Hello and welcome to my website ForexBrokersList.co.za, I will try to guide you through the Forex Trading industry. Since you ended up on this website, you must be looking for the best Forex brokers in South Africa to trade with. That’s a great but at the same time a hard task especially for beginner traders. But do not worry as I am here with one mission, to help you determine who are the best brokerages you can safely invest your money with and how can you choose the right broker based on your needs and goals in Forex trading.
Speaking from my own experience, the process of choosing the right FX broker can be a real headache, it requires a lot of research & reading and at the end of the day, you might find yourself doubting yourself. To prevent you from all these unpleasant and time-consuming activities, I will provide the list of best South African Forex brokers that provide the most quality service for both beginners and veterans of Forex trading. Alongside with the list, you can check detailed reviews of the Forex brokers and decide which one meets your requirements the most. Let’s not lose any more time and start with the Forex brokers in South Africa, who are the best among them, what do you need to know about the regulations in the country and how should you choose them.
Forex trading in South Africa is getting more and more popular for many reasons. The main reason is the lack of job opportunities that push people, especially the younger generation to find better ways of earning money. At the same time, the country is developing quite rapidly, therefore more and more people are presented with better financial education and advantages for Forex trading. Therefore while the South African Forex brokers list is not very long yet, it is expected that soon many international brokers will start providing their service and new local brokerages will appear.
These are two types of brokers that you can trade with as a resident of South Africa – local brokerages that are based in the country and international brokers that provide their service to South Africans. Unfortunately, today it is hard for the local brokers to find their place in the Top South African brokers list. Many of them lack the experience, quality of service and the variety of trading instruments that one can find with the well-established brokers that have experience in operating on the international Forex trading market.
As the Forex trading market is very lucrative, everywhere where there is Forex you can meet scam brokers that are trying to grab your attention at all costs and lure you into the investments with the best offers. This is a big threat especially for new traders who lack the experience in investments and instinct that can reveal scams in one glance. South Africa is not an exception, there are brokers who pretend to be one of the top Forex brokers in South Africa. But my mission here is to show you how to choose the best amongst the best and not fall under the scam brokers spell.
The situation with the brokers is a bit tricky since Forex trading is just emerging here. The Financial Regulator of South Africa – Financial Sector Conduct Authority (FSCA) has started issuing FX broker licenses only recently. Some of the best brokers who do not have FSCA regulation yet or are in the process of obtaining it are included in the best FX brokerage list in SA. Otherwise, I would not suggest trading with a broker that is not regulated by the local regulator, as unregulated brokers do not have any legal obligation towards the financial authority and therefore neither to the South African community. Now let’s take a look at the best South African Forex broker list and their service.
CySEC, FCA, ASIC
MT4, MT5, WebTrader
XM Forex broker – XM is one of the best brokers that you can get in South Africa or anywhere in the world. The broker has 10 years of experience and a solid reputation. It is equally good for both beginner and well-experience traders. XM provides a wide range of trading instruments, the best trading platforms and a number of bonuses. Read more about the features of the broker in the detailed review.
IQ Option is one of the largest global brands that is presented in over 150 countries as well as South Africa. At the same time, it has seen rapid growth in the number of traders in recent years. You can learn more about the broker in the IQ options review.
Plus 500 has 11 years of experience and thousands of loyal customers and their number is growing. The broker is regulated by one of the most reliable regulators such as FCA (United Kingdom). It offers one of the best services for beginner traders. You can read about Plus 500 in the detailed review.
Forex.com is one of the oldest Forex brokerages and has twenty years of experience in providing some of the best services to its wide audience of loyal customers. This is why it is included in the best South African Forex broker list. Read about its service in Forex.com review.
As I have already mentioned the FSCA, let’s give it some time to learn more about the Forex regulations in South Africa. Every trader should be well aware of the regulations on the market to protect himself from any fraud attempts.
The financial watchdog that oversees South African Financial industry and is FSCA. As I have mentioned the whole industry is relatively new and the regulatory side of it is just developing. FSCA was created in 2018 before that South Africa had one regulatory body for all financial sectors – FSB. In the previous year, FSB was replaced by FSCA. This is why you might have seen FSB regulated Forex brokers list while searching for South African brokers. Do not get confused as the brokers who were regulated by FSB are now regulated by FSCA. But what exactly is the purpose of the regulator?
The main purpose of FSCA is to observe the Forex trading market, keep the involved parties like Forex brokerages from wrongdoing and ensure the safety of the investors’ funds. These are few of the most important responsibilities of the financial watchdog.
