The benefits of Forex trading cannot be overemphasized. Many people in South Africa are already going into it. It will not be a bad idea if you too venture into it today. The earlier you do that the better for you because of the money-making opportunity that resides in Forex trading. If you feel like firing your boss and you want to do it quickly, one of the best ways to do that is to venture into Forex trading.

While Forex trading may be profitable, you also need to understand that it has its challenges. You need to bear all the challenges in mind so that you will not end up as an unsuccessful Forex trader. In this Forex Online Brokers SA write-up, we will show you some of the very important things you must bear in mind in online Forex trading in South Africa.

Best South African Forex Brokers

We have tested the most important and most promising forex brokers and examined every detail to offer our readers a critical assessment of their performance. There are a couple of things to think about when choosing a broker, which is why we’ve tied our test reports to appropriate criteria. The following table contains a summary of all brokers with whom we’ve already gained experience. With one click you’ll view our experience report on the respective provider.

Broker
Rating
Regulated
Min. Deposit
Demo
Max. Leverage
1.
Admiral Markets

FCA, CySEC, ASIC

Min $100 Deposit

1:500

Review » Visit » Visit
Terms & conditions apply
Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd, Admiral Markets Cyprus Ltd, Admiral Markets AS Jordan Ltd or Admiral Markets Pty Ltd services, please acknowledge all of the risks associated with trading.
2.
Deriv

VFSC, FSC, IBFC

Min $5 Deposit

1 000:1

Review » Visit » Visit
Terms & conditions apply
CFDs are considered complex derivatives and may not be suitable for retail clients. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The products mentioned here may be affected by changes in currency exchange rates. If you invest in these products, you may lose some or all of your investment, and the value of your investment may fluctuate. You should never invest money that you cannot afford to lose and never trade with borrowed money.
3.
ActivTrades

FCA

Min $100 Deposit

50:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.
Vantage FX

FCA, ASIC, CIMA, SIBL

Min $200 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
5.
XM Broker

ASIC, IFSC, DFSA, CySEC

Min $5 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
6.
Blackbull Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
7.
Fusion Markets

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
8.
Eightcap Review

ASIC, VFSC

Min $100 Deposit

500:1

Review » Visit » Visit
Terms & conditions apply
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).
9.
Libertex

CySec

Min $100 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.
10.
Capital.com

FCA, CySEC

Min $20 Deposit

30:1

Review » Visit » Visit
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Advantages of trading Forex

We will mention some of the advantages and also intimate you about the challenges in it.

It is open for 24 hours a day

Forex trading is not like your 9 to 5 job. The door to your store or office may close at some point during the day. This is never the case with online Forex trading. As a result of this, Forex traders in South Africa can access their Forex trading platform without hassle. If you feel like trading during the day or night, the door is always open to you. The constant availability of the Forex market all day long makes sure that everyone is welcome here. What is more, the 24-hour availability is global. Virtually anyone can access the market from any location on earth. There is always an open market somewhere across the globe all day long. So, you can trade Forex all day long.

The Forex market opens in Sydney Australia by 1 am on Monday South African time. This time is synonymous with 5 pm on Sunday in Sydney Australia. The market remains open throughout the week to close in New York at 5 pm on Friday. This time is equivalent to 11 pm on Friday in South Africa. So, you can have fun and make money via online Forex trading from 1 am on Monday to 11 pm on Friday.

High liquidity

One other feature that makes Forex trading attractive to South Africans is its high liquidity. As a result of this, your investment can grow very fast in the Forex market. Forex trading involves the movement of laughs amount of money with small spreads. The spread indicates the difference between the bid and ask-prices of any asset.

