| Updated: June 19, 2024African countries, including South Africa, are seeing an ever-increasing demand for trading. According to estimations, South Africa has more than 190,000 active forex traders and over $2.1 billion in trading volume. So, if you happen to be in search of the best Forex brokers in South Africa, stay with us to find out more. The team of expert analysts at BestBrokers has singled out several licensed forex trading brokers adapted to various trading needs. You are welcome to explore our top list, with all of the brokers available in South Africa. We have tested each of the platforms by creating live trading accounts and placing real trades.
Fusion Markets74-89% of retail CFD accounts lose money
Markets.com74.2% of retail investor accounts lose money
Pepperstone75.5% of retail investor accounts lose money
eToro51% of retail investor accounts lose money
Global Prime74-89% of retail CFD accounts lose money
Plus50080% of retail investor accounts lose money
FxPro74% of retail investor accounts lose money
FBS72.12% of retail investor accounts lose money
BlackBull Markets
Swissquote61% of retail investor accounts lose moneySouth African Forex Brokers Ranked by Trustpilot Score
| Forex Broker | Trustpilot Reviews | |
|---|---|---|
| 1. Fusion Markets | 1409 | 4.8 ⭐ |
| 2. Markets.com | 1165 | 4.7 ⭐ |
| 3. Pepperstone | 2398 | 4.5 ⭐ |
| 4. eToro | 22902 | 4.2 ⭐ |
| 5. Plus500 | 13168 | 4.1 ⭐ |
| 6. Global Prime | 100 | 4.1 ⭐ |
| 7. FxPro | 209 | 3.9 ⭐ |
| 8. Swissquote | 2349 | 3.6 ⭐ |
| 9. FBS | 546 | 3.6 ⭐ |
| 10. BlackBull Markets | 34 | 3.6 ⭐ |
South African Forex Brokers Ranked by Spread Commission
| Forex Broker | EURUSD | USDJPY | EURGBP | GBPUSD |
|---|---|---|---|---|
| 1. BlackBull Markets | 0.1 | 0.2 | 0.7 | 0.4 |
| 2. Fusion Markets | 0.11 | 0.13 | 0.15 | 0.11 |
| 3. Global Prime | 0.13 | 0.28 | 0.28 | 0.22 |
| 4. FxPro | 0.25 | 0.38 | 0.67 | 0.37 |
| 5. Markets.com | 0.6 | 0.7 | 0.9 | 0.9 |
| 6. FBS | 0.7 | 1.3 | 2.7 | 1.2 |
| 7. Pepperstone | 1.0 | 1.0 | 1.2 | 1.0 |
| 8. eToro | 1.0 | 1.0 | 1.5 | 2.0 |
| 9. Plus500 | 1.2 | 1.5 | 1.5 | 1.5 |
| 10. Swissquote | 1.7 | 1.6 | 1.7 | 2.0 |
South African Forex Brokers Ranked by Commission per Lot
| Forex Broker | Commission per lot |
|---|---|
| 1. FBS | $0 |
| 2. eToro | $0 |
| 3. Plus500 | $0 |
| 4. Markets.com | $0 |
| 5. Fusion Markets | $0 Classic Account, $4.50 round turn on Zero Account |
| 6. BlackBull Markets | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| 7. Global Prime | $0 Standard Accounts; $7 round turn on Raw Accounts |
| 8. Pepperstone | $0 (Standard Account), $7 round-turn (Razor Account) |
| 9. FxPro | $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts |
| 10. Swissquote | $9 per lot (Standard); $0 (Premium) |
Important Note: To provide their services to forex traders in South Africa, brokers must be licensed by the Financial Sector Conduct Authority (FSCA). Carrying the seal of approval by the financial monetary authority indicates legitimacy and trustworthiness. The official website of the FSCA is https://www.fsca.co.za/Pages/Default.aspx. We recommend forex traders also look up FSCA’s account on LinkedIn, at https://www.linkedin.com/company/fscasouthafrica/.
Besides the legality of forex trading in South Africa and the regulatory authority of the industry, this publication aims to cover other important aspects, including player protections, taxes, maximum allowable leverage, and the most popular trading platforms.
