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Top Forex Brokers in South Africa for FX Trading

ZA FlagForeign Exchange trading or popularly known as Forex trading is one of the most sought-after and profit-making opportunities for anyone wanting to make money by making use of funds. With the advent of time and with the growth of technology, this form of trading is available to everyone at any point in time. There is no surprise that this form of financial investment is one of the fastest developing and has attracted the markets of South Africa.

With a large number of many internet users in South Africa, this country has many people who are interested in Forex trading and consider it a profitable institution to make money.

According to some data and other statistic figures in 2016, the average monthly income of people over here is close to 10,000 Rands. As a result of which, many people are now shifting to invest in Forex to earn additional income to supplement their living. With some different liberties introduced by Reserve Bank over the years in past, it is quite tempting to try hands-on Forex market and earn good amount of money in return.


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For any individual looking to trade in Forex from this part of the country, the South African Rand has always been one of the most popular assets because of a number of other Forex exchange offer it as a part of GBP/ZAR and USD/ZAR pairs. The people in South Africa tend to be a good trader as they have complete knowledge about the industry growth rate and the unemployment rate in this country and also have access to events that effect on a global level.

South Africa (ZA) Friendly Forex Brokers

Legality of Forex Trading in South Africa and the FSB

The legality of the foreign currency trading in South Africa is not very much straightforward when we talk about the legal framework in comparison to other markets. It is to be noted that there are no regulated Forex trading platforms in South Africa and hence outflow of cash from the nation cannot be controlled. One might find it surprising that this country is one of the very few nations in the entire world that has set up a system of exchange control and its supervisory body is called South African Reserve Bank or SARB.

Under this present system, the exchange control looks after the movement of money in and out of the nation without any exemption. The payment can only be made in certain specific circumstances, but no money can be transferred to the foreign party without getting prior approval from the SARB.

As a person, there are several kinds of circumstances under which you can send the money. However, you will be allowed to transmit cash to any Forex broker through annual offshore investment allowance and single discretionary allowance. The former allowance is of 10 million Rands, and the latter allowance is 1 million Rands in a given year.

If we combine both of them, you can make an offshore transfer for an amount of 11 million Rands per year easily. If you happen to be a business entity, you will be having additional options at your disposal.

Most of the Forex brokers who offer their service to traders in South Africa are regulated by reputed agencies like FSA (Financial Services Authority) and CySec (Cyprus Securities and Exchange Commission). There are a few brokers that are controlled and licensed by a body called South Africa’s FSB or Financial Services Board.

The FSB is an entirely independent institution that looks after the financial institutions in any nation that are not having any part of the banking sector, and it protects the users. In case if you are having disputes with your broker, you can seek help from FSB. However, you should know that licensing from other regulatory agencies like CySec and FSA will offer you the same level of protection.

Finding a South African Forex Broker – What to Keep in Mind?

If you are in search for a broker to trade in the Forex market, the most important thing to look for is that the broker should be a regulated one and is licensed by a relevant regulatory body. It is so because you will have the best trading problems and will never embroil yourself into any troubles. Apart from this, you need to make sure that your choice of broker can offer you quality service like the ones mentioned below:

  • Bonuses
  • Leverages
  • Platforms
  • Spreads
  • Currency Pairs

Unless you plan to trade in Rand pairs, you should select a Forex broker that can offer different trade varieties apart from the standard features. All the reputed brokerage firms provide 30-70 different currency pairs across currencies like Euros, US Dollars, Japanese Yen and British Pound. Some brokers might even offer currency pair trading in Ruble and Rupee. If you are just starting out your Forex career, it is recommended that you start with USD/EUR currency pair because the spreads are tight and are quite popular among traders. However, we don’t mean that you will not have any profits if you trade in ZAR/USD currency pair.

In short, you need to find the right combination of best possible trade spreads. These days, some different brokers in the Forex market are offering better ranges than their competition. So it is always advisable that you compare the pay off before you agree to sign up and register with the preferred FX broker.

The trading platform of the broker is another significant factor to consider in your search for an ideal brokerage site. Many brokers offer MT4 which is one of the most popular trading platforms while others have their integrated software where you can trade. It is vital that you can understand the platform and are comfortable placing the trades. It is so because it will help you generate money in return.

Depending on the type of broker you choose, the leverage offered on the trade ranges from 10:1 to 900:1. 10:1 leverage ratio means that by investing 10 Rand you can incur a profit of 10,000 Rands. There are many opportunities available with higher rates. However, you need to understand that high leverage can be risky at times because it can lead to a substantial loss. You should only opt for high leverage if you are an experienced and skilled Forex trader.

Last but not the least, you need to check out the bonus offered by the broker if you want to enjoy good leverage, pair variety and tight spreads. Some brokers are competing with one other by providing sign up bonus and other loyalty awards for the registered customers. Some brokerage sites offer no deposit rewards while there are some that offer special promotions with lucrative incentives. You should choose only after reading the terms and conditions.

Other Important Aspects

When you are in the process of selecting an ideal Forex broker, there are other aspects apart from regulation and licensing that you have to look for. Although the features are not very crucial, it is always vital if you want the best trading experience and wants a competitive edge against your fellow traders:

  • Payment Methods
  • Fees
  • Resources
  • Support

The payment method offered by the respective Forex broker is critical. It is so because specific banking options are processed quickly as compared to other ways by providing small fees. If you opt for the e-payment procedure, all your withdrawals are processed in 24 hours. However, the bank wire transfer takes 3-7 days for the funds to settle completely.

Depending upon your choice of broker, you might have to incur fees in the form of commission for using the payment service for deposits and withdrawals. Although it is not a standard practice in the financial industry, there are a few companies that make use of it. You might come across some brokers that charge money in the form of fee to maintain your account online and might attract additional costs from time to time. So it is essential that you pay close attention to the fee structure to avoid unwanted hassles in the future.

Resources is another significant factor that is often overlooked by many traders. It is imperative to remain updated and informed of all the current happenings in the field of finance because it can affect your FX trade to a great extent. Your choice of broker should provide you plenty of resources in the form of news so that you can be abreast of all the latest happenings. It will make you a better trader in due course of time.

Finally, excellent customer service is an important feature that you cannot afford to overlook. Your choice of broker should offer quality customer support throughout the time during all business hours of the week. Also, it should have a number of a different alternate delivery channel like email, fax, telephone etc. so that you can contact the customer care executives for resolving any queries.


1. What regulatory body regulates Forex trading in South Africa?

Financial Service Board is the main governing body that regulates Forex trading in South Africa. However, it is to be noted that it has rarely issued any license to Forex brokers in this country. Many brokers are regulated and hold a valid license from other regulatory bodies like CySec and FSA.

2. Is Forex trading taxable in South Africa?

Whatever profits you incur from your FX trades come under the purview of taxable income just like your normal earning that attracts tax from time to time. You should note that all your profits can be listed on your ITR12 IT return under foreign income.

3. Can I trade South African Rands?

Yes, you can trade South African Rands easily as some Forex brokers are offering this currency trading apart from other currency pairs like GBP, EUR and USD.

4. Are there any fees charged for trading?

It varies from one broker to another. No fees of any kind are charged from the FX broker, but they might charge a small fraction of the money for account maintenance and withdrawal.

5. Why is the Rand such a popular currency with Forex brokers?

Rand is the most popular currency mainly because it has seen its share of fluctuation over the past years against other currencies like Pound and Dollar. In the recent times, trading in ZAR accounts for 1.1% of global currency trade with a majority of trade coming from other nations rather than South Africa.

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