Top Forex Brokers in South Africa for Forex Trading

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Whatever the reason, there is no doubt South Africa is one of the main areas in Africa where retail Forex trading is becoming a reality. As many South Africans are getting curious about this new sector, it is important to choose the best South African FX broker whom you can work within the long-term.

You should know that, contrary to the promises you see on online advertisements, Forex trading is not a get-rich-quick scheme. With such an attitude, you can very easily lose all your capital to a scammer or fraudulent broker. For those who are seriously considering the investment, take your time in choosing the best broker around and reap the benefits for years thereafter. Recently, Forex trading in South Africa has become so common, especially among the youth that it has become a hotspot attracting both legitimate and fraudulent Forex brokers to the country.

These brokers, especially the fraudulent ones, lure in unsuspecting traders with promises of quick riches. This is not an outright bad thing since traders do indeed need proper training, but it just goes to show how much interest there is in Forex trading.

Besides the advertisements by Forex brokers, successful traders, a few successful traders are bragging about their earnings on social media, further fuelling the urge by young individuals to start trading. Even so, one of the most important characters in the entire industry is the Forex brokers, who can either lead you toward the light or into a pit of losses and despair.

So far, there are tens of Forex brokers who are soliciting South Africans to open accounts with them and start trading. Out of a large number of potential brokers, only a few are licensed to operate or sign up South Africans as clients. That requires that the broker first get a license from the FSB, but only a few so far have done so. There are some who may be considered the best South African FX brokers, but I would never recommend them unless they had a local license from the FSB, even if they are licensed elsewhere.

Therefore, we can only recommend choosing one broker from this FSB regulated Forex brokers list. All of these companies have active licenses from the FSB, making them trustworthy and advisable to deal with. Most of them have already set up physical offices in South Africa, further making them more reliable. Before you even consider making your first trade, it is crucial to be aware of the laws and regulations that apply in the industry. All countries will have a different set of laws concerning financial markets, and if you are a South African resident, these will be necessary to know.

The first and most important has to do with regulation and licensing of top South African Forex brokers. Just like in all other regions of the world, all countries have a financial regulator whose role is to oversee the actions of financial institutions. This is because the FSB was put in charge to ensure all financial institutions, including Forex brokers, adhere to the rules.

Furthermore, they have the ability to pursue wrongdoers and impose penalties on them. Several scams have been conducted by Forex brokers just because they were not legitimate to start with. After the company had received client funds, though, the founder of the company disappeared and the funds were lost. Regardless, it just goes to show how much legitimacy the license from the FSB provides. Beyond the first level, the institution can issue warnings and statements about any FSB regulated Forex broker.

If, say, one of them has been fined for some wrongdoing, then the public shall be informed by the FSB. It is important to have this information, as it helps you decide whether you should keep working with them or not. Besides the licensed entities, the FSB constantly issues warnings regarding unlicensed companies luring South Africans. DMD Capital was operating as Profit Trading and was at some point the top South African Forex broker with announcements in newspapers and over the radio.

Finally, you can rely on the FSB to pursue a claim on your behalf whenever you have been wronged. They have the authority to pursue the company and either fine them or suspend their license, as they did with Profit Trading. You can also get a refund from your losses if there were any, because the FSB requires the client funds be placed in a segregated account. That means, even in the case of bankruptcy, you never lose your capital. Beyond the laws on regulation, the South African Revenue Service SARS also has some conditions of its own regarding the amount of money you can take out of the country.

You can only take out a maximum of 11 million rands in a year. The first million rands are a discretionary allowance, but the remaining 10 million needs a tax clearance from SARS.

The process is not as easy as you may think because the institution has made the process very tricky and complicated as they try to prevent capital outflow. Every broker will try to offer as many trading instruments as possible in order to stand out from the rest.

The decision here should be very simple as the best South African CFD brokers will have the most number of products available. These should range across several markets from the commodities to the indices, stock, and even cryptocurrencies. That last option is very important because South Africa has been very accommodating to bitcoin and other cryptocurrencies. Today, you can even pay your traffic fines using bitcoin in South Africa.

However, the process is still a long way, as there are no official exchanges or ATMs, so the brokers can only offer cryptocurrency trading through CFDs. Nevertheless, FSB cryptocurrency brokers are a good option if you feel like trading these products in South Africa.

