The best Forex payment gateways in South Africa

There are numerous payment methods that are available to traders making online transactions in South Africa – different brokers accept a variety of withdrawal and deposit options. Each payment method for trading come with their own advantages and disadvantages with regards to processing costs, fees, and limitations. For certain traders, the amount of time required to process a transaction is vital, whereas other traders can wait just a couple of days. In the same way, based on whether you’ll be making several small transactions or then larger ones, the cost of transactions could be more or less crucial. Payment methods are especially important in regions like South Africa since not all banks allow Forex transactions to take place.

Traders usually have several options for depositing and withdrawing their funds. Each broker has different options and each one comes with different processes, times of processing, and charges. The most common payment options offered by forex brokers are bank wires and credit cards. However, since the introduction of payment options online in recent years, electronic payment or e-wallet is becoming increasingly well-known. In most cases, traders are redirected to an e-wallet website for them to sign in to their accounts and finish the withdrawal or deposit transaction. The transaction is completed in a blink.

In this article, we will be discussing the most common Forex payment methods in South Africa, as well as the most recommended ones for deposits and withdrawals. We will explain in greater detail how each of the methods works, what are the costs and waiting times between the transactions. As a bonus, we will also provide a list of the Forex brokers that allow deposit and withdrawal payments with no fees.

List of the Forex brokers with free deposits & withdrawals

For some brokerage companies, deposits and withdrawals, or any other transactions taking place on their platforms allow room for additional income. They will often charge their clients a commission fee for completing the transaction, which is not an ideal scenario for the trader. Since, South African traders have to pay a lot in terms of trading costs (spreads, commissions, rollover charges, administrative costs, etc) they are seeking to avoid these additional transaction charges. It is a bit tricky to find the Forex brokers that charge no fee on transactions since none of them actually display this information openly. We have conducted thorough research and can provide the complete list of the brokers with 0 deposit fees and no withdrawal costs.

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

The best Forex payment methods in South Africa

The South African traders have an abundance of choices when it comes to deposits and withdrawals on brokers’ platforms. Nearly every broker now supports dozens of payment solutions ranging from traditional methods to ground-breaking innovative e-payment platforms. However, each method has its own benefits and drawbacks, and the decision for which one to use depends on the trader’s expectations: whether he or she wants the transaction to proceed immediately or is more concerned with the costs or safety of the transactions. Let’s cover these payment solutions in-depth below with all the possible benefits and drawbacks explained.

Traditional Payment systems

The most popular traditional solutions methods for deposits and withdrawals in the Forex market in South Africa include:

  • Credit/debit cards
  • Bank wires
  • Cheques (extremely rare and mainly used by US residents)

Credit/debit cards

best forex payment solutions in south africaWhen a user arrives at the payment page for credit cards he or she is then asked to input the credit or debit card information (credit card’s number, the name on the card, expiration dates, and CVV/CVC) on the appropriate payment form. After that, the transaction is processed, it can either be approved and settled immediately, or it is rejected. Certain brokers have attempted to enhance the security of this process by offering the option of saving the details of the merchant’s card so that they don’t need to be entered into the payment form each time.

In South Africa Forex trading, accepted credit and debit cards typically come from Mastercard and Visa. American Express is rarely supported due to more complicated transaction terms. Hence, the transaction times and costs should be double-checked with the providers themselves, as most of the brokers do not charge transaction fees.  We will cover the payment costs in a separate section below in the article.

Bank wire transfers

forex payment methods in South AfricaForex traders need to visit the payment section at the website of the broker before making a bank wire transfer for deposit or withdrawal. This is where the “Bank wire” method is chosen. For certain brokers, the details of a bank transfer are made available so that the trader is able to move on to transfers of money through an account at a bank online or making a physical transfer to the bank. All the necessary information is needed to complete an electronic transfer (e.g. the receiver’s IBAN, SWIFT, the address of the transaction and more).

However, not all banks support Forex transactions, especially in South Africa. There are certain banks that will block all the payment requests from brokerage companies for safety reasons. Therefore, there are only a few banks in South Africa for Forex trading. These banks are FNB, Mercantile Bank, Standard Bank, Absa, and Nedbank. However, some of these banks might require double-checking with the client directly that the payment is legit and approved.

E-payments and e-wallets

e-wallet forex south africaThe e-payment method is not a conventional payment method that is quickly been gaining popularity as one of the sought-after ways to pay for forex brokers. A majority of forex brokers offer E-wallets as a way to pay to deposit money and withdraw funds. A few of the benefits of using e-wallets include:

  • Fast processing time – in comparison to other payment options E-wallets are a lot faster and will even make immediate payments in certain cases.
  • There is little to no cost – in general, Forex brokers do not charge a commission to deposit funds using an electronic wallet. In the case of withdrawals, charges are generally less than other options.
  • It is safer to use – if you suspect that an agent trying to swindle you, the company that handles e-wallets could be a third party in the dispute without adding any additional cost.

In addition, there are numerous e-payment platforms available to select from. It is for this reason that traders need to determine which type of e-payment is the best fit for them and which broker can provide it. It’s crucial as there are many unneeded issues that can occur in the event you choose a questionable process, for example, transactions getting delayed or late processing, slow speed, and so on. In this section, we will discuss the top three popular electronic payments for deposit and withdrawal available in South Africa. The compilation was created by analyzing the reputation of e-payments, security, reliability, as well as accessibility for South African traders.

1. PayPal

best deposit options in south africaIn general, Paypal is known as the method of payment used to make digital transactions on any trading platform. Despite its name and its popularity, companies that incorporate Paypal in their services remain a small number when compared to other digital payment companies. This is due to the limitations imposed by the company since it adheres to the US policy of not allowing transactions in US prohibited regions. But the platform works fine for SA traders.

