Best Forex Brokers in South Africa 2021

What Are the Best Forex Brokers in South Africa?

If you’re based in South Africa and looking to select a forex broker, this is the only forex broker guide you need.

We’ll cover all aspects of Forex trading in South Africa, list the best brokers in South Africa for Forex trading and more. We will supply plenty of detail on all elements that will ultimately help your trading and give you an insight into trading in South Africa.

We’ve analysed brokers in South Africa, and brokers that offer their services to South African traders. We’ve extensively tested and traded with each forex broker to find the brokers that best service the South African forex trading community.

Our professional team of traders and analysts has compiled the best Forex Brokers in South Africa.

We’ve also got some trading information to cover all aspects of trading Forex from South Africa.

Let’s get into it.

Quick start guide – one minute review

What Are South African Traders Looking for in a Forex Broker?

Based on our research and discussions with South African traders, the key pointers are, they’re looking for optimal trading conditions and finding a trustworthy broker. Finding a trustworthy broker is key to security, the safest most secure brokers in South Africa are those that are FSCA regulated.

Optimal trading conditions consider trading tools, trading platforms, platform usability and the ease of using the forex broker account.

South African traders, like to trade all assets and are especially interested in Forex (foreign exchange) and commodity markets.

Finally, they’re interested in giving themselves the best chance to make a profit. This means, offers, bonuses, tools and signals to help them on their trading journey.

Is Forex Trading Regulated in South Africa?

Forex trading is juridical in South Africa as the South African Government doesn’t have any regulations overseeing the legitimateness.

As an investment class, Forex has been a subject of much debate. In many African countries, Forex trading is not regulated. This means that traders are not given any legal protection should a problem arise with their trading account or issues with the brokerage.

Trading Forex is legitimate in South Africa as long as you abide by monetary regulations that confine money laundering. You should also make a declaration of your income tax. While utilising a regulated broker is not a legitimate necessity, there are brokers governed by the FSCA. Others brokers are available to South African traders but governed by reputed regulators worldwide.

Forex trading is juridical in South Africa as the South African Government doesn’t have any regulations overseeing the legitimateness.

As an investment class, Forex has been a subject of much debate. In many African countries, forex trading is not regulated. This means that traders are not given any legal protection should a problem arise with their trading account or issues with the brokerage.

Trading Forex is legitimate in South Africa as long as you abide by monetary regulations that confine money laundering. You should also make a declaration of your income tax. While utilising a regulated broker is not a legitimate necessity, there are brokers controlled by FSCA. Others are available to South African traders governed by reputed regulators worldwide.

The FSCA that is situated in Johannesburg, South Africa, authorises the non-banking monetary administration section of the South African market as it has accomplished for over 20 years (as the FSB previously).

In spite of the fact that traders can trade Forex and CFD with offshore brokers by following this guideline, it is enthusiastically suggested that South African traders use FSCA authorised Forex brokers as this secures traders against any controversy and misconduct by Forex brokers.

The key is due diligence when selecting a broker; fortunately, that is what we’ve done for you here.

South African Financial District

Johannesburg Sandton Financial District

The primary financial district within South Africa is the Sandton financial district where the Johannesburg Stock Exchanges is located.

The Johannesburg Stock Exchange, known as the JSE, is currently ranked the 19th largest stock exchange globally by market capitalisation and the largest exchange in the African continent.

How to invest in the Johannesburg Stock Exchange?
So you want to start investing in shares listed on the Johannesburg Stock Exchange (JSE), but you have no idea how to go about it?

There are a number of people who have made stock market trading their full-time jobs. But this is not for the faint-hearted, and we wouldn’t recommend it to beginners.

Trading Online in South Africa

Since COVID-19 South Africans have had an opportunity to work from home, which has also allowed many to learn a new skill through trading online. Since the COVID-19 pandemic more South Africans have started to trade Forex online.

The 2020-2021 cryptocurrency boom has driven a lot of interest to online trading. In 2020 “Forex” searches in Google.co.za saw close to all-time traffic highs, even when compared to “buzz” niches like “crypto”.

