Are you looking for a trustworthy broker to participate in foreign exchange trading? The Forex market is highly competitive and highly liquidity, so you will need to get a regulated broker supervised by a known regulator. FSCA, also known as Financial Sector Conduct Authority. Specifically protect the interests of South African traders.
In the last few years, thousands of Forex brokers have emerged, offering their services through online trading platforms. Unfortunately, many of them are unregulated, and you can face many problems and even suffer significant financial losses. Trading with a regulated broker gives you the benefit of knowing that it is credible and secure.
Read on to find out the top regulated Forex brokers, factors to consider when choosing a Forex broker, and much more.
Factors to consider when choosing a Forex broker
Determining the best Forex broker can be challenging, especially if you don't know what you are looking for. Here are the important things you should consider.
- Regulation – A good broker should be regulated by reputable agencies. After all, you are going to deposit your hard-earned money to start trading. Some of the popular regulatory bodies include FSCA, FCA, CySEC, etc. And when you're living in South Africa, you're regulated by the regulatory body named FSCA.
- Trading fees– Regardless of the broker you are using, you will have to pay a spread or commission for every trade you execute. So, choose a broker that offers affordable rates and be careful with the hidden cost, such as inactivity and withdrawal fees.
- Trading platform – Most of the Forex trading activities happens on the trading platform. So, look for a broker that offers a stable and user-friendly platform with all the tools and features you need to trade. While MetaTrader 4 and 5 are the most popular trading platforms, other brokers offer proprietary platforms.
Top 5 regulated brokers on the market for South African Traders
No. 1 – CM Trading
CM Trading is a reputable Forex and CFD broker based in South Africa. It started operating in 2012 and is authorized and regulated by the Financial Sector Conducting Authority (FSCA), a reputable regulatory authority. Yet your funds will be kept in segregated bank accounts.
CM Trading established this website in 2012, this website received over 100,000 visitors per month, most of them are from Kenya, South Africa and Nigeria which are part of the Africa Contitent. CM Trading has quickly grown into the largest financial broker in Africa. As they claimed, over a million clients have registered in their platform.
You can access the Forex market through the MetaTrader platform or Sirix web trader to trade over 50 forex pairs and a handful of cryptocurrencies. The spreads will vary greatly depending on the currency pair, with the EUR/USD averaging 1.5 pips and standard leverage of 1:200, and a maximum leverage of 1:400.
Other than that, the company CM Trading conduct a copy trading platform themselves, named CopyKat Trading, which is accessible thru CM Trading Sirix WebTrader platform.
Sort of like eToro, where trader shares their trade results and opinion. And you were allowed to copy their trade performances.
Account registration is free, though soon after you register you will be redirected to the “Deposit Page”. But a demo account is created as soon as you open a real account.
The minimum deposit is $250, offering you various deposit methods through credit/debit card, Neteller, Mpesa, bank wire transfer, etc. Fees and processing time will depend on the method you use. To withdraw your funds, click the ‘Withdraw' button and fill in the request form, which will be processed within three working days.
- Regulated by FSCA
- Segregates accounts
- Social trading & Copytrading
- High minimum deposit
CM Trading has bad reputation for its trading specialist offering promising results but went disappear after. This site received no complains about withdrawal issues. Seems like the regulatory body FSCA did have their job done here.
No. 2 – AvaTrade
AvaTrade is a reliable Forex broker that offers competitive spreads and an extensive selection of tradable instruments. Their Establishment started in 2006, it is one of the well-established brokers on the market. This site received an estimate of 330,000 traffic every month, it looks like it's declining. Then, they claimed to have over 300,000 registered traders with them. The company is headquartered in Ireland but has offices in Australia, British Virgin Island, Japan, and South Africa.
One of the reasons you should choose AvaTrade is that top-tier regulatory agencies regulate it. They include the Central Bank of Ireland, the Australian Securities and Investment Commission (ASIC), Financial Services Agency (FSA) in Japan, and Financial Sector Conduct Authority (FSCA) in South Africa.
It provides more than 55 currency pairs, including minor and exotic currencies. Furthermore, the broker offers 14 major cryptocurrencies such as Bitcoin, Etherium, Bitcoin Cash, Litecoin, etc. And not last but least, they offer trading future contracts on commodities like Crude Oil, Silve and Gold. AvaTrade does not charge commissions, but only competitive spreads with the EUR/USD pair at only 0.9 pips and maximum leverage of 1:400.
Their trading platform are similar to eToro, Plus500. Which is simple and straightforward, new traders shouldn't had an issue with them. Though if you feel unsure about using their platform, they had demo account available for free.
The minimum deposit amount to start trading is only $100. AvaTrade offers several deposit methods, including credit cards, bank wire transfers, PayPal limited to selected countries, Skrill, WebMoney, and Neteller. You can withdraw your funds through the same method you used to deposit. Withdrawal time will mainly depend on the method you use but mostly take between 1 and 5 days to process.
- Well regulated
- Simple & Straight Forward Trading Platform
- Founded in 2006
- No ECN-execution option
I had traded this platform and I can tell the service they offered are much better than most broker.
No. 3 – HotForex
HotForex is a well-established multi-asset broker offering Forex trading through six core trading accounts. The company was founded in 2010 and is headquartered in Cyprus with offices in Dubai and South Africa. Originally reputated in the Asia countries but now, with an average of 700,000 visitors traffic they received per month, over 2,500,000 live accounts opened, one of fifth of their traffic actually comes from Nigeria.
