If you are a forex trader in South Africa looking for a broker, we are here to help.
Finding the best forex broker in South Africa can seem like a difficult task sometimes. That is why we have collected as much information as possible to help you along the way.
As a forex trader in South Africa, you will find information here on some of the top forex brokers, as well as the best forex trading platforms available and much more about the top-tier FSCA regulation provided by many brokers.
Let’s get started:
Table of contents
Is Forex Trading legal in South Africa?
This is a very common question that comes from forex traders in South Africa and around the world. In regard to the legality of South African forex trading. The answer, in short, is yes.
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 (We have listed many of the top South African forex brokers below), 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) since most of the top brokers keep their accounts outside South Africa, 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 that 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.
Top 10 Best Forex Brokers in South Africa
Getting into our listing of the best forex brokers in South Africa for you, the first 6 brokers we have listed for your convenience are FSCA regulated brokers, while the brokers numbered 7 to 10 are top international forex brokers who accept South African traders.
South African trader? Here’s what to 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.
1. Choose well-regulated forex brokers:
Naturally, as a forex trader in any country, one of the most important aspects is regulation. 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 our listed brokers are.
2. ZAR Accounts:
If the broker offers ZAR currency as a deposit or base currency then this would certainly be a benefit to you as a South African trader.
This would avoid you having to pay any kind of conversion fees after you have funded your account although only a few of the top forex broker in South Africa facilitate ZAR deposits and base currencies. .
3. 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 based on bonus offers. This way you can always be sure of a higher level of broker satisfaction.
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, when here you can check the forex brokers registration number or you can 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?
Having done all of your searching and finally found a South African forex broker that you feel fits your needs perfectly, one of the last questions you have may be in relation to whether forex trading is taxable in South Africa?
The answer here is yes. 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 cryptos, 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]
InvestinGoal.com may receive a monetary compensations from the brokerage companies listed above.