Forex Trading South Africa

Forex trading is becoming immensely popular amongst currency enthusiasts seeking reliable, trustworthy Forex brokers in South Africa. Are you one of them? Opting to trade with the best Forex brokers based on transparent, non-bias broker reviews are key to your long-term trading success. We only review the top Forex brokers to ensure South African traders a safe and secure experience.

Forex Trading South Africa

Our reviewing process consists of strict criteria that help beginners identify their regulated broker of choice. Becoming a profitable Forex trader does not come down to luck. Enhance your knowledge with our wide range of education, guides, tips and how-to articles designed for traders – by successful traders. Forex trading in South Africa requires you to do your research to give you the best odds of being profitable. Take the first step to maximise your returns!

Forex scams are common. Don’t fall victim to overnight brokers! Read our reviews before opening a trading account!

Our Forex Trading SA review site is a good place to start your Forex trading broker review process. Browse the top brokers below – honest, transparent and comprehensive reviews.

1.
4.7 stars from 262 ratings
Blackstone Futures is a truly local FSCA regulated broker with offices in Rosebank Johannesburg. Enjoy same-day withdrawals.
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
4.6 stars from 210 ratings
Markets.com providers a unique trading experience for forex and stock traders alike. They are a multi-regulated broker which includes the FSCA.
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
4.6 stars from 301 ratings
With 107 currency pairs, Exness provides leading coverage. Exness has a maximum leverage of 1:2000 and a low minimum deposit of $1.
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

Top Forex Trading Brokers

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
Blackstone Futures Broker Review
4.7 stars from 262 ratings

FSCA

up to 30%

USD 100

1:400

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
Markets.com Broker Review
4.6 stars from 210 ratings

FCA, ASIC, CySEC, FSCA, FSC

up to 50%

USD 100

1:300

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
Exness Broker Review
4.6 stars from 301 ratings

FSA

up to 100%

USD 1

1:2000

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
4.
CM Trading Broker Review
4.5 stars from 234 ratings

FSCA

up to 100%

USD 250

1:200

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
5.
FBS Broker Review
4.4 stars from 199 ratings

CySEC, IFSC

up to 100%

USD 1

1:3000

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
6.
Tickmill Broker Review
4.2 stars from 209 ratings

CySEC, FCA, FSA, FSCA, LFSA

NA

USD 100

1:500

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
7.
HotForex Broker Review
4.2 stars from 223 ratings

FSCA, FCA, CySEC, FSC, DFSA

up to 100%

USD 5

1:1000

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
72.83% of retail investor accounts lose money when trading CFDs with this provider.
8.
XM Broker Review
3.9 stars from 167 ratings

ASIC, FCA, CySEC, IFSC

up to 100%

USD 5

1:888

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
69% of retail investor accounts lose money when trading CFDs with this provider.
9.
easyMarkets Broker Review
3.9 stars from 201 ratings

ASIC, CySEC

up to 50%

USD 100

1:400

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
73% of retail investor accounts lose money when trading CFDs with this provider.
10.
AvaTrade Broker Review
3.8 stars from 132 ratings

FSCA, ASIC, B.V.I FSC, FSA

up to 40%

USD 100

1:400

Review Visit Site Visit Site
Broker Disclosure
CFD service. Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

Enjoy our latest up to date May 2021 Top Forex Trading Brokers in South Africa, tested on TradeFX. All brokers regulated, most even multi-regulated entities. This ensures client funds’ security and peace of mind! Whether you trade, CFDs on Indices, Equities, Commodities or Forex, we want to provide you with a broker that you can have a profitable and safe trading experience.

Top Forex Brokers List 2021

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Forex Trading in South Africa

TradeFX South Africa was designed for traders – by successful traders! We have taken into account all the factors and emotions that beginner traders encounter. Our goal is to answer these questions and help you make an educated decision when selecting your Forex broker of choice. Forex Trading South Africa can be a profitable journey and an opportunistic opportunity when trading with a regulated broker, with a local presence.

Forex Trading in South Africa

 

Do not try and go after no deposit bonuses, high leverage or unrealistic welcome bonuses! Low spreads, good support, low spreads, regulation and a fair trading environment should be your motivating factors. Do not follow the 95% of losing traders, be the 5% that succeed!

Education is key, there is no magic formula, EA, Roboto or signal service. If I was good at trading, had a successful EA, why would I sell my service or product? I would sit back and rake in the profits. Give it some thought and it will all make sense.

