With more than 50 Forex / CFD brokers marketing their services to South African resident traders, finding the right broker for you can be a challenge. We have done the research for you, compiling a shortlist here of the most credible Forex / CFD brokers in the South African market. Read on to review our choices, find out which one best suits your needs, and check out our guides for choosing a Forex broker in South Africa, determining whether a broker is regulated in South Africa, how to get started trading Forex, and some details on the legality of Forex trading and tax liabilities in South Africa.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
- MultiBank Group, Deep liquidity with no trading restrictions.
Best South African Forex Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CySEC, FCA, SCB | FMA, FSA | ASIC, AUSTRAC, BaFin, BVIFSC, CIMA, CySEC, ESCA, FMA, MAS, TFG, VFSC |
Year Established | 2006 | 2011 | 2009 | 2014 | 2005 |
Execution Type(s) | Market Maker | ECN/STP, Market Maker | ECN/STP, Market Maker | ECN/STP, No Dealing Desk | ECN/STP |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.9 pips | 0.1 pips | 1.0 pips | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 0.2 pips | 1.2 pips | 2.0 pips | 0.5 pips |
Average Trading Cost Gold | $0.29 | $0.18 | $0.12 | $0.90 | $0.02 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader |
Islamic Account | |||||
Negative Balance Protection | N/A | ||||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAnother excellent choice for Forex trading South Africa is AvaTrade. One immediate benefit is that this broker obtained an operating license from the Financial Sector Conduct Authority (FSCA) and has a local presence. It remains unclear if deposits and withdrawals in the South African Rand are Available. AvaTrade also maintains a proprietary mobile trading platform in AvaTradeGO, one specifically designed for options trading, AvaOptions, together with the MT4/MT5 trading platforms, and its WebTrader. DupliTrade supports social trading at this well-regulated global broker with an office in South Africa.
Pros & Cons
- High-quality educational offering via SharpTrader
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWhile FXTM is on the list of South African regulated Forex brokers, it is a well-regulated company operating out of Mauritius and part of the Exinity Group, which also counts Alpari as a member. The Financial Services Commission (FSC) of the Republic of Mauritius offers international brokers a business-friendly regulatory framework and traders a secure trading environment, as evident by the product and services delivered by FXTM to over 2,000,000 traders globally. This broker frequently achieves leading position in any top Forex brokers list and established itself as a market-leader for emerging and frontier markets, catering to traders with competitive terms and granting them excellent educational tools.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Eightcap
In Summary Competitive pricing + excellent daily videosWhile Eightcap neither has a local presence in South Africa nor a regulatory license from the South African FSCA, it embraces the FSCA commitment to Forex education. Therefore, Eightcap grew into one of the leading South African Forex brokers amid well-written educational content, which allows beginners to gain a deep fundamental understanding of Forex trading before opening and funding an account.
Trading fees are among the lowest in South Africa, extending its competitive edge. Eightcap also features leading trading platforms MT4 and MT5, with services by Capitalise AI, the 30M+ TradingView community, and caters to cryptocurrency traders via Crypto Crusher.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
MultiBank Group
In Summary Deep liquidity with no trading restrictionsMultiBankFX complies with 10 regulators and operates offices in 20 countries, ensuring clients have an unmatched global network with deep liquidity pools across major financial centers and in core emerging markets. Traders get the MT4/MT5 trading platforms, which fully support algorithmic trading, and a proprietary copy trading service. The asset selection consists of 55+ currency pairs and 20,000+ equity CFDs and ETFs, while cryptocurrency traders get eleven highly liquid coins. MAM/PAMM accounts cater to traditional retail account management, VPS hosting to algorithmic traders, and FIX API trading to advanced trading requirements featuring custom solutions. A high-paying partnership program also exists.
Pros & Cons
- 20,000 assets offering broad coverage of financial markets
- Raw spreads from 0 pips and maximum leverage of 1:500
- MAM/PAMM accounts and proprietary copy trading platform
- ECN trading with deep liquidity and no requotes
- Access to raw spreads requires a $5,000 minimum deposit on the ECN account
Is Forex Trading Legal in South Africa?
