11 Best Forex Brokers in South Africa (Updated List 2024)  (2024)

There are many forex brokers that operate in South Africa, but only the forex brokers that are regulated by the Financial Sector Conduct Authority (FSCA) are legal & considered safe for South African traders.

Also note that there are several unregulated and illegal brokers that accept clients from South Africa. Most of these fake brokers do not have licenses from any Tier-1 or Tier-2 regulators.

Or they may have their licenses in the past which have been revoked, but they still go ahead to take money from the unsuspecting public. So, you must be careful when depositing your funds with any forex broker.

Read our research below & how we rank these forex brokers.

Which Forex Broker is The Best in South Africa?

• HFM (HotForex) – Best Forex Broker South Africa.
• Exness – Best Forex Broker for Beginners.
• AvaTrade – Best Broker for Forex Trading with Fixed Spreads
• Tickmill–Low CommissionForex Broker withSocial Trading
• XM Global – Forex Broker with MicroTrading Account
• FxPro – Best Forex Broker with cTrader Platform
• FXTM – Best Forex Broker for ECN Type Accounts
• IC Markets – Best ASIC Regulated Broker with Low Overall Fees
• Pepperstone – Forex Trading Account for Professionals (but not FSCA Licensed)
• IFX Brokers – South African Forex Broker with Quick Withdrawals
• Admiral Markets – FSCA & ODP Licensed Forex Broker

We reviewed various forex brokers accepting South African clients based on several factors including: FSCA regulation, fees on currencies (majors & minors), deposit & withdrawal options (including bank payments), range of instruments (all CFDs), availability across devices, Rand trading account, and customer support via phone, email.

1.HFM (HotForex) – Best Forex Broker in South Africa

Regulation

Domestic Regulation – HF Markets is in South Africa & is licensed by the FSCA to offer financial services. Their FSP license number is 46632.

International Regulation – HF Markets also holds licenses from the United Kingdom’s top market regulator the Financial Conduct Authority (FCA). HF Markets also holds licenses from Kenya, and Dubai.

ODP Status – Application withdrawn

HF Markets Fees for Forex trading in South Africa

• Spreads– High for entry-level accounts but lower for other accounts
• Commissions-Moderate
• Overnight fees -Moderate
• Inactivity fees – Moderate

Spreads: The Cent & Premium HF Markets account types have higher than normal spreads because widely traded FX pairs like GBP/USD have spreads exceeding 1.6 pips.

HF Markets Account types with low spreads are the Zero, PRO PLUS, & Pro Accounts. You can get GBP/USD spreads as low as 0.2 pips on the PRO PLUS Account which is competitive.

You can also get GBP/USD spreads from 0.1 pips on the HFM Zero Account, but you must pay higher commissions in exchange.

However, HF Markets has low USD/ZAR spreads which are as low as 40 pips on the Pro Account & 50 pips on the Premium & Cent Accounts.

Commission: The HF Markets Zero Account charges you a commission on every instrument you trade. $3/side on forex, and lesser on other asset classes. $0.1 per round turn when trading ETF CFDs, $1 per round turn when trading Crypto CFDs, etc.

The Pro, PRO PLUS, Premium, & Cent Accounts will not charge you commissions for trading forex, but they charge you commissions for trading other asset classes. $0.1 per round turn when trading ETF CFDs, $1 per round turn when trading Crypto CFDs, etc.

Overnight Fees (Swaps fees): HF Markets will not charge you overnight swap fees on trades related to Forex, Gold, & Oil.

HF Markets Account funding(with zero fees)

HF Markets minimum deposit in ZAR is R90 an equivalent of 5 USD.

How to deposit into HF Markets:

• South African Bank Transfer- Fastest option
• Visa/Master Cards
• eWallets

Forex Trading in South Africa: Conditions provided by HF Markets

HF Markets is a South African forex broker with an extensive range of CFD products you can select from. You get to trade CFDs onup to 50+ Currency Pairs, 6 Metals, 11 indices, 95 Major Stocks, Bonds, ETFs, Cryptocurrencies, and Energies.

HF Markets supports ZAR base currency for all account types, so you save on currency conversion fees. It features one wallet for multiple accounts, 1:2000 maximum leverage, & deposit bonus offerings.

There are over 5 account types, over 15 funding methods, MetaTrader trading platforms and 25 video tutorials.

HF Markets South Africa also supports copy trading on its mobile app and MT4.The HF Markets Cent Account, Premium Account, & PRO Account can be used for copy trading and leverage for copy trading is restricted to 1:500.

