Top Platforms for CFD Trading in South Africa
You need real-time quotes and market analysis to implement strategies to boost your chances of profiting from CFD trading. And only the best CFD trading platform will provide you with extensive trading tools, indicators, and softwares. Again, the best CFD trading platform with some inherent features will protect you from some of the high risks associated with CFD trading.
But you will need to sign up with a top broker that offers these CFD trading platforms. The best CFD broker in South Africa provides traders with the tools to generate revenue from movements in the prices of assets. Read on to identify the best platform for CFD trading in South Africa.
Top 6 Best CFD Trading Platforms in South Africa (2023)
RoboForex - best Forex trading platform
Tickmill - best for active traders looking for low Forex fees.
XM Group - best for low-stock CFD and integrates great educational tools
IC Markets - best Forex brokers offering a wide range of trading instruments
Amarkets - best for beginners and experienced traders
Admiral Markets UK - renowned for easy account opening and free, quick deposit and withdrawal
Top 6 Platforms for CFD Trading in South Africa
Because CFDs can increase in value regardless of whether prices are rising or falling, they are more common in South Africa when the market is volatile. During this period, you don't need to compare or try trading with all the CFD trading platforms in South Africa before deciding which CFD platform is the best.
On your first try, you need the best CFD broker in South Africa with the best CFD trading platforms. So, to streamline the process, here are the top 6 platforms for CFD trading in South Africa that you can confidently trade CFDs with.
RoboForex
CFDs are investments that provide an opportunity to trade on global markets, although this can be overwhelming. And this is why you need the best CFD trading platform to increase your chances of profiting from CFD trading online. RoboForex is among the best CFD trading platforms you can rely upon when trading CFDs.
The FSC regulate RoboForex Ltd. Additionally, there is a 10 USD or 10 EUR minimum deposit requirement for all RoboForex accounts. However, the R StocksTrader account, which requires a minimum deposit of $100, is designed specifically for seasoned traders.
You can withdraw money without paying a commission from RoboForex, and there are no additional fees or fees for inactivity. Fees for trading with RoboForex are $10 and spreads range from 0.01 pip to 1.3 pip.
Key features and tools
RoboForex uses the quickest technical analysis tools.
Integration of automatic withdrawal system
A free trading robot builder makes it simple for traders to automate their trading processes.
Again, RoboForex gives users access to the best trading platforms, including MT4, MT5, and R StocksTrader.
Additionally, the RoboForex stocks trading app offers over 12,000 stocks, stock-related CFDs, index-related CFDs, ETF-related CFDs, and cryptocurrency-related CFDs.
RoboForex offers traders the chance to join the copy-trading community with tight spreads and an advanced copy-trading system.
👍 Pros
•RoboForex provides market-leading insurance and Negative Balance Protection.
•Zero Commissions
•RoboForex offers the best promotional deals to its customers in the financial markets.
•On Contracts for Difference (CFDs), RoboForex offers competitive spreads.
•RoboForex provides free demo trading accounts for new traders to practice forex trading in a completely risk-free setting.
👎 Cons
•Unexpected price changes may occur due to a lack of cryptocurrency trading tools on the R StocksTrader platform.
XM Group
XM Group is low-risk, does not operate a bank, and does not accept deposits or withdrawals from third parties because it is not a publicly traded company. In its capacity as a global forex and CFD broker, XM has expanded internationally and now conducts business in nearly 190 nations. XM is acknowledged to be among the top CFD trading platforms and makes a concerted effort to raise the caliber of the services offered to their clients.
Although XM has a $5 minimum deposit requirement, there are typically no trading commissions. With the most affordable spreads, XM provides over 55 currency pairs and CFDs on individual stocks, equity indices, precious metals, and energy markets.
Key features and tools
A free VPS service is available.
At XM, cryptocurrency CFD leverage is dynamic and changes based on the volume traded on each instrument.
XM supports both MT4 and MT5 and offers a free practice account.
XM provides a simple market maker account, a direct market access account, and a hybrid account.
👍 Pros
•The pricing environment at XM is more competitive, and there are no commission fees.
•XM offers low stock CFD fees, low withdrawal fees for CFD trading, and a simple and quick account opening process.
•There are many available educational resources in addition to webinars and a demo account.
•XM supports automated traders and offers different bonus programs to increase deposits and trading volume using a points-based system.