Low transaction cost

One other outstanding feature of Forex trading is its low cost of transactions. The cost is also the spread. It is the money or fee you pay to the broker each time you open a buy or sell position. The cost covers the work of the broker to facilitate that particular trade. The spread is measured in pips. Pip is the 4th place after the decimal point in the price of the asset. It is also the 1/100 of a percent. If the ask price is 1.3246 and the bid price I 1.3244, then the spread is 2 pips. Aside from the spread, you may also have to pay commission to the broker. The commission can be variable or a flat fee. The variable commons depends on the amount of that particular transaction.

Leverage is available

Leverage is a kind of money you borrow from the broker to trade Forex in South Africa. Forex leverage makes it possible for the trader to open a large position with a small amount of money. The extra amount you need for such a large position is provided by the broker. Leverage will make it possible for you to trade online Forex trading with a higher amount of money. The money you can stake will be far higher than what you have in your trading account if you use leverage. If you use a leverage of 50:1, it will boost your capital by 50. So, the broker will support every $1 you have in your account with $50. It will enable you to control up to $50,000 with just the $1,000 that you have in your trading account.

High-profit potential

One other benefit of Forex trading is that you can make a profit without hassle. Trading Forex allows you to make a profit when the price of the asset is rising or falling. This means that the direction of the price of an asset will not be a hindrance at all. You can buy it when you think the direction of the asset will move up to make a profit. You can also sell to make a profit when you think the price direction will go down.

Buying is going long and selling is going short in Forex trading. Currencies in Forex are in pairs. The pairs are the Base Currency and the Quote currency. When you are buying or selling the base currency, you are automatically selling or buying the quote currency respectively. If you want to buy the EUR/USD, it means you are buying the Euro and selling the USD. This is also vice versa. This is not like what happens in the stock market. In the stock market, you will first borrow shares and sell short Forex trading allows you to sell a currency that you do not own. They call it the Contract for Difference (CFD).

Forex trading has a lot of benefits and we mentioned any of the above. At the same time, you need to understand that Forex trading has its challenges. If you want to become a profitable South African Forex trader, you need to be aware of these challenges too. Good knowledge of the challenges will help you to prepare better. It will also help you to focus better. In the next section of this write-up, we will enlighten you about some of the challenges in online Forex trading.

Challenges of Forex trading in South Africa

Overtrading

Overtrading can “Kill”! Yes, it can kill your trading account. You should avoid trading too often if you want to be a successful Forex trader. You should also avoid risking too much of your capital on any trade. Overtrading is one of the reasons why many beginners in Forex trading lose money consistently in Forex trading. Why do people overtrade in Forex? It is usually because they have unrealistic expectations from Forex trading. They want to make big money quickly from trading and they get their fingers burnt as a result.

Overuse of leverage

Leverage can help to boost your account in that it increases how much money you can control as a Forex trader. Be that as it may, a responsible trader will use leverage very carefully. While leverage can boost your profit, it can also cause you a great loss. Responsible use of leverage will help you to manage losses better. It can help you to reduce the loss you generate and prevent a total loss of your capital. You should see leverage as a two-edged sword if you want to be a successful Forex trader in South Africa.

Leverage can make it possible for traders that have a very small capital to still make a huge profit. It can also cause you to lose all your capital if you are not careful. One of the best ways to manage leverage well is to develop a good money management strategy. You should only attempt to increase leverage as your account increases. You should only risk a small percentage of your capital per trade. Also, you should always use a stop loss each time you trade Forex. Stop loss will help to reduce the amount you record as a loss.

Trading addiction can be damaging

A successful Forex trader will never chase the price. You should only trade Forex if the signal is clear. It is not in your best interest to force the market. You should only trade if the situation agrees with your online Forex trading strategy. If you chase the market, there is a good chance that the market will move against you. Such a situation can put you in a very serious psychological problem. A good trader will have a good entry and exit strategy. If you enter and exit the market without a proper plan, you will never be a successful Forex trader this way. As a Forex trader, you do not have any control over the market. You need to always bear this in mind.

As a trader, you must have adequate patience to wait until the conditions are right before you one a trade. Unfortunately, many Forex brokers lack this patience. Always keep it in mind that the Forex market will always be there. Even if you miss an opportunity today, another opportunity welcome tomorrow.