Please read our complete HF Markets Review for more detailed trading conditions

HFM South Africa Online Forex Trading Platforms

HFM Mobile App: developed in-house by HF Markets, this mobile app is for CFD trading and is available on Android & Apple phones.

MetaTrader:HF Markets is a MetaTrader forex broker in South Africa.MT4 & MT5 platforms are available, and HF Markets have developed free Expert Advisors for MT4/5 which they call Premium Trader Tool Kit. You can download these EAs from the HF Markets website and plug them into your MT4 or MT5.

HF Markets Overall Impression: 4.5/5

• Regulation – 4.5/5
• Fees – 4/5
• Trading conditions – 5/5
• Platforms – 4/5

HFMarketsis a good forex broker for beginner to mid-level forex trading in South Africa. However, expert traders would have preferred Raw Spread Accounts & more trading platforms like cTrader, TradingView, & a Web Trader.

HFM (Hotforex) lets you open accounts with 90 ZAR. Read more about which account works for you

2. Exness – Best Forex Broker for Beginners in South Africa

Regulation

Domestic Regulation–Exness is licensed by the FSCA to offer financial services in South Africa. Their FSP license number is 51024.

International Regulation – Exness is also regulated in the United Kingdom, Kenya, Cyprus, British Virgin Islands, Seychelles, & Mauritius.

ODP Status – Applied

Exness Fees charged for Forex Trading in South Africa

• Spreads-Low
• Commissions-High
• Overnight fees – Low
• Inactivity fees – Zero

Spread:Exness spreads are some of the lowest in the market. When you trade popular pairs like GBP/USD on the Standard Account (entry level account) you are charged around 1.2 pip spreads.

On the Professional Exness Accounts, major trades like GBP/USD are not charged any spread at all.

For USD/ZAR which is popular in South Africa, spread is around 15.3 pips on Professional Exness Accounts & 194.4 pips on the Standard Entry Level Accounts.

Compare Exness spread vs HF Markets spread on Standard Accounts

Commission:Standard and Pro Accounts are commission-free and there’s a commission of $3.5per sideon the Raw Spread Account and even higher commissions exceeding $4.5 per side, on the Exness Zero Spread Account.

Overnight Fees (Swap Fees): you can leave positions open overnight without being asked to pay overnight fees at Exness. This is called extended swap-free trading on Exness and Forex, Crypto, Gold,& Indices trades are swap-free, so you don’t pay overnight fees on them.

Account Funding at Exness South Africa is free

Exness minimum deposit in ZAR is R180 or $10.Exness withdrawals are also approved on weekends & this speeds up the withdrawal process.

How to deposit into Exness:

• Internet Banking using South African Banks – Fastest option
• eWallets (Skrill & Neteller)
  

Forex Trading in South Africa: Trading conditions offered by Exness

Exness offers up to 1200+ tradable CFD instruments: 100+ Currency pairs (major, minor and exotic), 90+ stocks, 10 Metals, Cryptocurrencies, Energies, and Indices. Exness has NAS 100 Index CFD product which is called US TECH 100 or USTECm on Exness. Exness is a good forex broker for zero-swap trading as overnight fees are zero on most Exness asset classes.

You can read thisExness detailed review for data on trading conditions

Exness South Africa Online Forex Trading Platforms

Exness Web Trader: this is a homegrown trading software built by Exness that launches from any browser. It doesn’t need any installation & can be accessed from the Exness website from any device whether desktop or smartphone.

Exness Trade Mobile App:this is strictly a mobile app and was designed for smartphones. Although it doesn’t have all the features of the Web Trader, it gets the job done when trading on the run. It can be downloaded from Google Playstore and Apple store.

Exness Social Trading App: a mobile app dedicated to copy trading. To use the app, you have to create an Exness Social Trading Account.

MetaTrader:you can use your Exness accounts to trade on MT4/5 mobile, web, & desktop versions. Exness does not provide free MetaTrader Expert Advisors so you may have to develop them yourself or buy them from the MetaTrader market/community.

Exness Overall Impression: 4.5/5

• Regulation – 4.5/5
• Fees – 4.5/5
• Trading conditions – 4.3/5
• Platforms – 4.2/5

Exness is in South Africa as a licensed Financial Service Provider (FSP) offering low-cost trading to beginners using their Standard Account lineups. They also offer great trading conditions for professional traders with Raw Spread Accounts. Exness downside is that their customer support is not as beginner oriented as we would have expected.