What We Aim to Achieve and Provide Our Readers

  1. Transparent broker comparisons helping you review the best brokers in South Africa.
  2. Assist you in choosing the broker that best suits your trading needs.
  3. Help build trust between you and the broker you decide to deposit and trade with.
  4. Avoid constantly having to switch brokers. (broker hopping)
  5. Set traders up with the best possible start to their trading journey.
  6. Provide consistent education, tips and trading material.
  7. Always be ethical in what we do.
  8. Set you up for success.
  9. Forex Economic Calendar
  10. FSCA FSP Search

Forex Trading SA

You asked and we answered. We have researched the most commonly asked questions, concerns and trust factors traders required to make an educated decision when choosing Forex brokers in South Africa.

We review and rate every broker using the following criteria:

Forex Broker Regulation

Regulatory entities have shown to be one of the deciding factors when choosing a broker. We have put this as the focal point of our reviews along with other trust factors. The FSCA is the entity that oversees financial services within SA. They have proven to be ethical and protect clients, taking action when needed against fraudulent companies. Other than the FSCA there are 3 common regulatory bodies to consider; FCA (United Kingdom), ASIC (Australia), CySEC (Cyprus).

The latter has come under some scrutiny in the past.

Broker Type

A big deciding factor for most traders is the method of operation, although there might be more emphasis placed on this than needed. Brokers can be put into 3 main categories; ECN (Electronic Communication Network), STP (Straight Through Processing), MM (Market Maker) – Each has its pros and cons whilst all 3 can still provide fair trading conditions. Most brokers will not openly admit that they are Market Makers. Each broker will also be given a beginner rating.

Broker Support

Client support greatly affects the overall experience traders have with their broker. It is important that support is offered via different channels on and off the website. Since traders and brokers might be in different time zones, around the clock support while markets are open remains key.

Deposits and Withdrawals

In our researched opinion, this is a make or break factor. While deposits are mostly instant, withdrawals should be processed swiftly as well. Methods of deposit and withdrawals should be broad. Debit/Credit card and bank transfer is the norm. Additional options are well rewarded.

Broker Trading Conditions

The leverage, spreads, assets and account types are reviewed under this category. These are important factors that have a direct effect on profit/loss. This is considered the bread and butter of any trader’s account.

Trading Platform

Different brokers offer different trading platforms. It is uncommon to see a broker not offering the industry standard MetaTrader 4 (MT4). Other popular platforms are MetaTrader 5 (MT5), cTrader and broker designed proprietary platforms.

IB Affiliate Program

Traders that are happy with their broker often decide to promote or recommend them to their friends or family. We will highlight their offerings, tools and overall assistance to make the journey smooth. A broker that offers a refer a friend program, will be well noted.

Broker Summary

A wrap-up and our honest consultation based on the review criteria. A transparent broker review for you to make an educated decision on your broker of choice. We provide traders with a user-friendly way to navigate and filter between brokers. View what is important to you at a glance. Reviews that are informative, exciting to read and easy to learn and understand.

Is Forex Trading Safe?

A common question asked by beginner traders. You first need to understand what is Forex trading. Any form of trading or investing carries a level of risk. By choosing a reputable broker combined with adequate education, these risks can be minimised. It is worth mentioning that screen time (time spent trading and analysing charts) plays a major role in this.

The lack of the former mentioned is directly contributed to why the majority of traders lose money in the long term.

Avoiding the following can dramatically put the odds in your favour:

  • Uninformed misconception about the industry as a whole
  • Thinking Forex trading is an easy way to riches
  • Not putting in the time to educate yourself
  • Allowing your emotions to control your decisions
  • No trading plan
  • No risk management

We have spent weeks putting together all the knowledge we have gathered, with over 30 years of trading experience. Expand your knowledge by visiting our educational articles. We want you to feel absolutely confident before investing your hard-earned money. Let your winners run and cut your losses short. Forex trading in South Africa can be profitable.

Forex Trading for Beginners

Forex trading, in general, can be intimidating to beginners.Β The general terms and understanding need to be researched before traders can feel comfortable trading the financial markets. We break down the most commonly asked questions to assist you in your trading.

What is Forex Trading?

The concept behind Forex trading is fairly simple to understand. In a nutshell, you buy or sell a selected currency pair with the speculation that you can either buy it back for cheaper or sell it for a profit. Currency pairs are categorised as majors (EURUSD, USDJPY), minors (EURAUD, GBPJPY), exotics (USDZAR, USDNOK) – It is worth noting that minors and exotics normally have higher spreads due to lack of liquidity. Read our in-depth article on how does Forex trading work to get a better understanding.

