotForex has built a reputation for tight spreads with STP execution, high leverage 5 USD Mirco Accounts, detailed market analysis, and 24/5 customer support. With accounts that suit both beginners and professionals and detailed market analysis, HotForex is a good choice for new and experienced traders.

HotForex devotes an entire section of its website to market analysis and trading tools; these include daily market news, trade analysis, and outlooks. Trading calculators and economic calendars are also available for reference outside of a trading platform.

AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

?Exness – Best FSCA-Regulated Trading Conditions

Exness is an FSCA and internationally regulated CFD broker offering trading in Forex, cryptocurrencies and metals. Exness has some of the tightest spreads in the industry and a relatively low minimum deposit, but its selection of financial instruments is limited compared to similar brokers. 

  • Super-tight spreads and 1 USD minimum deposits
  • ZAR Accounts on MT4 and MT5
  • 24/7 Crypto trading

✔️Tight Spreads, Low Minimum Deposits and ZAR Accounts

Trading conditions at Exness are some of the best in the business. All trades are executed on the market with no intervention, with one exception. With a low-cost cent account for new traders, unlimited leverage on some of the professional accounts and a wide range of assets to trade, Exness has made sure that its product offering will appeal to all types of trader. MT4 and MT5 are both available across a wide range of accounts and ZAR account are available for South African traders.

✔️Low-Risk Cent Account

With 1 USD minimum deposit, micro-lots unlocked, and spreads as low as 0.3 pips, the Exness Standard Cent Account is a great account for new Forex traders who want to learn without too much risk. You will only be able to trade currency and metals with this account and MT5 is not supported.

AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.

?CM Trading – Largest FSCA Regulated Local Broker

A South African powerhouse, CM Trading has been regulated by the FSCA since 2009. Winning awards for its innovation, CM Trading has developed its own CopyKat copytrading system and traders appreciate the Guardian Angel automated feedback tool.

  • Largest South African Broker
  • Innovative Trading Tools

✔️Largest South African Brokerage

With over 1 million clients worldwide, CM Trading is by far the largest South African broker. Traders are attracted by the personal account managers, negative balance protection and simple account types coupled with optional ECN execution.

CM trading

✔️A Guardian Angel for All Clients

CM Trading offers a range of tools for traders, but the most popular is the Guardian Angel system. This system provides traders with market trends but also provides automated feedback on a trader’s behaviour, helping them optimise their trading strategies and preventing errors.

CM Trading Guardian Angel

 

?Summary: Why Should Traders Use CM Trading?

CM Trading offers South African traders a truly world-class brokerage, operating from a South African office and with FSCA regulation. Negative balance protection, personalised customer service and fixed spreads on a range of assets are coupled with innovative trading tools such as the Guardian Angel system and CopyKat copytrading platform.


AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.

?KhweziTrade – Best Local FSCA Regulated Broker

Winner of the Award for Best Forex Broker in Africa, Khwezi Trade is a South African FSCA regulated broker headquartered in Cape Town. An STP broker, Khwezi Trade supports MetaTrader 4 and provides fast and reliable market execution. For South African traders looking for a genuinely local broker, Khwezi Trade provides:

  • FSCA Regulation and ZAR Accounts
  • Tight Spreads and STP Execution
  • Excellent Local Customer Support
  • Free Deposits and Withdrawals

✔️Cape Town’s Finest

KhweziTrade are the best African Broker for good reason. FSCA regulation, ZAR Accounts, MT4 support and STP execution are combined with tight spreads and a local focus. Not just local regulation, but local offices, local staff, and local banks. With KhweziTrade, all your funds are kept in segregated accounts at Standard Bank.

KhweziTrade Homepage

 

✔️Personal Customer Support and Free Funding

Khwezi Trade offers four account types depending on minimum deposit, but all accounts come with a personal account manager. Support is offered via live chat, email, and phone from 7 am to 6 pm, but clients can call after-hours for emergency assistance. Help is available in English, Afrikaans, Zulu, Sotho, and Xhosa. In addition, there are no deposit or withdrawal fees, and withdrawals are processed daily. There are also no inactivity fees applied to accounts.

KhweziTrade Testimonials

?Why Should Traders Use KhweziTrade?