Read more information about Exness for South African traders

3. AvaTrade – Best Broker for Forex Trading with Fixed Spreads

Regulation

Domestic Regulation – AvaTrade is in South Africa & is licensed by the FSCA to offer financial services in South Africa. Their FSP license number is 45984.

International Regulation – AvaTrade is also regulated in Ireland, Australia, Japan, Israel, Cyprus, and British Virgin Islands.

ODP Status – Not applied

AvaTrade Fees charged for Forex Trading in South Africa

• Spreads-Low
• Commissions-zero
• Overnight fees – High
• Inactivity fees – High

Avatrade does not charge commissions and the spreads are fixed.For GBP/USD average spread is 1.5 pips& for USD/ZAR average spread is 85 pips.

The lowest spread you can get on AvaTrade is 0.9 pips and this is charges when you trade the EUR/USD pair.

AvaTrade deposits and withdrawals are free.However, there is an inactivity fee of 50 USD or EUR or GBP for 6 months of inactivity.

Account Funding at AvaTrade is free

AvaTrade minimum deposit is $100 or around R1, 800in ZAR.

You can deposit and Withdraw funds on Avatrade using bank transfer, credit/debit card, wire transfer and e-wallet.

• Deposit using credit/debit card is instant, e-Payment takes up to 24 hours, while wire transfer takes up to seven working days
• AvaTrade withdrawal takes between 24 to 48 hourswith credit/debit card, while wire transfer withdrawal can take up to 10 working days.

Forex Trading in South Africa: Trading conditions offered by AvaTrade

AvaTrade supports ZAR account base currency &also features Zero commissions, tight spreads, & up to 1:400 leverage.

AvaTrade has a paid feature (AvaProtect) that offsets any losses you made while trading Forex, Silver, & Gold CFDs. AvaProtect reimburses you for losses you made.

Avatrade offers CFDs on up to 30+ indices, 15+ crypto currencies, 16+ commodities, 50+ currency pairs, 600+ stocks, ETFs, Bonds, and FX Options. Avatrade offers a maximum leverage of 1:400.

AvaTrade South Africa Online Forex Trading Platforms

The Mobile Platform features AvaTradeGO, AvaOptions, AvaSocial, Ava Web Trader, MT4,& MT5.

TheAvaTradeGOmobile app allows you access advanced charting, set/customize orders flexibly, as well as create & delete your AvaTrade Account with the click of a button.

AvaSocial mobile app is dedicated to copy trading and is available on app stores.

The AvaTrade Web Trader needs no installation and can be accessed from AvaTrade’s website on any browser.

AvaOptions is a mobile app dedicated to trading FX Options and can also be downloaded from app stores online.

MT4 & MT5 platforms are also on ground, and they come with free tools such as Guardian Angel Expert Advisor kit, which is like a companion for beginner traders helping them detect risky trade situations.

AvaTrade Overall Impression: 4.1/5

• Regulation – 4.5/5
• Fees – 4/5
• Trading conditions – 3.5/5
• Platforms – 4.5/5

AvaTrade is a good forex broker with sophisticated trading apps. Their spread is also moderate, but AvaTrade is for frequent traders as inactivity fees can reach 50 USD. The downside is their trading conditions with fixed spread pricing & 1:400 leverage may not be suitable for some trading strategies.

Find out more information on AvaTrade

4. Tickmill – Low Commission Forex Broker with Social Trading

Regulation

Domestic Regulation– Tickmill is in South Africa & is regulated by the FSCA with FSP number 49464.

International Regulation – Tickmill is also regulated in Cyprus, United Kingdom, Malaysia, & Seychelles.

Tickmill ODP Status – Approved

Tickmill Fees charged for Forex Trading in South Africa

• Spreads–High on Classic Account & Low on Raw Account
• Commissions-Moderate
• Overnight fees – High

Classic Account: spreads from 1.6 pips, zero commission, & overnight fees

Raw Account: Spreads from 0.0pips, Commission of $3 per side, & Overnight fees.

Account Funding at Tickmillhas a zero-fee policy

Tickmill minimum deposit in ZAR is R1, 800 or 100 USD.

