The best Forex brokers in South Africa are HF Markets, Pepperstone, IC Markets, and XM.
To choose the best Forex broker to trade in South Africa, proper registration of the broker with the Financial Sector Conduct Authority (FSCA), trading costs (spreads and commissions), platform and tools, execution speed, and customer support are the most important criteria.
HFM is the best Forex broker overall in South Africa, it operates under FSCA number 46632,with spreads (0.3 pips on EUR/USD), high execution speed, comprehensive platforms (MetaTrader), minimum deposit ($0), and active customer support (24/5 availability).
Pepperstone, IC Markets, and XM follow HFM as the best Forex brokers in South Africa with platform and tools (MT4, MT5, cTrader and Proprietary Platform), and customer support (24/5 availability via phone, email, and chat). Pepperstone offers trading costs with fixed spreads of 0.1 pips on EUR/USD with an execution speed of 60 ms approximately. IC Markets offer trading costs with spreads from 0.1 pips along a commission of $7 per lot round turn on EUR/USD with an execution speed of 36.5 ms approximately. XM offers trading costs with spreads from 0.1 pips on EUR/USD with an execution speed less than 1 second approximately.
What are the best forex brokers in South Africa?
Below is our curated list and review of the best forex brokers for traders living in South Africa, with details and information about the country laws, the features, and the characteristics.
Warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
HFM
best for Micro accounts
HFM authorizes clients in South Africa through FSCA (46632). HFM offers South African clients deposits from $5. HFM uses ZAR and offers spreads from 0 pips with leverage up to 1000:1.
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About HFM
HFM, formerly known as HotForex, is a global multi-asset broker founded in 2010. HFM offers trading on forex, stocks, commodities, indices, and cryptocurrencies through MetaTrader and proprietary platforms. HFM is regulated by multiple authorities including FCA, CySEC, and FSCA. HFM is known for competitive spreads, fast execution, and extensive educational resources. HFM serves over 3.5 million clients worldwide. The HF Markets Group CEO is George Koumantaris.
HFM Features
The features of HFM are listed below.
- HF Markets SA (PTY) Ltd is authorized by FSCA (n. 46632) in South Africa.
- HFM has won a ‘Best Forex Broker Africa’ award in the last few years.
- South African clients need to make a HFM minimum deposit of $5.
- HF provides base currencies that include ZAR, USD, EUR, GBP, and more.
- HF clients in South Africa have access to spreads from 0 pips on 40+ currency pairs with maximum leverage up to 1000:1.
- Several bonuses are offered to South African clients including a 30% rescue bonus, 100% credit bonus, 50% welcome bonus, and 100% supercharged bonus.
HFM Pros and Cons
Advantages of HFM
The advantages of HFM are listed below.
- High Leverage Options
- Low Minimum Deposit
- Wide Range of Trading Instruments
Disadvantages of HFM
The disadvantages of HFM are listed below.
- Higher Trading Costs
- Limited Educational Resources
Pepperstone
best for lowest spreads
Pepperstone permits South African clients to trade under SCB (SIA-F217) regulation. Pepperstone requires a minimum deposit of $200. Pepperstone does not offer ZAR as a base currency but accepts ZAR deposits.
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About Pepperstone
Pepperstone is a global forex and CFD broker founded in 2010 in Melbourne, Australia. Pepperstone offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader and cTrader platforms. Pepperstone is regulated by multiple authorities including ASIC, FCA, and CySEC. Pepperstone is known for competitive spreads, fast execution, and extensive educational resources. Pepperstone serves clients in over 160 countries worldwide. The Pepperstone CEO is Tamas Szabo.
Pepperstone Features
The features of Pepperstone are listed below.
- South African clients can trade with Pepperstone under the SCB regulation (n. SIA-F217).
- The ZAR currency is not available for South African traders, but ZAR deposits can still be made.
- South African traders are required to deposit at least $200 for a Pepperstone account
- Pepperstone offers South African clients spreads from 0 pips on 90+ currency pairs with a maximum leverage up to 200:1.
- South African traders under the global entity of Pepperstone cannot benefit from any bonuses, but can apply for the Active Traders program, where they can earn discounts based on the number of lots traded per month.
Pepperstone Pros and Cons
Advantages of Pepperstone
The advantages of Pepperstone are listed below.
- Stable raw spreads (0,10 pips on EUR/USD on average)
- Caters for algorithmic trading
- Has won over 30 Forex industry awards
Disadvantages of Pepperstone
The disadvantages of Pepperstone are listed below.