Top 10 FX Brokers in South Africa
Fusion Markets Broker Details Regulators ASIC, FSA (Seychelles), VFSC (Vanuatu) Min Deposit $0 Trading Platforms MetaTrader4, MetaTrader5, cTrader, DupliTrade, Fusion+ Copy Trade Trustpilot Rating 4.8 out of 1409 reviews Number of Forex Pairs to Trade Over 200 Leverage Forex & Metals: 30:1
Index CFDs: 5:1
Cryptocurrencies: 2:1Spread EURUSD: 0.11
USDJPY: 0.13
EURGBP: 0.15
GBPUSD: 0.11Forex Commission per Lot per Trade $0 Classic Account, $4.50 round turn on Zero Account Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Fasapay, Jeton Wallet, Perfect Money, Online Naira, Doku, Bitcoin, Ethereum, Litecoin, USDT, Tether, Ripple, bank wire Withdrawal Methods Visa, Mastercard, Bank Wire, Skrill, Neteller,Bitcoin, Ethereum, Litecoin, Tether, Ripple Founded by Australian trading experts, Fusion Markets was launched in 2017 and is currently one of the top destinations for traders all over the globe. While it is common for brokers to advertise low spreads, Fusion Markets was actually recognized by Brookerchooser, receiving the award “Lowest Spread Forex Broker” four years in a row.
In addition to offering traders tight spreads, Fusion Markets is committed to offering the best value for your trading, charging a significantly low commission of only $2.25 per lot ($4.50 per side). As you can see, const-effectiveness is one of the main values of this top-shelf broker.
Safety is always a priority for Fusion Markets, with major regulatory bodies like the Australian Financial Services (license No.385620), the Financial Services Authority of Seychelles (license No.SD096), and authorities in Vanuatu regulating the services provided by the broker. Under ASIC’s (Australian Securities & Investments Commission) regulation, the broker also provides a negative balance protection to some of its clients.
With no minimum on deposits and a wide range of popular trading platforms like MetaTrader4, MetaTrader5, cTrader, and more, it is no surprise that Fusion Markets is one of the top choices of traders. With an average score of 4.6 out of 5 on Trustpilot, this broker has received an Excellent rating from more than 1,300 happy customers.
Key Pros
- Offers some of the lowest spreads
- ASIC clients enjoy a negative balance protection
- Supports popular trading platforms
- Offers two copy trading platforms
- Supports fiat and crypto payment solutions
Key Cons
- Does not offer investor protection
- Traders outside Australia have no negative balance protection
- Cannot set up an account in a minor currency
Global Prime Broker Details Regulators ASIC (No. 385620), VFSC (No. 40256) Min Deposit $0 Trading Platforms MT4 Desktop, MT4 Webtrader, MT4 Android Trustpilot Rating 4.1 out of 100 reviews Number of Forex Pairs to Trade 56 Leverage Forex & Metals: 500:1
Index CFDs: 100:1
Cryptocurrencies: 10:1Spread EURUSD: 0.13
USDJPY: 0.28
EURGBP: 0.28
GBPUSD: 0.22Forex Commission per Lot per Trade $0 Standard Accounts; $7 round turn on Raw Accounts Deposit Methods Visa, Mastercard, PayPal, Skrill, Neteller, Gate8, Dragonpay, Fasapay, VNPay, Pagsmile, BPay, POLi, AstroPay, Bank Transfer, Interac, Perfect Money, PayID, Jeton, MiFinity, XPay, Crypto Withdrawal Methods Mastercard, Visa, Local Bank Transfer, Bank Wire Transfer, Skrill, Neteller, AstroPay, PayPal, Dragonpay, Perfect Money, Jeton, Interac, Cryptocurrencies
Global Prime is a reliable brokerage that has been providing low-cost trading services since 2010. Regulated by the watchdogs of Vanuatu and Australia, the broker facilitates trading with over 150 financial instruments, including indices, bonds, commodities, cryptocurrencies, and more than 50 currency pairs. Major-pair spreads on raw accounts start at zero pips, with most orders being executed within 10 milliseconds on average. The broker works with MT4 only but plans to soon expand its range of supported platforms with cTrader, MT5, and TradingView.
These excellent trading conditions, coupled with a streamlined registration process, fee-free transactions to and from customer accounts, and round-the-clock support, have earned the broker a solid 4.1 score on Trustpilot. Still, there is scope for improvement as the company offers no cent and swap-free accounts for Islamic customers. The broker has no compensation scheme for client funds, either, which is yet another area Global Prime could improve in.
Key Pros
- Overseen by a top-tier financial regulator (ASIC)
- No fees on deposits and withdrawals
- Low fees for FX trading
- Streamlined sign-up process
- A broad range of currency pairs
Key Cons
- Could use more trading platforms
- A limited range of educational resources
- Does not offer Islamic or cent accounts
FBS Broker Details Regulators CySEC (No. 331/17), FSC (No. 000102/6), ASIC (No. 426359) Min Deposit Standard accounts: $100
Cent accounts: $10Trading Platforms MT5 Desktop, MT5 WebTrader Trustpilot Rating 3.6 out of 546 reviews Number of Forex Pairs to Trade 28 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.7
USDJPY: 1.3
EURGBP: 2.7
GBPUSD: 1.2Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, Maestro, Skrill, Bank Transfer, Neteller, EFT, Sticpay, Perfect Money, Fasapay, AstroPay, Pix Withdrawal Methods Visa, Mastercard, Maestro, Perfect Money, Neteller, Sticpay, EFT, Bank Transfer, Skrill, AstroPay, Pix, Fasapay FBS is a global forex broker with over a decade of experience in providing low-cost trading services. Regulated by CySEC, ASIC, and Belize’s FSC, the company has a whopping 23 million customers across more than 150 countries. FBS clients have access to over 40 currency pairs, indices, hard commodities, and major US stocks, available for trading with floating spreads that start from zero pips in some cases.
The brokerage has many upsides going for it, including 24/7 client support, reasonable pricing, and a great collection of learning materials for customers looking to hone their skills. Its detailed Guidebook for FX trading features chapters for beginner, elementary, intermediate, and experienced traders. Two main account types are on offer, Standard and Cent, with minimum initial deposits starting at $100 and $10, respectively. The broker offers demo versions of both account types.
FBS is ideal for customers with a high risk tolerance and large appetites for rewards, allowing them to leverage their positions at ratios of up to 3000:1. As generous as it is, this leverage cap applies only to clients registering through the Belize-licensed version of the website. Various funding methods are supported, although availability largely depends on region.
Key Pros
- Leverage of up to 3000:1 on FX majors (non-EU)
- Excellent learning content
- Novice FX traders can set up cent accounts
- Market execution speed averages 0.3 seconds
- Great Guidebook for FX trading
Key Cons
- Facilitates trading via MT5 only
- Below-average range of tradable products
- Lacks FCA authorization
Pepperstone Broker Details Regulators UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA Min Deposit $0 Trading Platforms TradingView, MT5, MT4, cTrader Trustpilot Rating 4.5 out of 2398 reviews Number of Forex Pairs to Trade 100 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.2
GBPUSD: 1.0Forex Commission per Lot per Trade $0 (Standard Account), $7 round-turn (Razor Account) Deposit Methods Visa, Mastercard, PayPal, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Bank Transfer Pepperstone was launched in 2010 by a group of seasoned traders but has greatly expanded its global presence since then, currently reaching over 400,000 traders worldwide. The company enjoys an immaculate reputation and operates with licenses from several top-tier regulators, including the FCA, ASIC, and CySEC. Pepperstone also ranks among the world’s largest brokerages, boasting an average daily trading volume of $12.6 billion.
Customers of the award-winning company can trade with more than 1,200 financial instruments, ranging from stocks, indices, and ETFs to commodities and currency pairs. FX traders, in particular, can go long or short on over 90 major, minor, and exotic currency pairs. Spreads are highly competitive at Pepperstone, starting at zero pips for majors like EUR/USD traded via Raw accounts. MT4, MT5, TradingView, and cTrader all pose as viable platform options for Pepperstone customers. All these factors combined have earned Pepperstone an above-average rating of 4.5 stars at Trustpilot.
