The South African Forex market has grown leaps and bounds over the last few years. Since 2020 thousands of people have entered the Forex market regularly. You can find numerous reviews online discussing the most promising brokers in South Africa.
In this article, we will discuss the best Forex brokers in South Africa and explore their highlighting features.
South African regulation laws
South Africa has a financial department known as FSCA. If anyone is looking for a broker in South Africa, the first thing they look for in a broker is regulation and licensing. Regulation has a lot of benefits which we will discuss later. South African government has put the laws in place to monitor the factors such as;
- Fraud schemes
- Money laundering
- Terrorism funding
Benefits of regulation
The benefits of trading with a regulated broker are multi-fold. Let’s take a look at the benefits that a trader gets;
- Immunity to scams
- Legit promotional schemes
- Actual bonus deals
- Segregation of funds
- Locally kept funds
- Licensed and annually audited brokers
Thus, we will pick regulated brokers for our review. However, it is not an obligation for South African citizens to trade with regulated brokers. But in the end, the benefits of trading with regulated brokers outweigh the sketchy schemes that unregulated brokers offer.
The few key features that are identical in most brokers are;
- Deposit limits
- Currency pairs
- Trading platform
It is the least amount of money that a user can deposit into their account. A lower deposit amount allows new traders to trade easily. Higher deposit rates are difficult to deposit at once for new traders. However, professional traders don’t have a problem with higher deposit limits. We can observe brokers in South Africa, ranging from 1USD to 200 USD in their deposit limits.
Several brokers offer bonus amounts to lure and get interested in new traders. The most famous type of bonus schemes are;
- Sign-up bonus
- First deposit bonus
- Referral bonus
Most brokers in South Africa offer a Sign-up bonus paired with a first deposit bonus. The bonus percentage ranges from 10 per cent to 100 per cent.
In simple terms, leverage is the exposure offered by the broker to the trader on the trading platform. For instance, higher leverage rates allow the trader to open traders larger than the deposited/trading money. However, higher leverages also expose users to higher amounts of losses.
Tighter spreads on currency pairs in Forex trading allows users to open closer trades with fewer chances of suffering huge losses.
It is the online platform that connects a user to the Forex platform. It is responsible for providing online security and immunity against cyber attacks.
- Trade Nation
We recommend all of these brokers to our traders. However, every good broker is not a good option for every trader. Hence, you should do a little research and find out your trading requirements.