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

Review of AvaTrade – Everything this broker has to offer

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

All you need to know about XM in this XM review

Starting Capital

$5

Financial License

CySEC, FCA, ASIC

Promotion

$30, 50%+20%

Financial Leverage

1:888

Established

2009

Trading Software

MT4, MT5, WebTrader

Plus500

Plus500 Review – The Broker, The Myth, The Legend

Starting Capital

ZAR 1,500

Financial License

FCA, CySEC, ASIC, FSCA, FMA

Promotion

25%

Financial Leverage

1:300

Established

2008

Trading Software

MT4

RoboForex

Roboforex Review – Reliable trading platform

Starting Capital

€/$ 10

Financial License

FSC

Promotion

30%

Financial Leverage

1:2000

Established

2009

Trading Software

MT4, MT5

CM Trading

CM Trading review – How to start trading with this broker

Starting Capital

250$

Financial License

FSCA

Promotion

Financial Leverage

1:200

Established

2012

Trading Software

MT4, Sirix WebTrader, Copykat

Exness

Exness Review: Minimalism at its peak

Starting Capital

$10

Financial License

FCA, CySEC, FsA, FSCA

Promotion

10%

Financial Leverage

1:2000

Established

2008

Trading Software

MT4

IQ Options

IQ Option review – should you trade with the broker or not?

Starting Capital

$10

Financial License

CySEC

Promotion

Not Available

Financial Leverage

1:30

Established

2013

Trading Software

WebTrader

EagleFX

EagleFX Review: Essential Details

Starting Capital

$10

Financial License

N/A

Promotion

N/A

Financial Leverage

1:500

Established

2019

Trading Software

MT4

OspreyFX

OspreyFX Review- fresh brokerage in the industry

Starting Capital

$10

Financial License

N/A

Promotion

N/A

Financial Leverage

1:500

Established

2019

Trading Software

MT4

AMarkets

AMarkets Review – Is it the best to start with?

Starting Capital

$/€ 100

Financial License

FSA

Promotion

15%

Financial Leverage

1:1000

Established

2007

Trading Software

MT4

Forex.com

Forex.com review – is the broker scam or can it be trusted

Starting Capital

$50

Financial License

FCA

Promotion

Not Available

Financial Leverage

1:200

Established

1999

Trading Software

MT4, WebTrader, custom

HotForex

HotForex Review – The most customer-centric broker

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

ForexMart Review – Best Conditions to Trade

Starting Capital

15 USD

Financial License

CySEC

Promotion

30%

Financial Leverage

1:500

Established

2015

Trading Software

MT4, WebTrader

Tickmill

Tickmill Review – Premium Trading Conditions

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

FXOpen Review – one of the oldest brokers

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?

common types of Forex trading accountNot 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 accountStandard 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

mini forex trading accountMicro 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.

primary forex trading accountThe 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

live forex trading accountZero 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 accountForex 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

easy forex account typesThe 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

ECN forex accountAuto 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.

FAQs on best Forex trading account types in South Africa

What type of account is best for Forex trading?

If you are a high-volume trader then Premium, Pro, or VIP account type works best for you, if you are a low-volume trader then Micro, Cents, or Mini account types will suit you just fine. If none of the options are fitting, you can simply choose Standard or Classic account type. If you have decent trading capital available, you can also start trading with the Zero Spread account type, which gives you a significant reduction in trading costs.

Which Forex account is best for beginners?

The beginners often start with Micro, Cents, Mini, or Ultra-low trading account types, as these accounts allow much lower-volume trades, with smaller lot sizes, and frequently have lower minimum deposit requirements, as well. However, the most common choice is still the Standard or Classic account, as in most cases the promotions and bonus programs apply to such account types and thus beginners would like to participate in them.

What are the different types of Forex accounts?

The Forex brokers will often primary Forex account types: Micro, Standard, and Premium. The Micro account may come with different naming alternatives such as Cents account or Mini account, the Standard account might also appear as the Classic account and the Premium comes as VIP or Pro account type, as well. Other rarer account types include Zero Spread account, Ultra-low account type, Auto account type and others.

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