- The demo account is not unlimited
IC Markets
best for algo-trading
IC Markets allows South African clients to trade with FSA Seychelles (SD018) regulation. IC Markets does not require a minimum deposit. IC Markets does not support ZAR as a base currency.
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About IC Markets
IC Markets is a global forex and CFD broker founded in 2007 and based in Sydney, Australia. IC Markets offers trading on over 2,250 instruments including currencies, commodities, indices, stocks, and cryptocurrencies. IC Markets provides MetaTrader 4, MetaTrader 5, and cTrader platforms. IC Markets is regulated by multiple authorities including ASIC and CySEC. IC Markets is known for its ECN execution model and low spreads. The IC Markets CEO is Andrew Budzinski.
IC Markets Features
The features of IC Markets are listed below.
- South African clients who want to trade under IC Markets can do it under the FSA of Seychelles, (n. SD018).
- ZAR is not provided as a base currency, but many other base currencies are available, including USD, EUR, CAD, GBP, JPY, CHF, and HKD.
- South African clients under IC Markets are not required to make a minimum deposit.
- IC Markets South African clientscan find spreads from 0 pips on 60+ forex currency pairs with maximum leverage of 500:1.
- South African clients cannot have access to IC Markets deposit bonuses.
IC Markets Pros and Cons
Advantages of IC Markets
The advantages of IC Markets are listed below.
- Low-latency trading environment
- Institutional level liquidity
- MT4, MT5, cTrader platforms are all available
Disadvantages of IC Markets
The disadvantages of IC Markets are listed below.
- Small amount of educational tools for new traders
- Small range of tradable assets compared to other CFD/Forex brokers
XM
best for beginners
XM regulates clients in South Africa through FSC Belize (000261/397). XM offers ZAR as a base currency. XM requires South African clients to deposit at least $5.
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About XM
XM is a global forex and CFD broker founded in 2009, offering trading on currencies, commodities, indices, stocks, and cryptocurrencies. XM provides MetaTrader 4, MetaTrader 5, and proprietary platforms. XM is regulated by multiple authorities including CySEC, ASIC, and IFSC. XM is known for competitive spreads, extensive educational resources, and multilingual customer support. XM serves over 5 million clients from 196 countries. XM offers various account types and a no-requote policy.
XM Features
The features of XM are listed below.
- XM is regulated by FSC in Belize (n. 000261/397) to operate in South Africa.
- ZAR is available as a base currency for South African traders, alongside the EUR and USD currencies.
- XM South African clients need to make a minimum deposit of $5.
- South African traders can choose among 57 currency pairs with spreads from 0.6 pips on forex.
- Several XM bonuses are offered including a $25 bonus, 20%-50% deposit bonus, and loyalty program.
XM Pros and Cons
Advantages of XM
The advantages of XM are listed below.
- There’s a wide range of account types
- The demo account at XM is unlimited
- Wide range of educational resources
Disadvantages of XM
The disadvantages of XM are listed below.
- No social trading features available
- The account availability changes depending on the location of the trader
- High minimum deposit to invest in securities ($10000 for the XM Shares account)
AvaTrade
best for fixed spreads
AvaTrade operates in South Africa under FSCA (45984). AvaTrade offers ZAR as a base currency. AvaTrade requires a minimum deposit of $100 from South African clients.
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About AvaTrade
AvaTrade is a global forex and CFD broker founded in 2006 and headquartered in Dublin, Ireland. AvaTrade offers trading on currencies, commodities, indices, stocks, bonds, ETFs, and cryptocurrencies. AvaTrade provides proprietary platforms alongside MetaTrader 4 and 5. AvaTrade is regulated by multiple authorities including CySEC, ASIC, and FSA. AvaTrade serves over 300,000 clients worldwide. AvaTrade is known for competitive spreads and extensive educational resources. The AvaTrade CEO is David Dryzin since 2016.
AvaTrade Features
The features of AvaTrade are listed below.
- AvaTrade is Regulated by FSCA (No.45984) to operate in South Africa.
- ZAR and USD are the base currencies available for South African clients.
- AvaTrade requires a minimum deposit of $100 from South African clients.
- ZA clients find 60+ currency pairs to trade with fixed spreads from 0.9 pips and maximum leverage up to 400:1.
- A first-time deposit bonus of up to 40% is offered by AvaTrade for South African traders.
AvaTrade Pros and Cons
Advantages of AvaTrade
The advantages of AvaTrade are listed below.