Key Pros
- Winner of multiple industry awards
- Commission-free FX trades via standard accounts
- Over 1,200 instruments across all major asset classes
- Competitive spreads on FX trades via Razor accounts
- Seamless withdrawals within 1 to 3 workdays
Key Cons
- A somewhat limited range of deposit and withdrawal options
- High swap rates on overnight positions
eToro Broker Details Regulators FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN Min Deposit $10 Trading Platforms eToro Investing, eToro App, TradingView, eToro CopyTrader Trustpilot Rating 4.2 out of 22902 reviews Number of Forex Pairs to Trade 55 Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.0
USDJPY: 1.0
EURGBP: 1.5
GBPUSD: 2.0Forex Commission per Lot per Trade $0 Deposit Methods eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24 Withdrawal Methods PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer Launched in 2007, eToro is home to a global investment community of more than 30 million customers. The company operates with licenses from tier-one financial regulators like CySEC, ASIC, and FCA. The brokerage provides a varied range of tradable instruments, including 55 currency pairs, 32 commodities, 21 equity indices, and thousands of stocks. Cryptocurrency, ETF, and NTF trading is also possible via the platform.
Forex traders will benefit from spreads as low as a single pip on major pairs like the EUR/USD. Unlike many rival brokers, eToro charges no commissions on currency trades. All costs and fees are built into the spreads instead. The broker’s proprietary platform is well-designed and user-friendly enough to accommodate novice and versed traders. Another thing that distinguishes eToro from rival brokerages is its social and copy trading platform that leaves the competition in the dust with its superior features.
Key Pros
- Offers trading with over 5,000 instruments
- Ideal for social and copy trading
- No commissions on forex trades
- Effortless registration process
- Offers negative balance protection
Key Cons
- Withdrawals are subject to additional processing fees ($5)
- USD is the only base account currency
- Charges inactivity fees on dormant accounts
Plus500 Broker Details Regulators FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727) Min Deposit $100 Trading Platforms Proprietary desktop and mobile platforms Trustpilot Rating 4.1 out of 13168 reviews Number of Forex Pairs to Trade 60+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.2
USDJPY: 1.5
EURGBP: 1.5
GBPUSD: 1.5Forex Commission per Lot per Trade $0 Deposit Methods Mastercard, Visa, Skrill, PayPal, Bank Transfer, Apple Pay, BPAY Withdrawal Methods PayPal, Bank Transfer, Visa, Mastercard, Skrill Plus500 is a well-funded trading company with a spotless reputation that services over 25 million customers across 50 countries. This market-leading brokerage is regulated by some of the strictest financial watchdogs in the world, including ASIC, FCA, and CySEC. Its parent company Plus500 Ltd trades publicly on the Main Market of the London Stock Exchange, which only adds to the broker’s good reputation.
The broker specializes in providing CFD trading across multiple asset classes, offering a choice from over 2,800 financial instruments. Forex, indices, stocks, commodities, cryptocurrencies, options, and ETFs are all tradable at Plus500. It ensures a clean trading experience with a robust platform flaunting a modern yet highly intuitive design.
Plus500 caters to traders with tight spreads and charges no additional commissions on forex trades. Customers can fund their live trading accounts via cards, bank transfers, and several popular e-wallets, with minimum deposits starting at $100. Deposits and withdrawals are free but administrative fees are levied on dormant accounts after three months of inactivity.
