Forex and CFD trading is becoming ever more popular, especially in South Africa. In fact, South Africa has one of the most active trading communities, along with Australia and the UK.
Because of this, many online brokers are now providing trading accounts to residents of South Africa. So if you've been thinking about opening a trading account, there's quite a few to choose from.
To help you make that decision we've looked at some of the best forex broker in South Africa. In this article, we'll also explain what points you need to check when finding a broker.
South Africa Trading
Online trading has become popular in South Africa because it gives traders the freedom to invest whenever they way. With the Forex and CFD's markets existing online, millions of traders can get involved worldwide.
To get started you just need internet access and a trading account. When it comes to choosing a broker though, there are 3 points to always check:
• Is the broker regulated?
• How much is the minimum deposit?
• Which financial instruments are available?
These are the 3 main questions that you need to answer as it'll help you find the best broker. For instance, the minimum deposit is important because that's the initial amount of money you'll have to deposit to your trading account. If you have a set budget in mind, it's good to check this as each broker is different.
The financial instrument availability is good to know so you're aware of the range of assets you can trade. However, most important of these points is the broker regulation, but what is it exactly?
To make sure that you're trading securely, it's important to choose a licensed & regulated broker. Holding a regulation licence means that a broker is authorised to operate and that they're being monitored by an official financial authority.
These financial regulation authorities also make sure that brokers are following strict financial rules. These are all designed to protect you from scams and fraud.
That's why a broker must hold at least one regulation license from one of the following regulation authorities:
• CySEC (Cyprus Securities and Exchange Commission)
• FSA (Seychelles Financial Services Authority)
• FCA (Financial Conduct Authority)
• FSCA (South Africa's 'Financial Sector Conduct Authority')
Trading securely is only possible with a regulated broker.
Here are some examples of two regulated brokers who are very popular in South Africa:
eToro South Africa is a major broker that is famous for being a social trading platform. This means that they have many social tools where you can learn from other professional traders. For instance, they offer a trading newsfeed where members can discuss market topics and their unique CopyTrader feature.
The CopyTrader tool lets you copy the same traders of other members. This is a good tool if you don't have much experience and want to learn from other successful users.
Regarding regulation, eToro is fully regulated by the Financial Conduct Authority and CySEC. This means that they are a trusted and secure broker to use.
The minimum deposit is $200 for South African residents, however, this amount is just for the first-ever deposit. After this the minimum deposit is just $50. Note that only USD is accepted on the platform. So if depositing in ZAR a small conversion charge will be applied.
Once you've deposited you'll be able to start trading. The platform is simple to use and well-designed. There are many Forex & CFD instruments available to trade, this includes Stocks, ETF's Crypto and Commodities. The platform is also available as a free trading app for smartphones.
One more broker that we must mention is IQ Option South Africa. They are an international broker with many clients worldwide.
They're also fully regulated, and they're licensed by the FSA and CySEC.
The main thing that IQ Option is famous for is for having a very low minimum deposit. If you wish to start trading, the minimum deposit if just $10, or 150 ZAR. This is a perfect amount if you want to begin trading with a smaller deposit amount.
They also accept ZAR as a currency type.
Asset wise, IQ Option offers Forex and CFD assets. Some of the CFD instruments include Options, Commodities, Indices, Stocks, and Cryptocurrencies. The platform is easy to move around and is available as an online WebTrader or as a trading app.
The trading app can be downloaded for free from the Apple or Google Play stores.