With so many Forex and CFD brokers out there trying to grab your attention, finding the right one in South Africa can feel like a bit of a maze.
But don't worry—we’ve done the hard work for you. We’ve compiled a list of the most reliable brokers in the South African market, so you don’t have to spend hours searching.
As you read on, you’ll see our top picks, get tips on choosing the best broker for your needs, and find out how to check if a broker is properly regulated here in South Africa. We’ll also walk you through getting started with Forex trading and explain a bit about the legal stuff, like tax obligations, so you’re fully prepared to dive in.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- FP Markets, ECN trading with leverage up to 1:500.
Best South African Forex Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, CMA, CySEC, FSCA |
Year Established | 2006 | 2010 | 2011 | 2005 |
Execution Type(s) | Market Maker | No Dealing Desk, NDD | ECN/STP, Market Maker | ECN/STP |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.9 pips | 1.1 pips | 0.1 pips | 1.2 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.4 pips | 0.2 pips | 1.4 pips |
Average Trading Cost Gold | $0.29 | $0.15 | $0.18 | $0.16 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, Proprietary platform | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based |
Islamic Account | ||||
Negative Balance Protection | N/A | N/A | ||
| Visit Website | Get Started Visit Website75-95% of traders on margin lose | 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 AvaAcademy
- 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
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformPepperstone allows algorithmic trading in a code-free environment, ensuring a competitive edge unavailable at most Forex brokers, placing Pepperstone among the best South African Forex brokers on my listing. Pepperstone presents its proprietary mobile trading app for copy and mobile traders next to MT4/MT5 and cTrader. Copy traders get MetaTrader Signals, Copy Trading by Pepperstone, cTrader Copy, and Signal Start.
Pepperstone has competitive commission-based trading fees featuring raw spreads from 0.0 pips for a commission of $7.00 per 1.0 lot with a volume-based rebate program. The well-balanced asset selection includes CFDs on Forex, indices, shares, commodities, and ETFs.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
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
FP Markets
In Summary ECN trading with leverage up to 1:500fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
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.
How to Choose 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
While MetaTrader 4 (MT4) is a popular choice for Forex, it’s worth exploring other options like MT5 or proprietary platforms. MetaTrader 5 (MT5) Trading Platform is more versatile for trading different markets, but MT4 remains the top pick for beginners in South Africa due to its user-friendly design and widespread support.
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 in 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 strategies.
- 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 favor, 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 in 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 their 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.