How to deposit into Tickmill:

• South African Banks – Fastest method
• Crypto
• Cards
• eWallets (Skrill, Neteller, SticPay)
• FasaPay
• Unionpay
• WebMoney

Forex Trading in South Africa: Trading conditions offered by Tickmill

Tickmill offers CFDs on 60+ Forex pairs, 20+ stocks indices, 6 Commodities, 5 Bonds, 500+ stocks, and 10+ cryptocurrency

Tickmill South Africa Online Forex Trading Platforms

The Mobile Platform features Tickmill’s MT4/5 mobile apps that work on android & iOS mobile devices

The Web Platform features the Tickmill MT4/5 WebTrader which can be accessed from any web browser.

The Desktop Platform Tickmill’s MT4/5 WebTrader for Mac desktops. Tickmill offers MT4/5 trading toolkit which you can download and plugin to Mt4/5 for better functionality.

Overall: 4.1/5

• Regulation – 5/5
• Fees – 4/5
• Trading conditions – 4/5
• Platforms – 3.5/5

Tickmill is in South Africa and is heavily regulated holding dual licenses from the FSCA (an FSP & ODP license). Tickmill has a Raw Spread Account suitable for automated trading as well as several automated trading functions. Tickmill is ideal for experts and not suitable for beginners.

Read more information about Tickmill

5. XM Global – Forex Broker with Micro Trading Account

Regulations

Domestic Regulation–XM is in South Africa as a Financial Service Provider licensed by the FSCA with FSP number 49976.

International Regulation – XM is also regulated in Cyprus, & Belize.

ODP Status – Not applied

XM Fees charged for Forex Trading in South Africa

• Spreads–Moderate
• Commissions-Zero
• Overnight fees – Moderate

Spread: XM Global charges spread that starts from 1 pip (for all major currency pairs) for their Micro Account and Standard Account, while for the XM Ultra Low Account, spread starts from 0.6 pips for all major currency pairs. Average GBP/USD spread on XM is 1.9 pips.

The main difference between the XM Standard Accounts & Ultra Low Account is the zero-swap trading & lower spreads obtainable on the Ultra-Low Account.

Commission: XM broker does not charge commissions when you trade CFD instruments. They make their income by charging you spreads.

Account Funding at XM

XM minimum deposit in ZAR is R90 or 5 USD. XM offers a bonus on deposits made.

How to deposit into XM:

• South African Banks – Fastest option
• Cards
• eWallets

Forex Trading in South Africa: Trading conditions offered by XM

XM broker supports Rand account base currency, so you save on currency conversion fees.

XM also gives you a Personal Account Manager, free market research, free forex webinars, free video tutorials, 10 platforms, free daily technical analysis, 1:1000 leverage, and bonuses reaching $5,000.

XM broker offers up to 1000+ tradable CFD instruments: 50+ Currency Pairs, 30+ Crypto, 1000+ stocks, 8 Commodities, 20+ Equity indices, 3 Precious Metals,Energies, and 100 Stocks.

The maximum leverage for trading on XM global is 1:1000.

XM South Africa Online Forex Trading Platforms

Mobile Platform: the XM appis powered by MetaTrader so you get the features of MT4 or MT5. The platform works on android, iPhone and iPad devices.

Web Platform: the XM WebTrader is the web platformwhich you can log on to from any browser. You can choose to use MT4 or MT5 WebTrader

Desktop platform features MT4 and MT5 and runs on Mac or PC. MetaTraders on XM can download free technical indicator tools that are exclusive to Tickmill only.

Demo: You can learn how to trade and perfect your trading strategies using the XM global demo account.

Overall impression: 4/5

• Regulation – 4.5/5
• Fees – 4/5
• Trading conditions – 3.6/5
• Platforms – 3/5

XM is considered a moderate risk forex broker because of their lower regulations compared to other CFD brokers, but they are a large broker in terms of trading volume.

The spreads with Ultra Low account are quite low, and their customer support is also okay.

Find out more information on XM Global

6. FxPro – Best Forex Broker with cTrader Platform

Regulation

International Regulation – FxPro is in South Africa as a Financial Service Provider regulated by the FSCA with FSP number 45052.

Domestic Regulation–FxPro is also regulated in the United Kingdom, Cyprus, Bahamas, & Mauritius.

ODP Status – Not applied

FxPro fees charged for Forex Trading in South Africa

• Spreads–High
• Commissions-High
• Overnight fees – Moderate

Standard Account: Spread starts from 1.2 pips for currency pairs like GBP/USD and EUR/USD. The average spread GBP/USD and EUR/USD is 1.5 pips. No commission is charged on the standard account

Raw Account: Spread for GBP/USD, USD/JPY and EUR/USD starts from 0 pips. However, the average spread for these currency pairs is 0.2 pips. This account comes with a commission of Raw + 3.5$/side.

