The complete guide to choosing between the FX account types in SA
Online trading has been trending for quite some time now. Nowadays, investors can purchase and sell their assets through their PCs, web browsers, and mobile phones and do not have to be present on the trading floors as was required a few years ago. South Africa Forex trading is booming, as the internet and several educational organizations have spread the knowledge about the immense pool of opportunities that the currency pairs market is promising. With the abundance of brokerage companies available online for South African traders, it has become a bit of an issue for them to choose the right live Forex trading account type.
Forex account types are crucial determinators of trader’s success. First of all, they directly affect the cost of trading no matter which instruments a person decides to trade and how skilled he or she is. The different accounts come with various requirements, limitations, and benefits. Hence, not every account will be suitable for just any trading strategy and any trader’s profile. As there are dozens of different account types, it might get confusing at the end to decide which one fits you better, or what are the criteria according to which you have to choose and register your account.
This article below will be reviewing various Forex trading account types and explaining the benefits and drawbacks of each. Furthermore, we will suggest which accounts work best for particular trading styles, budgets, level of expertise, and knowledge in trading and risk tolerance. We will also provide the list of the best Forex brokers with the most diverse trading account portfolio and convenient trading conditions both for beginners and advanced traders.
Forex brokers with best trading accounts
Not all Forex brokers provide their clients with the option to choose between the account types. Quite a many brokerage companies will have only a single account with the possibility to upgrade to a professional trading account only in case a trader meets necessary requirements and submits the essential documents. Hence, having a choice of different accounts is a privilege for Forex traders. We have listed the best brokerage companies with the most convenient account types below.
AvaTrade
Starting Capital
$100
Financial License
FSA, FFAJ, CySEC, CBI, BVI FSC, FSCA, FSRA
Promotion
Financial Leverage
1:400
Established
2006
Trading Software
MT4, MT5, WebTrader, AvaTradeGO
XM
Starting Capital
$5
Financial License
CySEC, FCA, ASIC
Promotion
$30, 50%+20%
Financial Leverage
1:1000
Established
2009
Trading Software
MT4, MT5, WebTrader
Plus500
Starting Capital
ZAR 1,500
Financial License
FCA, CySEC, ASIC, FSCA, FMA
Promotion
25%
Financial Leverage
1:300
Established
2008
Trading Software
MT4
RoboForex
Starting Capital
€/$ 10
Financial License
FSC
Promotion
30%
Financial Leverage
1:2000
Established
2009
Trading Software
MT4, MT5
CM Trading
Starting Capital
250$
Financial License
FSCA
Promotion
Financial Leverage
1:200
Established
2012
Trading Software
MT4, Sirix WebTrader, Copykat
Exness
Starting Capital
$10
Financial License
FCA, CySEC, FsA, FSCA
Promotion
10%
Financial Leverage
1:2000
Established
2008
Trading Software
MT4
IQ Options
Starting Capital
$10
Financial License
CySEC
Promotion
Not Available
Financial Leverage
1:30
Established
2013
Trading Software
WebTrader
EagleFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
OspreyFX
Starting Capital
$10
Financial License
N/A
Promotion
N/A
Financial Leverage
1:500
Established
2019
Trading Software
MT4
AMarkets
Starting Capital
$/€ 100
Financial License
FSA
Promotion
15%
Financial Leverage
1:1000
Established
2007
Trading Software
MT4
Forex.com
Starting Capital
$50
Financial License
FCA
Promotion
Not Available
Financial Leverage
1:200
Established
1999
Trading Software
MT4, WebTrader, custom
FXRoad
Starting Capital
250 EUR
Financial License
FSA, Seychelles
Promotion
None
Financial Leverage
1:200
Established
Unknown
Trading Software
FXRoad web and mobile platform
HotForex
Starting Capital
5 USD
Financial License
FCA, FSA, DFSA, FSCA
Promotion
100%, 30%, 100%
Financial Leverage
1:1000
Established
2010
Trading Software
MT4, MT5, WebTrader
ForexMart
Starting Capital
15 USD
Financial License
CySEC
Promotion
30%
Financial Leverage
1:500
Established
2015
Trading Software
MT4, WebTrader
Tickmill
Starting Capital
100 USD
Financial License
FSA, FCA, CySEC, FSCA, FSALM
Promotion
30% Welcome Bonus
Financial Leverage
1:500
Established
2014
Trading Software
MT4, WebTrader
FXOpen
Starting Capital
1 USD
Financial License
ASIC, FCA
Promotion
10 USD
Financial Leverage
1:500
Established
2005
Trading Software
MT4, MT5, WebTrader, TickTrader
Why do brokers offer different account types?