How to Familiarise Yourself with the Trading Platform?

Do not use demo accounts to determine if you are profitable and ready to execute your live trading strategy. An EA or automated robot taking all human emotions and decision making can be an exception. A Forex trading demo account should only be used to learn the ins and outs of the trading platform. This includes proper trade entry and exiting procedures.

What are Pips in Forex Trading?

A pip is a widely used term in the Forex trading industry and something you will need to understand to calculate risk and reward in currency terms. A pip is the 4th digit after the decimal in a price quote, $0.0001 for USD related pairs. In simple terms 1/100th of 1% or 1 basis point. However, this is not the same for JPY related crosses, where a pip is the second digit after the decimal place.

Pips can also be broken down into fractions, which are called pipettes. Read our full article on what is a Pip and how much are they worth.

How to Apply Risk Management?

This can make or break a traders’ account. Even with the best trading strategy, you can still be looking at a declining account balance if your risk management (risk to reward ratio) is not properly managed. No trader can expect to be right all, or even most of the time. This is where the risk to reward ratio comes into play. Some brokers offer exclusive risk management software.

MetaTrader 4 (MT4) – Explained

MT4 (MetaTrader 4) is the world’s most popular trading platform, mainly designed for Forex Trading. It provides huge flexibility and is EA, Robot and custom Indicator friendly. Although MetaQuotes launched MT5, the adoption has not gone as planned and is not as popular as everyone expected.

How to Design and Implement a Trading Strategy?

Not having a trading strategy is comparable to driving a car for the first time. You are not too sure what you are doing, what to expect or confident. We refer to it as going in blind. Every consistently profitable trader in history followed a well-developed strategy and you should be no different. Research, screen time and testing on a live account, with minimal acceptable risk, is the only way to get from point A to point B under true market conditions.

What is a Stop Loss and Take Profit?

A stop loss is your best friend. As the word implies it stops or limits your losses. A take profit locks in profits on a given trade, partially or in full. Both these are pending orders that need to be triggered by market price, either the bid or ask. This is dependent on your trade direction, buy or sell. Always use a stop loss and take profit!

Forex Traders Blog – Education

To keep things interesting and fresh we have added a Traders Blog. Our Traders Blog is a fun, informative and exciting section with topics you asked for! We say it as it is. The Good and the Bad – The Truth! Come back for weekly posts. Are you ready to start Forex trading? Follow these steps on how to start Forex trading. An easy to follow step-by-step guide to get you started!

Commodity Channel Breakouts

The Commodity Channel Index (CCI) is a technical indicator that compares the current price level to the average price level over a specified time period.

Donald Lambert developed it with the aim of detecting cyclical changes in commodities.

The CCI is classified as a momentum oscillator, which means it is used to detect overbought and oversold conditions.

The CCI indicator is based on the fundamental assumption that commodities travel in cycles, with highs and lows occurring at regular intervals.

  • If the CCI falls below -100, an asset is deemed oversold.
  • When the CCI rises above -100 from oversold levels, a buy signal is sent.
  • When the CCI rises past +100, an asset is considered overbought.
  • From overbought levels, a sell signal can be issued if the CCI falls below +100.

Signals can also be produced by trend line breaks. Connecting the peaks and troughs can be done with trend lines.

  1. A move above -100 and a breakout of the trend line from oversold levels is considered bullish.
  2. A fall below +100 and a trend line breakout from overbought levels are viewed as bearish.

Like most technical indicators, the CCI should be used in combination with other types of technical analysis.

cTrader

cTrader is a user-friendly trading platform with advanced trading features such as quick entry and execution and coding customization.

cTrader, developed by Spotware to balance basic and complex features, can be used by both novice and experienced traders.

This trading platform provides direct access to the interbank market and other features such as algorithmic-based trading systems, various pre-sets, and detachable charts.

Improved charting capabilities and order management systems allow more efficient management of your positions in volatile markets.

With advanced charting capabilities, cTrader gives clients an advantage in the competitive forex market.

The aim of cTrader is to be an “all-in-one trading platform” that gives traders all over the world access to the Forex market and serves as an alternative to the MetaTrader software.

Some of the features of cTrader include:

  • An all-in-one trading and execution network
  • Approximately 50 collaboration tools and layouts
  • Over 70 custom-made indicators for technical review
  • Various timeframes and zoom levels are available.
  • A dependable algorithm for automated trading
  • Copy-trading features make it easier to manage funds across many accounts.
  • Communication and interaction in real-time via cTrader forums
  • Expert Trading Consultant
  • Charts that can be detached
  • Automated trading by the use of a dedicated platform

What distinguishes cTrader is its beginner-friendly interface and ease of use, but don’t let that deter you if you’re an experienced trader. Most experienced traders continue to use cTrader. Whatever trading platform you use is a matter of personal choice.