Key Pros
- Trades publicly on the London Stock Exchange
- Commission-free FX trading with tight spreads
- Great selection of analytical tools and educational materials
- Easy and quick account opening
- Provides real-time FX quotes
Key Cons
- Charges administrative fees on inactive accounts
- The platform could use more customization features
BlackBull Markets Broker Details Regulators SFSA (No. SD045), FMA (No. FSP403326) Min Deposit $0 (Standard)$2,000 (Prime)$20,000 (Institutional) Trading Platforms MT4, MT5, TradingView, cTrader, MT WebTrader, BlackBull Shares, BlackBull CopyTrader, BlackBull Trade Trustpilot Rating 3.6 out of 34 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 500:1
Index CFDs: 500:1
Cryptocurrencies: 500:1Spread EURUSD: 0.1
USDJPY: 0.2
EURGBP: 0.7
GBPUSD: 0.4Forex Commission per Lot per Trade $0 Standard; $6 per lot Prime; $4 per lot Institutional Deposit Methods Visa, Mastercard, Neteller, Airtm, Skrill, Bank Transfer, HexoPay, American Express, POLi, Payment Asia, Help2Pay, FXPay, Fasapay, China Union Pay, Boleto, AstroPay, Beeteller, Bitcoin, Ethereum, Tether, Ripple, Litecoin, Bitcoin Cash, Chainlink, USD Coin, Stellar Withdrawal Methods Visa, Mastercard, Bank Transfer, Airtm, Skrill, Neteller, American Express, POLi, HexoPay, Payment Asia, Help2Pay, FXPay, China Union Pay, Boleto, Fasapay, Beeteller, AstroPay, Bitcoin, Litecoin, Bitcoin Cash, Tether, Ripple, Stellar, Chainlink, Ethereum, USD Coin Founded in 2014, BlackBull Markets takes the lead when it comes to tradable asset diversity, providing a choice from a whopping 26,000 financial instruments. The broker caters to forex traders with over 70 major, minor, and exotic currency pairs tradable via three types of ECN accounts (Standard, Prime, and Institutional). Commodities, shares, indices, and futures can also be traded at BlackBull Markets.
The Seychelles-licensed broker offers relatively reasonable trading conditions, although the exact trading costs largely depend on what type of live account you open. Customers looking to trade commission-free can do so via ECN Standard accounts, where spreads generally start from 0.8 pips and there are no minimum deposit requirements. ECN Prime and ECN Institutional accounts are suitable for seasoned and high-volume traders. Both account types incur above-average commissions per lot.
Customers with live accounts can top up their balance with cards, digital wallets, online banking gateways, bank transfers, and cryptocurrencies. While deposits come at no extra cost, the New Zealand-based broker charges a $5 processing fee on all withdrawals, regardless of the payment method used.
Key Pros
- Uses proprietary copy-trading platform
- Swap-free trading via ECN Standard and Prime accounts
- Multi-platform support
- Provides a 24/7 customer support service
- Great Education Hub for traders looking to hone their skills
Key Cons
- High commissions per lot on Prime and Institutional accounts
- Charges a $5 fee on withdrawals
FxPro Broker Details Regulators FCA (No. 45052), CySEC (No. 078/07), SCB (No. SIA-F184), FSCA (No.45052) Min Deposit $100 Trading Platforms MT4, MT5, cTrader, FxPro Edge (proprietary) Trustpilot Rating 3.9 out of 209 reviews Number of Forex Pairs to Trade 70+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 0.25
USDJPY: 0.38
EURGBP: 0.67
GBPUSD: 0.37Forex Commission per Lot per Trade $0 on Standard Account; $3.5 per side on Raw+ and Elite Accounts Deposit Methods Visa, Mastercard, Maestro, Bank Transfer, Neteller, PayPal, Skrill, Union Pay Withdrawal Methods Bank Transfer, Mastercard, Visa, Union Pay, Maestro, PayPal, Skrill, Neteller Founded in 2006, FxPro is a multi-award-winning broker that provides online trading services with licenses granted by the financial regulators of the UK, Cyprus, and the Bahamas. Over 2,100 instruments are tradable at FxPro via a variety of platforms, including MT5, MT4, cTrader, and proprietary software. Customers can dip their toes into forex, commodity, index, stock, and cryptocurrency trading at FxPro.
Forex traders, in particular, will benefit from over 70 major, minor, and exotic currency pairs tradable with fixed or marked-up floating spreads, depending on the platform and account type. Orders are filled at ultra-low latency, ensuring lightning-fast execution of under 13 milliseconds. FxPro stores the money of its clients in segregated accounts at major international banks and offers negative balance protection to all retail customers, regardless of their trading volume and country.
Minimum deposits at FxPro align with industry standards at $100, although new customers are generally recommended to start with at least $1,000 in their live accounts. Deposits and withdrawals incur no additional transaction fees at FxPro. Cards, bank transfers, and e-wallets are all viable funding options for clients with live accounts.