Poor risk management

Many traders fail because they lack proper risk management. One of the ways to manage risk in Forex trading is to always set a stop loss and a take profit. This will help to improve your chance of success in online Forex trading. You need to know how to implement the mechanism of risk management. This way, you can easily put a lid on losses and increase your profit gradually. The volatility level of the market can also determine what you set as your take profit or stop loss.

You should also set your risk/reward ratio properly so that you can become profitable as you trade Forex. The risk/reward ratio can be 1:3 or 1:2, depending on what your trading goal is. Your ability to take a risk can also determine your risk-reward ratio. Before you venture into live trading in Forex, make sure you practice extensively via a demo. You should consider practicing for a couple of months before you go into live trading.

How to Choose a Forex Broker in South Africa

When choosing your broker in South Africa, pay attention to the following points in order to find the best broker for Forex trading. Those who choose a good broker can successfully trade currencies and forex in the long run.

Brokers are your interface through which you as a personal investor can actively participate in trading currencies and currency pairs. With a deposit at a broker you’ve got direct access to the market and obtain the prospect to back rising or falling rates of a currency.

Leverage

Leverage is crucial when trading currencies. The exchange rates of the currencies change within each day only in the last decimal places. The larger profits can only be generated with increased capital.

With a high leverage, however, the capital is additionally increased, but on the part of the broker. The customer doesn’t need to make a large deposit. The profit (or loss) then stays with the trader. The trading principle of forex trading is essentially very simple when traders know what to do and how.

Forex broker test reports

In order to make a particular structure clear and to make it easier for you to follow our thoughts and our approach. We have decided to follow a particular structure altogether of our test reports. The sector reports basically follow the subsequent pattern:

Background check

Before we devote ourselves to the “inner values” of a broker, we at ForexOnlineBrokers.com naturally attach particular importance to seriousness and reliability. We have therefore thoroughly examined all forex brokers and made a so-called background check.

Above all, we glance at the corporate or company from which the provider originates. We enter details like the owner and say especially how long this provider has been on the market and the way much he had to try to with financial instruments beforehand. From this you’ll basically already see what proportion experience a forex broker has in its field and the way reliable it is.

Further inquiries are being made regarding the seriousness. The ForexOnlineBrokers SA page takes special care to make sure that all readers have an objective check out the broker. Therefore, additionally to the background of the corporate, we also check out the many different regulations and licensing. We check in which country there’s a license and since when this has been the case.

We also take an in depth check out what the forex broker says about the legal situation and the way they react to it.

Customer opinions about the forex broker SA

There are always black sheep in the world of forex trading. Finding this out isn’t particularly easy for beginners and newbies. We would like to point out whether a broker is a scam or not. that is why we take to heart in our critical tests the opinions and reviews that we can find on the World Wide Web.

This is not always particularly easy, since a differentiation should be made here. On the one hand, customers with a negative experience are more inclined to vent their displeasure on the web and express themselves a few providers than those that had no problems with a specific retailer.

In their reviews addressed on to a broker, they really don’t complain about the provider as such, but more about the trading principle of forex trading.

Customer Support

In the section “Broker Support within the Test” we always briefly present the support options of the respective broker and say what to consider the overall selection of contact options.

As it should be for a sufficient test, we might in fact also wish to have our own experience with the support. That’s why we expect about several test questions during our broker tests, with which we approach the support at different times. The answers are rated in terms of reaction time, quality and friendliness. So, our own support experiences can become a part of the tests.

The offer of the forex broker

An essential a part of our tests and experiences consists of presenting the offers exactly and explaining what a Forex broker can score with.

Trade types

The first look goes after the essential seriousness check on all possible Forex trading types. Since the principle of forex trading is quite limited, we’ll also enter different account types here. These, in turn, are usually achieved with a better deposit and may bring very different advantages. for instance, a VIP account with a broker increases the amount of tradable underlyings. Differences in trading costs, margins and spreads also are not uncommon.