The broker is registered in St Vincent and the Grenadines as an international business company. It is also regulated and authorized by the Financial Conduct Authority (FCA), Dubai Financial Services Authority (DFSA), Cyprus Securities and Exchange Commission (CySEC), the Seychelles Financial Services Authority (SFSA), and Financial Sector Conduct Authority (FSCA).
It offers you the ability to trade over 150 instruments, including 49 Forex pairs, commodities, indices, stocks, shares, bonds, ETF, and cryptocurrencies. Trading costs such as spreads, commission, and swap rates mainly depend on the account type and trading instrument.
The accounts excluding the Zero Spread account do not charge commissions on Forex pairs, but spreads start from 1 pip. On the other hand, the Zero Spread account comes with 0 pips but commissions per each trade you execute. Traders are allowed to experience live tradiing with only a tiny little amount of deposit, $5 on Micro account and offers 1:1000 leverage, while other account types offer 1:500.
HotForex broker gives you the flexibility to trade at the level you want with six different trading accounts that include Micro, Premium, Zero Spread, Auto, PAMM (Premium), and HFCOPY. There is also a free demo account and Islamic swap-free accounts.
You will be required to pay a minimum deposit of $5 to start trading for micro account. Supporting multiple payment methods, including bank wire transfer, credit cards, and other e-wallets such as Skrill, Trustly, Neteller, etc. Processing time will vary, with deposits taking between few minutes to 2 days, then withdrawals processed within 24 hours after sending a request.
The best part of HotForex are
- Regulated by multiple entities
- Fast Order Execution
- Competitive spreads
- Low minimum deposit.
- Founded in 2010
- Does not have a proprietary platform
I traded with HotForex, I can tell they execute orders fairly quick.
No.4 – IQ Options
IQ Options is another great choice broker, initially a broker whose offered Binary Option trading, then expands to trade Forex, stock, cryptocurrencies, and other tradable commodities. It has a powerful proprietary trading platform that is compatible with all major operating systems including, Windows, Mac Operating System, Web and Mobile like Android and Apple iOS. The unique design are made specially for inexperience also for experiences traders like you and me, sort of like All-in-One platform, where you can add indicators and your studies into the chart. Love it.
The broker is registered in Cyprus, where IQ Option Europe LTD is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC). It is a relatively new broker founded in 2013 but has grown exponentially great to become one of the leading trading platforms on the market. This website serves approximate 60 million visitors per month, the majority of them comes from Brazil, Hola, and countries from South America. It used to popular in Asia too, but I assume they stop promoting here. It was known as one of the largest forex broker trading platform.
IQ Options offers more than 188 tradable asset, so you can have a wide selection to choose from. The provider recently added 12 cryptocurrencies, including Bitcoin, Etherium, Ripple, Dash, Litecoin, etc.
One of the most innovative features is the Cryptocurrency Multiples. It is a leveraged asset where prices are amplified, ranging from x20 to x100. This creates a huge opportunity but also a big risk.
The trading cost will depend on the currency pair you are trading with the benchmark EUR/USD pair at just 0.3 pips. The minimum trading size can be as low as $1. You will choose between the standard and VIP accounts with minimum deposits of $10 and $1900, respectively. The maximum leverage for non-EEA members is 1:1000 but is capped at 1:30 for EEA traders.
IQ Options allows you to deposit funds through PayPal, Skrill, Sofort, Neteller, WebMoney, bank transfer, credit/debit cards, local bank which supported by most countries. The process is free and will take between 1 and 3 days to complete. Withdrawal time and charges will depend on the method you are using. For instance, the bank transfer method will take 1-3 days and a commission of $31, but with credit/debit cards, the process is free and instant.
- Free demo account
- User-friendly interface
- Top-notch supports
- Low minimum deposit.
- Some countries are restricted
I had used IQ Option, and was amazed by the design of their trading platform.
No.5 – IC Markets
International Capital Markets (IC Markets) is a trustworthy Forex broker, it's headquartered in Sydney, Australia. The broker was established in 2007 and is an excellent choice if you are a high-frequency trader or prefer automated trading.
This broker is fairly popular among experienced forex traders, where most traders in forums like babypips and forexfactory recommended.
It is regulated by the Australian ASIC and Financial Services Authority (FCA) of Seychelles, both globally recognized regulatory authorities. Serving with over 3.5 million visitors per month. In addition, your funds will be segregated with a tier-1 bank for further protection.
The broker offers over 60 currency pairs with a maximum leverage of 1:500. You will also get 10 tradable cryptocurrency pairs with a leverage of 1:20..
IC markets allow a minimum deposit of $200 on all account types. It supports multiple depositing methods, including credit/debit cards, Neteller, PayPal, Skrill, bank wire transfer, UnionPay, Bpay, etc. Processing time will depend on the method you choose with instant withdrawals using Neteller, Skrill, or PayPal.
The spreads and commissions are competitive and will vary with the currency you are trading. For instance, the EUR/USD pair is 0.1 pips with a $7 commission on the raw spread account. However, there is also a commission-free account with a spread of 1.0 pip.
- Commission-free trading account
- Low trading costs
- Intuitive interface
- Slow live chat
It is recommended to trade with regulated brokers to avoid getting dubbed. After thorough research, we have compiled the best-regulated forex brokers on the market to make it easier for you to choose. My top pick broker is IQ Option because of the extensive selection of currency pairs, competitive spreads, multiple payment methods, quick live support and most importantly their trading platform, which more like a blend of social media and a trading site. But the best picked broker for South African users will be CM Trading, because trader's fund are secured by FSCA and you will less likely to encounter withdrawal issue.