Elite Account: spread for EUR/USD, GBP/USD, USD/JPY starts from 0 pips. However, the average spread is 0.2 pips. The Elite account comes with a commission of Raw + 3.5$/side.

FxPro cTrader: On the FxPro cTrader platform commissions are $35 per S1 million traded or $0.35 per mini lot.

Deposit and withdrawal: Free, however if you request a withdrawal without having traded, a fee between 2% and 2.6% is applicable

There is also a $15 inactivity fee for not using your account for a while.

Account Funding at FxPro

FxPro minimum deposit in ZAR is R1800 or $100.

How to deposit into FxPro:

• South African Banks – Fastest
• eWallets
• Cards

Forex Trading in South Africa: Trading conditions offered by FxPro

FxPro supports ZAR account base currency and offers 1:200 leverage. FxPro also features free VPS servers for lower latency when trading.

FxPro offers CFDs on 60+ Forex Pairs, 20+ Futures, 15+ Indices, 2000 + Shares, 10+ Metal, and 3 Energies.

FxProSouth Africa Online Forex Trading Platforms

Mobile Platform features FxPro MT4/5 mobile app, FxPro proprietary mobile app, and FxProcTrader app and works on android and iOS phones.

The Web Platform also lets you access FxPro MT4/5 and cTrader via any web browser. The Desktop Platform features MT4/5 desktop as well as the cTrader desktop platform for Windows.

FxPro also offers demo accounts for practicing and learning with virtual funds.

Overall Impression: 4.2/5

• Regulation – 4.5/5
• Fees – 3.5/5
• Trading conditions – 4/5
• Platforms – 4.6/5

FxPro’smajor strengths are the versatility of its trading platforms, and the way it allows traders to custom build their trading accounts selecting parameters they want for the account. FxPro is for serious traders concerned with executing various trading strategies.

Read more information about FxPro

7. FXTM (Exinity) – Best Forex Broker for ECN Type Accounts

Regulation

Domestic Regulation– Exinity LTD trading as FXTM are in South Africa as a Financial Service Provider licensed by the FSCA. Their FSP number is 50320

International Regulation – United Kingdom, Kenya, & Cyprus.

ODP Status – Approved

FXTM fees charged for Forex Trading in South Africa

• Spreads–High
• Commissions-Low
• Overnight fees – Moderate

Advantage Account: Spread on the FXTM Advantage Account starts from 0.0 pips. This account comes with an average Commission of $0.4-$2 and a maximum floating spread of 1:2000.

Advantage PlusAccount: Spread starts fro. 1.5 pips, commission is free. This account comes with a maximum floating leverage of 1:2000.

Withdrawal Fee: FXTM charges withdrawal feeson some methods of withdrawal like African local solutions, visa card, and bank wire.

• Credit/Debit Card: 3 USD / 2 EUR / 2 GBP
• Bank wire: 30 EUR
• Local African solutions: 1 USD

There is a 5 USD or EUR, or GBP inactivity fee after 6 months of account inactivity.

Forex Trading in South Africa: Trading conditions offered by FXTM

FXTM does not support ZAR account base currency as it only supports USD, EUR, & GBP account base currencies. It features 3 account types, and a 1:1000 fixed leverage

FXTM offers you access to trade up to 1000+ tradable instruments: 60+ Forex pairs, CFDs on metals, stocks, stock CFDs, commodities and indices.

FXTM South Africa Online Forex Trading Platforms

Mobile platform: The FXTM mobile app is powered by MetaTrader so you get the same features, and it works on Android and iOS phones.

FXTM Webtrader allows you to trade on a web browser and has MT4 & MT5 variants.

Desktop platforms allow you download FXTM MT4 or MT5 to your desktop and it works on Mac and PC.

Overall impression: 4/5

• Regulation – 5/5
• Fees – 3.5/5
• Trading conditions – 4/5
• Platforms – 3.5/5

FXTM is a regulated forex broker, and their ECN type Advantage account has the lowest overall charges for traders.

Find out more information on FXTM

#8. IC Markets – Best ASIC Regulated Broker with Low Overall Fees

Regulations

Domestic Regulation – None

International Regulation – ASIC Australia, CySEC Cyprus, FSA Seychelles, SCB Bahamas

IC Markets fees charged for Forex Trading in South Africa

• Spreads–Low
• Commissions–High
• Overnight fees – Moderate

GBP/USD average spread on IC Markets Standard Account is 0.83 pips, and on its Raw Spread Account it is 0.23 pips.