As South African Forex brokers list consists of local and international brokers it is very important to know the advantages and disadvantages of them to make the right choice.
The biggest advantage of working with a local broker is that it is regulated by the FSCA.
The regulator acts as sort of a back-up for the investors in case of any violation from the broker’s side. Should the violation happen, the regulator has full authority to fine the broker or in the most drastic cases, revoke their license.
Unfortunately, the Best South African Forex broker list does not contain any local brokers and this has clear reasons. The local brokerages are not as experienced as the international ones, they do not have the capability to provide quality service, good trading platforms, and diversity of trading instruments.
In order to truly maximize your safety and avoid scam brokers at all costs, its best to narrow your choice down to only FSCA regulated brokers, luckily there are international brands that have a local license. This way you can score two goals with one strike as you’ll have a locally regulated as well as an experienced broker to work with. Best Forex brokers in South Africa are those who are fully regulated and have the capability of providing the best service.
You will also encounter International brokers that provide services for South Africans, but do not hold a local license. The majority of these brokers are in the middle of obtaining a license from the regulator, and it takes some time. You can start trading with one of those brokers, however, you should keep in mind that they do not have legal obligations towards the South African regulator. Therefore I would suggest you wait till they get their license.
There is one more thing you need to consider with regulations. International brokers are regulated by the financial authorities of the country they are operating in. Some of the brokers are regulated by several of them. You can see brokers that are regulated by FCA, CySEC, ASIC or BaFin. These are the regulators of the United Kingdom, Cyprus, Australia, and Germany respectively. These regulatory bodies are considered to be the most strict and reliable authorities when it comes to regulations. Only the best brokers in South Africa hold multiple licenses and are always a safe choice.
You could already understand how important the license is, however it is not the only thing you need to consider while choosing a broker. It includes many more important details. I will emphasize some of them.
Beginner traders usually miss that point simply because they do not have experience in it. Just imagine you make profitable trades and expect certain profits but the broker starts to take commissions you knew nothing about.
There are some ways brokers make money. There is no shame in the broker making money, of course, it’s a business, not a charity.
When choosing a broker you need to make sure you know all of the fees and commissions in order to correctly calculate your profits. In the ideal case, there must not be any such fees or commissions.
The best Forex brokers list South Africa consists of the brokers that are good for beginner traders as well as experienced ones. It is quite hard to cater to both calibers, as they require different services and terms. Furthermore, the transition of traders from newbie to expert needs to be taken under consideration as they will require new and refined services as well.
Therefore it is imperative that you choose a broker that can cater to both types of customers. This makes sure that you can actually stay with them, once you gain some experience. Brokers that are designed for beginners usually struggle to retain them, once the traders gain experience.
Unfortunately, this feature is often underrated. Let’s put it straight the trading process is pretty much against the broker, therefore it is more profitable for them that your trade is unsuccessful. However, the best South African brokers try to educate you and provide the necessary knowledge to help you get better. While there’s a lot of educational material on the internet, it is always good to get them directly from your broker. The best brokers provide a wide range of educational content on their website, many of them have a huge video and written content library available for their customers. Some of them are even hosting webinars and seminars that can have great value, especially for beginners.
Just like education, the support system of the broker is also often missed during research. Many traders do not remember it until they face some technical issue or a problem only to find out that the broker is either unreachable or does not provide much help. When you are choosing your broker from the top Forex brokers list South Africa, it is less likely to happen, but there are exceptions. To be on the safe side, I would suggest you check the broker’s support system before you open an account with them.
Forex brokers list South Africa has many different Forex brokers, but all of them will tell you they have an army of loyal and satisfied customers that are more than happy to be trading with them. Claiming something like this and providing the statistics to back it up is so easy that everyone can make it. The most important thing is what the actual customers have to say about the broker. There are many reviews made by the customers that you should see before you make up your mind.
The thing you need to understand is that there is a little chance that all the customers will talk positively about the broker. I have seen many reviews made by the customers who simply lost money not because of the broker but because of the lack of knowledge and skills. However, blaming the broker formed as a sort of a scapegoat. This is why you need to take the customer reviews with a grain of salt, does not matter if the review is bad or good.
If you take this information and advice into account, the process of choosing a broker from the list of best South African Forex brokers will be a walk in the park. Remember to stay safe and always check the regulation of the broker directly with the regulator, choose the broker that is known for their good service worldwide and always check how the broker is making money to protect yourself from unnecessary charges. Before making the decision take a look at the features of the broker and test the support team by yourself. The South African Forex brokers list will grow more and more but with these techniques, you’ll be able to differentiate the good from the bad, and the good from the great.
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