👎 Cons
•Due to its focus on CFDs and Forex trading, XM has a small selection of products.
Tickmill MT4 - best for Forex CFDs
Another CFD trading platform you should be signing up with if you are considering CFD trading online is Tickmill, a well-regulated CFD trading platform. The Seychelles Financial Services Authority (FSA) oversees Tickmill Ltd.'s compliance with securities dealer regulations. Furthermore, it has a license from reputable Australian (ASIC), British (FCA) and Cypriot (CySec) regulators. This establishes them as trustworthy and valuable brokers who offer trading fees that are very competitive with those of major currency pairs.
Tickmill is among the best CFD trading platforms, offering beginner and professional traders a range of options. Additionally, Tickmill offers over 80 trading products to institutional and retail clients globally through different trading platforms. And with a minimum deposit of $100, low trading fees, and instantaneous account activation, you can get started with CFD trading online using the Tickmill CFD trading platform.
Key features and tools
With the aid of a fully automated No-Dealing Desk (NDD), Tickmill ensures that there are no requotes.
Tickmill integrates a robust and versatile trading platform like MetaTrader 4 and MetaTrader 5.
There is an option for a demo trading account.
Tickmill gives users the tools they need to mimic the trades of seasoned investors.
Tickmill has one tier-1 regulator (high trust), two tier-2 regulators (average trust), and zero tier-3 regulators (low trust).
Tickmill features advanced analysis tools, customizable charts, Autochartist, a VPS service, and a built-in economic calendar.
👍 Pros
•Tickmill provides a wide range of trading resources and learning resources for traders on its CFD trading platform.
•In addition to 295 other tradable symbols, Tickmill offers CFDs on currency pairs, indices, metals, bonds, and cryptocurrencies.
•CfD traders can take advantage of Tickmill's low spreads, quick execution, and risk-free trading conditions.
•It is simple to fund an account quickly, thanks to the availability of a wide range of payment options and movable account settings.
👎 Cons
•For some beginners, the $100 minimum deposit might not be convenient, and order execution delays are more common in volatile trades.
IC Markets cTrader
You need a CFD trading platform like IC Markets if you have chosen CFD trading online and want low-cost forex or CFD trading. IC Markets is a worthy option as it has a competitive product selection that includes crypto and offers over 2100 stock CFDs.
Also, the trading platforms used by IC Markets, like cTrader and MetaTrader, incorporate a flexible design and functionality that will be familiar to numerous forex traders. IC Markets is considered trusted, not publicly traded, and does not operate a bank. Additionally, they are authorized by one tier-1 regulator (high trust), one tier-2 regulator (average trust), and one tier-3 regulator (low trust).
With a flexible fee structure and tight spreads with a reasonable commission, you are sure of profitable CFD trading online. While the minimum deposit at IC Markets starts at $200, there is a $3.5 commission per standard lot round turn on IC Markets' Raw Spread Account.
Key features
The spreads include IC Markets' commissions on stock index CFDs.
IC Markets provides excellent trading costs, high leverage, low latency connectivity, and superior liquidity.
Copy trading services are available to help social traders, and new traders can use a demo account to practise CFD trading online.
IC Markets offer the best CFD trading platform for beginners; it includes a high-quality educational platform and 24/7 customer support.
Advanced traders have access to FIX API when they use cTrader.
👍 Pros
•There are no charges for account opening, inactivity, deposits, or withdrawals.
•IC Markets' low commissions and platform flexibility (MetaTrader and cTrader) make it a top CFD trading platform.
•IC Markets offers CFD trading online on different derivatives, including bonds, indices, stocks, currencies, cryptocurrencies, and commodities.
•In addition to protecting against negative balances, IC Markets keeps client deposits separate from corporate funds.
•IC Markets is regulated by important regulators in Australia, Europe, Britain, etc.
👎 Cons
•IC Markets does not have a proprietary trading platform for the assets you are investing in, nor does it provide any financial information (such as income statements or financial ratios for equity CFDs).
Amarkets
AMarkets is an international company with dozens of offices in Europe and the CIS. It was established in 2007, but its structure has gone through major changes since then. Initially, the company was called AForex. Over time, the brand became a symbol of reliability and European quality service standards. Today, AMarkets is a modern ECN broker, actively developing both “trading for beginners” and professional algorithmic trading.