Double Tops and Double Bottoms

Double top and bottom patterns appear on a chart when the price shifts in a pattern similar to the letters “W” (double bottom) or “M” (double top)

Double Top

The double top is a reversal pattern that forms after a prolonged uptrend.

The “tops” are peaks created when the price reaches a certain amount that cannot be broken.

After reaching this level, the price will briefly bounce off before returning to test it again.

If the price bounces off that level again, you’ve got a double top! It resembles the letter M, and illustrates a bearish trend.

Remember that double tops are a trend reversal formation, so look for them after a solid uptrend.

Double Bottom

The double bottom is a trend reversal formation, too though this time we’re trying to go long rather than short.

These formations occur after two valleys or “bottoms” have formed during an extended downtrend. It looks like the letter W, and signals a bullish price movement.

Remember that double bottoms, like double tops, are trend reversal formations.

You should look for these after a significant downtrend.

Since rounding patterns, in general, can easily lead to fakeouts or mistaking reversal trends, they are often used in combination with other indicators.

Fakeouts in Forex Trading

In technical analysis, a fakeout is a situation in which a trader enters a position anticipating a potential transaction signal or price change, but the signal or movement never emerges, and the asset moves in the opposite direction.

Fakeouts are also known as false breakouts.

You will sell a breakout if you assume that a breakout from a support or resistance level is incorrect and that the price will not continue to move in the same direction.

Trading false breakouts could be smarter than trading the breakout in cases where the support or resistance level is high.

You may stop being whipsawed by learning how to trade fake breakouts.

Most forex traders like trading false breakouts. Why is this so?

Price floors and ceilings are expected to be represented by support and resistance levels. If these levels are breached, the price is expected to proceed in the same direction as the breakage.

When a support level is broken, it indicates that the overall market trend is downward and that people are more likely to sell than purchase.

Remember that trading false breakouts are an excellent short-term strategy. Breakouts usually fail on the first few attempts but may succeed later on.

Forex Gaps

A gap is a section of a chart in which the price of a currency pair fluctuates sharply up or down with little or no trading in between.

As a consequence, there is a gap in the usual price trend on the bar or candlestick chart.

Gaps arise suddenly when the perceived exchange rate between two currencies shifts due to underlying fundamental or technical factors.

Gaps do happen in the forex market, but they are much less prevalent than in other markets, thanks to the fact that currencies are exchanged 24 hours a day, five days a week.

However, gapping may occur when unexpected economic data is published or when trading begins after a weekend or holiday.

While the forex market is closed to speculative trading over the weekend, it remains available to central banks and other financial institutions.

As a result, the opening price on a Monday morning could vary from the closing price on the previous Friday, resulting in a price difference.

The open price on Monday differs from the closing price on Friday. This difference is the gap.

  • If the open price on Monday was higher than the closing price on Friday, the price gapped up.
  • If the open price on Monday was lower than the closing price on Friday, the price gapped down.

Gold and the Aussie Correlation

Before we move into the specifics of the Aussie-gold relationship, it’s worth noting that the US dollar and gold don’t exactly fit. Typically, as the dollar rises, gold falls, and vice versa.

The key logic here is that during times of economic turmoil, investors prefer to dump the USD in favor of gold, which is regarded as a safe haven.

Many factors influence currency prices, including supply and demand, politics, interest rates, speculation, and economic development.

More precisely, since economic development and exports are directly linked to a country’s domestic industry, some currencies are naturally highly correlated with commodity prices.

Australia is currently the world’s second-largest gold producer after China, exporting approximately $5 billion worth of yellow metal per year!

Gold has a positive correlation with the Aussie, also known as the AUD/USD.

As gold rises, so does the AUD/USD. When gold falls, so does the AUD/USD.

Historically, the AUD/USD has had an 80% correlation to the price of gold!

Since the markets are so interconnected, there is a connection between various asset groups. This correlation is not absolute, but as gold prices rise, the AUD/USD will change to the upside as well as the downside.

How Oil Moves with CAD?

Oil is a commodity on which the global economy runs.

Canada, one of the world’s leading oil producers, exports over 3 million barrels of oil and petroleum products to the United States every day.

