How to Select the Best Forex Brokers in South Africa
Forex traders in South Africa can have access to a wide range of features when they look at the options for forex trading. South African brokers are keenly regulated by the Financial Sector Conduct Authority (FSCA). Unlike other countries, international brokers can operate in South Africa too, which makes the South African forex market real competitive. That is why the best forex brokers in South Africa always aim to provide a competitive service to beat the international brokers.
But, forex brokers in South Africa should be the top choice over international brokers if you look to trade in South Africa. On the other hand, the availability of hundreds of options makes the best forex broker finding process really challenging. Hence, you should at least do some research on South African Brokers to pick the right one.
To create your research process easier, we have found out the facts you should look at while choosing the broker forex brokers in South Africa.
Who Regulates Best Forex Brokers in South Africa?
In the early days of forex in South Africa, the Financial Services Board (FSB) regulated the forex brokers. However, it was active until 2018, and a new authority came into action. FSB was dissolved, and the Financial Sector Conduct Authority (FSCA) started its operation and regulatory authorities. Any local forex brokers in South Africa that want to operate need to get a license from FSCA. Operating brokerage activity without having a license is illegal in South Africa.
On the other hand, international brokers operating in South Africa don’t need to get a license from South Africa. But they will need to have a license from the host country. So, if you are trading with a broker locally or internationally, you will have to verify the broker’s authenticity via the designated regulatory body.
Forex Brokers in South Africa
- 200+ tradable assets
- Choose between 4 trading platforms
- Competitive spread pricing on raw account
- Mobile Trading: Available
- ECN: Available
- Currencies: 45+
- Axi Mobile Trading: Available
- Currencies: 80+
- Web Trading: Available
How would you Verify a Broker’s Authenticity?
Whether you are trading with a local or international broker, the verification system is more or less the same. So, let us take you through the South African brokers first. FSCA has its own database that saves all the data of the South African Brokers. To access those data, you just need a broker’s license number. However, the license number will be available on the broker’s website. Once you retrieved the license number, put that on FSCA’s database available via their website. In return, if the database shows the broker’s information, you may select that broker.
Nonetheless, if the database returned no value, the broker is not legal.
The same process goes for the international forex brokers too. But, the only difference is that you will have to check the broker with the respective jurisdictions’ regulatory bodies. If the broker has membership from different regulatory bodies, checking with one regulatory body is enough.
Finding the Best Forex Brokers in South Africa
The good thing about FSCA is that it allows any South African citizens to trade anywhere in the world. So, a lot of international brokers are available in South Africa. Thus, looking for the forex brokers in South Africa becomes critical sometimes. Besides, the vast availability of the MetaTrader 4 forex brokers as well as MetaTrader 5 forex brokers put the traders in a confusing situation.
To get you relieved from challenging situations, we have made a checklist that you can easily follow while looking for the top 10 South African Brokers.
- Crosscheck with the regulatory bodies: It is always good to crosscheck the forex trading platforms with the respective regulatory body, whether they are located in South African or other countries. Earlier, we have provided a process to check with FSCA. You can crosscheck other international brokers in the same way.
- Pricing: Pricing policy is a crucial factor to generate your profit. If you get familiar with the broker, you can easily know the pricing environment and cost structure. However, beginners can start with the cheapest forex brokers in South Africa to avoid the advanced brokers.
- Consider the execution speed: The execution factor is another crucial factor as speedy trading gets you the best trading experience. Forex brokers in South Africa involve speedy execution.
- Offered instruments: Among the hundreds of instruments, some assets are not valuable and eat up your money without giving the return. So, you will need to be highly careful about that. On the other hand, there are some brokers that can give you a huge return. For example, to get a high return, SA brokers with NASDAQ offerings can get you some of the world’s best stocks.
- Transaction: Normally, the South African brokers offer easy deposit and withdrawal options. Moreover, some brokerage firms sometimes offer a bonus for deposit money to their trading account. So, you may also look for South African forex brokers with bonus.
- Platform: Platforms are the real accessibility booster. A huge number of brokers offer the MT4 platform, while few brokers offer MT5. However, MT4 is well known in the market for the best output. So, it would be wise to choose the best brokers in South Africa that have MT4 in their trading platform list.
- Customer service: Facing problems while trading is inevitable; as a result, prompt customer service is needed. However, it is not really possible to measure the quality of a broker’s customer service. So, different forex broker reviews may come in handy to know about a broker’s customer support and know the quality before signing up for a broker.
- Education tool: Having an education tool in a platform is not vital but will not harm if they offer one. Usually, the new traders get benefits from the educational tool. On the other hand, it is also beneficial for experienced traders.
If you know the tricks and facts, finding the forex brokers in South Africa should be really easy. The eight factors we have discussed above should help you find the best South African brokers. However, you should also keep some caution in your mind about scam brokers.
Therefore, if anyone properly checks all the facts before selecting a broker, they will definitely encounter a top-notch broker.