Best South African Forex Brokers List

South Africa is a vibrant, multinational and multilingual community, and this country is, therefore, a perfect place for forex trading. As a matter of fact, South Africa Forex Brokers are growing in numbers, and financial companies are finding more and more clients in this region. The southern tip of Africa is experiencing a rapid growth regarding economy and industry in general, and this also affects the currency market. Traders are willing to invest their funds, and they are looking for trading providers who are reliable and legitimate. Luckily for them, various broker companies are active in this country, and they satisfy even the most demanding of investors.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

30:1

Year founded

2009

Trading platform

MT4, MT5, WebTrader

IQ Option

IQ Option Review

Minimum deposit

$10

Regulation

CySEC

Bonus

N/A

Maximum leverage

1:30

Year founded

2013

Trading platform

WebTrader

OctaFX

OctaFX Review

Minimum deposit

$50

Regulation

FCA

Bonus

50%

Maximum leverage

1:1000

Year founded

2011

Trading platform

cTrader, MT4, MT5

CFD Global

CFDGlobal Review

Minimum deposit

$250

Regulation

CySEC

Bonus

Premium Package

Maximum leverage

1:300

Year founded

2016

Trading platform

MT5, WebTrader

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

Z.Com Trade

Z.com Trade Review

Minimum deposit

5$

Regulation

FCA

Bonus

N/A

Maximum leverage

200:1

Year founded

2005

Trading platform

MT4

GT247

GT247 Forex broker review

Minimum deposit

$1

Regulation

FSB

Bonus

N/A

Maximum leverage

N/A

Year founded

2000

Trading platform

MT5

FXPrimus

FXPrimus review

Minimum deposit

$1,000

Regulation

VFSC, FSCA

Bonus

30%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4

MT.COOK

MT.COOK Review

Minimum deposit

$5,000

Regulation

VFSC, FSCA

Bonus

N/A

Maximum leverage

1:100

Year founded

2007

Trading platform

MT4

Markets ZA

Markets.com South Africa Review

Minimum deposit

ZAR1000

Regulation

FSB

Bonus

Free ZAR250, Deposit Bonus, Referal Bonus

Maximum leverage

200:1 T&C Apply

Year founded

2008

Trading platform

Cosmos, Webtrader, MobileTrader IOS/Android

JPMarkets

JPMarkets Review

Minimum deposit

$1

Regulation

FSB

Bonus

100%

Maximum leverage

1:500

Year founded

2016

Trading platform

MT4

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why are Forex brokers successful in South Africa

After the turbulent historical period of apartheid which was over in the 1990s, South Africa was a country re-born. And just like the legendary phoenix bird when it emerges more beautiful from the fires so did this nation in the south of the Black Continent. Of course, not everything was perfect, and things are not perfect even today, but the economy of South Africa is stronger than ever, and the constant rise of the industrial sector is also an important element of the overall progress. Together with Nigeria, South Africa is the leading country when it comes to the economy in Africa, and this country is the only one from this continent that is currently a member of the G20.south african Forex brokers

Forex trading in South Africa

When it comes to the foreign exchange market, in particular, South Africa offers a lot of potential for investments, and both South African Forex Brokers and individual traders can expect additional growth in the upcoming period. South Africa is a country with a population that exceeds 50 million people, and the size of the state is sufficient to offer a lot of trading possibilities. The national currency, Rand, is strong and stable, which is a direct consequence of the overall progress of the nation as a whole. “JSE Limited,” located in Johannesburg, is the largest stock exchange in Africa, and all of these factors are relevant when it comes to forex trading as well.

The financial situation in the country looks promising, and this also affects the foreign exchange market. That is why broker companies are looking for ways on how to enter this sector, but they first have to pass an obstacle in the form of the Financial Services Board (FSB).

The role of FSB

Just like the broker companies in any other country in the world, Forex Brokers South Africa are governed by a regulatory body. When it comes to South Africa, this organization is called FSB, and it plays a crucial role in the overall process of trading with currency pairs. What this means is that FSB acts as a “financial police” or as a supervisor that has the power to monitor and control everything that is happening in the world of foreign exchange. Forex companies in South Africa are, therefore, regulated by a reputable and independent agency, and this gives a sense of guarantee to the traders. They always want to know that their funds and personal information will be safe and protected, and in most cases – only the brokers who are fully licensed can offer bullet-proof protection and top-notch professionalism.

FSB logoThe FSB has several other duties and responsibilities as well, and because of the volume of the work – more than 400 employees are currently stationed in their headquarters in Pretoria. The independence of this agency is one of its most prominent features, and this means that the government is not financing the organization. The members of the forex trading market are paying fees to gain the seal of approval from the agency, but this permit is not easily granted, and Forex Brokers South Africa have to pass a series of highly demanding tests and investigations. The Financial Intelligence Act from 2001 and the Financial Advisory and Intermediary Services Act from 2004 are providing FSB with the legal framework and the means to exert control on the forex market.

In other words, FX Brokers South Africa are regulated by an organization that is in charge of all financial investments in the market, and this governing body will try to protect every single investor. Through various enforcement methods, FSB can control the brokers, and some of these “tools” include different penalties and even bans.

FSB Changes to the FSCA

The Financial Services Board has now officially taken a new mandate. it will now be referred to as the Financial Sector Conduct Authority (FSCA). This happened on April 1st, 2018. The Financial Sector Regulation Act 2017 features a specific model for financial sector regulation. The name of the model is Twin Peaks, which is now fully implemented in the former FSB.