KhweziTrade is honest, transparent, and genuinely interested in the welfare of its clients. Trading conditions are competitive with some of the best international brokers and the personalised customer support is the best amongst local brokers. FSCA regulated and locally focused, KhweziTrade is one of the brightest stars in the local Forex industry.


AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Only MT4 platform supported. Khewzi Trade is regulated by the FSCA - FSP:44816

?Marketsx – Best Trading Platform with FSCA Regulation

Marketsx Chart

Marketsx is a premium trading platform operated by Markets.com. Not only is Markets.com regulated by CySEC and ASIC, but it has also been regulated by the FSCA since 2012. The new Marketsx platform offers traders fast, low-cost trading on over 2,200 financial instruments. Launched in 2019, some of the highlights of the platform are:

  • Over 2200 tradeable instruments
  • Tight spreads with no commission
  • 1:300 Leverage
  • Lightning execution
  • In-depth charting, asset comparison and sentiment tools
  • Live-streamed, expert analysis

✔️Trade Every Market with Tight Spreads

Traders have a choice of over 2,200 instruments on the Marketsx platform. These include

Over 50 global FX pairs including GBP/USD and EUR/USD, with spreads starting at 0.9 pips and leverage of 1:300. Other CFDs include leading stocks such as Apple, Amazon, Facebook, and Tesla, six of the world’s biggest cryptocurrencies, over 25 major market indices, commodities including precious metals and energies, dozens of regional and sectoral ETFs and US, UK and German government bonds.

Marketsx Crypto Spreads

✔️Trading Tools and Expert Analysis

The Marketsx platform has built-in advanced charting – trendlines, channels, pitchforks, Fibonacci Retracements, and much more can be drawn on the charts. The trading tools menu features a range of tools that crunch big data from leading analysts, hedge funds, and commentators to give traders better insight into the market. Each tool has integrated buy and sell buttons, so traders can quickly act upon the information presented.

Marketsx Tools

?Summary – Why Should Traders Use Marketsx?

For traders looking for an FSCA-regulated broker with a modern, top-tier platform – Marketsx is unbeatable. The platform is clean, intuitive, and packed full of features and analytical tools. Spreads are tight on Forex and almost any other asset is available to trade. Couple all this with lightning-fast execution and ZAR Account and traders should be sorely tempted.


AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. MarketsX is regulated by CySEC, ASIC, and the FSCA.

?FxPro – Best FSCA Regulated No Dealing Desk (NDD) Broker

FSCA-regulated since 2015, FxPro offers an NDD execution model on MT4, MT5, cTrader and a browser-based platform. A reasonable 100 USD opening deposit and outstanding customer service are combined with competitive spreads – often as low as 0.6 pips. Features traders will like at FxPro are:

  • Ultrafast NDD Execution
  • Wide Platform Choice
  • Tight Spreads
  • ZAR Accounts
  • Free Funding via the FxPro Wallet

✔️Fast Execution and No Dealing Desk

FxPro’s NDD execution model has won awards over the years for its speed and reliability. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are perfect for scalpers and traders who like to take advantage of volatile markets.

FXPro No Dealing Desk 

✔️Tight Spreads on All Three Major Platforms

FxPro has three accounts, one for each of the major platforms: MT4, MT5 and cTrader. Both the MT4 and MT5 accounts offer commission-free trading while the cTrader account has a 4.50 USD commission per trade but raw spreads – down to 0.3 pips on the EUR/USD. In addition, FxPro has its own FxPro (EDGE) web platform for those that want to keep this simpler.

FxPro cTrader

 

✔️FxPro Wallet: ZAR Accounts and Free Deposits and Withdrawals

FxPro also offers the FxPro Wallet to all customers. This wallet is kept separate from the trading account, so will not be considered when calculating margin or leverage – as such it is a valuable risk management tool. FxPro also offers ZAR Accounts and ZAR FxPro Wallets, so South African traders can avoid paying any conversion fees. All deposits and withdrawals from the FxPro Wallet are free of charge via all methods.

FxPro Wallet

 

?Why Should Traders Use FxPro?