Admiral Markets
Because CFDs are sophisticated instruments with a high potential for rapid financial loss brought on by leverage, you need the best CFD broker and CFD trading platform. The best CFD broker will make the process straightforward; this is where Admiral Markets comes in.
This Forex CFD trading platform integrates excellent tools and software for CFD trading online. Their investor education option and advanced MetaTrader features make them the best platform for CFD trading. Again, ASIC, FCA, CySEC, and JSC are among Admiral Markets regulators.
Admiral Markets has a $100 minimum deposit requirement ($1 for an AM Invest account), and both wire transfers and credit cards are accepted.
Key features and tools
Admiral Markets provides access to a wide range of share, forex, and CFD markets, premium research content, and more than 4,200 listed instruments.
AM incorporates the MetaTrader Supreme Edition and volatility protection tools.
They support social trading.
Access to a premium analytics portal with free real-time market news is available.
AM integrates an interactive economic calendar, in-depth technical analysis, and market sentiment indicators.
Trading Central, Dow Jones News, and Acuity Trading are among the additional tools, research, and educational resources supported by Admiral Markets.
👍 Pros
•With its StereoTrader dashboard for MetaTrader, Admiral Markets stands out in the crowded field of brokers integrating MetaTrader.
•As stated earlier, Admiral Markets provides 8,425 tradable symbols: 3,827 CFDs and 4,598 exchange-traded securities (non-CFD).
•Each type of account has a low minimum deposit requirement, and different currencies are accepted.
•On most deposits, there are no extra costs.
👎 Cons
•Admiral Markets App is still a pretty basic app.
What are CFDs?
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. It's important to keep in mind that instead of considering the asset’s value, CFD only deals with the price difference between the trade’s entry and exit points. Both parties exchange the asset’s price difference at the end of the contract. Trading CFDs Just like any other trading style, it also means that you’ll either earn profit or experience loss depending upon the movement direction of your chosen asset.
How to Choose a CFD trading platform in South Africa
The best CFD trading platform should be the top priority for CFD traders. Here are some guidelines on how to choose a CFD platform in South Africa.
Before selecting a platform for CFD trading in South Africa, it is crucial to consider their regulatory status. The best CFD broker in South Africa should be regulated in the country, the UK, or the EU.
If the forex CFD trading platform is regulated, consider checking what markets the broker offers. These include forex, gold, silver, cryptocurrency, stock market indices, and global stock CFDs.
Also, verify if the broker offers direct share CFDs, although not all brokers offer CFD trading on shares.
Next, see what features are available on the platform, and if you're interested in trading forex, see if your preferred pairings are available.
Check the commission costs for trading stocks and stock index CFDs on the CFD trading platform, including spreads and withdrawal costs.
Additionally, you might want to find out if the broker charges a fee to access real-time stock market information from stock market indices.
As before, confirm the minimum opening balance. Verify if the brokers provide a demo version, and, significantly, learn how CFD taxes work in South Africa.
Learn about the software available on the CFD trading platform and know if you can add software or analytics tools.
Check out the customer service access mediums. CFD brokers with phone support are best since email can be slow at times when you want an immediate response.
When you're ready to start trading CFDs in real time, sign up for a live trading account with a reliable broker.
Are CFD trading legit in South Africa?
Trading in CFDs is legal in South Africa. But expect the Financial Sector Conduct Authority (FSCA) to regulate trading in South Africa. These include licensing companies that provide services like Forex and CFD trading.
So when there are issues, the trader can turn to the FSCA, which regulates brokers in the country. Through the FSCA, forex traders can communicate without worrying about offending each other. The FSCA license also requires complaint brokers to treat their clients with regard while assisting them with financial literacy and education.
South African citizens can trade CFDs with brokers governed by a reputable agency like:
German Federal Financial Market Authority (BaFin)
Brokers can offer traders based in South Africa major Forex pairs, crosses, and minor pairs like EUR/JPY, USD/MXN, etc. There are no limitations on the variety of currency pairs. As a result, traders can be confident that they are operating within a regulated framework in South Africa and that trading CFDs is both legal and acceptable.
Do I pay taxes on CFD trading in South Africa?
Yes, active CFD traders are mandated to pay tasks for every CFD traded in South Africa. However, there is some ambiguity regarding CFD and Forex trading tax obligations.
According to the Income Tax Act, gross income is subject to taxation in South Africa, and CFD trading is among those listed here. CFD trading may be considered a form of revenue and is subject to income tax, depending on the frequency and underlying assets being traded. Because of this, the South African Revenue Service (SARS) views CFD trading profits as gross income, making them taxable under the Income Tax Act due.