Commissions on IC Markets Standard Account is zero/free while commission on Raw Spread Account is $3.5 per lot per side.

Deposit and withdrawal is free on IC markets although your bank may charge you. There is no inactivity fee if you don’t use your account for a while.

Account Funding at IC Markets

• Bank wire takes about 3-5 working days
• Deposit is instant with Visa, and MasterCard, withdrawal takes about 3-5 working days
• Deposit and withdrawal are instant for e-wallet methods like Skrill, PayPal, and Neteller.

Forex Trading in South Africa: Trading conditions offered by IC Markets

IC Markets does not support ZAR account base currency. You can trade up to 60+ currency pairs, 25 indices, 20 CFDs on commodities, 2000+ stocks, 9 bonds, 21 cryptocurrencies, and 4 futures on IC market global. IC market offers a maximum leverage of 1:1000.

Beginners can also trade Micro Lots using any IC Markets account type and this helps beginners’ risk less capital.

IC MarketsOnline Forex Trading Platforms

MetaTrader: MT4, & MT5 platforms are available to IC Markets clients in mobile & web trader versions. Free Expert Advisor (EA) trading tools are also offered by IC Markets so you can download them and plugin to MT4.

TradingView: IC Markets is one of the brokers who have partnered with the TradingView charting platform to give you access to TradingView advanced charting systems and a large community of traders who prefer to trade from charts.

cTrader: IC Markets offers the cTrader platform which has a modern user interface, advanced order management, and lets you trade micro lots.

Customer Support: 4.5/5

IC market customer service is available 24/7 via live chat, emails and calls.

Overall: 3.5/5

IC Markets has low overall trading fees (spread plus commission). But they are not locally regulated.

Find out more information on IC Markets

What is a Forex Broker?

A forex broker is a registered firm that provides the necessary technology/software (such as mobile apps), as well as conducive trading conditions (such as leverage) to connect you to the wider forex market.

You cannot yourself be a forex broker because of the huge financial requirements set by regulators, so you must pass through one in order to access the forex market.

Forex brokers could be either Market Makers or Electronic Communication Network (ECN) Brokers depending on which business model they choose to follow.

Market Maker vs ECN Broker: The Market Maker strategy is to take the opposite side of your trades & trade against you. By doing this they provide liquidity when you need it, even for FX pairs that are not popular.

Market Makers are characterized by zero commissions across all their account types, and some of them also offer Fixed Spreads.

The Market Maker method of generating revenue is mainly through the bid/ask spread. They cannot offer you zero spread on popular FX pairs, since their income is from spreads.

ECN Brokers don’t trade against you, rather they send all your orders to liquidity providers (such as banks & hedge funds) to get them filled at the best possible price.

With ECN brokers you can get raw spreads as low as 0.0 pips especially for popular FXpairs like EUR/USD, and this is ideal for scalpers.

ECN Brokers are characterized by lower spreads and high commissions, since their revenue mainly comes from commissions.

Comparison of ECN vs Market Maker Forex Brokers

What are the Fees for Forex Trading in South Africa?

Commission

This is a flat fee paid each time you open a position and paid again when you close the position. This means you pay commissions twice per transaction.

If your broker says $3 per side per standard lot, you pay $6 (double that) to open and close a trade involving a standard lot (meaning 100,000 units of CFDs).

However, if you are not trading up to a standard lot of 100,000 units, you pay lesser commission. Example you pay $0.3 per side for a mini lot (meaning 10,000 units).

When most brokers don’t charge commissions, the spread is always wider and vice versa. If a broker claims to charge zero commission and zero spread, be careful as it could be a scam.

Spreads

Spread is the difference between the bid/ask (or buy/sell) price quoted on the brokers website or trading platform.

If your broker gives you a bid/ask or buy/sellquote of EUR/USD = 1.07049/1.07058, thenthe spread is 1.07058 minus 1.07049 which equals 0.00009 or 0.9 pips.

If you bought 100,000 units of EUR/USD, then automatically $9 (meaning0.9 pips x 100,000 units) goes to your broker as his income.

Spreads are a major source of income for brokers as that little bid/ask price difference goes to them. This means you always buy from your broker for slightly more and sell for slightly less.

See below table of average spreads on entry-level Standard Accounts of different brokers.

Beware of brokers who try to manipulate spreads by widening them even when there is no volatility in the market. Always compare spreads offered by other brokers to the acceptable industry average.