Key Pros
- Over 2,100 CFDs across six asset classes
- Zero fees on deposits and withdrawals
- Floating spreads with no commissions on MT4 FX trades
- Winner of over 100 industry awards
- Fills orders within less than 13 milliseconds
Key Cons
- FX spreads are slightly higher than industry averages
- Charges maintenance fees after six months of inactivity
Swissquote Broker Details Regulators FCA, MFSA, FINMA, DFSA, MAS, CySEC Min Deposit $1,000 Trading Platforms CFXD, MetaTrader 4, MetaTrader5 Trustpilot Rating 3.6 out of 2349 reviews Number of Forex Pairs to Trade 80+ Leverage Forex & Metals: 30:1
Index CFDs: 20:1
Cryptocurrencies: 2:1Spread EURUSD: 1.7
USDJPY: 1.6
EURGBP: 1.7
GBPUSD: 2.0Forex Commission per Lot per Trade $9 per lot (Standard); $0 (Premium) Deposit Methods Visa, Mastercard, Bank Transfer, Online Banking Withdrawal Methods Visa, Mastercard, Bank Transfer, Online Banking Swissquote is one of the most secure brokers you can trade with online. Starting as a financial company specializing in the development of financial software and web applications in 1990, by 1996, it introduced its first financial platform offering traders prices on all securities trading on the Swiss stock market. Today, Swissquote is publicly traded, runs two entirely online-operating banks, and is one of the most trustworthy brokers for Swiss traders as well as trading enthusiasts from multiple foreign markets.
To offer seamless CFD and Forex trading to its customers, Swissquote has introduced its CFXD platform, boasting a simple interface that provides multiple features for an extra intuitive trading experience. In addition to CFXD, the broker also supports MetaTrader 4 and 5, while the Autochartist tool can offer traders access to a large library of charts and trading analysis.
Offering only the best value for your trading is one of Swissquote’s strongest features. It offers competitive spreads as well as low margin rates. Traders’ accounts will enjoy cash deposit protection for transactions up to $/€100, 000 as well as negative balance protection. With major regulators like the FINMA, FCA, DFSA, and more regulating the services offered to Swissquotes customers, it comes as no surprise that many have trusted the broker with their investments.
Key Pros
- Publicly traded reputable brand
- Broker with extensive experience in trading
- Offers competitively low spreads
- Supports various trading platforms
- Forex traders can choose from over 80 currency pairs
Key Cons
- Traders must pay an inactivity fee
- Desktop trading platform looks a bit outdated
- Trading fees tend to be higher
Markets.com Broker Details Regulators ASIC (license no. 424008), FCA (license no. 481853), CySEC (license no. 092/08), FSCA (license no. 46860), FSC (license no. SIBA/L/14/1067), FSA (license no. 27030 BC 2023) Min Deposit $100 Trading Platforms MetaTrader 4, MetaTrader 5, WebTrader, Mobile App Trustpilot Rating 4.7 out of 1165 reviews Number of Forex Pairs to Trade 50+ Leverage Forex & Metals: 30:1
Index CFDs: 20;1
Cryptocurrencies: 2:1Spread EURUSD: 0.6
USDJPY: 0.7
EURGBP: 0.9
GBPUSD: 0.9Forex Commission per Lot per Trade $0 Deposit Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer Withdrawal Methods Visa, Mastercard, PayPal, Apple Pay, Skrill, Neteller, Bank Transfer When it comes to online trading, it is always recommended to trust only reliable brokers that are capable of offering great trading conditions to their clients. Luckily for you, Markets.com is one of the most reputable trading brands, operating since 2008 and offering traders a wide selection of markets. Whether you are an expert in trading or you are a beginner, at Markets.com, you can find plenty of tools to help you improve your trading sessions.
Security is one of the broker’s strongest suits, with major regulators like ASIC, FCA, CySEC, and many more overlooking the operations of Markets.com. To make the trading process smoother and more intuitive, the brand supports popular platforms like MetaTrader 4 and 5 as well as WebTrader. The dedicated Markets.com app will also allow a seamless transition to mobile trading, with both MT4 and MT5 adapted for mobile trading.
When it comes to managing your deposits and withdrawals at Markets.com, you will be able to choose from several convenient methods, including bank cards, popular e-wallets, and bank transfers. Withdrawals are also possible via the same selection of methods, enabling easy bankroll management for members of the broker.
