Forex is legal in South Africa, and you can trade with regulated brokers that accept users from South Africa. You must become familiar with the fundamentals, open a Forex trading account, and deposit money before you can begin trading Forex in South Africa.
If you want to become a profitable Forex trader in South Africa, prepare for that first step. This entails learning about Forex trading in South Africa in detail.
TU experts have explored and developed the extensive information potential traders need to become professional Forex traders in South Africa. So, let us address the first crucial question that every Forex beginner will be asking at this stage: "What is Forex trading in South Africa?".
Uncover the legality of Forex trading in South Africa and navigate the regulatory framework governing the financial markets. Initiate your Forex trading journey in South Africa by understanding the optimal trading times, identifying top brokers, and exploring specialized platforms for beginners and experienced traders alike.
Forex, short for foreign exchange, refers to the global decentralized market where currencies are bought, sold, and exchanged. It is the largest and most liquid financial market in the world, with participants including banks, financial institutions, corporations, governments, and individual traders. Forex trading involves speculating on the price movements of currency pairs, aiming to profit from fluctuations in exchange rates.
The Financial Sector Conduct Authority (FSCA) oversees financial institutions, including Forex brokers, in South Africa. However, the FSCA does not issue licenses to Forex brokers. Forex trading at the federal level is not directly supervised in South Africa.
At the governmental level, South Africa regulates the Forex market to some extent, but investors may not receive direct protection from the government. However, investor safeguarding can be sought through international organizations to which Forex brokers may belong.
In South Africa, traders are subject to income tax on Forex gains, typically at a rate ranging from 18% to 45%. Value Added Tax (VAT) may also be applicable to professional traders.
Forex trading in South Africa does not require large amounts of capital like other investment portfolios. If you have between 10 and 100 dollars available, you can begin trading Forex in South Africa. Importantly, the broker sets the minimal investments required to begin Forex trading in South Africa. For instance, the minimal deposit at RoboForex, one of the top Forex brokers in South Africa, is $10.
There are other ways to trade without making any initial investments for traders who lack the capital to start trading. Numerous reputable brokers offer demo accounts, which are no-deposit accounts that enable free Forex trading. This account provides virtual funds to traders, who can then use those funds to place trades. The distinction is that you cannot withdraw profits earned while trading on a demo account.
A demo account is a tool for beginners and inexperienced traders. Trades can get a sense of what currency trading entails by practicing on a demo account. Brokers provide demo contests, which are a form of incentive for traders who have become experts using the demo account. Traders can cash out if they win the contests, and this is the only way you earn from a demo account.
A Forex broker may also provide traders with microlot trading and cent accounts to lower the cost of trading on a real account.
You can efficiently and successfully begin Forex trading in South Africa by following the steps listed below:
Get a firm grasp of the Forex market before anything else. Study market analysis, trading tactics, and risk management while learning about currency pairs. It is crucial to thoroughly understand the various factors that impact the Forex market and some of the most traded currency pairs (USD/GBP, JPY/USD, and USD/EUR).
Finding a trustworthy Forex broker is just as crucial as learning to trade currencies. Choose a trustworthy Forex broker that has been approved and is under the supervision of the Financial Sector Conduct Authority (FSCA) in South Africa and elsewhere. Check if they provide an easy-to-use platform, tight spreads, and helpful customer service.
Create a trading account once you have selected a broker. This will entail filling out the necessary forms and providing the required identification documents. Choosing your financial goals is a smart idea before you buy and sell any currencies.
After fully setting up your account, trading on a demo account will provide you with the preliminary experience to engage in Forex trading. So, practice trading with a demo account before using real money. This enables you to test your trading strategies without putting any money at risk while getting acquainted with the platform.
You do not need to be concerned about losing money on trades because you are not trading with actual money. Instead, you could invest some time studying various methods for Forex trading in South Africa.
Using the preferred payment method the broker offers, fund your trading account with a sum you feel comfortable with. Trading involves risk, so make sure you only use funds that you can afford to lose.
Organize your goals, risk tolerance, entry and exit strategies, and money management principles in a well-thought-out trading strategy.
Set stop-loss orders to avoid overleveraging your positions and to lessen the likelihood of losses. Additionally, develop the ability to keep emotions out of your trading decisions. Making impulsive decisions can result from allowing your emotions to interfere with your trading. Maintain your trading strategy and abstain from deciding based on greed or fear.