- Tight fixed spreads from 0.6 pips (0.9 pips for retail traders)
- The mobile apps are well designed
- Can be connected to ZuluTrade and Duplitrade
Disadvantages of AvaTrade
The disadvantages of AvaTrade are listed below.
- High inactivity fees
- The demo account is limited to 30 days
FP Markets
best for deep liquidity
FP Markets holds regulation by FSCA (50926) in South Africa. FP Markets enables deposits through Virtual Pay. FP Markets imposes a $100 minimum deposit for South African clients.
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About FP Markets
FP Markets is an Australian-based global forex and CFD broker founded in 2005. FP Markets offers trading on over 10,000 instruments including forex, stocks, indices, commodities, and cryptocurrencies. FP Markets provides MetaTrader 4, MetaTrader 5, and proprietary platforms. FP Markets is regulated by multiple authorities including ASIC, CySEC, and FSA. FP Markets is known for tight spreads, fast execution, and extensive educational resources. The FP Markets CEO is Craig Allison.
FP Markets Features
The features of FP Markets are listed below.
- FP Markets is regulated in South Africa by the FSCA with an FSP number 50926.
- You can deposit through Virtual Pay (African Payment Method) with the following currencies supported: KES, UGX, TSH.
- FP Markets has a minimum deposit of $100 in South Africa.
- South African traders can open positions on more than 70 forex pairs with spreads from 0 pips and a leverage amount up to 1:500.
- There are no trading bonuses with FP Markets in South Africa.
FP Markets Pros and Cons
Advantages of FP Markets
The advantages of FP Markets are listed below.
- Broad Instrument Offering
- Competitive Spreads
- Multiple Trading Platforms
Disadvantages of FP Markets
The disadvantages of FP Markets are listed below.
- High Fees for International Withdrawals
- Outdated Platform Design
FXTM
best for account types’ choice
FXTM receives regulation in South Africa from FSCA (46614). FXTM allows local ZAR deposits. FXTM sets a minimum deposit of $10 for South African clients.
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About FXTM
FXTM, also known as ForexTime, is a global forex and CFD broker founded in 2011. FXTM offers trading on currencies, commodities, indices, stocks, and cryptocurrencies through MetaTrader 4, MetaTrader 5, and proprietary platforms. FXTM is regulated by multiple authorities including CySEC, FCA, and FSC Mauritius. FXTM is known for low spreads, fast execution, and extensive educational resources. FXTM serves over 2 million clients worldwide. The FXTM CEO is Nicholas Defteras.
FXTM Features
The features of FXTM are listed below.
- FXTM is regulated by FSCA (n. 46614) to operate in South Africa.
- FXTM has won the ‘Best broker in Africa’ award in 2018.
- Local deposits can be made with African Local Solutions (D) in ZAR, as well as in NGN, GHS, TZS, and more, with no commissions on FXTM’s part.
- South African clients will find an FXTM minimum deposit of $10.
- ZA traders have access to FXTM spreads from 0 pips on 45+ forex currency pairs, while the leverage is up to 2000:1 depending on the size of your trade.
FXTM Pros and Cons
Advantages of FXTM
The advantages of FXTM are listed below.
- User-Friendly Platform
- Fast Customer Support
- Low Minimum Deposit
Disadvantages of FXTM
The disadvantages of FXTM are listed below.
- Withdrawal Fees
- Limited Product Range
- Inactivity Fees
Plus500
one of the best for CFD trading
Plus500 regulates operations in South Africa through FSCA (47546). Plus500 accepts ZAR as a base currency. Plus500 requires South African clients to deposit 1500 ZAR.
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About Plus500
Plus500 is a global fintech company founded in 2008, offering online Futures trading services in different markets such as Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy and Equity Indices. Plus500 provides proprietary web and mobile trading platforms. Plus500 is regulated by multiple top-tier authorities including FCA, ASIC, and CySEC. Plus500 is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The Plus500 CEO is David Zruia since April 2020.
Plus500 Features
The features of Plus500 are listed below.
- Plus500 Pty Ltd is regulated by FSCA (47546) to operate in South Africa.
- ZAR base currency is available and the main currency for South African clients. You can change to another currency if you want after the account is opened.
- Plus500 in South Africa has a minimum deposit of 1500 ZAR (100 USD).
- South African clients have access to 60+ forex currency pairs with variable spreads.
- The maximum Plus500 leverage offered for South Africans is up to 30:1.
Plus500 Pros and Cons
Advantages of Plus500
The advantages of Plus500 are listed below.
