Top 10 forex brokers in south africa

Top 10 forex brokers in south africa

IG – Best overall broker, most trusted
AvaTrade – Great for beginners and copy trading
Plus500 – Multi-asset CFD broker, intuitive platform
FXCM – Excellent trading platforms and tools
FP Markets – Excellent pricing, great for MetaTrader
Tickmill – Best overall broker for low costs
HFM – Quality research, proprietary HFM App
VT Markets – Best for Cryptocurrency Trading

Forex trading in South Africa has become increasingly popular due to the Covid-19 pandemic, making it a potentially lucrative practice for traders. Brokers must be authorized by the Financial Sector Conduct Authority (FSCA), which is a mark of legitimacy to forex traders. However, there are also brokers regulated outside of South Africa that accept local residents for forex trading. To find the best forex brokers in South Africa, an in-depth annual review of forex brokers was conducted, ranking them by their overall ranking.

The Financial Advisory and Intermediary Act (FAIS) of 2002 and the subsequent Financial Sector Regulation Act (FSRA) of 2017 set the requirements for Financial Service Providers (FSPs) in South Africa that offer derivatives, such as forex trading. Forex brokers must be licensed and authorized as FSPs with the FSCA to legally offer forex trading in South Africa to residents. It is recommended to choose a broker regulated in South Africa to reduce the chances of falling victim to potential scam brokers.

To verify FSCA authorization, one must identify the FSP registration number from the disclosure text at the bottom of the broker’s homepage. For example, IG Markets Limited in the UK (FCA Number 195355) offers international accounts, while South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance. The FSP number on the financial register available on the FSCA’s website can validate that the broker is currently authorized in South Africa.

The South African financial markets regulator, the Financial Sector Conduct Authority (FSCA), was rebranded as the Financial Services Board (FSB) in 2018. The FSCA regulates financial market conduct and the South African Reserve Bank (SARB), which is responsible for the Prudential Authority (PA). Forex traders may recognize the South African rand (ZAR) as South Africa’s national currency. The formation of South Africa’s Johannesburg Stock Exchange (JSE) dates back to the era of the South African gold rush in 1887.

After extensive research and testing of all forex brokers regulated in South Africa and accepting South African residents, IG has been found to be the best forex broker in 2024. IG holds more licenses than any of the 60+ forex brokers reviewed on our site and is publicly traded and well capitalized, making it a trusted forex broker with a Trust Score of 99.

A regulated broker is essential for maintaining trust and compliance when dealing with financial institutions. It is crucial to choose a broker that is well-regulated and licensed to offer forex trading to South African residents by the FSCA. To start trading forex in South Africa, follow these steps:

1. Choose a regulated broker: Open a live account by completing the application form on the broker’s official website. Read the broker’s terms and conditions carefully. 2. Fund your account: Choose the payment method that’s right for you, such as PayPal, which has become a popular deposit method among forex traders. Start with an amount of risk capital that you can afford to lose. 3. Learn the trading software: Test your skills before placing live trades by using a demo account or virtual account. 4. Enter the forex market: Choose your desired trade size, open a long position by clicking buy on a given currency, or open a short position by clicking sell. 5. Develop a trading plan: To achieve long-term success as a forex trader, spend time developing a trading strategy that will enable you to trade consistently while pursuing your trading goals and managing risks.

The odds of getting rich from forex trading are stacked against you unless you already have a significant portfolio, have taken massive risks, or have a detailed trading methodology. Most successful traders have a long-term plan or methodology, even if they are actively trading each day to manage the average risk/reward on each trade.

For the successful minority, most will realize the extra earnings as complementing their income, in the form of capital gains. The largest wealth creation will be from traders who let their profits ride over the longer term, or had consistent winners and an overall sizeable portfolio to begin with.

It is extremely rare for someone to turn $2,000 into $2 million by trading forex, and such claims are often made by scammers or influencers on social media. The exception is if someone has a history of returns (i.e., a track record) that can be audited, such as seen in investment disclosures prepared by hedge funds for potential investors.

The forex market in South Africa operates on South Africa Standard Time (SAST), which runs two hours ahead of UTC. This schedule is different from other major financial centers worldwide, such as New York, USA (EDT) 16:00 (UTC-4) on Sunday, March 27, 2022, and London, UK (BST) 21:00 (UTC+1) on Sunday, March 27, 2022.

The forex market closes in South Africa on Friday, April 1, 2022, New York, USA (EDT) 16:00 (UTC-4) – Closes Friday, April 1, 2022 South Africa (SAST) 22:00 (UTC+2) – Closes Sunday, March 27, 2022 London, UK (BST) 21:00 (UTC+1) – Closes Monday, March 28, 2022 Wellington, NZ (NZDT) 09:00 (UTC+13).

For beginners, IG is the best forex broker for beginners in 2024. IG offers a variety of in-depth educational content and materials for new investors and traders, along with well-designed and user-friendly trading platforms. IG Academy, a standalone mobile app dedicated to education, is also available for users. IG is regulated in numerous top-tier jurisdictions, making it one of the most trusted forex brokers globally.

Some of the best forex trading apps in South Africa include Saxo – SaxoTraderGO mobile app, MetaTrader mobile IG – IG Trading app, MetaTrader mobile Interactive Brokers – IMPACT app, IBKR mobile app FOREX.com – FOREX.com mobile, MetaTrader mobile OANDA – fxTrade mobile, MetaTrader mobile Capital.com – Capital.com Trading app, Investmate, MetaTrader mobile AvaTrade – AvaTradeGO and AvaOptions, and MetaTrader mobile smartphone forex trading apps.

Tickmill is the most affordable low-cost broker in South Africa for forex trading in 2024. Tickmill’s PRO account requires just a $100 minimum deposit and features the broker’s lowest spreads and commissions. Based on average spread data provided by Tickmill for August 2022, average spreads to trade the EUR/USD hovered at just over a tenth of a pip (at 0.11 pips). With a round-turn commission of 0.4 pips ($2 per side), the effective spread (or all-in cost) at Tickmill is a staggering 0.51 pips, which is among the lowest in the industry.

In summary, the forex market in South Africa operates on South Africa Standard Time (SAST) and is regulated by the FSCA. For beginners, IG is the best choice due to its extensive educational content, user-friendly platforms, and advanced charting capabilities.