FxPro offers its clients a choice of platform and then provides the execution and simplicity that many traders crave. Superfast execution, tight spreads, simple funding, and complete transparency. FSCA regulation and ZAR Accounts are a definite bonus for South African traders.


AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA

?IG Markets – Best FSCA Regulated MT4 Broker

IG Markets, the world’s largest broker by revenue, has been regulated by the FSCA since 2010 and has 240,000 clients worldwide. As one of our highest rated brokers, there is little that IG Markets does wrong. Traders frequently cite the following features:

  • Tight Spreads and Full MT4 Support
  • Excellent education and market analysis
  • Responsive and knowledgeable customer support

✔️IG Market’s MT4

MT4 is the world’s most popular trading platform. Automated trading, micro lots, customisable charts, and reliability has kept the platform in the lead for over 14 years. IG Market’s version of MT4 takes MT4 to another level with its package of free add-ons and indicators. Highlights include a Trade Terminal, Stealth Orders, a Correlation Matrix as well as a dozen indicators. In addition, all IG clients get access to Autochartist for free. This powerful automated technical analysis tool scans the markets for opportunities that you may have missed. All these features are available with tight spreads, with the EUR/USD averaging 0.86 pips but sometimes as low as 0.6 pips, and commission-free trading.

IG Markets MT4

✔️Top Tier Education and Analysis

Millions of traders have started their trading careers at IG Markets, and its easy to see why from the excellent material available at the IG Academy and constantly updated News and Trade Ideas page. IG Markets also offers a free Trade Analytics tool that evaluates trading performance over time and offers diagnosis and suggestions to improve your trading.

IG Trade Analysis

 

✔️Truly Supportive Customer Service

IG Markets also provides expert customer support by phone, email, twitter and live chat, 24hrs a day from 8am Saturday to 10pm Friday. In addition, the IG Community forum is a great space for traders to communicate issues to IG staff and other traders. This is an ideal additional resource for traders who have questions about the platform, analysis or just want to share trading ideas.

IG Markets Customer Support

?Why Should Traders Use IG Markets?

Regulated by the FSCA as well as ASIC and the FCA, tight spreads, no commission and excellent education and analysis. In addition, a great MT4 package and round-the-clock customer support for every issue or question a trader might have. The real question is why wouldn’t a trader use IG Markets?


AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

What is the FSCA?

FSCA Building

The Financial Sector Conduct Authority or FSCA is the local regulator of all non-banking related activities and has oversight over all regulated brokers in South Africa.

The FSCA regulates all Forex brokers with an office in South Africa

Previously known as the Financial Services Board (FSB), the FSCA was founded in 1991 following the recommendations of Van der Horst committee. The committee recommended the creation of an independent body to supervise and regulate the non-banking financial services sector in South Africa.

In 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority. It is responsible for the market conduct regulation and supervision of financial service providers like Forex brokers, investment funds, and investment managers.

The Financial Sector Conduct Authority has the following four goals:

  • Protect customers of financial services.
  • Improve efficiency and integrity of financial markets.
  • Promote financial stability.
  • Increase financial inclusion.

To achieve these goals, it also creates regulations in the interest of the public and publishes warnings of illegal schemes.

Internationally, the Financial Sector Conduct Authority is a recognised member of the International Organization of Securities Commissions (IOSCO) and takes a leading role in regulation in the SADC block.

Why should I trade with an FSCA-regulated Forex broker?

Boy thinking

All FSCA regulated brokers must keep client funds segregated from operational funds. This ensures that in the case of broker bankruptcy, all client funds can be returned.

FSCA-regulated brokers must also have a physical office in South Africa and submit regular audits to the FSCA. This ensures that any disputes are governed by South African laws and that client funds are not being misused.

FSCA regulated brokers must keep client funds in segregated accounts

Having a physical office in South Africa allows brokers to partner with local banks, which are governed by South African laws. Local bank accounts also mean that bank transfers between South African clients and brokers are faster and cheaper.

Deposits and withdrawals are faster at brokers which use South African banks

If your FSCA regulated broker does go bankrupt, you will also be able to walk into any branch of your broker’s local bank and remove all your funds from your segregated account. Gaining access to your funds will not be so easy in the event of a foreign broker’s bankruptcy. 