Key Pros
- Offers tight spreads and low fees for FX traders
- Traders can choose from over 50 currency pairs
- Supports a wide range of payment methods
- Mobile trading available through dedicated app
- Supports popular trading platforms
Key Cons
- Offers only CFD and FX products
- Charges inactivity fee
- No dedicated platform for copy trading
Is Forex Trading Legal in South Africa?
Forex trading has risen in popularity as an easily accessible and potentially lucrative hobby. It is legal in South Africa and forex brokers are required to obtain a license from the Financial Sector Conduct Authority (FSCA) to operate legally within the country. Forex traders can register accounts at brokers licensed by international regulators too, but adhering to the local rules and regulations is always advisable.
Financial Service Providers in South Africa operate under the Financial Advisory and Intermediary Act (FAIS) of 2002 and the Financial Sector Regulation Act of 2017.
FSCA Regulation Info
Founded in 2018, the FSCA assumed the regulatory functions of its predecessor, the Financial Services Board. The latter was established in 1990 to serve as the country’s financial regulatory agency for the non-banking services sector. Today, South Africa’s financial market is monitored by the FSCA, whereas financial cooperatives, insurance companies, and banks fall under the regulatory authority of the Prudential Authority, operating under the South African Reserve Bank (SARB). As stated on the official website of the FSCA, South Africa has a “Twin Peaks” regulatory model implemented via the Financial Sector Regulation Act.
The SARB regulates the country’s monetary policy and manages foreign exchange reserves, which, in turn, affects Forex markets. South African traders can open domestic accounts to trade locally in South African ZAR and international accounts to gain access to global markets.
The FSCA is committed to upholding a transparent, efficient, and resilient financial system that creates favorable conditions for South Africa’s sustainable economic growth. Besides its licensing functions, the FSCA is tasked with drafting the regulations for the OTC Forex market, monitoring brokers’ conduct and compliance with the law, and taking enforcement action in cases of regulatory breaches.
How Can I Verify FSCA Authorization?
Forex traders can verify if an entity holds authorization to operate from South Africa’s financial regulatory body by looking for the disclosure text found typically at the footer of brokers’ homepages. Legal and trustworthy forex brokers do not fail to provide such information, along with the licensing number.
For example, Ava Trade is a financial services provider operating legally in South Africa. The entity has listed its licenses from the regulatory authorities in the jurisdictions where it operates. The one for South Africa states the following: Ava Capital Markets Pty is regulated by the South African Financial Sector Conduct Authority (FSCA No 45984).
FSCA Authorization can be checked also by navigating to FSCA’s register of Authorized Financial Service Providers, https://www.fsca.co.za/Fais/Search_FSP.htm. The register returns the required information upon entering the FSP number, partial name, or postal code in the designated boxes.
Are My Funds Safe with Forex Brokers in South Africa?
Forex traders are advised to register accounts only at properly regulated brokers to reduce their chances of falling victim to forex scams and secure their investments. Thus, they make sure that they trade in a fair and transparent environment and that all customer protections are in place.
Authorized forex brokers in South Africa must comply with a set of regulatory criteria, ensuring a completely safe trading experience. First and foremost, they must be registered as Financial Service Providers with the FSCA. Furthermore, brokers must maintain a minimum operational capital ensuring they can meet their financial obligations. It is also important to note that customer funds are held in segregated accounts, separate from brokers’ funds to reduce the risk of misuse.
With regard to risk management, brokers are obliged to support tools and systems to manage risk, including leverage limits. Brokers are also obliged to regularly report matters associated with financial affairs, customer complaints, and risk profiles. They must adhere to certain codes of conduct requiring them to treat their customers fairly, execute orders promptly, and protect their funds. Last but not least, forex traders residing in South Africa can file complaints to the FSCA through a complaints resolution process.
Do South African Brokers Provide Negative Balance Protection?
Negative balance protection normally applies to holders of retail accounts. This protection mechanism ensures customers do not lose more money than the balance of their accounts even during unfavorable market conditions.
Providers of leveraged products catering to countries within the European Securities and Markets Authority (ESMA) and the United Kingdom are obliged to provide negative balance protection to retail traders. Thus, if their account balance falls below zero, the broker will be required to restore it as soon as possible at no additional cost. Professional traders must waive this protection mechanism.