You can start trading with real cash once you're certain of your skills. Start with a low amount; you can increase the amount you place as you gain more experience. Keep a close eye on the market and analyze your trades. Learn from both your successes and losses.
Note:
It is essential to constantly keep in mind that trading currency online entails a high level of risk. Approaching trading with caution, self-control, and a well-thought-out strategy is indispensable, but allocating just a portion of your total investment is a top money management tip. Consider consulting a financial advisor or trading mentor if you are new to the Forex market.
The best time to trade Forex in South Africa is during the overlap between the London and New York sessions, which is from 12:00 to 4:00 PM GMT. You must understand how the hours of the Forex market correspond to South African local time to take advantage of the best time in local time. Therefore, convert the time in the session to South African time when selecting the trading session.
The Forex trading session and time zone are the main factors determining the best time to trade currencies in South Africa. And there are 4 Forex trading sessions.
Sydney (Pacific session)
Trading window: 2:00 to 7:00 GMT
Tokyo (Asian session)
Trading window: 23:00 to 9:00 GMT
London (European session)
Trading window: 8:00 AM to 5:00 PM GMT
New York (American session)
Trading window: 12:00 to 22:00 GMT
South Africa has a single time zone that extends across the whole country. While it is 7 hours ahead of Eastern Standard Time, it is 2 hours ahead of Greenwich Mean Time (GMT). Since South Africa does not observe daylight saving time, unlike other nations, its time is 6 hours ahead of EST and 1 hour ahead of GMT during the summer months.
The best time to trade on the Forex market if you want to trade on individual Forex sessions is during the London session. Due to the high volume of trading and the fact that there are more buyers than sellers, the spreads are tighter.
Below is data from the research carried out by TU experts showing the volume of trades during the four Forex trading sessions:
London = 35%
New York = 20%
Tokyo = 6%
Sydney = 4%
Selecting the best Forex brokers is important for successful trading in the Forex market. It is a challenge for professional and novice traders to choose the best brokerage firms with the best trading conditions. Learning the details regarding commissions and the availability and types of trading instruments; and analyzing various types of trading accounts are tasks that must be mastered before choosing the best Forex broker for traders.
In 2009, RoboForex Ltd. was established. RoboForex has been offering trading services on a global basis ever since it entered the market for Forex brokers. The broker specializes in trading automation solutions such as the CopyFx auto trading platform, as well as the bot builder. RoboForex supports both 12,000+ CFDs, as well as direct trading in US shares with extra low fees from 0.09 cent per share.
The account type selected on the interface at RoboForex will determine the spreads. For EUR USD, the spreads' is ranging from 0.03 to 1.4 pips for different account types. RoboForex provides 0% fee on all deposits and withdrawals.
RoboForex is generally governed by Belize's Financial Services Commission. The broker also has a European legal entity with regulation in Cyprus (CySec). At RoboForex, there is a civil liability insurance program in place that offers industry-leading defense against errors, fraud, omissions, negligence, and other risks that might result in losses for clients.
Pocket Option was launched in 2017. The broker gives its clients access to trade currency pairs, commodities, stocks, cryptocurrencies, and indices. To operate in the financial markets, the company has developed its own unique trading platform. In addition, Pocket Option clients can trade in MT5. The broker’s service is available in more than 95 countries and regions globally. Pocket Option’s top priority is the high quality of customer service, constant improvement of trading technologies, and financial innovations.
The company's clients get access to many bonus offers, and participate in a profitable affiliate program. Thanks to unique rewards, traders can increase their profile level and purchase resources in Pocket Option's own Market store to increase their profitability while trading.
PocketOption offers a maximum leverage of 1:100 on its MT5 Forex account.
The company behind the Pocket Option website that provides brokerage services is PO Trade (SV) Ltd, which is registered in Saint Vincent and the Grenadines, considered to be a Caribbean offshore tax haven. The company says on its website that it is regulated by the International Financial Market Relations Regulation Center (IFMRRC), which is not an official regulatory authority.
Tickmill is a brokerage company that attracts traders with low spreads and comfortable trading conditions. It offers users a spread from 0.1 pip for the currency pairs of EUR/USD. The broker is also suitable for experienced traders who prefer both manual and automated trading.