Swaps

Swaps are what you pay to keep your CFD trade open throughout the night. Swaps are made up of two things basically:

• Interest rate differential
• Margin interest.

Interest rate differentials are what you earn or pay when you pair currencies overnight. If Euro has 4.5% interest rate set by their central bank and United States has 5.5% interest rate, you earn or pay the differential of 1%, depending on if you are buying or selling EUR/USD.

Margin Interest is about the interest you pay on the loan/leverage offered by the broker.So a combination of both interest rate differential & Margin Interest is what gives you swap figures.

Beware of forex brokers who offer swap free bonuses only to turnaround and widen the spreads to compensate for spread lost.

Non-Trading Fees

Other fees like inactivity fees on dormant accounts, currency conversion fees, and subscription fees are what make up non-trading fees.

How to Choose a Forex Broker in South Africa?

a. FSCA Regulation

The forex broker needs to be regulated by the Financial Sector Conduct Authority (FSCA) in South Africa to ensure that your funds are safe. Otherwise, you risk that your funds could be misused by the broker.

Simply get the brokers FSP number at the bottom of their website and go to the FSCA website to view authorized Financial Service providers (FSPs).

Let us take Exness with FSP number 51024 for example, once you input the FSP number on FSCA’s public search, the FSP name pops up. You can click on ‘Details’ to check more information on their license.

Also, note that when checking the details, you should check the Products approved for the broker. Below is the example screenshot from FSCA’s search of the products approved.

You will notice that Exness is licensed only as ‘Intermediary other’ for Derivative & Forex Investments. So they cannot engage in market making activities.

Another point to check is the status of the Broker’s ODP licensing with FSCA. If it is ‘Approved’, then the broker can offer OTC derivatives as the provider. Here is the example of the licensing status of some of the brokers.

In this example, you will notice that the status of IFX Brokers’ ODP is approved. While the status of Exness, HFM & others is mostly ‘applied’.

You need to take this into consideration when choosing a forex broker as unauthorized brokers cannot offer over the counter derivatives to South African traders.

b. User Reviews

You should go online to places like the app store and read what others have to say about the broker. Read what the users are saying about the app.

If you see a lot of negative reviews, check what the users are mostly complaining about.

For example, if the users are reporting issues with execution or widening of spreads, then these are major concerns, and you should avoid such a forex broker.

You can read the reviews of the broker’s app on their Playstore app page. Read through the reviews & see what the other users are complaining about. If there are too many complaints of similar issues, then you should treat this as something the broker is not good at.

c. Trading & Non-Trading Fees

You need to understand the fee structure of your forex broker and the spreads they charge.

Major currencies like the EUR/USD should have tight spreads so do a comparison to see what other brokers offer the lowest spreads. If a broker offers lower than 1 pip spread for EURUSD, then it is considered low. But if the spread is higher than 2 pips for major like EURUSD, then it is high.

Below is an example of the live spreads at Exness broker with their Pro Account on their MetaTrader 4 platform.

The Pro Account has no extra commission charges, and the spreads are also quite low. For example, as you can see from the above screenshot, the spreads for EUR/USD is 0.6 pips & 0.5 pips for GBP/USD.

This makes their cost quite low for forex trading. On average, this makes it $6 per 100,000 units (1 Standard Lot) for trading EUR/USD.

If you are choosing a commission-based trading account, then check the round turn commission per lot. Add the spreads charged if any, and that will be your overall trading fees.

For example, the below example is from HFM with their Zero Account. This account has a $6 commission per 100,000 units (round turn meaning opening & closing). The spreads with this account as generally close to 0 pips.

This makes the overall costs likeExness’s Pro Account type.

Check for any other fees like funding charges, inactivity fees, and currency conversion fees.

d. Platforms (across devices)

Brokers have web, desktop and mobile platforms. You should have the option of choosing so that when one platform is down you can trade with another platform.

The app should be available on Android & iOS. For beginners, you should choose a forex broker that offers MetaTrader platform.

Since most South African traders download app for trading on their mobile device, security is important. Almost all of the best trading apps of brokers have security features as well including 2FA & fingerprint scan, which would ensure that important features like trades and withdrawals are not authorized without your approval.

Avoid any trading app that is not secure or well rated in App stores.

e. Customer Support

Check if the broker has a local phone number in South Africa where you can call for support. Test out the live chat support & also the email support. If your broker does not respond in a timely manner, then it is a red flag.

If the broker has a local phone number for support in South Africa, you should prefer that broker over others.

You should be able to quickly find their phone on the broker’s contact page, like this example of AvaTrade.

Be sure help lines are in your desired language and that they are responsive. Also check if the broker has social media presence.

f. Trading Conditions

Check how much leverage the broker offers as you need leverage to open larger positions with small capital.

Also review how many currencies the broker supports so you can easily diversify, and hedge risk with other currency pair combinations.

Another important point to consider is whether your forex broker offers ZAR accounts as this will lower your costs. If the broker does not accept payments in ZAR or trading in ZAR, then you will be charged currency conversion fees of 5-8% normally.

g. Available Withdrawal Methods

The preferred method for South African traders should be local bank transfers via EFT or any other payment gateway.

Tickmill, HFM, Exness, FxPro& most other regulated brokers accept payments via EFT. You can pay in ZAR and add funds to your trading account. The withdrawals will also be in ZAR if your deposits are in ZAR.

The time taken for withdrawals varies from broker to broker. HFM for example, take 24-72 business hours to complete the withdrawals made in ZAR (even though their deposits are instant). The minimum amount which you can withdraw is R70.

Depending on which forex broker you are choosing, there could also be extra withdrawal fees. Be wary of extra charges that your broker may try to apply during withdrawals.

You should prefer a regulated forex broker that offers free funding & withdrawals, with quick processing time.

Which forex brokers have ODP License in South Africa?

Tickmill, FXTM, Admiral Markets, & IFX brokers all have ODP licenses in South Africa. ODP licensed brokers meet higher minimum capital requirement standards and are more trusted locally.

Forex brokers who do not have ODP licenses have to offer their CFD products through intermediaries. The non-approved brokers who don’t have license as an ODP are not allowed to act as intermediary to your trades.

Comparison of South African Forex Brokers

We have taken an unbiased approach to create this on best Forex brokers in South Africa taking all important factors into consideration.

Frequently Asked Questions

Which are the Best Forex Brokers in South Africa?

Tickmill, FxPro, HFM, Avatrade, and Exness are the overall good forex brokers for traders based in South Africa.

These brokers are good on various metrics including their multiple regulations, competitive fees, variable deposit and withdrawal methods, trading platforms, and number of tradable instruments.

What is the meaning of ODP?

ODP means Over the Counter Derivative Provider. Basically, ODP license holders are required to meet higher capital adequacy requirements specified by the FSCA because of the risky nature of OTC products such as Contract for Difference (CFD).

Which Forex Broker has the lowest fees in South Africa?

HFM& Exness have low overall fees for most major currency pairs.

HFM with their Zero account charges almost 0 pips spreads for majors, plus $6 round turn commission per standard lot. Similarly, Exness have very low fees with their Pro account, with a typical spread of EUR/USD on 0.7 pips.

Which Forex Brokers offer ZAR Accounts?

HFM, Exness, XM &FxPro have the option to select ZAR as the base currency of your trading account. The advantage of ZAR account is that you can save money on currency conversions.

Which Forex Brokers allow trading on NASDAQ 100?

Exness, Tickmill, FxPro, HFM have trading available on NASDAQ. Note that when you are trading NASDAQ 100 or NAS100 via any of these brokers, you are speculating if the index will go up or down. You don’t own any underlying stock in that index.

Trading NASDAQ100 through CFD brokers is much riskier than owning NASDAQ ETF for example, because forex brokers offer leverage. You are trading on margin, which will increase your risk, and you can lose much more than your position.

Is Forex Trading Legal in South Africa?

Yes, forex trading is legal & regulated in South Africa if you are trading with a FSCA regulated forex broker. Note that only the regulated forex brokers are safe.

Avoid any unregulated forex brokers that are not regulated with any Top-tier regulation.

How to open an account with a Forex Broker in South Africa?

Traders can open trading accounts by following these steps.

1. Find a FSCA regulated Forex Broker – Search for forex brokers regulated by FSCA, and then verify the broker on FSCA public register.
2. Open your Trading account – Go to the website of the broker & signup for Live account. For example, on Exness you need to click ‘Open Account’ yellow button on the top of their website & then fill in the form. You will be required to complete KYC for compliance.
3. Deposit Funds (via bank) – South African traders can deposit funds via EFT through forex brokers that are local.
4. Download App – Depending on your device, you can download the Android App or iOS app. If you trade via desktop, then you should download MT4 platform for Windows.
5. Place your Trades – Decide which instrument do you want to trade. For example, EUR/USD, then choose your order type (limit order for example).