Best NASDAQ Brokers in South Africa

To help you find the Best Nasdaq Brokers, we researched them for you.

Many metrics are used in financial markets, but the NASDAQ is one of the best known.

A component of this index is the NASDAQ-listed publicly traded companies index, which includes the world’s largest companies.

Furthermore, this classification includes a wide variety of other businesses. This instrument is also known as the US TECH 100 and the NAS 100.

Many forex brokers offer NASDAQ financial instruments with different spreads and features.

This article examines the top four NASDAQ brokers in South Africa who offer competitive trading conditions and access to their clients.

What is a NASDAQ Broker?

 

There are many stock market indexes available for online trading. The NASDAQ was first offered as a stock market index in 1985. Many traders have adopted it as popular trading financial instrument since then.

Companies in the index represent a wide range of industries, including technology, retail, healthcare, pharmaceuticals, etc. However, technology companies dominate the index.

History

This index was launched in 1985 as NASDAQ 100 (NAS100). The NASDAQ composite, established in 1971, shouldn’t be confused with the NAS100.

Since its inception, the NASDAQ has grown by over 6000% cumulatively over the past 32 years. Based on this, it gives an average annual growth rate of 20 percent.

Based on the value of all the companies listed on the NASDAQ 100 index as of 2022, it has a total market capitalization of over 25 trillion USD. NASDAQ 100 traders are drawn to this index for many reasons, including:

In the first place, the index has a diverse mix of industries. A large percentage of US tech companies are incorporated into the NASDAQ index.

In addition to growth in the total market capitalization of listed companies, revenues, profits, and dividends, the NASDAQ 100 has shown growth in the total value of companies listed (the market capitalization).

The NASDAQ 100 brokers primarily attract advanced traders and investors because of their growth.

Nasdaq brokers South Africa

The volatility of the index makes it more appealing to traders than others. Therefore, a broker that supports NAS100 is a NASDAQ broker.

Find the Forex brokers in South Africa offering NASDAQ below.

1.  Exness

Overview

Market maker Exness offers FX and CFDs, and the broker is licensed by the Financial Conduct Authority (FCA), the Financial Services and Conduct Authority of Australia (FSCA), as well as the Cyprus Securities Exchange Commission (CySEC).

The margin requirement for Exness’ CFDs is one percent, and the spread is five and one-half percent per lot for one mini-lot contract. Traders can use US Tech 100 CFDs to trade on the index’s performance.

Pros

• Exness provide 24/7 Customer support service.
• Processing time for deposits is instantaneous.
• Approximately 1:2000 leverage is best for experienced traders.
• Traders can use M-Pesa for deposits and withdrawals

Cons

• Fees for withdrawals apply
• It is not possible to trade ETFs through CFDs.
• They lack ECN capabilities on their online trading desk.
• Identification requires house bills and water bills.

Regulation

This Cyprus-based broker is regulated by strict and demanding regulatory entities, including the FSA, FCA, CBCS, FSC, FSCA, SIBA, and CySEC.

As a regulated broker, client funds must be segregated from mutual funds.

To comply with this, traders must maintain separate retail investor accounts from broker accounts, and their funds can only be used to trade.

Minimum deposit

To open an account with Exness, you must deposit at least $10.

If you are a first-time trader, the minimum deposit might vary based on the type of trading account you choose.

Spreads

Spreads on Exness start at 0.0 pips, with spread fees starting at $3.50.

There are no deposit trading fees at Exness, and withdrawal fees are only applied to traders withdrawing amounts under $200 using Skrill.

Commissions

Among Exness’ commission-based account types, the zero or fixed spread accounts offers the lowest spread of 1.5 pip per lot for the US Tech 100 index.

Trading Platforms

In addition to MetaTrader 4 and MetaTrader 5, the trading platforms supported a variety of software, i.e., Windows, Macintosh, Linux, and the web. With Exness’ MT4 platforms, you can access the following features.

• A total of 30 indicators are built into the device
• Execution of orders can be instant or market-based.
• Automated trading using MQL4
• It offers the most comprehensive trading solutions in the industry
• A real-time update of the stock market is available.
• Free demo account available.

MetaTrader 5 is an Exness Trading platform that allows users to access:

• A total of 38 indicators and 22 analytical tools are built-in.
• The tool includes news and an economic calendar integrated with fundamental analysis.
• There are 21 different timeframes available based on your specific trading ideas.
• Using MQL5, you can automate systems.
• Besides the Exness Web Terminal, the Exness Web Platform provides quick and easy functionality through a web-based interface.
• A free demo account is available through Exness for testing trading conditions.