Not every trader is the same. They all have different backgrounds, experiences, goals, risk tolerance levels, trading capital, interests, and free time for trading. Thus, there is no single universal account design that will suit the profile of every single trader. Due to these differences, the brokers were losing clients previously as they could not meet their demands. Recently, the companies decided to diversify their client portfolios and now offer many types of trading accounts. These accounts differ not only in terms of the professional background of the trader but also according to the suitability for different nationalities, religions, and regions worldwide.
For example, the devoted Muslim clients would not be able to trade on the regular Forex accounts, since they go against their religious Shariah laws. According to Shariah, they are not allowed to receive or pay for the interest rates. However, all Forex accounts were charging interest rates on overnight positions (rollover fees), which could not be escaped previously. It was an issue until brokers began offering Islamic trading account types to suit the needs of Muslim traders. These Islamic accounts do not charge for overnight positions and instead compensate the charge with the administrative fees, which leaves both the company and the client satisfied.
Common types of Forex trading account
There are certain account types that you will encounter way more often than the others. These are the most demanded trading account types and meets the requirements of the vast majority of traders. In the first place, such accounts are targeted to the groups of either beginner traders, low-cost traders, or professional and advanced traders. Hence, the account types are classified in accordance with these three trading profiles. The most common Forex trading account types include Standard, Micro, and Premium trading accounts.
Standard account
Standard Forex trading account is the most popular account across all brokerage companies worldwide. It is the most basic set of requirements and benefits that suits the trading goals and trading capital of the majority of traders. However, these account types do not come with extra benefits and would not offer the tightest spreads or the most flexible margin requirements in most cases. Also, they are not the cheapest account types. The minimum deposit will vary from R75 to R1,500 depending on the broker platform. We will overview some of the best primary Forex trading account samples below that suit the category of Standard accounts.
XM Standard account
XM Standard account is considered to be the best Forex trading account type for South Africans for several reasons. First of all, XM supports ZAR trading accounts, which means that the clients can choose ZAR as their base currency of the account. The other currencies are also available such as USD, EUR, GBP, JPY, CHF, RUB, SGD, HUF, PLN, and AUD. Secondly, the leverage is extremely flexible with the broker from 1:1 to 1:888 (for the trading capital between R75 – R300,000). The broker also offers negative balance protection across all of its account types. There are no commissions payable and the minimum deposit requirement starts at 75 South African rands. The spreads on the XM Standard account start as low as 1 pip. The account supports hedging and also comes with an option to integrate the Islamic account.
Micro account
Micro account is often referred to as Cents account or Mini Forex trading account and can come with few other name alternatives. But all of these names suggest one thing that the account type is a budget version of standard accounts. To put in simple words, the micro account type is designed for smaller volume trades with trading lot sizes much smaller than standard and sometimes with lower minimum deposit requirements, as well. Some of the mini and micro-accounts also limit the amount of simultaneously open positions. In standard account cases, the traders might be allowed to hold around 300 positions at the same time, while micro account holders might get restrictions for up to 150 maximum.
RoboForex ProCent account
RoboForex offers Cents account for beginner traders or experienced traders who seek to test their trading strategies. The account is available in 4 base currencies: USD, EUR, CNY, and Gold. The traders can access over 36 Forex currency pairs, as well as precious metals. The minimum deposit requirement is 10 USD or 10 EUR, which is the equivalent of 150 South African rands. The account also operates commission-free and allows the most flexible leverage of 1:2000. The minimum trade volume is 0.1 lots with floating spreads starting at 1.3 pips. The maximum number of positions opened on MT4 accounts is 200, whereas MT5 accounts are allowed to have 1000 simultaneously open positions.
Premium account
The premium account comes with many names, it could be a VIP account, Pro account, Advanced account, or anything else. Premium account is often the managed Forex trading account with the personal account manager assisting the trader throughout his or her experience with the broker. These accounts almost in every case come with much tighter spreads, but limited leverage due to higher trading capital available on the account balance. Furthermore, premium accounts have a dedicated customer support associate which is the main contact point of the trader if any issues appear. The premium accounts will have higher deposit requirements often exceeding 1,500 South African rands. But typically, the traders should be able to register the Pro account for 750 South African rands the least.
CM Trading Platinum account
CMTrading offers many easy Forex account types and classifies them as Bronze, Silver, Gold, and Platinum. Platinum is the premium trading account type that comes with numerous benefits. First of all, the account type offers spreads starting as low as 0.9 pips on the most popular Forex major currency pairs such as EUR/USD. Also, the Platinum account offers 3 risk-free trades, access to webinars and regular market reviews, as well a CMTrading eBook. The Platinum account holders have access to the trading room and have a dedicated trading specialist. They will be receiving special offers regularly throughout the year and will be able to get hands-on top news and analyses, as well as volume cash backs. However, traders need to have at least 1,500,000 South African rands in deposits to access the platinum type, which is the ECN Forex account, too.
