Forex trading is gaining mainstream attention these days, and mainly youth is attracted towards this market because of its high profit-producing probability. In South Africa also, investors and traders are inclining towards the foreign exchange market, including beginners and seasoned traders. But they also have to be aware of the risks associated with FX trading. So for beginners, it is essential to choose a trusted and reliable broker for forex trading.
In this article, we penned down the best forex brokers for beginners in South Africa. South African traders can choose any of these to meet their investment or trading goals through forex trading. The foreign exchange market is the largest marketplace, with over $6 trillion are traded on a daily basis.
South Africa has recently witnessed a significant increase in trading activity, which occurred for various reasons, including the fact that the country’s economic structure is constantly growing and is among the most advanced in the region.
While the financial markets of South Africa are still in the early stages of growth, the sector is highly accessible. As a result, it has a lot of potentials, increasing demand as more international brokers engage in trading operations in the country.
Many Forex Brokers from South Africa have gone on to become some of the world’s most well-known Brokers, lured by the destination’s great potential and comparatively light restrictions.
However, numerous brokerage houses and organisations continue to operate in South Africa without any registration or operational oversight, preying on the local populace primarily due to a lack of awareness.
Regulatory bodies in South Africa
The good news and clear benefits of South Africa are that it regulates Forex and provides greater security against harmful organisations as a result of its rules and regulations. The FSCA is a well-established national authority that ensures a legal and secure brokerage environment. Furthermore, we would like to point out that, following the successor to the previously known FSB, regulation in South Africa took a very serious and well-organized path.
The FSCA – Financial Sector Conduct Authority – is now in charge of the licensing of financial institutions and trading brokers, as well as monitoring developments to ensure compliance with relevant legislation and clients’ protection rights.
FSCA was established in 2018 and is currently one of the world’s leading authorities, overseeing and controlling proposals according to strict international criteria.
To put it another way, every brokerage business should obtain an FSCA license before launching and gaining legal status in South Africa since this ensures a balanced framework and a safe trading environment supervised by the FSCA.
To verify conditions, you can look up the broker’s information on an official website and look up the company’s history.
Best Forex Brokers South Africa
To identify and choose the Best Forex Brokers, you must first establish your personal needs, as well as the strategy, level of experience, and terms that the broker may offer.
The keynote about regulation is already covered here, as we produce a list based entirely on South African Regulated Forex Brokers, which you can see listed below, along with their features, according to the set criteria.
Investby is one of the best forex brokers for beginners in South Africa, as the country’s regulatory body has already recognised it. On the InvestBy broker’s website, investors can trade stocks online in South Africa. By offering all subscribers with a top-notch trading environment, the broker achieves breakthroughs.
Investby is an online trading platform that offers CFDs on more than 350 financial assets, including stocks, currencies, cryptocurrency, indices, commodities, and precious metals. In each situation, a client can go the extra mile from a financial standpoint.
It is a legitimate brokerage firm that operates under licence number 40023 from the National Bank of the Republic of Belarus. For both professional and retail clients, the broker offers three types of accounts: Silver account, Gold account, and Platinum account.
This broker is properly regulated in all of its operating jurisdictions. According to InvestBy reviews published on several websites, anyone who wishes to withdraw funds can do so quickly and conveniently using a variety of payment methods.
PrimeFin is a subsidiary of Caps Solutions Ltd., which is governed by the laws of Labuan. It has the LL16622 registration number and is governed by the Labuan Financial Services Authority (LFSA). The license number for LFSA’s regulatory body is MB/20/0052. The brokerage firm earned the tag of best forex broker for beginners in South Africa in no time.
Furthermore, the broker provides professional customer service 24 hours a day, seven days a week. Traders can educate themselves via the brokerage firm’s education center, which includes trading articles, earnings reports, season, trade ideas, an economic calendar, and a variety of courses.
PrimeFin is an excellent alternative for traders looking to invest in safe and secure trade markets. Trading online from South Africa through a broker is an excellent option because traders have complete control. The platform is compatible with all devices and can be accessed at any time. It offers leverage and spreads for all accounts and charges no commission.
Choosing the proper broker to satisfy all of your trading needs is a difficult task. ABInvesting is a well-known brokerage firm that offers top-notch services, tools, and security. In this ABInvesting Review 2021, we’ll go through every detail of the broker. For example, in a trade, the broker makes no distinction between skilled and new traders.
ABInvesting is a trading name of Hub Investments Limited, a Mauritius-based company. The Mauritius Financial Services Commission (FSC) Authority has authorised and regulated the broker. The organisation prioritises the trust and safety of its clients, and it provides top-notch trading services, education, and equipment at reasonable prices.