Google.co.za search volume for trading terms (past 5 years)

This additional activity is great for the South African trading space, with new communities, website apps and tools being developed and new brokers and services.

There are many positives to growth in the online trading community. Still, it’s also worth being aware that with larger sums of money being invested in trading, it attracts more scammers.

Scammers take advantage of the space, so it’s essential as with all trading activity, you do your due diligence when selecting a broker to trade with.

At Trade the Day, the good news is we’ve done most of the work for you.

We’ve assessed each broker in great detail and also looked at the specifics of why each broker is right for South African traders, beginner traders, through to seasoned professionals.

Best Forex Brokers in South Africa 2021

It is important to note that this list is not on a ranking basis, but a comprehensive list of the very BEST Forex Brokers and Trading Platforms in South Africa geared towards trading, especially beginner Forex traders.

Here’s our list of the best Forex brokers in South Africa.

If you are a beginner trader, it is essential to find a broker that matches your trading style, your currency trading goals, and your trading budget. Shop around or ask our on-site staff via the chat window for any advice.

Many brokers offer free demo accounts you can use to test their platform we’ll cover the best, so you don’t have to worry about making the decision yourself.

Trading Online in South Africa

Since COVID-19 many South Africans have had an opportunity to work from home, this has also allowed many to learn and develop new skills.

One such “work from home” activity is online trading and since the COVID-19 pandemic, as we can see in “Google Trends”, more South Africans have started to trade Forex online.

The 2020-2021 cryptocurrency boom has driven a lot of additional interest to online trading. In 2020 “Forex” searches in Google.co.za saw close to all-time traffic highs, even when compared to “buzz” searches like “crypto”.

This additional activity is excellent for the South African trading space, with new communities, website apps and tools being developed and new brokers and services.

There are many positives to growth in the online trading community. Still, it’s also worth being aware that with larger sums of money being invested in trading, it attracts more scammers.

Scammers take advantage of the space, so it’s essential as with all trading activity, you do your due diligence when selecting a broker to trade with.

At Trade the Day, the good news is we’ve done most of the work for you.

We’ve assessed each broker in great detail and also looked at the specifics of why each broker is right for South African traders, beginner traders, through to seasoned professionals.

Forex Trading in South Africa

Foreign exchange or Forex (or FX for short) is the marketplace for trading all the world’s currencies and with $6.6 Trillion traded every day, Forex is the largest financial market in the world.

South Africa is one of the most active countries in Forex trading. With a strong economy, a large middle class, a large stock exchange, and a relatively strong currency. The South African Rand is the most heavily traded currency in Africa.

South African Rand (ZAR)
The most popular currency pairing to the ZAR is the USD.

The government has set up a regulatory body to oversee all the Forex brokers in the country. To receive regulatory approval, Forex brokers need to comply with the rules set by the Financial Services Board of South Africa.

This is especially important for online Forex traders, as it ensures that traders have a level of protection. However, reputable brokers licensed elsewhere are active in South Africa.

Solid authorisation in the monetary area and the economy’s general strength give South Africans the certainty to trade in the forex market at a rate generally equivalent to Nigeria.

Most South Africans view forex trading as a hobby, but it can be an excellent income source if done right.

Several South African traders have come from a poor background, putting money into Forex creating a classic “rags to riches” tale.

Sandile Shezi Read became South Africas youngest “self-made” millionaire at 23 courtesy of the forex market. Shezi took a gamble and went “all in” trading forex with money that was supposed to pay for his third-year tuition in college. Shezi is a risk-taker, but in this case, it paid off extremely well.

South African Forex Trader Sandile Shezi

There are many different trading strategies that each trader can use. Each one differs depending on the type of investments you are looking for.

When you’re starting out in the world of forex trading, it’s essential to learn about the tools and resources that are available to you.

Fortunately at Trade the Day we have an entire education section for beginning traders up to professional traders to learn from so be sure to check it out.

South African Rand - $ZAR

The Rand has been the currency of South Africa since 1961 and, since that time, it has been a fluctuating currency. Of course, this is no surprise as South Africa is a developing nation with a developing economy (although in a recession).

