Best Forex Brokers for Beginners in South Africa

Choosing a reliable broker is essential for any forex trader, and especially beginners. You can go wrong with so many brokers overpromising and under-delivering. Still, the South African forex market is thriving, and if you get a reliable broker, you could stack up massive profits. 

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Author: Edith
Last Updated: July 25, 2022
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Best Forex Brokers for Beginners in South Africa

The FSCA does a great job regulating South African forex markets, and it keeps brokers true to their word. Regulated brokers are trustworthy and can hold your funds securely. The more regulated a brokerage is, the more compliant it is to laws and standards for protecting investors. 

We’ve done a comprehensive analysis and compiled a list of reputable brokers in South Africa.

All the following brokers hold FSCA licenses, and they offer unique features. But first, how do you pick a good broker in South Africa?

How to choose the best broker in South Africa

Best Forex Brokers for Beginners in South Africa

First, you should do your research; how do brokers handle your data security? They ask for sensitive personal information like passports and credit card numbers. You don’t need fraudsters accessing such information.

Understand your broker’s trade execution methods and terms. Reliable brokerages make timely trades and don’t secretly benefit when you make losses. You also need to understand their fees, commissions, withdrawal fees as well as the minimum deposit.

Once you are satisfied with a broker, you can compare it with other viable options to find its competitive advantages.

The Best Forex Brokers In South Africa

1. AvaTrade: Best Trade Executions

AVA TRADEThis international brokerage is Irish, and it launched in 2006. It offers 65 fx pairs along with fair charges for high-quality services. AvaTrade also specializes in ETFs, bonds, cryptocurrencies, and commodities. 

This broker integrates different platforms, making alternatives for international and local markets. Their digital infrastructure is vast and responsive across devices. They are also available in over 20 languages.

AvaTrade offers extensive experience in fx markets, and the staff compiles insights for traders. Most of their posts are educational resources and guide beginners to learn while earning. 

Pros:

  • Exclusive daily market analysis gives investors helpful insights.
  • Zero commissions make its platforms profitable for beginners.
  • Free advanced trading tools.
  • Instant withdrawals to keep your options open.
  • Segregated accounts for investor funds secures investors funds.

Cons:

  • There’s a minimum deposit fee of $100 to start trading. 
  • The platform charges administration.
  • Inactivity fees levied.
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2. CMC Markets: Best Beginner Education

CMC MARKETSCMC Markets was founded in 1989. It is a UK-based financial service with massive digital infrastructure and an international presence. It complies with multi-national regulations to keep its various forex licenses. 

Submitting to official regulators in nations like Australia, Germany, South Africa keeps this broker trustworthy. It is secure enough to hold funds and execute trades on behalf of investors.

CMC Markets offers users the Next Generation trading platform, which is fast and minimizes slippages during transactions. Next Generation is affordable due to the low spreads averaging at 0.74 pips on the EUR/USD. what’s more is the fact that there’s no minimum deposit required.

CMC Markets empowers beginners at fx trading through frequent articles, podcasts, videos, and webinars. This broker is more education-centered than its competition, and suits beginners interested in learning.

There’s no pressure to deliver when a beginner wants to practice. You can place risk-free trades on demo accounts and see how you would do in live markets. Investors and learners can access their accounts from any device. You can even discuss opportunities on the Chart Forum for extra trading insights.

Pros:

  • Focus on beginner and day-trader education
  • Low spreads to allow profits
  • Demo accounts availed
  • User-friendly web and mobile apps

Cons:

  • Limited CFD portfolio
  • The account verification process is copious 
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3. eToro: Best Social Engagement

eToro - Best Forex Broker for Beginners in South AfricaThis brokerage is Israeli and offers financial and copy-trading products. It’s a low-risk platform with licenses from regulators in the United Kingdom, Israel, South Africa, Australia, and the United States.

eToro’s advantage is its easy-to-use trading platforms that feel like social media. Beginners find it easy to make profits thanks to its copy-trading services. You can easily connect your eToro account with that of experts and start making money immediately.

Ten million traders in 140 countries indicate how helpful eToro is, especially for beginners. The community is interactive, and you can even become a leader if many investors copy your trades.

You can’t start trading on eToro’s platform by depositing less than $200. It doesn’t charge deposits, but withdrawals are costly at $5 per withdrawal. eToro forex fees are notably higher than competitors, but their impressive service is tempting.

This platform renders fx transactions almost instantaneously. Unfortunately, withdrawals take longer.

Pros:

  • User friendly so beginners can trade with confidence 
  • Social community with an interactive platform
  • Advanced copy trading facilities 
  • Detailed analyses from international experts

Cons:

  • Costly, slow withdrawals 
  • High forex fees
  • $200 minimum deposit
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4. Plus500: Great Chart Tools

Plus 500Plus500 was founded in Israel but moved its headquarters to Australia. Since 2008, this broker has maintained a positive reputation, and its financial services keep your funds safe. It’s also a publicly-traded company and holds fx licenses from: South Africa: (FSCA,) United Kingdom: (FCA,) Australia: (ASIC.) 

Plus500 offers 60+ fx trading pairs via App Store and Google Play downloads. The desktop app doesn’t work, but the web, android, and iOS apps provide alternatives.

This broker built trading platforms that are easy to use and responsive across devices. Additionally, the platforms integrate advanced tools for analysis and bidding. Beginners get it easy with visual charts.

On the platforms, beginners and pros alike choose among 21 drawing tools when analyzing and drawing charts.

Although the broker doesn’t support copy trading, we like the fact that Plus500 is friendly to beginners and offers minimal forex charges. Its average EUR/USD spread is 0.8 pips, but it changes with market volatility.

Pros:

  • Advanced analytics with charts and drawing tools 
  • Quick and helpful customer support
  • Responsive web, android, and iOS trading apps
  • Broad products portfolio

Cons:

  • Does not support copy trading.
  • Desktop app doesn’t work.
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5. Saxo Bank: Best Pricing with 25-Year Track Record

SAXO MARKETSSaxo Bank is an investment bank from Denmark. This financial-services firm launched in 1992 as Midas Fonds but became Saxo Bank in 2001. It offers 182 fx pairs and levies spreads as little as 0.4 pips.

Beginners get a good standing because Saxo Bank lets them choose between platforms and API solutions for different devices. Exclusive trading platforms include SaxoTraderGo and SaxoTraderPro, and the research tools inform you to make insightful trades.

Expert analysts research the markets, studying patterns of consumers and investors. Daily publications keep you updated so you can fully understand your position.

Saxo Bank’s liquidity backs its fast platforms for quick trade executions. Chances of premature stop-outs are minimal, and beginners get better trading prices.

Over 600,000 Saxo Bank users access round-the-clock customer services. Before opening an account with this broker, you can try out its demo version and conduct risk-free trades. To start trading with Saxo Bank, you need $10,000.

Pros:

  • Platforms and API solutions for different devices
  • Spreads as little as 0.4 pips
  • Round-the-clock customer services
  • FX pairs up to 182 
  • Minimal premature stop-outs

Cons:

  • The minimum trading deposit is $10,000

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Bottom Line

The five best brokers for beginners in South Africa that we’ve listed will give you the start you need. They offer different packages that suit diverse trading tastes and styles. 

Some like CMC Markets focus on sharpening trading skills among their users. Some, like Saxo Bank, are serious with their approach and expect beginners to put in a significant commitment, but they support users with bottom spreads and fast trade execution. 

Do your research and some soul searching. Define your trading goals and take your pick among these best brokers for beginners in South Africa. 

 

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