South Africa continues the rapid development of its financial sector with a focus on Forex trading. The lack of capital makes retail prop trading an option more South African traders favor, but not all prop firms are equally competitive. So, how can you ensure you are dealing with reputable prop firms in South Africa?
I have conducted a comprehensive review of South African prop firms, covering the pros and cons, what happens if you lose money trading for a prop firm, and how to choose a prop trading account in South Africa.
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4.9/5The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.A maximum profit share of 90% & cryptocurrency withdrawalsA free $10,000 demo challenge to qualify for a paid-for evaluation 2 
4.7/5The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.A maximum profit share of 90% & cryptocurrency withdrawalsFour trading platforms & 24/7 customer support in 18 languages
- Sabiotrade, daily trading signals on the Quadcode platform and full-year mentorship.
- FTMO, the best prop trading firm with a genuine path for salaried prop traders.
Sabiotrade
In Summary daily trading signals on the Quadcode platform and full-year mentorshipSabioTrade provides five accounts, from $20,000 to $650,000 for a one-time evaluation fee between $119 and $2,989, refundable for funded traders. The profit target is 10%, with a 5% daily maximum drawdown, and a 6% maximum drawdown. Prop traders get maximum leverage of 1:30. This makes SabioTrade one of the best prop firms in South Africa for conservative traders.
Traders can access the Quadcode-powered trading platform as a desktop, web-based alternative, or mobile app, but it does not support algorithmic trading. SabioTrade also offers daily trading signals and full-year mentorship, setting itself apart from other retail prop trading firms.
Pros & Cons
- Dashboard-integrated trading platform by QuadCode Markets
- Quick 1-step assessment
- Funded accounts $10,000-$200,000
- Profit share between 70% and 90%
- No weekend positions
FTMO
In Summary the best prop trading firm with a genuine path for salaried prop tradersFTMO has a clear path to transition from retail to professional prop trading with a contract and a fixed salary. Therefore, I rank FTMO among the best prop firms in South Africa. Traders must trade at least four days during the evaluation but can use EAs. FTMO has five accounts starting at $10,000 with an €89 evaluation fee and a maximum of $200,000 for €1,080.
The two-step verification has a profit target of 10%-5%, a maximum daily loss limit of 5%, and a maximum drawdown of 10%. FTMO offers seven account base currencies and a maximum leverage of 1:100.
Pros & Cons
- Reasonable profit targets and generous maximum loss levels
- 80% to 90% profit share with a fast withdrawal process
- Customizable two-step evaluation period with free retrials where applicable
- MT4, MT5, and cTrader accounts with generous leverage
- No information about which broker or brokers FTMO uses
Is Forex Prop Trading a Good Idea in South Africa?
Prop firms in South Africa provide capital but enforce strict risk management rules, trading strategy restrictions, potential consistency rules, and uncompetitive trading rules. Therefore, every trader must answer the viability of prop trading based on their preferences, skills, and strategy.
Pros and Cons of Prop Trading in South Africa
Prop traders should evaluate the pros and cons of prop trading.
The Pros of Prop Trading
- Access to trading capital
- A generous profit split
- Well-established prop firm partnerships with some of the best South African brokers
The Cons of Prop Trading
- Unregulated business
- Tight risk management rules
- Some consistency rules make select trading strategies uncompetitive
- Not all prop firms allow algorithmic trading
- Performance pressure
- Inexperienced traders rush to prop firms offering educational content
How to Withdraw Money from a Prop Trading Account
Prop firms in South Africa use bank wires and cryptocurrencies to send profit shares to prop traders. Traders must pass KYC/AML regulations before requesting withdrawals. They must also generate profits and trade within strict trading rules while complying with other conditions where applicable and consider the withdrawal window at prop firms. The dashboard handles the withdrawal process, which functions similarly to online banking.
How to Choose a Prop Trading Account in South Africa
While prop firms in South Africa offer similar core trading conditions, traders should compare them, as differences exist.
Prop traders evaluate the following aspects:
1. Reputation - I recommend avoiding newly established prop firms, as prop firms are unregulated but duly registered businesses.
2. Trading Costs - Most prop firms in South Africa charge a one-time evaluation fee based on the desired account size, while trading fees depend on the broker.
3. Trading Platform - Prop traders can use MT4, MT5, TradeLocker, and DXtrade.
4. Profit Share - I advise prop traders to ignore a profit share below 80%.
5. Asset Selection - The asset selection usually features Forex, cryptocurrencies, commodities, indices, and equities.
6. Trading Strategies - All prop firms have certain restrictions, and prop traders must ensure they can execute their strategy.
7. Support - Prop traders should use prop firms with fast, responsive customer support available 24/5, as trading with legitimate prop firms involves a contract and receipt of payouts.
8. Payouts - The best prop firms in South Africa process cryptocurrency transactions, but bank wires remain the primary option.
What Can You Trade with a Prop Firm in South Africa?
The asset selection always depends on the prop firms and their partner brokers. The most competitive prop firms in South Africa offer a combination of Forex, cryptocurrencies, commodities, metals, indices, and equities.
What Happens if You Lose Money at a Prop Firm?
Prop traders who violate the maximum drawdown rule will lose access to their funded account, but prop firms in South Africa allow those traders to pay for another evaluation. All trading in funded accounts is in demo accounts, known as shadow trading, and prop traders are never liable for lost capital.
Bottom Line
Prop firms in South Africa can help traders transition to full-time trading via access to funded accounts, but most prop firms rely on evaluation fees or monthly subscriptions for their income and not on trading. Most prop firms present themselves as an excellent choice, but prop traders must evaluate and understand the trading rules and restrictions, which can restrict the successful execution of trading strategies. Regulators also label retail prop firms as a trading game. Therefore, South African prop traders must carefully evaluate prop firms before paying the evaluation fee.