Tickmill is regulated by the Seychelles Financial Services Authority and the UK Financial Conduct Authority. The broker is also regulated by the Cyprus Securities and Exchange Commission. All this is a guarantee of the reliability and safety of funds for a trader.
FSCA - is the governing body that is responsible for regulating the financial services industry in South Africa. The FSCA has implemented certain regulations for Forex brokers operating in South Africa. There are also certain standards that Forex brokers need to meet. This is to ensure that Forex brokers are running a legitimate business.
Once a broker has been reviewed, audited, and approved, they will receive an FSCA license. This license allows them to legally operate as a Forex broker in South Africa.
Exness Trading Company has been working in the Forex market since 2008. The broker’s activity is managed by Nymstar Limited, a company registered in the Republic of Seychelles. The service is regulated by licenses of CySEC (Cyprus Securities Commission), FSCA (Financial Sector Conduct Authority), FCA (Office of Financial Regulation and Supervision of Great Britain) and FSA (Office of Financial Regulation and Supervision of the Republic of Seychelles). The broker holds the leading position in Forex ratings. The company’s monthly trading turnover totals $325.8 billion USD. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals. Exness’s service provides favorable working conditions for traders: low commission, instant execution of orders and withdrawal of funds. An infinite leverage makes it possible to earn on small deposits up to $999. There are several options for opening an account depending on the traders’ needs. A demo account is available - a training account that is useful for both beginner level traders and professional traders.
Tickmill brokerage introduces a new standard in the provision of brokerage services. The focus on innovation is what the company is proud of and why traders choose it. The trading conditions of the broker are appreciated by fans of scalping and passive trading with the help of robots because Tickmill provides minimal spreads. The company has earned many awards. Thus, for two years in a row (2018 and 2019), it was awarded the “Best Execution Broker” title, and it also won the “Most Transparent Broker” title in 2019.
The FxPro broker was registered in July 2006 in Cyprus. The company’s activities are licensed by financial regulators: CySEC (Cyprus), Bahamas SCB, FCA (UK), and South African FSCA. FxPro is successfully operating in more than 170 countries for retail and institutional clients. The broker has received more than 85 awards, including “Best Forex Trading Platform” and “Best Trading Platform”. FxPro has become known for providing the best trading tools. With FxPro broker, traders can trade more than 70 currency pairs, futures and stocks (Twitter, Apple, Google). The company has stock indices, metals and energy resources at its disposal. FxPro sets high safety standards with the client's funds being kept in large international banks. They are insured and separated from the broker's equity.
Choosing the right broker is not a simple task for new traders in South Africa, as they have to take into account many nuances. Each of those could considerably impact your trading successes or your profit. Trading instruments that the broker offers traders from South Africa, trading conditions and the quality of educational materials need to be evaluated. Availability of a demo account or a cent account you can use to practice is an important advantage. Keep in mind that before opening a position, you need to assess its risk level.
RoboForex is provides services to financial markets in 169 countries. More than 3.5 million users are RoboForex clients. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.
RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).
The minimum deposit in RoboForex is $10. Leverage up to 1:2000. The company is recommended for beginner traders and experienced investors.
Founded in 2014, Tickmill focuses on innovations, allowing customers to trade not only manually but also using the services for automatic copying of transactions by their more experienced colleagues.
The Group has earned many awards among them “Best Forex Spreads” and “Best Forex Trading Experience” in 2022.
Tickmill is a suitable broker for both professional traders and novices. The company is good for robotic trading as well as for short-term strategies.
The Pocket Option broker is part of Gembell Limited holding, which was founded by a group of professionals seasoned in trading and investment activities. The company is mass-market requirements-based, therefore, it provides quality services to binary options trading in the OTC market access. The broker strives to make the trading process as simple, clear, and convenient as possible. For this reason, Pocket Option has developed a unique trading platform to ensure stable trading for traders and investors.
Pocket Option is an unregulated broker focused on cooperating with professional traders who do not need training or additional bonuses.
Paper trading refers to a simulated platform that allows you to buy and sell stocks with virtual money.
Although there is no actual paper required to do this, since everything is online, the term was coined several decades ago. Back then, traders would practice and record hypothetical trades on paper so they could learn without needing to risk money in the active market.