As a result, it is the biggest supplier of oil to the United States!

This means that Canada is the primary supplier of the black product in the United States!

Because of the volume involved, there is a high demand for Canadian dollars.

Also, keep in mind that the Canadian economy is heavily reliant on exports, with about 85 percent of its exports going to its neighbor down south, the United States.

As a result, how US consumers respond to changes in oil prices can have a significant impact on USD/CAD.

If demand in the United States increases, producers may need to order more oil to keep up. This can cause oil prices to increase, causing the USD/CAD to fall.

If demand in the United States falls, manufacturers will decide to take a break because they do not need to produce more products. Oil demand could decline, putting pressure on the CAD.

Historically, oil has had a 93 percent negative correlation with USD/CAD.

As oil prices rise, the USD/CAD falls. As oil prices fall, the USD/CAD rises.

MetaTrader 5

MetaTrader 5 (MT5) is a MetaQuotes multi-asset trading platform that allows you to trade forex, commodities, and futures.

MT5 allows traders to display charts, stream live markets, and position orders with their broker, just like most other online trading platforms.

MT5 trading allows traders to enter financial markets such as foreign exchange, currencies, CFDs, stocks, futures, and indices.

Fundamental and technical analysis methods, copy trading, and automated trading are among its many features.

The ability to use trading robots, known as Expert Advisors or EAs, is the most popular feature of MT5.

The robots work independently of the trader, analyzing prices and carrying out trading operations in accordance with an underlying algorithm.

Other features of MT5 include:

  • Six types of pending orders
  • Two types of stop orders
  • More tradeable markets (commodities, indexes, and stock CFDs) available depending on the broker
  • Several chart timeframes (11 types of minute charts, seven types of hourly charts, plus the daily, weekly, and yearly timeframes)
  • Integrated MQL forex market services tab for EAs
  • Multiple technical indicators, 22 analytical objects, and 46 graphical objects

Traders can also connect with other traders through the embedded MQL5 group chat to network and exchange tips and strategies.

Pivot Points

The pivot point is a technical analysis indicator used to evaluate the market’s overall trend over various time frames. The pivot point is essentially the average of the intraday high and low, as well as the previous trading day’s closing price.

Trading above the pivot point signifies ongoing bullish sentiment, while trading below the pivot point indicates a bearish sentiment.

The pivot point serves as the indicator’s foundation, but it also provides estimated support and resistance levels depending on the pivot point calculation.

As a result, the easiest way to use pivot point levels in forex trading is to approach them similarly to standard support and resistance levels.

The price will evaluate the amounts repeatedly, much like good old support and resistance.

The more times a currency pair reaches a pivot level before reversing, the more powerful the level becomes.

In fact, “pivoting” simply means achieving a degree of support or resistance and then reversing.

If you notice that a pivot level is holding, you can have some strong trading opportunities.

Traders also combine pivot points with other trend indicators. A pivot point that overlaps or converges with a 50-period or 200-period moving average (MA) or Fibonacci extension level becomes a more powerful support/resistance level.

What is Scalping?

Scalping is similar to those action-packed mystery movies that keep you on the edge of your seat. It’s fast-paced, thrilling, and mind-bending all at the same time.

Scalp trading, also known as scalping, is a common trading strategy distinguished by relatively short time periods between trade entry and exit.

These types of trades are kept for just a few seconds to a few minutes at most!

The primary goal of forex scalpers is to capture very small quantities of pips as many times as possible during the busiest times of the day.

The idea behind scalping is that a series of small wins will quickly add up to large profits.

Its name derives from the style in which its goals are accomplished. A trader is simply attempting to scalp a large number of small gains from several trades during the day.

Scalpers can place hundreds of trades in a single day, looking for small profits.

At the end of each trading day, all positions are closed.

Since scalpers must essentially be glued to the charts, it is suited for those who can devote several hours to their trading.

To be competitive, you must have intense concentration and fast thinking. Such quick and demanding trading is not for everyone.

Become A Better Trader! Access Our Latest Articles with Our Top Tutorials and Trading Tips.

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πŸ† Top 3 Brokers in
South Africa

Minimum
Deposit

USD100

Minimum
Deposit

USD 100

Minimum
Deposit

USD 1

πŸ† Top 3 Brokers in South Africa

Blackstone Futures Logo

Minimum
Deposit

USD 100

Max. Leverage

1:400

Markets.com Logo

Minimum
Deposit

USD 100

Max. Leverage

1:300

Exness Logo

Minimum
Deposit

USD 1

Max. Leverage

1:2000