Best Forex Brokers in South Africa (2022) 🔎 - YouTube

Hello, And Welcome to a new video in which I will

talk about one of the best forex brokers in South Africa. In the first part of the video,

I will provide you with a guide on how to go about choosing the best south African forex

broker and in the second part (to which you can skip in the video) I will cover reputable

brands that operate in South Africa with solid reputation. So, if you want to find today

the best forex broker in South Africa stay tuned because we are just starting.

Not too long ago I have created a guide on how to go about choosing the best forex broker

in South Africa and what are the best FX brokers here so I will use this as the foundation

of this video. If you want to have a look at it, I will link to the article in the description

below the video.

One of the first things you should consider when choosing an FX broker is regulation.

There are a lot of shady companies operating in the forex space that you want to avoid.

That means you should trade only with brokers that are regulated by reputable financial

authorities, that means the broker shouldn t have just regulation on Seychelles or Belize,

but it should be preferably regulated by the Financial Sector Conduct authority, here in

South Africa or by other reputable regulatory bodies such as the CySEC in Cyprus, the FCA

in the UK or the ASIC in Australia. Obviously, the best investor protection can

provide a broker that is regulated in South Africa by a local regulator, to verify that

broker regulated by the FSCA you can use this link from our guide. Once you click it, fill

in the FSP name line a broker s name you would like to trade with. As an example, I will

first type in Exness, which is a popular broker that operates in South Africa. And as you

can see the website found one match that has the trading name Exness so we will click details

and click on products approved. Here you can see what investment products they can offer

in South Africa, in our case Exness can offer forex and derivate instruments. If we were

to go back and type in the search box a name of a different broker that we know is not

regulated by the FSCA, for instance XM (a very popular broker in South Africa that is

regulated by other reputable regulatory bodies) and clicked on submit then you could see that

all the results that showed up are not relevant to XM.

Now if go back to our guide, you can see that the next important aspect when choosing a

broker are trading fees and spreads. This one should be pretty obvious. The more you

pay on broker s fees, the less money you can make. Most forex brokers make their money

on spreads. Spread is basically the difference between how much you have to pay for an asset

and for how much you can then sell it back to the broker. If we look at this example

of buy and sell price, you can see that you can buy EUR/USD for this price and sell it

back at this price. The last digit is different by 8 as this number ends with 42 and this

one with 50. In this case is the spread, therefore, 0,8 pips. While this might seem like very

slight difference in price it can all add to a large sum of money especially if you

trade with high leverage and you open and close a lot of trades. For that reason, spreads

are one of the most important aspects to consider when choosing a broker as each broker has

different spreads. Spreads also differ depending on what assets you trade so while for major

currency pairs such as EUR/USD or GBP/USD the spreads are often very competitive hovering

around 1 pip, for minor or exotic pairs such as ZAR/USD or ZAR/EUR they can be like 100

pips. The rule of the thumb with spreads is that the more popular asset with high trading

volume you trade, the lower the spreads are.

Other a bit less important trading related fees are overnight fees, deposit and withdrawal

fees and Inactivity fees. But because these are usually not a big deal breaker I will

not cover them in the video, but you can read about them in our guide.

Another a bit less important aspect to consider is whether your broker offers having a base

account currency in ZAR. This is a feature I know that many South African traders are

particularly excited about and there is some good added value to having an account in ZAR.

The first apparent benefit of a ZAR account is that you do not have to convert money to

USD or other major currency and you therefore avoid conversion fees. Another advantage of

this you might not know about is that forex brokers that support having a trading account

in ZAR usually don t convert Rand to other currencies, which implies they have a local

bank account located in S. Africa. If that s the case, all your deposits and withdrawals

are made much faster than with any other currency. Unfortunately not many brokers offer ZAR accounts

and although, it s a good advantage to have a base account in your local currency, remember

that brokers convert your currency automatically if you trade forex pairs in which your base

trading account currency is not quoted. That means if your trading account is in ZAR and

you buy the currency pair EUR/USD, your South African Rand gets converted to EUR.