Maximum leverage

One of the foremost important parameters when trading currency pairs is that the maximum leverage. This is often usually offered on a minimum of one among the quality currency pairs. These include EUR / USD and GBP / EUR, among others. Here the leverage is highest, which suggests that each euro that’s used are often traded in multiples within the end. The required maximum leverage of 30: 1 means with a customer deposit of 333.33 euros, 10,000 euros are often traded on the market. This makes it possible that changes within the last decimal places of a price may end in profits or losses for personal investors.

The legislator has set the utmost leverage at 30: 1. the subsequent table shows which leverage applies to which underlyings:

Products Maximum leverage additional margin for private investors
Major FX pairs 30: 1 14x
Major Indices Minor FX Pairs Gold 20:01 5x
Commodities Minor Indices 10:01 10x
shares 05:01 4x
Cryptocurrencies 02:01

We would wish to means that these levers don’t apply to all or any currency pairs. If you would like to trade your favorite pair, determine how high the leverage is on the broker’s website before registering.

A higher maximum leverage doesn’t have to mean that the broker is additionally better. It is true that larger profits are often achieved faster with a higher leverage. However, traders slide just as quickly into the red, from which they then need to fight their way out again. So, choose a broker who offers a maximum leverage that suits your trading preferences.

Trading Software

Usually brokers provide their customers with their own trading systems. Depending on the provider, these are either available for download or are often used directly in the browser. The latter is the most typical method of trading.

The advantage is that customers only need an online connection and a computer to trade currencies. Traders can easily trade online from anywhere within the world. Many broker sites also are accessible for mobile devices, so that trading from a smartphone or tablet on the go is easy.

We would really like to advise newbies against trading via mobile devices. This also includes the apps, which are often provided freed from charge by larger brokers. Usually the screen of mobile devices is just too small to get a thought of the price developments and charts. Therefore, problems can arise here, which might become losses.

Deposit and withdrawal

The point of deposit and withdrawal naturally belongs to a particular extent to the sub-point of seriousness. Only a broker who has no fraudulent intent and for whom the customer’s welfare is within the foreground will endeavor to dutifully make payouts within a suitable time-frame.

What is also important with reference to deposits and withdrawals is that the point of deposit options and, accordingly, also the payout opportunities. Online services are usually offered additionally to mastercard and bank transfer payments. This includes Skrill and Neteller especially, which are represented almost everywhere. To our regret, PayPal is a smaller amount common.

When making withdrawals, customers must concentrate to any fees and costs which will arise per withdrawal. The simplest brokers offer a minimum of one payout per month completely freed from charge. Anyone who can handle their money and deposits well should be ready to deal with them.

Bonus and special promotions

In order to lure new customers, Forex brokers plan to draw attention to themselves with special promotions. These often have the content that a particular bonus is guaranteed on the primary deposit. For instance, if a replacement customer registers and needs to form use of the one hundred pc bonus with an initial deposit of 100 euros, they will enter the market directly with 200 euros. However, the bonus conditions on which this deal is predicated must be observed. They state that the bonus amount must be converted by a particular amount before a withdrawal are often made. In most cases the quantity must be wagered a minimum of 20 times, which seems fundamentally difficult. So, think twice about whether you would like to simply accept a bonus offer or rather decline it.

For beginners, we have also selected forex brokers without a deposit. These are worthwhile to get started with Forex trading and to try out trading without risk.

Entry barriers

Traders can only actively trade with a broker if they have made a particular minimum deposit. This can be different for each broker. In most cases, participation is possible with a minimum deposit of around 100 euros. However, we might like to point out that you simply should only bet with around 5% of the entire capital per position. This results in 5 euros in this case, which does not appear to be much. In our professional opinion, you’ll only trade sensibly with start-up capital of a minimum of 500 euros.