Forex trading in South Africa is continuously growing and reaching new heights. Forex market turnover is reaching new all time highs each month after the quick COVID-19 market recovery. Also its national currency, the South African rand (ZAR), is listed among the top 20 most traded currencies in the market, which indicates that this is one of the most active trading markets in the world.
Top service providers, i.e. Forex brokers, in South Africa are either regulated by the native financial institution or a Tier-1 international regulator. Either way, the only way a broker can operate in this country is if it has top-notch safety features and fund protection mechanisms.
In this guide, we’ll explore how the foreign exchange market works in South Africa and how you can take advantage of all its trading opportunities.
Top Rated Forex Brokers for South African residents
Most South African forex brokers are regulated by the FSCA Financial Sector Conduct Authority watchdog. But almost any foreign forex broker will gladly open a trading account for South African citizen, it doesn’t have to be FSCA regulated fx broker.
Best forex brokers for South African traders are:
1. AvaTrade
2. XTB
3. XM
4. Pepperstone
5. IC Markets
6. CM Trading
7. FBS
Any of aforementioned trusted South African forex trading brokers will provide South African forex traders with top notch customer service, secure access to fxtrading, low spreads and fast trade execution. Last but not the least the possibility to deposit in ZAR currency which diminishes currency exchange risks!
Trading safety in South Africa with FSCA Financial Sector Conduct Authority
According to Edward Kendy, who is an expert on forex brokers: “When you’re trading forex in South Africa, you defintelyneed to make sure that you’re getting service from a trustworthy and regulated forex brokerage firm, as many forex companies from offshore are pure scam”.
You can do that by checking its license in FSCA register of regulated entities.
On one hand, your broker can have a financial license from the Financial Sector Conduct Authority (FSCA), which is the main regulator in South Africa. It oversees the brokers’ activities and ensures that they don’t drag you into scams.
But you can also get a reliable international broker in South Africa. For that, a broker should come with a high-tier regulator, among which there are:
● Financial Conduct Authority (FCA) from the UK
● Cyprus Securities and Exchange Commission (CySEC)
● Australian Securities and Investments Commission (ASIC)
● Federal Financial Supervisory Authority (BaFin)
With either of these regulators, you can rest assured that your broker is as reliable as possible.
Beneficial trading terms and conditions in South Africa
Along with safety, Forex trading in South Africa also comes with many trading benefits. Starting from one of the most popular national currencies all the way to higher leverage rates and the availability of bonuses, you can find features that help you take your trading effectiveness to the next level.
Here are some of the most prominent advantages you can get when trading Forex in South Africa:
● While ZAR is considered an Exotic currency, it’s still one of the most liquid and heavily-traded currencies in the world. This enables you to trade it at any time without limitations.
● South African brokers usually offer you local payment methods along with international ones. These include local banks, as well as e-wallets like PayFast and PayGate.
● The FSCA doesn’t have a strict leverage cap unlike the EU or US regulators. Therefore, you can get much higher leverage than 1:30 with South African Forex brokers.
● Just like leverage, bonus promotions don’t have restrictions in South Africa, which means you can include deposit bonuses, referral bonuses, and other types of promotions into your positions.
Is it worth trading Forex in South Africa?
As we have explored, the foreign exchange market in South Africa boasts sound regulatory measures, as well as trading features that are designed to increase your productivity in the market.
If you choose a broker that either has a local FSCA license or an international one, and comes with lower commission rates, high leverage, and top-tier execution modes, you’ll have better chances of succeeding while trading Forex in South Africa.
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