The Rand is an extremely tradable and liquid currency. It is, therefore, very inviting for South Africans to start trading Forex.

The Bank of International Settlements (BIS) positions the South African Rand as the eighteenth most regularly exchanged currency in the world. As per the BIS 2019 triennial narration, the Rand has stayed inside the best 20 currencies since 2004.

What’s more, it is the main currency on the continent of Africa to accomplish this positioning in the Forex market.

South African Economy

Understanding the economic landscape, both locally and globally, helps you better understand your trading decisions and allows you to spot a potentially profitable trading opportunity.

South Africa is the second-largest economy in Africa and one of the largest in the world with a gross domestic product of about $350 billion (in 2020).

The South African economy is dominated by mining and manufacturing. Still, it also has a service sector that accounts for more than 60% of the economy.

South Africa is blessed with abundant natural resources, yet it is also one of the world’s most unequal countries. It’s incredibly rich in many areas, yet incredibly poor in others. This contrast lends itself to a great interest in Forex trading.

South African Economy

Understanding the economic landscape, both locally and globally, helps you better understand your trading decisions and allows you to spot a potentially profitable trading opportunity.

South Africa is the second-largest economy in Africa and one of the largest in the world with a gross domestic product of about $350 billion (in 2020).

The South African economy is dominated by mining and manufacturing. Still, it also has a service sector that accounts for more than 60% of the economy.

South Africa is blessed with abundant natural resources, yet it is also one of the world’s most unequal countries. It’s incredibly rich in many areas, yet incredibly poor in others. This contrast lends itself to a great interest in Forex trading.

South Africa In Recession

Unfortunately South Africa’s recession worsened before the COVID-19 pandemic hit in 2020.

“When an economy’s starting point – even prior to the COVID lockdown – is an unemployment rate that is over 30 per cent, it is difficult to imagine what further deterioration looks like, said Razia Khan, chief economist for Africa and the Middle East at Standard Chartered.

This means more and more people are taking their future success into their own hands and learning to trade.

While the country’s economy has been in a recession for the past few years, there’s no sign of slowing down in demand for the nations leading exports, trading opportunities are forever present.

The economy of South Africa relies heavily on mining; this industry accounted for 8% of the country’s GDP (gross domestic product) in 2019.

South Africa produces more than two-thirds of all platinum and manganese and more than half of the world’s chromium and vanadium and one of the world’s top three platinum and manganese producers.

The country also has significant quantities of iron ore, coal, nickel, copper and cobalt. However, mining only accounted for 5% of employment in 2013.

South Africa’s main exports include: – Chromium – Limestone – Gold – Diamonds. South Africa is the world’s biggest producer of chromium,

The service industry makes up the largest part of the economy of South Africa; it accounted for about 60% of GDP in 2013.

Trading Commodities in South Africa

Gold Trading South Africa

South Africa has some of the world’s largest gold deposits and accounts for more than 20% of the global reserves. The country also has significant quantities of iron ore, coal, nickel, copper and cobalt.

South Africa’s Top 5 Commodity Exports Gold – $17.9 billion Platinum – $9.1 billion Coal Briquettes – $6.7 billion Iron Ore – $4.7 billion Ferroalloys – $4.0 billion Start Trading Today at Plus500 (76.40% of retail CFD accounts lose money.) South Africa’s Other Notable Exports Diamonds – $9.4 billion Cars – $6.8 billion Manganese Ore – $3.5 billion Delivery Trucks – $3.1 billion Chromium Ore – $1.9 billion

There is also significant potential for the country’s offshore oil and gas production, which could boost the economy. South Africa has a number of financial institutions, including the South Africa Reserve Bank. It also has a stock exchange and several other markets.

Negative Balance Protection South Africa

A negative balance is a situation where your trading account is passed zero, and your trading balance is negative. This means you have lost more than you have deposited in your account.

In this situation, you can lose your deposit or potentially, even more, and in the most drastic circumstances, you can even lose your trading account.

This is why it is so important to protect yourself from a negative balance situation.

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