South Africans can trade with brokers which are not regulated by the FSCA, but these organisations are not governed by South African institutions, and funds are not handled by local banks.

Remember: South Africans do not have to use an FSCA regulated broker

Over-the-counter Derivative Provider (ODP) licence

Since 2019, the FSCA has required all Forex brokers in South Africa to apply for an Over-the-counter Derivative Provider (ODP) licence. This has created a new set of requirements for South African Forex brokers to follow:

Due Diligence: Brokers now need to conduct due diligence on new traders before they can be allowed to trade. Clients will need to prove their capital adequacy before starting to trade. New traders must also show that they understand the risks involved.

Reporting: Every broker that has been authorised must also report the details of every transaction to an authorised trade repository. These transaction details include the names of the parties, the valuation of the transaction, the underlying asset of the trade, details of the instrument traded, and the margin that has been maintained.

FSCA JP Markets Liquidation

Forex brokers who do not hold an ODP licence are in contravention of the regulations and can be liquidated at the request of the FSCA, as happened to JP Markets in September 2020 (see image above).

All FSCA regulated brokers must apply for an ODP licence

These new requirements have put the FSCA firmly in charge of the Forex industry in South Africa and will provide a much safer and more secure environment for traders.

How to check if your Forex broker is regulated by the FSCA

All Forex brokers that are regulated by the FSCA are required to publish their Financial Service Provider (FSP) number on their website. KhweziTrade is a popular South African Forex broker, and we can see from the bottom of their website that their FSP number is 44816:

KhweziTrade FSP

Once you have the FSP number of a broker you can go use the FSCA’s search page to enter the FSP and verify that the broker is indeed licenced. You can see below that we have entered KhweziTrade’s FSP as listed on their website.

Once we submit the FSP number via the FSCA’s search page, we can see that there is a company called Khwezi Financial Services (Pty) Ltd with that FSP number.

A broker having a legal name different to their trading name is quite common, so it is sometimes difficult to search for a broker by trading name alone using this service. When you can, use the FSP number, or legal name if you know it.

If we click on the Details button, we then have a full overview of Khwezi Financial Services regulatory status:

Khwezi Financial Services Details

The important part of this section for our purposes is the Products Approved section. Let us have a look at it in closer detail:

Khwezi Financial Services Products

Here we can see that Khwezi Financial Services, as a large financial services company, holds a wide range of licences. We have highlighted the two product licences that matter for our purposes. We can see that they hold a Category I and a Category II licence for Derivative instruments.

All Forex trading is over-the-counter derivative trading

All Forex trading is derivative trading, as traders never actually hold any currency – they are just speculating on a price derived from a real-world asset (such as the USD or the ZAR). So Khwezi Financial Services’ two Derivative instruments licences allow them to provide derivatives (such as Forex derivatives) to traders.

If you are ever unsure whether a broker is FSCA regulated, the FSCA search page is the best place to find out. Be aware that some bad brokers will use names similar to licenced financial services companies so as to confuse people.

Other FSCA Protections for Forex Traders

The FSCA’s supervises activity in the Forex currency market to protect Forex traders from irregularities and rogue brokers. If you want local protection when trading Forex, you want your broker to be regulated locally.

The FSCA issues public warnings about fraudulent brokers in the regularly-updated Media Releases section of their website.  These warnings include guidance on individuals or companies misrepresenting themselves, or organisations falsely representing their services.

This register of FSPs will also show if an entity has submitted an application to the FSCA, or if it has been stripped of regulation in the past.

Financial regulation is a crucial metric in our review process, as regulation is the primary way we establish the trust of the brokerage. We believe that there is value in being locally regulated as it gives clients more straightforward access to solve any disputes that could arise.

Regulation is the primary way to establish trust in a Forex broker

FSCA Strategy 2018-2022

Central to the mission of the FSCA are four core statements, which together, form the reason why residents want to trade with an FSCA regulated Forex broker.

The FSCA improves the efficiency and integrity of the South African financial markets. By monitoring the whole financial market and not just any particular entity, it ensures the safety of the entire market, and in doing so, can protect all market participants including retail Forex traders.

