Getting started on forex trading can be quite an exciting affair. The prospect of making lots of money through such a flexible source of income is very enticing to many aspiring traders. Still, there’s a lot about forex trading that aspiring traders need to familiarize themselves with to ensure that they have a good chance of succeeding in this vast and complex field. One of the most important components of trading that every trader has to thoroughly comprehend is how forex brokers work and their importance in the forex trading market. Even so, given how forex trading isn’t necessarily evenly regulated, countries have different ways in which forex trading is conducted.
In simple terms, forex brokers are financial institutions that offer traders the platform they require to trade in foreign currency. These forex brokers operate in specified jurisdictions in order to ensure that all laws concerning trading are followed at all times. In South Africa, for instance, forex brokers are allowed to operate as long as they don’t go against any money laundering laws in the country. Thus, forex brokers in South Africa such as veracity markets, have to ensure that all their operations are completely in compliance with the country’s money-laundering laws.
For this reason, all aspiring traders in South Africa have to look for forex brokers that are, not only compliant with all trading laws in the country but also offering exemplary services to its clients. To help you pick out the most suitable forex broker in South Africa, here are some of the most decorated ones in the country. It’s important to note that these selections were done based on a number of factors that had to be considered when shortlisting these companies.
HF market, which is otherwise known as Hotforex, is a Straight Through Processing (STP) broker that was founded in the year 2010. An STP is a forex broker that passes the orders from clients straight to the liquidity provider. Thus, Hotforex directly connects its clients to the foreign currency liquidity providers which in turn lowers the cost of trading for buyers who choose to use the platform. HF market offers some of the lowest spreads in the South African forex trading market, with absolutely no deposit or withdrawal fees on their “zero account”. Moreover, the HF market provides arguably the lowest trading prices in the whole of the South African region. It’s also important to note that Hotforex doesn’t offer local banking options for withdrawals and deposits. Lastly, Hotforex is regulated by the Financial Sector Conduct Authority (FSCA) which is the dedicated conduct market authority in South Africa.
This forex broker was originally a European forex market provider that recently became regulated by the FCSA to conduct services in South Africa. However, unlike its other counterparts, Avatrade has stricter guidelines concerning its trader’s activity as the company enforces a strict no-trading policy, charging clients as much as 50 dollars for more than three months of inactivity and a whopping 100 dollars for more than a year of not participating. Still, one of the company’s most redeeming qualities is providing users with both MT4 and MT5 services for its clients across several platforms including web-based and application-oriented programs. What’s more, on top of offering zero deposit and withdrawal fees, Avatrade also accepts local bank transfers which are instrumental to the South African local economy.
Although FXPro was founded in the United Kingdom, it was regulated by the FSCA making it available for South African traders in 2015. This makes the company one of the safest trading platforms in South Africa. Another redeeming factor of FxPro is the fact that it offers Rand accounts with ZAR base currency, which can be very convenient for local traders using the market. FxPro also offers various types of accounts including Mastertrader accounts that offer very competitive spreads and cTrader accounts that provide commissions for every standard lot. In addition, FxPro doesn’t charge any fees for withdrawals and deposits on top of having a dedicated customer service ready to assist clients at any given time.
Although there are plenty of forex brokers in South Africa, it takes a keen eye to pick the best out of all of them. Inasmuch as the companies listed above only scratch the surface when it comes to what South Africa has to offer, it provides a list of the most beneficial forex brokers in the country.