Another important aspect we should talk about is leverage. A lot of FX brokers that operate

here boast about offering huge leverage often ranging from 1:300 to even 1 to 2 000 leverage.

What this means is that when you trade, for instance, with R 1 500 and the leverage is

1:300, you gain the effect of R 450 000 capital. While you can make a lot of money with high

leverage even if the price changes just slightly, it also means you can very fast lose all your

invested capital. Which means that leverage is basically a two-edged sword.

Now when we have covered some of the most important aspects when looking for the best

forex broker in South Africa, we can move on to reputable FX brokers that operate here

and what trading conditions they offer. In order not to make this video too long, I will

point out just the most important features of each broker but I do recommend reading

our full reviews that you fill find in the description below.

First on the list we have is Plus500. This is an international brand licensed by the

CySEC (in Cyprus), FCA (in the UK), ASIC (in Australia) and also by the FSCA (in South

Africa). This company supports having a base account currency in ZAR and the minimum deposit

here is 1 500 ZAR (or 100USD). Plus500 features on their in-house built platform over 2000

trading instruments (consisting of CFDS on forex, stocks, cryptocurrencies, indices and

a couple of other assets categories), they offer in SA a deposit bonus and allow speculation

on 71 forex pairs including EUR/ZAR, GBP/ZAR, USD/ZAR. And their spreads are fairly competitive

starting from 0.6 on EUR/USD.

The next broker on the list is AvaTrade, this broker is also regulated in South Africa by

the FSCA and in Australia by the ASIC. AvaTrade provides access to two popular trading platforms

MT4, MT5 and to two social trading networks DupliTrade, ZuluTrade on which traders can

follow and copy other successful investors. The minimum deposit is 100 USD and the broker

does not yet feature a ZAR account. In total, there are over 700 trading instruments available

at AvaTrade including 55 forex pairs where you can also find EUR/ZAR and USD/ZAR. The

spreads here start from 0.9 pips on major forex pairs.

Another popular broker in South Africa is XM.com. This company is not regulated in South

Africa, but it is authorised by other reputable regulatory bodies such as FCA, CySEC and ASIC.

XM.com also offers as trading platforms MT4 and MT5 and also supports having a base currency

in ZAR. New SA traders can also apply here for a 30$ no-deposit starting bonus on which

apply T&Cs, but they are very solid. The minimum deposit at XM.com is 70 ZAR or 5 USD and the

broker also supports speculation on EUR/ZAR, USD/ZAR and 53 other forex pairs.

As you can see here on the list here, we have here also IQ Option, XTB, Etoro, Exness and

Tickmill. There are all companies worth mentioning, but the ones you might be most interested

in are Etoro and Exness as they are both quite unique and you will understand why in just

a second.

Starting with Etoro, this broker is the world s leading social trading platform that allows

you to follow and replicate other successful traders on the platform. What distinguishes

Etoro from other social trading platforms is that etoro has a huge community of traders

(they have over 20million of traders) so you can really find here some of the best traders

that are out there are and copy them. This company is regulated by the CySEC, FCA and

ASIC and the minimum deposit in South Africa is 200 USD.

The next broker you should keep an eye on is Exness. This company is regulated in South

Africa by the local regulator FSCA and of offers to South African traders one of the

highest possible leverage while trading forex up to 1:2000. The company features two popular

trading platforms MT4, MT5 and allows speculation on 107 currency pairs, including 9 pairs with

ZAR. They have very low minimum deposit which starts from 15 ZAR/1 $ and they have one of

the most competitive spreads in the industry that start from 0.3 pips.

That is all from the list of one of the best fx brokers in the south Africa. Before you

click away I want to point out that no matter if you select a broker from the list, I have

provided you with, you should be always really careful when choosing a broker. There are

many shady companies out there that do not have your best interest at heart. For that

reason, I would advise on trading only with regulated brokers with solid reputation. As

a starting guide on how to go about choosing a fx broker can serve the guide I have provided

in the first part of the video.

If you have any questions, feel free to leave a comment below the video. If you enjoyed

the video, please like the video and subscribe to our channel for more broker reviews. Thank

you for watching.