How do you really find who is the best forex broker in South Africa? The short answer, not easily. Even when you do find the answer (hint: see the bottom of this guide), it is always debatable.
South Africa is a Country of almost 60 million people, and many different personalities. These 60 million people are individuals, and each will require slight differences in the forex broker they would want to call the best.
What we will look at in this guide, are the brokers that perform best across some really key areas that are important to our trading community. We weigh this up overall to give a summary of the best forex brokers in South Africa, and for traders in the wider African continent.
Forex in South Africa Making Waves, Brokers Getting a Board
Forex trading in South Africa has really started to gain traction in recent years. So much so, that many more forex brokers start to not only accept South African traders as clients, but actually adapt their offer entirely for traders in the Country by opening offices in, and gaining regulation in South Africa.
As we are looking to find the best and most trusted forex broker in South Africa, it is a good idea to have a clear picture of the regulations and regulatory body. It is of paramount importance that any forex broker rated amongst the best in South Africa really does provide a local service, alongside any potential International presence.
Strong Regulation Changes In the Recent Past To Aid Growth & Security
The regulatory framework in South Africa has changed for forex brokers in recent years, with the Financial Services Regulation Act in 2017 bringing in a ‘Twin Peaks’ model of regulation.
This essentially split responsibility of the previous regulator, the FSB into two bodies, to govern different areas. These bodies were formally given responsibility in 2018 and are now known as the Financial Sector Conduct Authority (FSCA), and the Prudential Authority (PA).
The vast majority of the responsibilities previously held by the FSB in relation to forex, namely to regulate and monitor the trading industry, now fall firmly in the area of the FSCA. Unlike in the previous structure however, there is now a separate body to mediate between the regulator and its stakeholders.
In the past, the FSB Appeal Board would review decisions relating to the FSB, bringing into question the level of impartiality they may have. In a really positive change, if there is now a disagreement about an FSCA decision, there are rights to have a separate authority to look at it further and mediate. This body is known as the Financial Sector Tribunal, replacing the outgoing FSB Appeal Board.
The new Twin Peaks model of regulation was introduced to “drive improved outcomes for all South Africans”. You can find the FSCA website (www.fsca.co.za) a good resource of additional information.
A stronger regulatory framework will greatly help South African forex traders, and the South Africa based forex broker go from strength to strength. After all, it is through regulation and security that users feel comfortable enough to part with their hard earned money.
How Will We Rate The Best Forex Broker In South Africa?
The best forex broker in South Africa will only include brokers with the following:
1. FSCA, CMA, or a Tier 1 regulation.
The local FSCA regulated forex brokers will of course also be included as these can give an advantage of having a local presence. We would not say that any other non Tier 1 regulated broker cannot be trusted, but if you are going to trade with a broker regulated outside of the local area, you would only want to use a broker with the absolute best protections available. Trade forex in South Africa with a broker that has undergone the strictest checks and measures; this is the best way to protect yourself from scams.
2. Good forex spreads and low overall fees.
This is one of our regular inclusions on all of our Country lists. Keeping costs low with competitive spreads and low fees, leaves more in your own account balance. The less you pay on charges, the easier it becomes to trade forex profitability, not that it is an easy thing to achieve at all.
3. Variety of markets and instruments.
A wide variety of forex pairs is essential for any of the best forex brokers, in South Africa it is no different. In this particular case, the South African Rand should be provided as a strong option against the major global currencies. We also have seen a strong trend to trade Nasdaq stocks in South Africa via CFDs, so a forex broker who can offer this, alongside gold and commodities will also show a strong placing.
4. Mobile trading app needs to be strong.
Mobile, and non desktop based forex trading in South Africa is growing a much faster rate than the more static form of trading. It would be essential to have a good trading app, with maximum support on mobile in order to be considered one of the best forex brokers in South Africa.
5. Easy, and fast deposit & withdrawal.
Allowing payment from e-wallets, and other digital payments that are an essential part of life in South Africa will give a forex broker an edge in being the best. This is about providing the best user experience possible, making it easy to deposit and withdraw is an essential part of that. The charging structure related to deposits and withdrawals is also an important consideration. Ideally, a forex broker will offer this at no cost in order to be considered the best in South Africa.
6. Margin, Leverage Flexibility.
The flexibility of the account that can be used will be factored into the rating. It is not imperative to see a really high leverage available, that can be very risky. What is of more importance is the ability to be able to change the leverage offered within your account rather than it remaining fixed at the brokers preference.
There may be those of you in South Africa who want to trade 1:1000 leverage on one particular trade, but it is nice if your forex broker gives the option to scale back during times of high volatility or to manage your risk the way you choose.
7. Free demo account, ideally with no limits.
Forex demo accounts that function fully, with the option of unlimited use is important. Every forex trader should have access to a demo account to test different strategies. The best forex broker in South Africa will surely have this provided to all clients as standard.
8. Great Customer Service
For a forex broker to be classed as the best in South Africa, their customer support function needs to operate with maximum efficiency. Trading forex is very time sensitive, so quick responses and minimal downtime is vital here.
The Best Forex Brokers In South Africa Revealed – Our Most Trusted Top 5
1. FXTM – International Trusted Forex Broker With A Strong Local Presence
FXTM are a forex broker with International aswell as local presence, forming part of the Exinity Group. The broker has FSCA regulation and a real commitment to bringing value to South Africa, and African traders in general.
ForexTime also have tier 1 FCA regulation, supported by CySEC. If you choose to open an account with FXTM, minimum deposit is only $10 for the Cent Account which gives a very reasonable entry level.
The product range provided is strong, covering all the main instruments along with a great social trading platform, FXTM Invest. This allows South Africa based traders to have the minimum of fuss when trading forex, CFDs, Indices, or commodities, with the help of a talented pool of ‘expert advisers’.
For the novice trader, you will find a really wide educational offer. There are webinars, seminars, market analysis, and a plethora of online resources including ebooks. When considering the best forex broker in South Africa, FXTM would be on every list.
2. Tickmill – Local Regulation, Local Offices, and A Lot To Offer For South Africa Forex Traders
Tickmill have FSCA regulation and local offices to show their commitment to be amongst the best forex brokers in South Africa. They also have Tier 1 FCA regulation, supported CySEC, LFSA and an offshore branch in Seychelles.
This is a forex broker that specialises in forex first. Whilst you will find a strong portfolio of CFDs covering other instruments, it is forex where Tickmill are amongst the best. Spreads are low, competitive to other brokers in the region.
If you are looking to find the best forex broker in South Africa, in Tickmill you will have a minimum deposit of $100. You will also find one of the widest choices of e-payments supported, ably supported by the more typical deposit options.
Tickmill are a forex broker with a lot to offer when considering who is the best forex broker in South Africa. There is a also currently a signup bonus offered of $30 for Africa based new traders.
3. AVATRADE – One Of The Best Regulated Forex Brokers Globally, Locally Very Strong
AvaTrade are a forex broker with regulation from many different territories around the globe. including some of the best respected. This broker has ASIC regulation to fulfil our requirement for Tier 1, but also JFSA, CBI, DFSA, FSCA, and BVI.
With offices in Johannesburg, alongside local telephone support (+27105941353), AvaTrade are clearly committed to providing South African traders with as much local availability as possible.
AvaTrade Go is a great trading App, and the underlying assets offered cover every sector. With forex supported by stocks, indices, commodities, ETFs, bonds, and cryptocurrencies, this is a broker that has something to offer for everyone.
It is pretty safe to say that this is a trusted forex broker with one of the best all around offers for International traders, including South Africa.