As for the other products, they will usually be traded as CFDs and not the actual products. Perhaps the most prolific scams that have been uncovered in South Africa involved Colin Davids, a pastor who also ran Platinum Forex Group. Investors had been promised huge returns every month, but as all Ponzi schemes go, it reached a point where he could no longer give his investors any more money. When the scheme was uncovered, the FSB found that about million rands had been invested, but only million rands remained.

This is nothing new, as such scams have been observed all over the world, involving unsuspecting victims who just wanted to earn some more money. To avoid these scams, always check South Africa Forex broker reviews for information about specific brokers. Through these forums, users can express what they feel about particular brokers and how their experience was like.

Stay up to date with the financial markets everywhere you go. Home - What are the best Forex brokers and how to choose the right one? How do you know which is the best South African Forex broker?

List of the trusted Forex brokers in South Africa So far, there are tens of Forex brokers who are soliciting South Africans to open accounts with them and start trading.

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Over the past years, Forex trading has quickly gained popularity in South Africa, despite various rules imposed on traders. Thus, the South African government has no regulations regarding the legality or illegality of Forex Trading platforms, but only a system of exchange control that oversees the cash outflow from the country.

From onwards, South Africans are allowed to send money out of the country and to off-shore accounts, which is what most Forex accounts are, but with a specific limit. This is the only legal restriction South African citizens face. Thus, the total limit is 11 million, when both options are combined. However, before you use both, you should note that any off-shore investment funds 10 million should be cleared with the revenue service SARS , i.

However, even with the SDA, you still have to take care, as you have to state exactly what you plan to use your money for, unless you want to risk being fined. For more info about bringing money into the country, you can check with the SARB. However, while there are Forex trading brokers that are licensed by the FSB to be found, they are still very rare. Thus, most trading is done via off-shore platforms, simply because they offer better conditions, like tighter spreads, more payment options, and even account bonuses.

Most South African traders go for trading platforms licensed by other licensing authorities, the most prominent of which are the European regulatory agencies. The most trusted, and thus popular, agencies, are as follows:. They also enjoy a great reputation, since Cyprus, as a member of the EU, has to adhere to EU financial regulation policies.

The agency is the successor to the FSA and its licenses are a likewise solid proof of trustworthiness. Licenses from the ASIC are not as common, though they are just as reliable. List of Forex Brokers accepting traders from South Africa: Rank Broker Offer Trade Now 1.

What currency pairs is the Rand part of? The Rand is a very popular currency among Forex exchanges and can be found as part of many currency pairs. This is why most South African traders are interested in Forex trading, as they have plenty of resources regarding the USD and GBP, but also know more about their local economy than traders outside South Africa. Why is the Rand popular among Forex traders?

Just like the Australian and Honk Kong dollars, the reason why the Rand is a popular choice is because of the fluctuations and variance it offers. In South Africa, the Rand is stabilized against other currencies to some extent by the Reserve bank, which gives it gives it some free floating space that can be exploited for profits, as it fluctuates more wildly against other, more stable currencies.

Is Forex trading taxable in South Africa? Any profits you make with Forex trading are taxable, just like your regular income, which means you have to file a Personal Income Tax form. You can also list the profits on your ITR12 as foreign income. Will I be charged any Trading Fees? However, there are still other fees to keep in mind. For example, it is a common practice to charge small fees for keeping your trading account open, but also withdrawal fees, which depend on the payment method you want to use.

What currency pairs are the best? It depends on your personal preference. How much money am I allowed to transfer back to South Africa? To protect this area, the Reserve Bank prohibits any South African citizen to import or export Rands or other bank notes from the common area that exceed more than ZAR 25, in value, per person. Can I Increase my Single discretionary Allowance?

That is, not by yourself. However, make sure you consult a professional before you do so. Can I send more than 10 million Rands off-shore? Yes, there are exceptions to the off-shore investment limits. However, to be able to increase your investment allowance, you would have to file an application to the Financial Surveillance Department of the SARB through your bank, along with a Tax Clearance Certificate, and wait for approval before you are allowed to send more money out.

Thus, the leverage you can get will vary from one Forex brokerage to the next, with most offering a standard of As said, there are no specific regulations for Forex trading, but there are ones related to finances. Frequently Asked Questions What currency pairs is the Rand part of?

Who Regulates Forex trading in South Africa? Facebook Twitter Pinterest Google Plus.