Other account types
Apart from the main account types that we have covered in the above paragraph, there are proprietary and more or less common minor account types that could appear with several brokers. However, these minor accounts are very specific and usually serve a single designated purpose. For instance, Zero Spread accounts are designed with the purpose to offer zero spreads on currency pairs and no more benefits are associated with the account type. We will cover the four most popular minor Forex trading account types below: Zero Spread account type, Forex demo account type, Ultra-low account type, and Auto account type.
Zero Spread account
Zero Spread account is solely dedicated to Forex traders. The account essentially means that there are no spreads charged on trades for currency pairs for the account holders. This is exactly what the name suggests – 0 spreads on Forex assets. However, as you may already know the brokers get revenue from either spreads or commissions (might have other sources of income, as well, but minor). Hence, you cannot expect Zero Spread accounts to work completely free of charge. In many cases, the brokers will have commissioned Zero Spread account types to compensate for their lost revenue from the spreads.
FBS Zero Spread account
FBS offers fixed spreads at 0 pip for Forex assets to its Zero Spread account holder. However, the minimum deposit is higher and the commission rates start at 300 South African rands per lot. The maximum leverage available to Zero spread account holders is 1:3000, which is by far the highest and the most flexible leverage limit. The initial deposit requirement on the FBS Zero Spread account is 7,500 South African rands. The maximum number of simultaneously open positions can reach 200 with order volume from 0.01 to 500 lots. The broker also offers a 100% deposit bonus and a level-up bonus for opening the account type.
Forex Demo account
Forex Demo Account is not a retail account, or live trading account type. It is a separate category that lets users virtually trade on the Forex market with a simulated account balance. Usually, the traders will get credited a certain amount of virtual money which they can use to test tour their trading skills, knowledge, and strategy, as well as the understanding of the market price moves. The Demo trading account holders cannot deposit or withdraw money on their Demo balance, as it is not a real trading account type. Furthermore, in almost every case, demo accounts are limited in time and available virtual finances. After a certain period of time, a demo account will no longer be accessible and the traders will have to either register a real trading account on the broker’s platform or quit trading altogether.
Plus500 Demo Account
Plus500 offers the best Forex demo trading account for one simple reason – there is no time limit. You can run the demo account forever with the broker. If you run out of money, or your trading capital with virtual sums drops below 200 EUR, the broker will refill your trading account balance with virtual money again. You can trade any available financial instruments from the broker’s platform for as long as you like. Furthermore, you can use every trading platform supported by the broker and can access them from your desktop, browser, or mobile phone. You can easily switch from demo to real trading account and vice versa.
Ultra-low account
The Ultra-low account is the rarest account type in the Forex trading industry. You will hardly find more than five brokerage companies worldwide that offer these types of live trading accounts. The Ultra-low account type is very similar to Micro, Cents, and Mini trading account types. The difference is that Ultra-low is intended to even smaller volume trades, but might require higher deposit demands in certain cases. Usually, Ultra-low account types come with more benefits than Micro, Cents, and Mini accounts. It could be lower spreads or more flexible leverage levels. In almost every case, Ultra-low account types operate without any commission rates.
XM Ultra-low account
Once again, we return to the XM broker. Similar to the Standard trading account type, the XM Ultra-low account type also supports various base currencies including the South African rands, making it one of the most demanded account types in South Africa. To compare the lot sizes, consider that Standard Ultra lot size is 100,000 whereas Micro Ultra lot size is 1,000. The leverage level remains the same at 1:888 and the accounts are supported by the Negative Balance Protection, as well. The spreads are the lowest on this account type starting as low as 0.6 pips on the most popular Forex currency pairs, such as EUR/USD. There is no commission rate applicable to this account type. The maximum number of simultaneously open positions at XM ULtra-low account type is 300 orders. The minimum trade volume is 0.01 lots for Standard Ultra and 0.1 lots for Micro Ultra.
Auto account
Auto account types are the most recent additions to the Forex trading market. They have emerged together with automated trading robots and tools. These accounts primarily target copy traders or signal followers and allow direct access to paid trading signals, most frequently from the MQL5 Community. These accounts operate on MetaTrader 4 trading platform in almost every case. They are nearly fully automated trading accounts, where traders deposit and withdraw funds, set preferences, and choose which signals to subscribe to. However, these account types are very rare, too. You cannot find many brokers offering Auto accounts separately from their standard account types.
HotForex Auto account
HotForex offers an Auto account to all of its traders who are willing to trade currency pairs on the MetaTrader 4 platform. They can also use the account on WebTrader and mobile trading apps. The maximum available leverage level for Auto account trades is 1:500 and the order execution type is market. The minimum deposit for HotForex Auto account type starts at 3,000 South African rands. The minimum trade size is 0.01 lot. The spreads are pretty average and start from 1 pip on the most popular Forex currency pairs, namely EUR/USD pair. The limit to maximum simultaneous open orders is 300 and the margin call and stop out level is 50% and 20% respectively. The available base currencies are the US dollar and euro. The account operates without any commission rates.
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