FSCA regulated Forex brokers

All of this means that the FSB regulated FX companies are now FSCA regulated Forex brokers. Even the Finance Minister Nhanhla Nene was involved in the ordeal, taking charge of the procedures and signing the Commencement Notice. After the signing, the Financial Sector Conduct Authority and the Prudential Authority organizations were able to begin their operations.

There are very specific tasks in mind of the FSCA to handle, which include:

  • The protection of financial customers, by means of fair treatment promotion, financial education provision and finally the promotion of financial literacy
  • Any types of required assistance in financial stability maintenance
  • The enhancement of financial markets in regards to efficiency and integrity
  • Supporting the policy objectives for transforming the financial sector with financial inclusion

A direct approach to the implementations was not planned and did not happen. The government was looking at a more gradual development and implementation plan over the course of the year. There have been no problems with the financial companies so far, because of the clear and deliberate message. Here are the changes

  • The FSCA will now conduct all communications, decisions and regulatory actions
  • A new Financial Sector Tribunal has been established. They can be approached with the help of the FSCA

Officially, all the processes will now go through the FSCA South African FX regulator, which warrants new Commissioners and Deputy Commissioners to fill the positions of the Executive Committee. However, all of these changes didn’t mean that the FSB staff was going to be disregarded and left jobless. Before a new Commissioner is found for the Executive Board, a team of former FSB Executive Committee members will be made as a placeholder Transitional Management Committee. The members of the Committee will be the former FSB board chairperson Abel Sithole and Katherine Gibson, the National Treasury appointee. Mr. Sithole will be the temporary Commissioner while a new candidate is being searched, and will conduct every task delegated to him according to the FSRA.

The next 12 months will be a scene of gradual changes with the financial system of the country for the better. one of the key changes will be coming in the form of a new functional organization design in order to better showcase the new mandate.  FSCA Forex brokers South Africa is a particular part that will need lots of attention, because of which numerous projects will be undertaken in order to improve both existing and recruited staff quality.

Reliable brokers in South Africa

Trading with unregulated brokers is not something we would recommend, and this activity can lead to a lot of problems and frustrations. Admittedly, some unregulated brokers can offer high-quality services and top-shelf professionalism, but the majority of such companies are involved in malicious and fraudulent activities. That is why forex trading in South Africa, just like in any other country, should be conducted only through legitimate and licensed brokers. Retail Forex Brokers South Africa always proudly display the seal of approval from FSB on their site, and without this little detail – do not deposit your hard-earned funds into their accounts!

The benefits of trading with licensed broker houses in South Africa

FSB is a regulatory body with long-lasting history and tradition, and its spotless reputation is a strong factor in the world of forex trading in South Africa. The integrity of this agency is an element that all companies respect, and that is why they want to gain a license from this governing structure. However, the individual traders are also the ones who can benefit from dealing with a licensed broker, and there are several significant advantages in favor of this type of companies. For instance, improved safety and security are something that all investors want, and having a peace of mind about your funds or personal information is highly valuable in today’s hectic lives. South Africa Forex trading brokers that are licensed by FSB have to keep your money in a segregated account, which means that you will get paid even if the broker encounters problems with insolvency or some similar issue.

Similarly, regulated brokers have to offer fair advertising, and they are prohibited from sending your personal information to third-party companies. Unrealistic promises are a typical scene in the financial world, and they usually present a red flag that can warn investors about suspicious activities and operations. For example, various bonuses, promotions, live webinars, and educational materials can be advertised in different ways, but broker houses should never “hide” the terms and conditions in some far away corner on their website. As a matter of fact, these elements need to be visibly displayed, and clients have to be informed about every little detail before they put their name on the line and accept the “gifts.”

How to find the best South African Forex broker

South Africa is a country with a highly diverse population, and a lot of different cultures and identities are combined in this exciting melting pot. The same thing can be said about the financial sector in this country, and brokerage houses in South Africa forex brokerages come in all shapes and sizes. Not all of them are licensed, and not all of them are experienced, but it is still possible to find the ones who operate in an honest and legitimate manner. However, before you decide to jump right into the water, we recommend that you perform some things that will prepare you for all the challenges that await once the cold waters of the financial sector close above your head and hungry “sharks” start circling your money.

For example, one of the most important things that a good South African broker should have, besides a valid license, is impeccable reputation. In other words, if no one is complaining about the companies – the chances are that South Africa FX Brokers in question are providing a good service. Of course, not all traders are the same, and we all have our particular tastes and personal preferences, so this category is highly subjective, and sometimes we cannot fully rely on this factor.

On the other hand, some other elements constitute a good broker, and these features are a bit more concrete, which allows us to judge them objectively. For instance, some of the characteristics include execution speed, the quality of the trading platform, banking methods, and so on. When we start the search for the best South Africa Forex broker, we have to check all of these features, and this course of action will allow us to find the perfect trading company for our needs easily.

The final word

Even though South Africa is still mostly recognized for its mining industry and tourism, i.e. for its shiny diamonds and attractive beaches, some new factors are changing the reputation of this country. Forex trading is increasingly popular in this part of the world, and top South Africa Forex brokers are continuously improving the quality of their services so that they can compete with the rest of the world. As we all know, foreign exchange is the largest financial market on the globe, and broker companies from South Africa are keeping up with the trends and modern standards in the business.