The world is now flooded with tonnes of brokerage firms, with many genuine and other frauds. Sadly, the fraudulent side is heavier in the trading industry today. Thus, investors are always preferred to go for licensed brokers. Traders in South Africa can choose any broker around the world, but there are approximately 70 firms only which have the FSCA license. FSCA is a South African financial body which provides protection to clients and keeps monitoring on forex trading firms.
Now, out of these 70, anybody with a trading license might be working on eating your money. And, those who are truly genuine and offer good services relatively charge high, except a few. Here, we’ll reveal that few brokers only, i.e. the brokers holding fair regulations, offering excellent services, in the most affordable manner possible.
Top 5 Best South African Brokers for Forex Trading
Oinvest is a Seychelles brokerage firm which marks its inception since 2019. The broker is a specialised CFD broker offering tradable products and services at low, narrow tight spreads. The available market places for trading involve stocks, foreign pairs, commodities, indices, metals, crypto and many more. All the assets are available on a no-commission basis as the trading website only earns through spreads.
Moreover, a trader can choose to invest via his mobile, web, and desktop, as convenient to him. It has become plausible with the help of the widely used trading platform, MT4, which is accessible by Oinvest too.
Note that the broker doesn’t accept any clients from the USA, Africa, or Europe. Additionally, there are in total of five types of accounts offered by the company, namely, silver, gold, platinum, demo, and Islamic account.
Besides all this, some exceptional services by the firm are excellent customer support, no charge for demo service, high leverage, a wide range of research & educational tools, and much more.
PS: Oinvest is a trading name of Aronex Corporation Ltd, which is FSC regulated venture.
eToro has been in the trading industry for the last 13 years, delivering excellent services. The company is well-recognised in the forex market field, making them a name in every household. eToro offers CFD and non-CFD products to its users at excellent cost-effective prices. The organisation, founded in Tel Aviv, Israel, was established by Assia siblings along with a friend, David Ring.
eToro, which primarily was famous as RetailFX, offers online trading and social investing platform, and is a leader in same, with providing services friendly to the beginners. The firm is regulated and licensed with one of the top financial bodies of the world, including the UK’s FCA (Financial Conduct Authority) and Australia’s ASIC (Australian Securities and Exchange Commission).
The organisation offers its robust services in all over South Africa and the world, with offices operating globally. In total, the company claims to have around whopping 7,000,000 users.
Some disadvantages from their side are high minimum deposit than the industry average and mandatory withdrawal charge.
HotForex is an STP trading website in South Africa, which started its operations in 2016. The forex broker holds numerous licenses of top financial bodies including UK’s Financial Conduct Authority, CySEC (Cyprus Securities and Exchange Commission)of Cyprus, and South Africa’s FSCA (Financial Service Commission Authority). The company offers six segregated trading accounts, categorised for different types of traders. Most features of the broker depend upon the trading account selected, with a minimum deposit of 70 ZAR, accessible through the micro account. The lowest spreads start from 1 pip, with leverage as high as 1:400 (extendable up to 1:1000)
Note that the Zero account type offered by the broker provides spreads as low as 0 pips.
Some notable features of HotForex are free, fast deposit and fund withdrawal, impressive educational & research library, and no limit on demo account service. Trading platforms are simple and easy to use with specifications like live sentiments, auto charting, free VPS hosting, tick charts, indicators, tick charts, and many more.
AvaTrade is considered one of the biggest brokers globally, with its user base expanding up to 2 lakh. The company is operating since 2006 only and holds licenses from top financial authorities like FSCA, FSA, ASIC, and more. The broker offers excellent customer service to all the clients with 24/5 support. The minimum deposit is $100 to start real trading, with a free demo service for users to practise.
With four offices around the globe, namely, Australia, Japan, Ireland, and the British Virgin Island, the company is a significant partner for English Premier League Champions Manchester City. Moreover, the company offers MT4 & MT5, accessible for mobile, desktop, and web versions. The platform provides jaw-dropping services like one-click trading, 9-timeframe chart, Robo Trading, and a lot of other indicators, signals, & chart patterns.
Note that there are several deposit and withdrawal payment options available with the broker, which involves Skrill, Neteller, PayPal, Webmoney. Apart from them, there are also dedicated options for bank wire transfer and credit/debit card payments.
XM Trading is another good brokerage firm, which operates under the Financial Instruments Ltd. The company was founded in 2009, with regulations & licenses from CySEC, IFSC, FCA, DFSA, & ASIC. The high regulation makes sure the broker is safe to trade and doesn’t get involved in fraudulent activities.
Apart from all this, the trading site has exceptionally overwhelmingly low spread, with EUR/USD starting from as low as 0.8 pips. The forex traders also have an edge with them, as there are more than 11 base currencies, including ZAR. Some other prominent options include negative balance protection, commission-free trading, no charge on deposits & withdrawals, astounding customer assistance, and straightforward, quick order execution system.
Note that the broker do not hold South African financial body FSCA’s license and reports “applied” on their site. The venture also does not have South African telephone support.
The tradable assets include stocks, crypto, CFD, currency pairs, indices, and more. The minimum deposit is only $5.
Tickmill is a Seychelles based trading broker which started operations in 2014, operating with several regulations in place including UK’s Financial Conduct Authority, CySEC (Cyprus Securities & Exchange Commission), and South Africa’s FSCA. Moreover, the company offers three account types, namely, pro, classic, and VIP, which provides varied services according to a trader.
Although the minimum deposit to start trading is $100 for pro and classic, the VIP account requires a minimum of 50,000 USD as it caters professional requirements. Further, charges for trading are at par with standards, with spreads starting from 1.6 pips for classic type for EUR/USD currency pair. The same spread is 0.1 pips for a pro account for the same pair, but the user also has to pay $2 commission for trading a standard lot both sides. There’s no charge for adding or taking out funds.
Note that the company doesn’t provide the Meta Trader5 platform, and only offers MT4, along with their WebTrader platform, accessible via web, desktop, and mobile versions. Make sure to keep in mind that Tickmill does not provide any cryptos for trading and has in total 63 currency pairs available for users.
Which Broker Is Best?
Here is the real question that which broker from the above list is best. Although all the trading websites listed are trustworthy and provide genuine services, the need to consider some factors are still necessary.
Regulations: A user must choose a broker who is licensed with a natural, top-notch financial body like CySEC, FCA, FSCA, or ASIC. The regulation verifies the authenticity of brokers and assures every user that if any harm is done, then these bodies will take care. Moreover, in cases like bankruptcy, these governing bodies work to protect the client funds and also provides insurances up to 20,000 euros.
Fees: The next most significant thing after safety to all the traders is money. Spreads & other charges contribute an essential portion in every trader’s life. Usually, the fees vary according to account types, but the choice of the brokerage firm also matters. Also, note that the company with the most meagre spreads is not always the best. In contrast, genuine firms keep their rates at a standard level, refusing to go below a certain level.
Deposit & Withdrawal: At last, a trader must check with the broker that if his desired payment methods are even available or not for adding or taking out funds. Many brokers have a minimal number of deposit & withdrawal options, making users compelled to pay higher charges. The investor or any user should keep in mind that the payment technique is available in his nation, with considering every charge and processing time.
A good broker doesn’t have any fees on payments, and the reasonable processing time is 3-5 days for withdrawals and instant for deposits.
At last, keep in mind that no broker from the above list is worst or best. Everybody caters to a specific kind of investor. For instance, Oinvest works to provide above-average trading services and products to its users at the best competitive prices.