- Well-regulated CFD provider
- Over 2000 tradable CFDs
- Unlimited demo account offered
Disadvantages of Plus500
The disadvantages of Plus500 are listed below.
- Limited Regulatory Protections for Professionals
- Inactivity fees
- Limited deposit methods
IG Markets
best for number of CFD assets
IG Markets operates in South Africa under FSCA (41393). IG Markets does not accept ZAR as a base currency. IG Markets requires a minimum deposit of 4000 ZAR from South African clients.
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About IG Markets
IG Markets is a global online trading provider founded in 1974, offering access to over 17,000 financial markets including forex, stocks, indices, commodities, and cryptocurrencies. IG Markets provides proprietary trading platforms alongside MetaTrader 4 and ProRealTime. IG Markets is regulated by multiple top-tier authorities worldwide, including the FCA and ASIC. IG Markets is known for competitive spreads, extensive educational resources, and innovative features like weekend trading. The IG Markets’ parent company “IG Group” CEO is Breon Corcoran.
IG Markets Features
The features of IG Markets are listed below.
- IG Markets is Regulated by FSCA (41393) to operate in South Africa.
- IG Markets has won the ‘Intellix South Africa Award 2021’ and many other specific African awards.
- ZAR is not accepted as a base currency, but ZAR deposits can still be made. USD, EUR, GBP, CAD, JPY, and more are also accepted.
- IG Markets South African traders need to make a 4000 ZAR (300 USD) minimum deposit.
- ZA traders will find IG spreads from 0.6 pips on 80+ forex currency pairs with leverage up to 200:1.
- No IG bonuses are available for South African traders.
IG Markets Pros and Cons
Advantages of IG Markets
The advantages of IG Markets are listed below.
- Low spreads from 0.6 pips on Forex
- Wide range of financial instruments
- 40 years of experience in the Forex industry
Disadvantages of IG Markets
The disadvantages of IG Markets are listed below.
- No copy trading features
- No social trading features
Comparison of the best South African Forex brokers
| Forex Brokers | FSCA License Number | Minimum Deposit | Spreads From | ZAR Base Currency | Forex Pairs Available |
|---|---|---|---|---|---|
| HFM | 46632 | $5 | 0 pips | Yes | 40+ |
| Pepperstone | SIA-F217 | $200 | 0 pips | No | 60+ |
| IC Markets | SD018 | $0 | 0 pips | No | 60+ |
| XM | 000261/397 | $5 | 0.6 pips | Yes | 57 |
| AvaTrade | 45984 | $100 | 0.9 pips | Yes | 60+ |
| FP Markets | 50926 | $100 | 0 pips | No | 70+ |
| FXTM | 46614 | $10 | 0 pips | No | 45+ |
| Plus500 | 47546 | $100 | Variable | Yes | 60+ |
| IG Markets | 41393 | $300 | 0.6 pips | No | 80+ |
What is the best South African Forex broker with the lowest spread?
The best South African Forex broker with the lowest spread is Pepperstone.
Pepperstone facilitates raw spread Forex trading with their Razor Account. Spreads here start from 0 pips, and average 0.09 pips on the EUR/USD Forex pair. For more options see best low spread Forex brokers.
What is the best South African Forex broker with high leverage?
The best South African Forex broker with the highest leverage is FXTM.
At FXTM you can trade with leverage up to 1:2000 on their trading account. For more options visit best high leverage Forex brokers.
What is the best South African Forex broker with a low minimum deposit?
The best South African Forex broker with a low minimum deposit is HFM.
The HFM minimum deposit for South African Forex traders starts from $0. With their micro account, you will be able to effectively trade even with small amounts of money. For more options see low minimum deposit Forex brokers.
What is the best South African Forex broker for beginners?
The best South African Forex broker for beginners is XM.
XM offers a wide range of educational tools for new traders, as well as a number of options for traders who don’t want to risk large amounts of money such as a low minimum deposit, a demo account, and the Ultra Low Micro Account for trading in nano lots. For more options see best Forex brokers for beginners.
What is the best South African Forex broker with bonuses?
The best South African Forex broker with Forex bonuses is XM.
XM offers different promotions for South African traders, such as a Trading Bonus and a Deposit Bonus. For more options see best Forex brokers with bonuses and promotions.
What is the best South African Forex broker for ECN trading?
The best South African Forex broker for ECN trading is IC Markets.
IC Markets offers ECN trading on their Raw Spread account. Here you can find spreads from 0 pips, a fast order execution, and three trading platforms: MT4, MT5 and cTrader. For more options see best ECN Forex brokers.