Yes, Forex Trading is Legal in South Africa.
Retail traders resident in South Africa, meaning individuals who trade their own money, can legally trade Forex and other instruments such as CFDs and cryptocurrencies. There are no restrictions on types of currency pairs, and brokers can offer South African-resident traders major Forex pairs (e.g., EUR/USD, GBP/USD, USD/JPY, AUD/USD, etc.), crosses, and minor pairs (EUR/JPY, USD/MXN, etc.)
Do South African Residents Pay Taxes on Forex profits?
South African residents must declare all their income and profits from Forex trading on their annual tax returns. The South African Revenue Service (SARS) treats Forex trading as revenue (assuming the Forex trading is to make a profit and not to hold as an investment), i.e., the same as self-employed, independent contractor or freelancer. All expenses incurred from Forex trading should be deducted from the gross income of the trading to calculate the taxable profit from Forex trading. The profit made must be added to other income earned for tax purposes. Forex traders should keep all their documents and records of their Forex trading activities for tax purposes. At the time of writing, South African Forex traders must pay 28% tax on net profits.
Forex Trading Regulations in South Africa
The FSCA regulates all financial services, including Forex and CFDs.
The Financial Sector Conduct Authority (FSCA) regulates the financial services sector in South Africa. The FSCA replaced the Financial Services Board (FSB) in 2018. The FSCA authority extends to online derivatives providers (ODPs), including Forex and CFD brokers.
By international standards, the FSCA is newer and does not have the same capabilities as many other regulators in more established jurisdictions. That is why the best Forex trading brokers in South Africa are usually regulated in multiple jurisdictions.
Forex brokers must have an FSP license.
Online derivatives providers (ODPs) must have a Financial Services Provider (FSP) license to serve South African residents. For firms to obtain a license, they must show integrity, for example, no previous convictions of key personnel, competence requirements, continuous professional development, operational ability, and financial soundness.
Choosing a South African Forex Broker
Step 1: Fees
Brokers charge fees, and simply put, you want to be paying competitive fees instead of paying too much. It is important to remember that you do not necessarily want to choose the cheapest broker in the world – good regulation and security, plus an appropriate selection of assets to trade and other issues are also particularly crucial factors. Yet fees will always rank highly on the list of appropriate considerations. Keep in mind that brokers often offer several different account types with different fee structures. Some fee structures are better for longer-term traders and others for shorter-term traders. For example, if you are using long-term strategies, overnight fees will likely be more important to you than the spread or commission charged on opening and closing a trade.
Step 2: Minimum account size
Check that the minimum account size is small enough for your requirements. I always like to start with this step because no matter how much you like a broker, it will not matter if you do not have enough capital for the minimum deposit. The best Forex brokers for beginners will have small minimum account sizes to help you get started.
Step 3: Regulation
Make sure to choose a broker with a solid regulatory cover that demands high standards for clients, such as fair and transparent pricing, segregation of client funds, etc. Many international brokers are regulated under jurisdictions with strong regulatory standards, such as brokers regulated by the UK’s Financial Conduct Authority (FCA) or brokers regulated by the Australian Securities & Investments Commission (ASIC), which go to great lengths to protect clients. The best Forex brokers for South African resident traders are usually regulated by multiple regulators.
The best way to verify FSCA registration is through the FSCA website. Depending on the type of firm, your broker may be listed in one of two areas on the site. This step-by-step process will take you through both.
Step 4: Types of accounts
You may want an ECN-style account with raw spreads plus commission or a market-maker broker who charges just the spread and can take the other side of the trade. Each has their advantages and disadvantages. For example, ECN accounts are great for scalping to capture very small price movements, but market maker accounts can often offer smoother price changes and quicker fills because they fill trades through an internal dealing desk. Many brokers will offer a choice of both, and access to each type of account will require different minimum account sizes.
Step 5: Markets
Some brokers are Forex only, and others give access to cryptocurrencies, CFDs on international equities, indexes, etc. Choose a broker offering the markets you want to trade.