You can track your trade records, profits and losses, and strategies in one convenient tool.
You can use eToro to invest in more than 3,000 stock assets, including at zero fee. The minimum deposit and leverage vary depending on the country of registration of a trader. Trading is available in mobile apps and on the web platform on any device. You can deposit and withdraw money via debit/credit cards, bank transfer and electronic payment systems. The broker offers margin trading, various bonuses and partner rewards.
The leverage on eToro varies depending on the type of asset and the registered office chosen for trading. In particular, traders, who chose the office regulated by CySEC or FCA can trade indices with a leverage of 1:10-1:20, ETFs – 1:5. The company with a license of the Seychelles regulator offers a leverage of 1:100 for the most traded indices and 1:10 for non-major indices and ETFs. eToro is a multi-asset investment platform. The value of your investments may go up or down.
Revolut offers commission-free trading with no minimum deposit requirements. Stocks, cryptocurrencies, and precious metals are available for trading. Client funds are kept on segregated accounts, which is a guarantee of their safety. Since fractional share trading is available at Revolut and there is no brokerage commission per transaction per month, you can start with a minimal investment. Deposits can be made in 28 currencies, but the broker translates them into USD since trading is only on the US stock market.
Interactive Brokers is militantly developing, offering services to investors regardless of their trading experience. For this purpose, the broker doesn’t ask for a fixed minimum deposit but has margin requirements for accounts of various structures to make trading financially safe. The size of the leverage and Margin call and Stop out levels depends directly on the asset that the client is trading.
During its cooperation with Traders Union the Interactive Brokers investment company proved itself as a reliable partner, which faithfully fulfills its obligations to us. The broker provides clients with a wide range of services, allowing them to engage in both active trading and investments. At the same time, the broker charges a fee for an inactive account, and that's not convenient for passive investors.
Forex prop trading involves an experienced trader and a dedicated platform recognized as a Forex proprietary trading firm.
Prop trading firms give traders access to a decently funded account to trade. They take great care to identify people who can maintain consistent profitability in the market. And provide traders with leverage based on the risk capital deposited and the firm’s policies.
Topstep is an international proprietary trading company registered in the USA. The company has been providing financial services since 2012 and offers exclusive trading terms for clients from different countries. Topstep provides financing of real trading accounts of its clients if they prove the skill to make trades and manage risks on a simulation account. Traders can trade CME Group futures and currency pairs. Trading on real accounts is carried out through the ECN broker Equiti Capital.
Fidelcrest offers 13 accounts to suit different types of traders, providing access to more than 1,000 financial instruments. Known for its robust training programs and exceptional support services, the prop firm offers profit splits of up to 90%.
There are two main accounts available at Fidelcrest, Micro Trader and Pro Trader, both of which offer Normal and Aggressive settings. Each risk type is funded at three different levels.
Depending on the risk type, the Micro account has funding between $25,000 and $50,000. A difference between the two lies in the profit targets, the minimum number of trading days, and the maximum loss limits. Micro Trader, for example, has a maximum overall loss limit of 10% and a profit target of 5%. There is a maximum loss of 20% with Aggressive risk, and a maximum profit target of 15%.
The 5%ers are known for their unique ways of handling Forex funded accounts. These methods may be beneficial to traders who would like to try something different.
The 5%ers take a completely different path from the other apps on this list. Each funded trading account is a live, real-money funded trading account funded by The5ers and tradeable by subscribers.
All Forex majors such as EUR/USD, USD/CHF, and key cross-currency pairs such as AUD/CAD and GBP/JPY are tradable assets. Each trader must complete the Level 1 Program with a profit target ranging from 10% to 25%.
The Level 1 Program will be closed once the profit target has been archived by trading according to the guidelines. Profit will be distributed in accordance with the profit split, and a new trading account on the next higher financing level will be established with you as a Portfolio Manager Partner. The entry cost ranges from $275 to $875. The 5%ers offer a 50/50 split on profits.
Granted that mastering the art of Forex trading is beyond the grasp of the average trader, сopy trading allows inexperienced, amateur traders directly copy time-tested trading patterns specially curated by professionals.
Today’s copy trading platforms feature a wide set of functions, including searching for a suitable manager and setting up risk management settings.