Android and iOS trading apps work with MT4 and MT5 on Exness’ mobile trading platforms.

The Exness App can be downloaded directly from the broker’s website, My: Exness Personal Area, the Apple App Store, and the Google Play Store.

Safety and Security

Trading environments that are secure and do not suffer disruptions are essential for algorithmic traders and all traders.

The trading environment at Exness is safe and secure, and traders cannot lose money when trading. CySEC will oversee Exness’s market-making and custody duties flawlessly and will carry them out flawlessly, which gives consumers peace of mind.

Any broker’s credibility relies heavily on customer service, and Exness excels here. You will not lose money when trading CFDs with Exness

You can reach customer service by email or phone 24 hours a day, seven days a week. In addition, live chats and applications like WhatsApp and Viber can be used to get assistance.

Account offered

Despite Exness’ website listing five types of accounts under its contract description section, it only offers four on its account page and does not provide ECN. Among these account types are

Standard trading account

Raw spread trading account

Zero account

Pro trading account

Standard accounts require a minimum deposit of USD10, and their leverage limit is 1:2000. Conversely, the minimum deposit on the other three accounts is USD200.

The Pro account provides competitive trading conditions for most traders thanks to its flexibility.

2.  XM

Overview

A minimum purchase of one hundred United States dollars is required to buy NASDAQ CFDs on the XM platform.

There is maximum leverage of 1:100 available for these financial instruments. Since the company offers several account types that only require $5 as a minimum deposit, a consistently rated NASDAQ Forex broker, XM ranks highly in terms of cost.

XM prides itself on offering comprehensive trading solutions that cater for both beginner and professional traders and investors.

Pros

• XM is user-friendly and quite faster than other brokers.
• You will find a lot of educational tools and research material on their website.
• M-Pesa deposit and withdrawal available for traders

Cons

• Limited forex trading products available.
• No deposit and withdrawal in KES.
• No ECN accounts are available.

Regulation

XM is regulated by international regulators, including ASIC in Australia, IFSC in Belize, and CySEC in Cyprus, so they are a good choice.

Minimum deposit

A minimum deposit of 5 (five) US dollars is required to open a real trading account with XM.

Depending on the type of forex trading account selected, the minimum deposit for new traders may vary. The deposit can be activated after 72 hours.

Spreads

For this index, large swings bring good forex trading opportunities, so you need to use a brokerage like XM that is reputable and well-established.

They offer spreads as low as 2.2 pips for this stock index.

Trading platforms

Various trading platforms are available through XM, including MT4 and MT5. Both platforms are accessible through desktop terminals, web terminals, and Android and iOS smartphones.

Users can also work with multiple retail investor accounts simultaneously with MT4 Multiterminal. Its Metatrader mobile trading platforms are average for a broker specializing in this proprietary trading platform.

Safety and Security

In terms of security, the website is not vulnerable to obvious threats. Users who sign up for demo accounts do not need to subscribe to email updates, but they do need to confirm their email addresses.

Online trading accounts require identification documents.

XM has instituted policies and organisational measures to ensure that personal information is secure.

XM account offered

There are three types of accounts offered by XM besides the Demo account

With EUR/USD as our benchmark currency pair, let’s take a look at three different live accounts: Micro, Standard, and Ultra-Low.

It offers negative balance protection on its trading platform.

Micro Account

For Micro Accounts, the minimum deposit amount is $5, and the leverage levels vary with the deposit amount. With a deposit between $5 and US$20,000, leverage can be provided up to 1:888.

Leverage maximums of 1:200 and 1:100 are offered for deposits between 20,000 US dollars and $100,000.

A standard lot of EUR/USD trades for as low as 1.6 pips. On this account, no commissions will be charged.

Standard account

Micro Accounts and Standard Accounts offer the same maximum leverage and deposit amount.

The spreads on EUR/USD remain at 1.6, the lowest of the three pairs. Furthermore, there are no commissions associated with this account.

Ultra-low account

The minimum deposit for this account is $50, but leverage is the same as for micro and standard accounts. The EUR/USD pair charges a spread of 0.6 pips at the lowest level.

Commissions

There are no extra trading fees or commissions every time you trade with XM. