Best Forex Investment Options in South Africa
If you’re investing in Forex in South Africa, you’re not alone. Ever since the benefits of Forex investing became mainstream, many people in South Africa took notice and opted to begin their Forex investing journeys. Nevertheless, this also led to an influx of new investment platforms, making it more challenging to decide which ones to trust. With that in mind, here is a closer look at the top 5 Forex investment companies in South Africa.
What is a Forex investment broker?
A Forex investment broker is a term used to describe many people and platforms that help facilitate Forex trades. However, for the purpose of this article, we are referring to Forex brokers that provide the following:
Investing in Forex Trading: The most obvious feature a Forex broker must provide is the ability to invest in Forex.
Passive investment accounts such as Copy Trading and PAMM: Moreover, we are also referring to forex brokers that offer passive investment accounts such as PAMM and copy trading. This is because these features make it much easier for anyone to invest, regardless of their experience levels.
It has long-term investment instruments such as stocks and ETFs: Lastly, well-rounded brokers are typically the best to work with in terms of Forex investments. This is because offering other long-term investment instruments shows that the platform is likely more stable and trustworthy overall.
List of 5 best brokers to invest in Forex
Are you considering investing in Forex while living in South Africa? If so, now is the time to research to maximize your investment potential. Here is a list of five of the top Forex brokers in South Africa.
RoboForex
RoboForex offers a wide array of products and services for those interested in investing. For instance, RoboForex offers tight spreads starting at 0 pips with low commissions. With the help of fast order execution via the best trading platforms, MetaTrader 4 and 5, many traders assert that they offer exceptional Forex trading conditions. The companies offer up to 36 FX pairs, metals, and an array of CFDs.
RoboForex offers CopyFX, which is its copy trading platform. It allows users to engage in copy trading with a minimum deposit of $100. With a high level of personalization, users can control every step of their investment journeys.
It offers two ways of investing in the foreign exchange markets: 1). Become a Forex trader and trade directly in the market with the help of a Forex broker, and 2). Forex copy trading or CopyFX allows new users to begin trading immediately by copying the moves of professional traders.
Lastly, RoboForex offers over 12,000 stocks, Indices, and ETFs on bonds, securities, commodities, etc., which are available across six platforms. They are available in over 169 countries and in 10 different languages. This makes it a highly useful platform for Forex investors across the globe.
RoboForex Bonus – How to Get Forex Bonus for FreeIC Markets
IC Markets offers 3,583 tradable instruments. It also has an extensive copy trading platform that allows investors the ability to begin trading immediately. The platform offers fully automated copy trading/signal trading. Users also gain access to their trader community, which makes it possible to exchange instant messages between traders as a means of getting more insight and advice from other active traders.
IC Markets offers over 2,100 stocks; the company offers these CFDs across their exchanges in the United States and Australia. IC Markets also provides 1:5 leverage for all stock CFDs regardless of which exchange they’re listed on.
IC Markets Bonus Programs ReviewMultiBank
MultiBank allows users to trade products such as metals, Forex, shares, indices, and commodities on an array of platforms. The broker offers commission-free Forex mark-ups as low as 0.8 pips or $8.00 per round lot for pro accounts, 1.5 pips, or $15.00 for standard accounts. Moreover, the commission-based ECN account, which provides traders with access to raw spreads of 0 pips with a commission of $3.00 per round trip, is said to be one of the highest-value options for Forex trades.
On the other hand, Multibank also offers three options for social copy trading. They are:
The in-house copy trading web platform
The MetaTrader Trading Signals market
cTrader Copy
Nevertheless, MultiBank doesn’t provide a large selection of trading tools. Although they do offer access to some basic trading tools, they do not offer much in terms of this. Therefore, if you are new to trading, you will need to use copy trading or go elsewhere to learn before investing.
Multibank offers 13,825 CFDs. With a minimum deposit of $50 for a broker account, users can sign up, make a minimum deposit, and begin trading at once.
Exness
If you are searching for Forex investment platforms in South Africa, Exness may be a great choice. As one of the largest Forex brokers in the world, Exness is considered a highly trustworthy international Forex broker. With over 209,000 active traders, they are officially one of the largest brokers as far as Traded volume is concerned.
Offering very low spreads of almost zero pips with their ECN account, using Exness can be one of the most cost-effective ways to invest in the Forex market. Safe and secure, Exness is regulated by the FSCA in South Africa, as well as other elite regulation agencies such as FCA in the UK and CySEC in Cyprus. Therefore, investors can rest assured that their money is being watched by some of the most trusted organizations in the world.
They offer ZAR-based currency trading accounts and local Internet banking deposits & withdrawals in Rand to South African traders. Additionally, Exness offers variable spreads for every trading account. With very low spread averages of 1 pip for EUR/USD, users can make money regardless of their account type. Moreover, by offering no extra commission when using bother their Standard & Pro Accounts, users can rest assured that they receive some of the lowest fees for Forex traders.
eToro
eToro offers over 3,000 tradable symbols. These include Forex, CFDs, and exchange-traded securities. eToro also offers an impressive copy trading option that allows users to quickly leverage the expertise of other investors in order to make their trades. Users can analyze and assess traders based on user performance and ratings on the website. This makes it far easier for users to make trades without the proper experience. eToro also offers over 3,000 stocks.
