These are the best Forex brokers available to South African traders that we put together as a guide. These are all trusted international brokers which take South African accounts and deposits. While what brokers offer traders are very similar at the core, there are a couple areas that set them apart. If I were new to trading and choosing from this list, I would look to see if a broker takes low deposits, if the broker has social trading in a web-based application, if the broker charges commissions on the trades and also the bonuses that each of them offers first-time depositors.
You can always sign up and use the demo accounts to find which setup you prefer before depositing, or if you are only interested here is our list of all FSB regulated forex brokers. CM Trading have numerous advantages for us South Africans, in addition to the offices, because I am able to easily transfer funds to a local NED bank branch directly.
Being in South Africa is often frustrating when we have to wait for Europe to open to make deposits, so if you are looking to have more flexibility, CM could be good for you.
If you are a bigger trader, CM uses Intercash so that funds are moved in and out of the trading account as fast as possible — but I have not yet tried this. I like Avatrade because it is a well-established broker that covers all the basics, and does them well. If you are a beginner looking to start trading in South Africa, AvaTrade is highly recommended. While the website and the sign-up process could be easier, the staff are welcoming and helpful if they are called upon to help out.
If you want a broker with good leverage, Easy Forex is probably not for you, but if you want to start off a trading career with low risk then that low leverage does play in your favour.
I first started using XM formerly Trading Point when I was trading binary options, and really appreciated the advanced uses of this broker. This broker has huge leverage, and tight spreads but to mitigate risk hedging is allowed.
If you are a seasoned trader or want to learn with many of the features at your disposal then Trading Point is for you. This broker has no minimum on the micro and zero accounts making it hugely attractive for newcomers too. Etoro has an extremely successful user base which has enabled it to create an effective social trading tool which encourages traders to follow other successful traders in the brokerage.
I would recommend this broker to any beginner because the practice accounts have a lot of money in them to practice with, and their software makes trading simpler and removes a number of the complexities.
I would also recommend it to an advanced trader because of the high In the financial markets, a Forex broker is an intermediary or the middleman that allows people to have access to the Interbank market. The Interbank market is simply a network of banks and electronic brokering platforms that trade with each other and offer liquidity. A Forex broker will offer you currency quotes at which you can buy and sell in exchange for a small fee or commission.
In some cases, a Forex broker can be the sole counter-party of your transactions. Put simply, a Forex broker has two fundamental functions: A regulated Forex broker is simply a licensed Forex broker that operates within the boundaries set by the governmental regulatory bodies. The regulatory agencies ensure that the retail Forex traders have part of a fair trading environment and protection against possible frauds.
A Forex broker with a supervisory agency is perceived to have more integrity. For the privilege of offering you access to trade the Forex currency market, the majority of the Forex brokers will charge their clients either a commission or the spread. This is simply associated with the cost of doing business in the Forex market. However, a Forex Broker can make money through three different income streams and beside commissions and the spread he can also make money if your broker is a Market Maker and take the other side of your trade because he makes money every time you lose.
We have compiled a list of Forex brokers regulated by the FSB here. Some brokers will do operate a managed account for you , but it is rare. It is important that you read our piece on managed accounts, and understand the risks involved.
It goes without saying that you would look into the performance of the trader, but this is something they are very transparent about. This makes total common sense for the broker to be on the other side of your trade because they can profit from that. In this type of trading environment, your orders are processed straight through to the Interbank market, connecting you directly to the liquidity providers.
Dealing Desk Brokers are also called market makers, which means the Forex Brokers sets their own price rates for currency transactions. This means the Forex Broker trades against its client base. Forex scalping is a strategy where a trader seeks to profit from the small currency exchange fluctuations. Usually, a scalper enters and exit trades several times a day and the trade holding time period is very small generally few minutes. Currency hedging is a way of attempting to protect yourself against a negative event that can send the market moving against your initial position.
You can think about hedging as a form of insurance if something goes wrong with your trade. Direct hedging is when you buy a currency pair and then at the same time you sell the same pair. Choosing a Forex broker can be an intimidating task when you have at your disposal countless options to choose from. However, we can consider five important elements and requirements to look for when choosing a Forex broker:.
Some brokers have proprietary software while others use popular platforms like MetaTrader4 , cTrader, and other software packages. Most brokers also have forex trading mobile phone apps. No matter which type of platform it is, however, every broker is going to offer something to you. We use a number of factors for evaluating brokers, and we only promote those we believe are worth using.
We have worked for many years in the industry, and we are well connected with the brokers and the reputations of the brokers in the community. We believe that a forex trading experience should be safe, and fun. Every Forex trader is different in his or her needs and desires, so there is no one-size-fits-all broker.
Take your time to choose the best platform, the best account, and make sure you understand the risks involved. What do Forex Brokers do? What is Regulated Forex Broker? Which are the Majors Regulators? How do Forex Brokers Make Money? Can You Trust Forex Broker? I need a managed account. Do brokers offer this service? What is a Market Maker Broker? What Forex Broker to choose? However, we can consider five important elements and requirements to look for when choosing a Forex broker: Regulation, is your Forex broker regulated?
Is it regulated by top leading regulatory bodies? How does your broker make money: Does your broker allow scalping and hedging? What platform or software will my broker offer? What types of currencies and commodities should I look for?
How do we compare Forex brokers? We only list brokers which are regulated by one of the major regulators. These regulations make your funds more secure. The option of a low initial deposit is important to some traders. We appreciate brokers who offer micro-accounts to beginner traders and allow trading in micro lots so that traders only need to risk what they feel is acceptable. This makes a difference in how the broker makes money and also makes clear where a conflict of interest could occur.
The best brokers offer free educational materials and coaching that a trader would need to get started and that sometimes includes the broker making a phone call to clear up any details.
We like to review the trading conditions and support of forex trading brokers. These are things like the types of Forex market orders available, the trading costs, and try to identify those with a larger range of currency pairs available to trade. A Final Note Every Forex trader is different in his or her needs and desires, so there is no one-size-fits-all broker. Sign Up Demo Read review.More...