Step 6: Trading platforms
There is a huge number of Forex / CFD brokers offering the MetaTrader 4 (MT4) trading platform, but look out also for MT5 and brokers’ own in-house platforms. MT4 is great for Forex but not other markets. MT5 is a better all-around broker. But MT4 remains the best trading platform for beginners in South Africa.
Step 7: Customer service
All brokers have customer service access by email, but I always try to pick brokers with phone support. Email can be slow, and sometimes you will want an answer immediately, which the best brokers for Forex in South Africa can give with phone support.
To find the best Forex brokers South Africa, go through the above steps and prioritize the criteria that matter most to you.
How to Start Forex Trading in South Africa
- Educate yourself about Forex / CFD basics, then trading stratregies.
- Decide what kind of trader you want to be. Long and short-term traders have different needs which can impact best choice of Forex / CFD broker.
- Determine your minimum requirements from a broker for minimum deposit, regulation, and range of assets available. Compile a shortlist of suitable brokers.
- Research the brokers on your shortlist in more detail, especially regarding fees and account types. Decide which ones offers you the best deal financially.
- Open demo accounts with the broker or brokers meeting your requirements and paper trade in the style which you plan to use with real money. This will help you learn more about the broker and its trading platform(s), as well as to test and refine the trading strategies you are using. If you don’t yet have a trading strategy, now is the time to do some research on the many free Forex / CFD trading strategies and decide what will probably work best with your psychology.
- When you are comfortable, decide which broker you will deposit real money with, and contact them to open a live account. If you can afford it, there is no reason why you cannot divide your money between two or even three brokers and test them out with live accounts.
- Begin trading with real funds and monitor how your broker executes your trades. If you are finding issues such as serious slippage, strongly widening spreads, or requotes, go back to the earlier steps and look for another broker to test out.
Risks of Forex Trading in South Africa
All financial markets carry risk. Here are some of the more significant risks of Forex trading from South Africa:
- Using A trading strategy that works only in certain market conditions. Your trading strategy can suffer heavy losses when market conditions change if you do not adapt.
- Using too much leverage. Leverage is an excellent tool when used properly, but novice traders often overuse it and open positions far too big considering their account equity.
- Widening a stop-loss when a trade goes against you. This error is a psychological one because you have not maintained your discipline. Accepting pre-determined losses before they get to be too large is central to your risk control. Paradoxically, good traders must learn how to lose sometimes, and how to take losses in stride.
- Market gaps because of news events. Especially when a news event is unanticipated, for example, an economic data release that is far out of line from expectations, the market can gap strongly. Occasionally, a gap can work in your favour, but if the price gaps against you, you will be stopped out at a much worse level than you planned for. In a sense, these are extreme slippage events. You also take on this risk every time you leave a position open over the weekend, as it is possible there can be events while the market is closed for 48 hours which cause the price to open far from the level it closed at on the previous Friday.
- Broker issues. Thankfully, the quality of brokers is better than ever because of regulation and more competition. However, some brokers can provide poor fills or pricing. Today, the best Forex brokers in South Africa have excellent infrastructure to execute trades properly.
Conclusion
South Africa’s thriving Forex market has created a demand for quality execution and customer service from brokers. Regulators have responded to protect South African traders from unfair practices.
Today, South African traders can choose from several regulated brokers offering access to Forex, CFDs, stocks, commodities, and cryptocurrencies.
It is easy to check a broker’s regulatory status. The best Forex brokers will publish the regulators that oversee them at the bottom of their homepage. The FSCA maintains a database so you can easily verify that a broker has a South African license. When you are looking amongst the best South African Forex brokers, spend time doing your research.
Several platforms can hold the title of the best online trading platform South Africa, but MetaTrader MT4 still remains the most popular.
Remember, trading any financial markets, not just Forex, carries risks. There are normal market risks arising when market conditions change. However, you can guard against some of these risks by assessing your strategy thoroughly and controlling risk by always using stop-losses and maximum position sizes on your trades.
Forex beginners should spend time learning how to trade and improving trading skills. Before opening an account and depositing real money, research brokers to find the best and most competitive fits for the markets you want to access, the competitive fee structure you need, and the trading platform(s) you prefer.
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