In addition, the FSCA ensures that regulated brokers treat all clients fairly. A client of a regulated brokerage who feels they have been cheated has a legally defined process to resolve their issue.  All regulated brokers must have this process available to potential clients.

FSCA-regulated brokers must present written material in a way that does not confuse or mislead the reader. They are required to provide financial education and promote the financial literacy of potential clients. As financial products can be complicated, it is the obligation of all regulated members to explain all products and their associated risks.

Finally, the FSCA assist in maintaining financial stability in South Africa by supervising the registered entities.

A client trading with an FSCA regulated broker should expect to be treated fairly, expect to be educated on financial products whenever needed, and can rest assured that the government is monitoring their broker’s activities to ensure they are safe and secure.

History of the FSCA

Previously known as the Financial Services Board (FSB), the FSCA opened in 1991 following the recommendations of Van der Horst led committee. The committee had recommended the creation of an independent body to oversee or supervise and regulate the non-banking financial services sector in South Africa.

After the Van der Horst committee, various acts have increased and expanded the mandate of the Financial Services Board. In 2001, the Financial Intelligence Centre Act and the subsequent amendments that followed later increased the FSB mandate to include issues of combating money laundering.

Later in 2004, the Financial Advisory and Intermediary Services, also known as FAIS, expanded the role of FSB to include, among other things, the conduct of market in the banking sector.

As of April 1st, 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority which is responsible for market conduct regulation and supervision.

The FSCA Structure

A board oversees the Financial Sector Conduct Authority which executes its mandate through divisions. The FSCA has the sole mandate to select its own Commissioner, making the organisation less of a target of the financial politics and pressures. Apart from overseeing the day-to-day running of the institution, the Commissioner acts as the Registrar of the Non-banking Financial Institutions in South Africa.

The authority of the Commission is distributed to Deputy Commissioners appointed by the Minister of Finance, and are supported by the Chief Risk Officer, General Counsel, Media Liaison Officer.

Key Financial Sector Conduct Authority Responsibilities

As part of its mission of ensuring that the investment environment in South Africa is sound and conducive, the Financial Sector Conduct Authority has built a strong reputation for its regulatory framework in the following sectors:

  • Capital Markets
  • Insurers
  • Financial Services Providers
  • Collective Financial Schemes
  • Nominee Companies
  • Friendly Societies
  • Retirement Funds

The FSCA ensures the cooperation of regulated entities and has the power to impose compensation orders, unlimited penalties and cost orders for those who do not comply.  These orders are adhered to as though they are a judgment from South Africa’s Supreme Court, and are a matter of public record.

A customer complaints service is effective in fielding complaints, plus a separate self-policing appeals board which any aggrieved entity can approach should they feel like they might have been aggrieved by either the regulator or any of its executive officers.

Summary

The FSCA is credited for bringing stability and transparency to South Africa’s investment industries.  Forex traders who want to have protection can find brokers that are locally regulated, and who comply with South African law.  In some cases, South African clients can keep their funds locally, further increasing trust with the brokerages.

FAQs

Do South Africans have to trade with FSCA regulated brokers?

No, South Africans can legally trade with any broker in the world. We do recommend that you always trade with a well-regulated broker, regardless of the jurisdiction in which they operate.

Should I trade with an FSCA Regulated Broker?

While it is not essential for South Africans to trade with an FSCA regulated broker, local regulation ensures that in the case of broker bankruptcy your funds will be protected by local laws. FSCA regulation also ensures segregation of client and broker funds. Many FSCA regulated brokers also keep their accounts in local banks, resulting in faster deposits and withdrawals.

But there are many well-regulated international brokers who can offer better trading conditions, platform options and market analysis than most FSCA-regulated brokers.

If local protection is important to you, then you should trade with an FSCA regulated broker.

How do I know if a Forex broker is regulated by the FSCA?

Every broker regulated by the FSCA is required to post their FSP licence number on their website. If you know the broker’s FSP number or legal name, you can also use the FSCA’s search facility to check on their regulatory status.

Do FSCA regulated brokers offer ZAR trading accounts?

Not necessarily. While some FSCA regulated brokers offer ZAR trading accounts, most do not. If you are looking for a ZAR trading account, check out our page on the best ZAR trading accounts in South Africa.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal.

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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