The broker has adequate staff of seasoned and qualified investors who employ financial trading tools and analysis techniques to optimise clients’ profits. Furthermore, for a better trading experience, the financial service company provides the globally recognised Meta Trader 4.
FP Markets is a CFD and forex broker based in Australia that was established in 2005. The Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the Financial Services Authority of St. Vincent and the Grenadines are all in charge of regulating it. However, because it has a good track record and is authorised by the top-tier ASIC, FP Markets is regarded safe.
MetaTrader 4 (MT4) is available at fpmarkets and may be found in every aspect of the trading platform. It is the platform of choice for traders in South Africa and overseas because of its customizable interface, extensive trading tools, and advanced features.
FP Markets has minimal forex commissions. In addition, the brokerage firm is easily accessible because both account opening and deposits are simple and quick. Demo accounts, articles, and e-books are just a few of the excellent instructional tools available.
IG, which was founded in the United Kingdom in 1974, is one of the world’s largest CFD brokers. The brokerage firm is regulated by multiple financial authorities throughout the world, including top-tier regulators like the FSCA in South Africa and the Federal Financial Supervisory Authority in Germany (BaFin). On the London Stock Exchange, the IG Group is a publicly-traded corporation.
Because it is listed on a stock exchange, publishes its financials, and is regulated by top-tier regulators, IG is regarded safe. IG trading commissions are typical. The cost structure is clear, and all required information is readily available on the website. Distinct asset classes have different charge regimes.
IG’s web trading interface is well-designed and user-friendly, and it’s simple to configure. On the website, you’ll find a variety of instructional resources. Depositing and withdrawing money is quite simple and quick, and there are various options. CFD trading expenses at IG are basically typical.
The well-reputed forex broker Plus500 is also an authorised financial services provider in South Africa. It is one of the best forex brokers for beginners as it is well equipped with all the trading tools, charts, and account types that suit beginners or novice traders best.
UK-based Plus500 has established itself as a prominent global commission-free CFD broker. This publicly-traded company continues to grow its global market share with more than 2,000 assets on its proprietary trading platform. In addition, plus 500 sends out push notifications in response to market events, price movement alerts, and changes in its proprietary trader sentiment index.
Using a regulated broker will reduce the risk of fraud and malpractice. We always advise traders to check for regulation and confirm it with the regulator by comparing the issued licence to the regulator’s database. Plus500 offers eight well-regulated entities to its customers.
Plus500 provides a commission-free trading environment, but it does so at the expense of wider spreads. At Plus500, the maximum leverage is determined by the regulatory authorities. It ranges from 1:20 to 1:300. Plus500 provides all traders with the same type of trading account. Upselling to better trading conditions based on more extensive deposits is not available.
AvaTrade is a well-known international forex broker that is part of the AVA Group. AvaTrade is one of the oldest online forex brokerage firms created in 2006. The trading platforms, mobile app, and MT4 integration are all covered in-depth in our review. Trading expenses, leverage, and spreads are also compared.
AvaTrade is a trustworthy company that is regulated by a number of agencies throughout the world. The broker is licenced by the Financial Services Board of South Africa (FSB) under licence number 45984. The number of trading platforms offered to traders is one of AvaTrade’s most notable features.
AvaTrade keeps things simple with their account kinds, only offering two to most traders. There are two types of accounts: standard and demo. Clients of AvaTrade can also download AvaSocial, the broker’s social and copy trading tool. The mobile app, which is available for iOS and Android, allows clients to copy the transactions of successful investors.
eToro is an online trading platform that allows EU residents to trade equities, cryptocurrencies, commodities, and other financial instruments. Currently, eToro only enables users to trade cryptocurrencies in the United States. While eToro does not charge flat trading costs, they do charge a spread commission. Therefore, the more significant the difference between the bid and ask, the bigger eToro’s fee will be.
eToro is a social trading website that allows investors to imitate the trades of other top traders on the platform, in addition to allowing crypto investing. For example, CopyTrader on eToro allows you to pick a trader and copy all of their transactions. This means the platform will automatically trade identical transactions as your copied trader.
eToro could be a terrific method to diversify your assets and enhance your knowledge, whether you’re interested in Bitcoin investing or learning strategies from expert traders.
You can choose any of the above brokers to embark on your forex trading journey as a South African. But if you are interested in a broker that does not belong to the above list, remember to check whether the broker is regulated or not. As a beginner, you cannot take the risk of starting your trading career with an unregulated broker. So be aware of regulations, especially in the country you belong to.