Certain brokers provide Paypal due to the fact that it is an e-wallet that is trusted and offers excellent services. Each broker has its own policies concerning Paypal. Concerning security, Paypal has obtained licenses from the US, Australia, and European Union. The security system of the company is designed to meet all stakeholder’s interests during the course of an online transaction. In the end, the company continuously examines the security of data and stops scams immediately as well as safeguards accounts of customers. The payment solution also provides support for those who have had to cancel transactions, monitors account for frauds, such as email phishing, and many other things.

2. Skrill

top forex payment methods in south africSkrill is a payment service that was founded in 2001. It provides a variety of online transactions and payment options to international traders. It was among the first businesses to get the authorization to operate as an online payment system. Skrill has changed the name to Moneybookers and changed its name in September of 2011. Actually, the term “Skrill” stands for “skrilla”, a slang word that means money. In addition to its expertise and reliability, the business’s credibility is also high because it is recognized by FCA (UK).  In terms of its usage among Forex traders, Skrill is a partner with almost all of the prominent Forex brokers like XM, HotForex, AvaTrade, Plus500, and numerous others.

Skrill is offered by various kinds of brokers, starting from those that are new and emerging to the highest-end. At present, Skrill has served millions of international customers from 200 countries and has offered international transactions in forty currencies, which makes it a great choice for traders across the globe. The company provides easy, secure, and speedy service for its customers. Transfers and deposits through Skrill are actually very simple. There are a variety of options you can select from, including credit and debit cards. You should pay particular attention to is the price and terms of any broker that offers deposits and withdrawals through Skrill.

3. M-Pesa

best forex payments in south africsM-Pesa is an e-payment and e-wallet company that was launched in 2007. The mobile-based service for money transfer is operated by Vodafone Group plc and Safaricom. Safaricom is the largest provider of networks in Kenya. It is used across the globe and is particularly popular within Africa. There are over 100 million M-Pesa users worldwide. In the year 2010, M-Pesa received the distinction as the world’s most effective payment service in the emerging world. The earnings of M-Pesa surpass one billion dollars in the present.

M-Pesa is regulated in each country where the payment service is in operation. The supervisors of the company comprise those of the Central Banks of its serviced countries or the financial regulatory authorities. In addition, Vodafone is monitoring each transaction that passes by M-Pesa for the purpose of ensuring the operation of its bank-grade anti-money-laundering system. M-Pesa is the most popular payment method used in African countries such as Uganda, Ghana, South Africa, and Kenya. This is why most Forex brokers that accept M-Pesa can be found in these countries. The biggest drawback of this payment method is that it doesn’t work in all developed nations.

Costs and transaction times of deposits and withdrawals in Forex

trading costs in south africaYou should bear one thing in mind that no decent brokerage company will ever charge for deposits and withdrawals. Always make sure to double-check the fees and trading costs of the broker and if you see that there are deposit or withdrawal fees, choose another one. The reason is that the payment system providers are already charging for their service. Hence, you do not want to pay for processing your transactions twice. But, even if your broker promises free transactions and 0 costs on deposits and withdrawals, you will have to pay transaction fees with the payment solution providers. We will cover these fees for the e-payment providers below.

The principal factor that decides how much people have to pay for services with an M-Pesa Forex trading account is assessed is based on whether the account holder is registered. So, for example, users in Kenya will be charged the 66 ksh fee for transfers to non-registered traders given that the amount of transfer is in the range of 101 to 500 Kshs. However, if the transfer is to a registered user the fee is 27, Kshs to the exact amount of transfer. The maximum value of the transfer is 35,000 Kshs with a cost in the amount of 275 Kshs for non-registered users. Through various commercial agreements, however, the transfer to several platforms was made very simple for example, transactions between Skrill to M-Pesa could be accomplished in a matter of microseconds.

PayPal is not just the most reliable payment platform but also the most affordable. It charges Forex traders only 3 to 5 percent of commissions. In addition, the maximum fee that PayPal charges PayPal is not more than 2.99 British pounds (60 South African rands).  Additionally, there are brokers who will offer a refund of your PayPal charges on deposits. Typically, Skrill payments do not incur transaction fees on most of Skrill’s Forex trading accounts. It is true for any quantity of these transactions each month or per year. However, the fixed service charge applicable to withdrawals is 1 %  only, which makes it the cheapest payment method available.

FAQs on the best Forex payment methods in South Africa

How do I deposit money into my Forex account in South Africa?

If you are already registered on a broker’s platform then all you have to do is access the “my account”, or “deposits” page in order to proceed with topping up your balance. Most brokers will display the deposit button almost on every page. You will be given an option of depositing immediately after the registration, as well. After you visit the deposit page, you have to choose your payment method. If you are paying with your credit/debit card, it is the easiest and fastest transaction option as you have to simply input the card details, the amount of money you wish to deposit, and proceed. The bank wire transfers are the most complicated ones. With e-payment platforms, all you have to do is to log in to your payment provider’s wallet or account and connect it with your broker’s platform.

Which bank is best for Forex in South Africa?

You have five options for Forex bank wire transfers in South Africa: FNB, Mercantile Bank, Standard Bank, Absa, and Nedbank. All these banks support Forex trading and will store your funds even if they are in different currencies and will allow you to deposit and withdraw your trading capital with ease. However, some of these banks, such as Nedbank might double-check with you few times the purpose of the transaction and whether it is truly you executing the payment. The majority of Forex brokers in South Africa will cooperate with all these five banks.

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