Brokers typically offer a variety of these accounts, with some being commission-free and others commission-based. A forex broker may charge several types of fees and traders must be aware of them to maintain profitability. Founded in 2020, Moneta Markets has entities authorized and regulated by the FSCA, FSA Seychelles, and one unregulated entity in St. Lucia. Over 1,000 tradable instruments are available from multiple trading platforms and with competitive spreads. AvaTrade sets itself apart with robust copy forex broker listing and social trading features.

What Are the Key Steps to Start Forex Trading?

• You can clearly see from the screenshot that on an average they make 20-30% of their revenue from market making.
• You can even confirm with your broker if they provide negative balance protection.
• At a minimum, a regulated broker is accountable and must demonstrate a commitment to compliance.
• It is very essential to only trade with forex brokers who are licensed by the FSCA.

So, please use this for information only, and do your own due diligence on the broker you are choosing. When you click on ‘Trading Account Types’ and scroll down, you will find the page below showing the base currencies available per account. That being said, the above list of the best brokers in South Africa was created using the criteria listed below. If you prefer to do business in a language other than English, you might want to choose a broker with a website that translates into your preferred language. The broker should also have a customer service staff member fluent in that language.

Can South African residents open an account with BlackBull Markets?

So, before choosing any broker, you must check if that broker is licensed by FSCA or not. If that broker is not licensed by FSCA or any other Top-tier regulation, then you must avoid such a broker. Leverage allows you to make much larger trades with a relatively smaller amount of money. This means that the profit or loss from your trades can be much higher.

A market maker also stands to makeprofit when you lose a trade so there is a little conflict of interest. A forex broker could also be a no-dealing desk broker that connects you to buyers/sellers through their liquidity providers via computerized networks. Tickmill does not provide local currency accounts i.e there is no ZAR account currency, although, the firm allows for deposits using local banks. Most importantly, Octa does not offer ZAR base currency accounts, they only offer USD accounts.

Generally, minimum deposits start at $100 and can go up to $10,000. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 51% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Pepperstone is an Australian company and forex broker that offers some CFDs too, and is one of the top rated forex brokers available. Clients can access low average spreads, competitive commissions from $3.50, and no fees on deposits or withdrawals, among award-winning customer service. We also take an in-depth look at each broker’s commissions and fees, such as bid/ask spreads – including the average spread data for some of the most popular forex currency pairs. We research other trading costs, such as inactivity or custody fees, minimum deposit requirements, VIP rebates and/or discounts, and a range of other important fee-based data points.

The typical spread is 0.7 pips for EURUSD with this account type, and the Swap charges are also 0 pips for both Long & Short. So the overall fees (including the spread, commission & swap charges) with this account type is low. In terms of fees, Tickmill has an average spread with their Classic Account, starting from 1.6 pips for EUR/USD.

How is Forex Regulated in South Africa? 🏛

You can use this signal to exit your existing trade positions, or enter in a counter trend trade. Here is an example of a counter trend trade on EUR/USD currency pair. One of the popular strategies in Technical analysis is ‘Trend Following’.

It is really hard to be profitable with forex trading, mostly because traders trade with gamblers’ nature of risking excessively. Forex brokers act as intermediaries between traders and the market. When you open a trading account, you will need a platform to analyze CFDs, and place and monitor your trades.

• If you are trading an Exotic currency, the spreads will be wider & there can also be large fluctuations in pricing.
• As reported by major regulators, as high as 85% of traders lose at retail CFD brokers.
• The rough estimate is approximately 190,000 active South African traders per month.
• A forex trading guide becomes more effective when it includes actual trader scenarios and real examples from market experiences.

Moneta Markets

This comprehensive guide equips you with essential tools, insights, and resources kraken trading review to navigate the forex market with confidence and safety. The average monthly deposit size of South African traders is estimated to be $742 USD or around R12,900. As per some reports there are 200,000 forex traders in South Africa. We will now list down for you some of the opportunities & the risks of forex trading.

If you’re a beginner trader looking for quality customer support, exhaustive educational content, and tools to develop your trading, then FXTM could be an option. Founded in 2011, FXTM is authorized and regulated by the UK FCA, FSCA, CySEC, IFSC Belize, and the FSC Mauritius. It provides a good range of beginner trading accounts and an extensive database of learning materials. Finally, forex brokers are not mandated to provide negative balance protection if you are a professional trader. Exness is a forex broker that offers Forex & CFD trading to South African traders and is regulated with the FSCA.

These factors may be particularly significant for traders who do not plan to trade actively or are looking for more options for customization. This regulatory body ensures that forex brokers operating in South Africa adhere to strict guidelines, protecting traders and maintaining market integrity. Forex trading involves a lot of risks and inexperienced people can lose all their money. Beginners who are new traders are advised to first create a demo account and practice trading with virtual money before putting in their real money. In the world of forex trading, there are two major types of analysis — fundamental and technical analysis.

Factors that influence the forex market

Forex traders in South Africa face a dilemma over the choice of a brokerage firm to trade with. Although getting started in Forex trading is easy as one just needs to register and fund an account with a broker. Tickmill is a CFDs & Forex Broker that is regulated with multiple regulators. Their spreads for CFDs on popular indices are 5.3 pips on US30 (Dow), 3.9 pips on GER40 (DAX), 3.3 pips on NAS100.

Opt for accounts with low margin requirements, micro-lots, and minimal fees to ease the learning process. The broker’s technical support operates at a high level, offering clients quick and efficient responses to any questions. I could navigate the trade successfully by carefully timing my entry after the initial market reaction and setting reasonable stop-loss and take-profit levels. I also recommend consulting a tax professional in South Africa to optimize your forex trading activities for tax purposes. Let’s unpack the essentials of forex trading in South Africa with this beginner’s guide.

The SARB is responsible for the Prudential Authority (PA) which regulates financial conglomerates and cooperatives, insurance companies, and banks. Several international brokers reported jumps in business beginning in 2020. A currency pair consists of two currencies, where one is bought and the other is sold. For example, in the EUR/USD pair, the Euro is the base currency, and the U.S. Key risk management strategies lexatrade review include setting stop-loss orders, managing position sizes, avoiding overleveraging, and keeping emotions in check while trading.