Best investment brokers compared
| Broker | Copy Trading Accounts | PAMM Accounts | Stocks & ETFs |
|---|---|---|---|
Yes |
Yes |
9,000+ |
|
Yes |
No |
2,100+ |
|
Yes |
No |
20,000+ |
|
Yes |
No |
2,400+ |
|
Yes |
No |
100+ |
How to choose a Forex investment company in South Africa?
Are you wondering how to choose a Forex investment company in South Africa? Here is a list of tips and tricks that will allow you to do just that:
1. Trading conditions: When choosing a Forex investment company in South Africa, you should always be mindful of the trading conditions. Every broker has a level of control over what these conditions are and how they function.
2. Forex investment options: Moreover, you will also want to find out about Forex investment options. This is because not all brokers offer Forex investment options, nor do they all offer the same products or services. Make sure you choose a platform that provides opportunities that coincide with your overall Forex investment goals.
3. Regulation in South Africa: You should ensure your broker is well-regulated. The broker should be regulated by a South African organization or a broker that accepts clients from South Africa and be working with a reliable regulation agency.
Main types of Forex investments in South Africa
When it comes to Forex investments, there are lots of options. Here is a closer look at three of the top options:
Copy trading
For those who are yet unfamiliar, copy trading is a form of investment that includes making trades that copy the trades of other
traders. Many investors enjoy this type of trading because it allows them to begin trading with minimal research. Rather, copy trading simply requires investors to find a lucrative trading platform that is trustworthy and of course, offers copy trading. Luckily, many platforms offer a way to search for the most experienced traders to assess their methods and progress to mimic their results.
Once you have joined the platform and enrolled in copy trading, you can essentially leave the system on autopilot and allow the platform to make trades for you. Specifically, when copy trading, the traders you are following make trades, and, in turn, the copy trading platform makes the same trades on your account automatically for as long as you are subscribed to the copy trading feature.
When a trader you follow opens a trade, the copy trading platform automatically opens the same trade on your account. Moreover, you also have the freedom to choose how much money you want to allocate to a trader and how much risk you are willing to assume per trade.
8 Best Copy Trading PlatformsPAMM
On the other hand, PAMM is known as both the Percentage Allocation Management Module and Percentage Allocation Money Management, a type of pooled money forex trading. Using this method of investing allows investors to allocate their money however they choose to the qualified traders/money managers they choose. The traders/managers can manage various Forex trading accounts with their capital and pooled money, with the ultimate goal of generating profits.
Best PAMM Account Forex BrokersStocks and ETFs
Lastly, stocks are also known as equity, which is a security used to represent the ownership of a fraction of corporations traded on the stock exchange. These fractions or units are formerly called shares. Purchasing shares of companies makes investors entitled to a fraction of the business's profits and assets, which are equal to the value of the stock owned by each individual.
On the other hand, ETFs or exchange-traded funds are types of pooled investment securities that operate in a similar manner as mutual funds. These funds typically involve tracking a particular sector, index, commodity, or other asset. However, unlike mutual funds, ETFs may be sold or purchased on a stock exchange in the same manner as you would trade a regular stock. Also, ETFs can be structured to track everything from the prices of an individual commodity to a large and varied group of securities; they can even be structured to track identifiable investment approaches.
Best Stocks That Pay High DividendsHow to invest in Forex in South Africa?
If you want to invest in Forex in South Africa, you will need to complete the following steps:
1. Start with a Demo Account: If possible, start with a demo account. This will enable you to learn more about the platform and trading strategies before investing your own money.
2. Open an Account: Once you have researched and decided which Forex broker is best for your investment needs, you should open an account. Doing so will require you to provide details and personal information. You may also need to take further steps to verify your identity before the account can be used.
3. Learn about the Trading Platform: All Forex brokers have their choice of trading platforms. Find out more about the platform being used by your chosen broker and how to navigate it to maximize your results.
4. Risk Evaluation: Lastly, you will want to take the time to consider the rewards and costs of your potential investments before completing the transaction. Once you have done so, it’s time to do some live investing!
FAQ
What is the best Forex investment broker in South Africa?
AvaTrade is one of the leading Forex investment brokers in South Africa. This is because it allows users to quickly and easily create accounts, profound educational tools, and more.
How to invest in Forex in South Africa?
To invest in Forex in South Africa, you simply need to research the companies, create an account, make a deposit, and begin trading.
Which trading company is best in South Africa?
Pepperstone is considered the best trading company in South Africa because it is well-regulated and offers thousands of products.
How much does a forex trader earn in SA?
The amount Forex traders earn in South Africa varies. This is because it depends on income that is not fixed, meaning that earning a profit is not guaranteed to anyone.
Glossary for novice traders
-
1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
-
2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
-
3
Copy trading
Copy trading is an investing tactic where traders replicate the trading strategies of more experienced traders, automatically mirroring their trades in their own accounts to potentially achieve similar results.
-
4
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
-
5
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
Related Articles
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.