What is the best South African Forex broker for CFD trading?
The best South African Forex broker for CFD trading is IG Markets.
IG Markets in South Africa offers over 17.000 tradable CFD tradable assets on different markets, which include Forex, indices, stocks, commodities and cryptocurrencies. For more options see best CFD Forex brokers.
What is the best South African Forex broker with MT4 platform?
The best South African Forex broker with MT4 is Pepperstone.
Pepperstone offers two account types (Standard and Razor) compatible with MT4, both with competitive costs and fast order executions. For more options see the MT4 Forex brokers.
What is the cheapest Forex broker in South Africa?
The cheapest Forex broker in South Africa is Pepperstone.
Pepperstone Razor account can be opened with $200 and charges raw spreads with a competitive $6/lot commission. For large volume traders there’s also an active trader program which further lowers trading costs with rebates.
Is forex trading legal in South Africa?
Forex trading is completely legal in South Africa.
In fact, forex trading in the country is well-regulated by the FSCA (Formerly FSB). Through their experience and good practice in the industry, they have risen to become one of the most respected regulatory bodies in the forex market.
Beyond that, the FSCA regulation provides such a trusted experience that many non-South African traders from around the world also seek out top forex brokers regulated by the FSCA.
This is possible in just the same way it is also possible for South African forex traders to choose forex brokers who are regulated outside the country by other bodies.
How to trade forex in South Africa
The process of forex trading and starting your account with a South African forex broker is not unlike that you may find in another country.
The basic steps you should follow are to choose your broker, provide the documents required by the broker to prove your identity and residence, and finally fund your account.
If you are depositing more than 1 million ZAR ($65,000 approx) you may need a Tax Clearance Certificate (TCC) as most of the top brokers keep their accounts outside South Africa, meaning you would actually be sending money to another country to fund your account. This is not too difficult but does require a tax clearance if you are depositing more than the above amount of money.
If the amount is smaller, then the process of funding is much easier through the Single Discretionary Allowance (SDA). This allows you to move as much as 1 Million ZAR per year abroad without the need for the same documentation. You can find more information on these regulations on the South African Reserve Bank Website.
It is worth noting that these processes are not needed if your broker has a deposit account within South Africa.
What should South African traders look for in a forex broker?
Unlike some other areas or regulatory bodies which can be quite stringent, the FSCA provides a lot of freedom and flexibility to both brokers and traders. Leverage, bonus offers, and account types can all be set at the discretion of the individual broker.
With that in mind then, here are a few key things to look out for when choosing your forex broker in South Africa.
- Choose well-regulated forex brokers: You should try to ensure your broker of choice is well-regulated by the FSCA or another top regulator like CySEC, FCA, or ASIC. All of the brokers listed here are well regulated.
- Check ZAR Account: Look for a broker that offers ZAR currency as a deposit or base currency where possible, as this removes having to pay any kind of conversion fees after you have funded your account. Despite this, only a few of the top forex brokers in South Africa facilitate ZAR deposits and base currencies.
- Look for a bonus, but be wise: Since forex broker bonuses are available under FSCA regulation, it makes sense that you should search for and consider the brokers with some of the best bonus offers. No deposit bonuses, in particular, may be a great way to get started for new traders if you do not want to have any kind of risk. With that in mind though, you should always choose your broker first on the features and markets they offer to suit your style, and secondly on their bonus offers.
How to verify if a forex broker is regulated in South Africa
There are a few simple steps you can follow here in order to make sure that the broker you select is regulated within South Africa.
You should first visit the FSCA official website. From there you can search “regulated entities” through the homepage, selecting “FAIS” under the “list of regulated entities and persons” option.
Next you should choose “Financial Service Providers” which should lead you to this page. Finally, check the forex brokers registration number or check the list by the name of your broker. This can usually be completed within just a couple of moments.
Is forex trading taxable in South Africa?
The rate at which you can be taxed will depend on your income. The minimum percentage is 18% though this can stretch to a maximum of 40% capital gains tax depending on the situation.
You will be taxed annually, though you may in some cases be entitled to a tax refund for which you should complete an ITR12 document again on an annual basis.
If you are trading in crypto, you should be aware that since 2014, these have been considered an intangible asset by the South African Revenue Service and as such, all capital gains here also must be declared and are subject to tax.
[Disclaimer: we are not accountants, we have done an internet research. Contact SARS or an Accountant if you don’t know how to manage this aspect]
DISCLOSURE
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