The South African Revenue Service (SARS) classifies forex trading as a capital or revenue tax instrument. Capital gains tax (CGT) is applied to capital-based transactions, and income tax to profits or losses at the appropriate rate based on the individual's income level.
Can I make money with CFDs in South Africa?
CFD trading is profitable but high-risk trading that involves a significant amount of experience. To make money with CFDs in South Africa, the trader has to be skilled with asset price predictions.
According to statistics, over 80% of traders' losses in this market are attributable to poor strategy and leverage. Again, most of these traders are unaware of the dangers involved in using inexperienced, highly leveraged instruments. So before you start trading on any CFD platform in South Africa, devote time to developing and testing a strategy and developing trading skills.
Although there are inherent risks in trading, some strategies can help reduce some of these risks. While developing and adopting well-developed trading strategies will not necessarily stop your losses, it can help you remain calm in a fast-moving environment.
Due to trading with leverage, which means they borrow money from their broker to invest, some brokers may experience financial losses when making CFD investments. Generally, CFD trading has the potential to yield sizable profits. However, there are greater expectations for profit because CFDs are becoming more popular as a form of investment that requires little to no capital.
Features like stop-loss, take-profit points, and the 2% rule can help minimize a trader’s risk when trading CFDs. You can place a stop-loss order at a specific price, close a position early to lock in profits, or never risk more than 2% of the equity in your account in a single position.
What are the cheapest CFD brokers in South Africa?
Tickmill and IC Markets, with their various services and features, are the cheapest CFD brokers in South Africa. While both remain the biggest Forex brokers in the world by trading volume, they have the lowest spreads and fees per lot. Again, MT4 and MT5 from Tickmill and IC Markets are also best for beginners.
The best CFD trading websites in South Africa are XM and those with the lowest CFD trading commissions, like Forex4you, which is great for short sales.
What is the best CFD trading platform for beginners in South Africa?
The best CFD trading platforms for beginners offer demo, micro, or cent accounts, a low minimum deposit, and passive income (copy trading, PAMM accounts). So if you are just starting with CFD trading in South Africa, CFD trading platforms like IC Markets, FxPro, XM, and RoboForex are top options.
As a novice trader in South Africa, you shouldn't do business with CFD trading platforms that:
Do not enlist at least two highly-rated regulatory agencies. A broker's reputation is a reliability feature, so ensure you trade with a regulated broker so you have little recourse if they go bankrupt or refuse to honor the contract.
CFD trading platform that does not provide 24/7 support or does not quickly respond to requests.
Avoid CFD trading platforms with complex or unclear fees or charge structures. You want a broker that offers competitive commissions and spreads.
Also, stay off CFD trading platforms in South Africa with poor education resources or make wild profit claims. As a beginner, you need a broker that can teach you how to trade CFDs, which is why CFD trading platforms with a demo account are a must for every CFD trading beginner.
FAQ
Can you trade CFDs in South Africa?
You can trade CFDs in South Africa, but only on platforms approved by the FSCA or other international regulatory bodies.
Are CFDs tax-free in South Africa?
No, CFDs are not tax-free in South Africa. CFD trading is subject to income tax under the Income Tax Act.
Which broker has the most CFDs?
While Roboforex is said to have the most CFDs, XM Group, Tickmill, IC Markets, and Pocket Option are also top brokers you can have as alternatives.
What is the easiest CFD to trade?
Currency pairs are the most straightforward CFDs to trade because they give traders a variety of options and let them compare currencies like the US dollar and the euro. CFDs are available on different financial products, such as futures, options, cryptocurrencies, forex, commodities, and stock market indices.
Is learning CFD hard?
Although learning CFD can be difficult, that does not mean that it is not all-encompassing. Using a top CFD trading platform that provides educational resources will help you get past CFDs' complexity. You should know how to make and stick to a trading plan and carry out market research before investing money in a position.
How does CFD work in South Africa?
CFD trading in South Africa begins with you taking a position on an asset at a certain price, waiting for a price movement in either direction, and closing the position to determine whether you made money or lost money. Instead of buying or selling that asset, you simply forecast how its price will change. Trading CFDs in South Africa entails traders and their brokers entering into a binding legal agreement.
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Team that worked on the article
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).