Traders based in South Africa can check if their selected forex broker provides negative balance protection. If it is available, they can rest assured their accounts are protected from extreme volatility during announcements, market openings, and unexpected global events.
Do You Pay Tax on Forex Trading in South Africa?
While the world of forex trading brings multiple investment opportunities, it also comes with its set of regulatory and compliance issues. Forex traders based in South Africa must be aware of the associated tax implications.
Trading earnings, much like other financial gains, are subject to taxes. Forex traders in South Africa must comply with the tax laws set forth by the South African Revenue Service (SARS). South African traders can either register as self-employed traders or as business owners, based on their trading plans.
Traders who earn less than R79,000 per year are exempt from taxes. Those who earn above this threshold are subject to a tax system ranging between 18% and 45%.
It is also important to note that traders who incur losses during the tax year can deduct them from their taxable income to reduce their overall tax liability. Therefore, keeping records of one’s trading activity, including profits and losses, is important and can be quite helpful to make sure one pays the correct amount of tax.
How Does the Available Leverage of FSCA-Regulated Brokers Compare to the Leverage at Brokers Regulated Offshore?
Leverage allows forex traders to place large trades with little capital in their accounts by borrowing funds from brokers. While leverage enhances their buying power, it also substantially magnifies the risk they are exposing themselves to.
Many international brokers must offer a maximum leverage of 30:1 to comply with the relevant regulatory requirements. Brokers regulated by the Financial Conduct Authority (FCA) in the United Kingdom must cap the leverage for forex trading to 30:1. The same rule applies to brokers operating in EU countries, which are under the regulation of the European Securities and Markets Authority (ESMA). Similarly, Australia’s financial regulatory authority, the Australian Securities and Investments Commission (ASIC) also introduced limitations of 30:1 in 2021.
The FSCA does not impose limitations on the leverage retail customers can use. However, they should be careful and choose a level of leverage that agrees with their risk tolerance and account balance.
What Do You Need to be Designated as a Professional Trader in South Africa?
If professional trading is what you are interested in, forex brokers catering to traders based in South Africa enable their retail customers to upgrade their accounts.
South African traders can upgrade their retail trading accounts to professional ones. This move, however, entails both certain benefits and shortcomings. On the plus side, professional traders gain access to a wider spectrum of options unavailable to retail customers. They are eligible to receive cash rebates and have access to a greater portfolio of products. On the minus side, however, professional traders must waive negative balance protection, and leverage caps, as well as get used to more sophisticated language.
Forex traders must meet several eligibility criteria to qualify for professional accounts. Most forex brokers require relevant experience in the financial sector for at least a year, a trading portfolio exceeding €500,000, and usually more than 10 leveraged transactions of significant size over the last four quarters. If traders meet at least two of these three main requirements, they usually qualify for professional trading accounts.
What Trading Platforms Are Available to South African Traders?
Much like in the rest of the world, some of the most popular trading platforms in South Africa are MetaTrader4, MetaTrader 5, and cTrader.
MetaTrader4, also known as MT4, is among the best trading platforms giving traders access to the Forex market. Developed by MetaQuotes in 2005, the platform gained popularity due to the functionality for end users to write their trading scripts and the options to automate trading. The MT4 is extremely user-friendly, making it equally suitable for inexperienced and advanced traders. It facilitates forex trading across a variety of devices, including desktop computers and mobile phones running on Android, iOS, and Windows. The platform is ideal for traders using technical analysis as it offers various analysis and charting tools.
MetaTrader5, also known as MT5, was released five years later, as a successor of MetaTrader4. The platform performs flawlessly across all classes of financial instruments including shares, cryptocurrencies, forex, and metals. Among the platform’s features are automated trading, superior analysis tools, trading flexibility across devices, and exceptional support.
CTrader is yet another comprehensive trading platform solution available at Forex and CFD brokers. The platform is equipped with a complete range of features that meet the requirements of different types of traders. Many traders prefer the platform due to its rich charting tools, advanced order types, and fast execution. The cTrader Copy feature enables traders to share their trading strategies with others.Below you can find some useful references with links to organisations that monitor the forex market in South Africa.
- The official website of the FSCA (the Financial Sector Conduct Authority)
- FSCA authorization check using FSP number, name, or postal code