The benefits of copy trading for an investor are rather evident – it provides a possibility to earn as much as professionals earn, without putting too much effort into it. The traders, whose positions are copied, also benefit, as they gain recognition of their colleagues, a possibility to attract additional capital, and, on some platforms, a part of the profit earned by those traders who copied his/her trades.
RoboForex lets traders earn passive income through automated trading. Offering over 12,000 instruments and eight asset types, RoboForex is the best copy trading platform for traders with minimal trading experience.
On RoboForex, you can specify the copy trading options based on your preferred functions. Thus, only the transactions pertaining to your specified parameters will be copied.
With a minimum investment of $10, you can invest in indices, commodities, stocks, Forex, and cryptocurrencies.
RoboForex has a Traders Rating tab where you can find the top traders to copy. If you have any specific asset or instrument preferences, you can filter the results based on your desired factors.
The broker offers different search parameters, including the lifespan of the account, profitability, and risk level.
You can check a particular trader's transaction history and later their open transactions once you've subscribed to a signal provider.
IC Markets is one of the most cost-effective trading platforms in the market due to its low commission rates. Plus, it has phenomenal order execution features and multiple opportunities for you to earn passive income.
It also offers additional copy trading services in partnership with Autotrade, MyFxBook, and ZuluTrade.
IC Markets doesn't own a proprietary copy trading platform and offers its services through strategic partnerships with top social trading platforms - ZuluTrade and MyFxBook Autotrade.
Since IC Markets has no proprietor platform, you'll have to utilize one of the partners. The easiest way is to use ZuluTrade.
You'll first open an account on ZuluTrade and provide the necessary information. Then, verify the account since you can't trade with an unverified account.
Once you log in, you'll access the most successful signal providers in the Top Traders section. They are divided into various categories like return growth dynamics, number of copiers, and the amount under management.
You can also search for traders using filters such as criteria such as performance, slippage, and experience.
eToro offers the best copy trading services. You'll not need to open a new account for copy trading, and you'll access the web version of the broker or trading app on your phone.
Once you log into your eToro platform, you'll access profiles of top successful traders based on our editors and special algorithms. In addition, you'll be able to choose a trader to copy using various filters, including risk score, returns, period and assets under management.
You can also manage your risk by setting a maximum amount for each trader, and you can change orders or cancel a trade if the trader takes another approach.
Yes. You can trade with foreign brokers in South Africa; they are among the preferred trading platforms that numerous experienced traders utilize. What you must do before signing up with an international broker is to ensure the offshore broker has a license from a reputable regulator (FCA, Cysec, etc.).
Yes. But this must be with Forex brokers that offer low minimum investments, cent accounts, copy trading, PAMM, and demo accounts. These brokers allow users to start trading with as little as R70 ($5), and some of them have even lower entry requirements. For seasoned traders without the necessary funds to trade, there is also the option of a prop firm.
Your Forex trading income in South Africa depends on a variety of variables. The first considerations are the trader's background, investment size, trading conditions, broker fees, and consistency.
Yes. Forex trading in South Africa is 100% possible. But this must be done with a reliable local or offshore broker.
With a flexible trading and risk management strategy, Forex trading in South Africa is profitable. According to research, 60–90% of South African Forex traders experience financial losses, and profitable trading requires skill, knowledge, discipline, and caution. Since markets are never entirely predictable, even experienced traders will experience losses.
You can begin trading Forex in South Africa if you have $5 to $100 available.
Standard Bank, Absa Bank, FNB (First National Bank), Mercantile Bank, Investec Bank, and Nedbank are a few of the best banks in South Africa for Forex trading.
Peter Emmanuel Chijioke is a professional personal finance, Forex, crypto, blockchain, NFT, and Web3 writer and a contributor to the Traders Union website. As a computer science graduate with a robust background in programming, machine learning, and blockchain technology, he possesses a comprehensive understanding of software, technologies, cryptocurrency, and Forex trading.
Having skills in blockchain technology and over 7 years of experience in crafting technical articles on trading, software, and personal finance, he brings a unique blend of theoretical knowledge and practical expertise to the table. His skill set encompasses a diverse range of personal finance technologies and industries, making him a valuable asset to any team or project focused on innovative solutions, personal finance, and investing technologies.
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.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).
