If you’re interested in forex or CFDs trading, you’ll need to find yourself an online broker. With so many brokers in South Africa to choose from, it can be hard to decide. That’s why in this article, you will learn how to find the best trading platform in South Africa.
Trading in South Africa
South Africa is one of the leading countries for forex trading, alongside the UK, Australia, and the USA. That’s why many brokers are now offering their services to South African residents.
The best thing about online trading though is that you can do it from any location. There are many traders from all across the world, selling and buying assets each day. Many brokers now offer mobile trading apps too, letting you trade directly from your smartphone. A great idea if you want to trade on the move.
Other points to check when choosing a broker include:
- the minimum deposit
- assets available
- regulation licences
Out of these three things, the most important to check is regulation. All good forex and CFD broker platforms should be fully regulated and licenced.
Regulation
Regulation means that a platform is authorised to function as a broker service and monitored by an official regulatory body.
Some important regulation authorities include CySEC, the FSA (Seychelles Financial Services Authority) Financial Services Authority, and the United Kingdom’s Financial Conduct Authority (FCA).
South Africa also has an official regulation board, known as the FSCA (Financial Sector Conduct Authority.) All of these authorities set financial rules that brokers must follow. These rules are designed to protect traders from fraud and scams.
That’s why it’s important that any broker you choose holds at least one licence from one of these authorities. Selecting a regulated broker is the key to trading securely.
eToro South Africa
eToro is a leading broker with millions of clients worldwide, including South Africa. The broker is known for offering a social trading platform which comes with unique tools, such as the CopyTrader tool.
This feature lets users automatically copy the trades of other successful traders. It’s a great option if you’re new to trading and want to learn from others. Other social features include the eToro newsfeed where you can discuss trading topics with members. It’s a great way to keep track of the latest market news.
Most importantly, eToro is a regulated broker, and they hold licences from CySEC and the FCA. So they’re a secure broker to open an account with.
Talking of the trading account, the platform is self-developed by the broker and is known for being very easy to use. It has a clear layout and comes with a great selection of forex and CFD assets to trade with. Some CFD instruments listed include cryptocurrencies, commodities stocks, and indices.
To start trading, you’ll need to open an account with the broker and fund your account. The broker only accepts USD, so if you deposit in ZAR a small conversion fee will be charged. The first minimum deposit amount is $200, but all deposits made after this start from $50.
IQ Option South Africa
Another great broker that we’d like to tell you about is IQ Option. Like eToro, they are also a major broker with many clients from various countries.
The broker was launched in Russia in 2013, and it has grown to be a very respected platform. Currently, the companies headquarters are based in Cyprus, and they hold regulation licences from both CySEC and the FSA. The main thing that IQ Option is known for is its incredibly low minimum deposit.
To start trading with this broker, you just need to deposit $10 to your account. Or if you wish to deposit in ZAR, the amount is 150 ZAR. This is a great amount if you want to start trading with a smaller percentage of funds.
It’s possible to make the deposit using a wide range of payment methods. For instance credit cards, wire transfer and electronic wallets like Skrill and PayPal are all accepted methods. The fact that you can deposit and withdraw in ZAR is great if you don’t want to pay currency conversion fees.
The platform is available for desktop or online use. There is also a free trading app available for iOS and Android devices. Instrument wise, IQ Option offers forex and CFD trading. Stocks, cryptocurrencies, options, commodities, and indices are available for you to trade as CFDs.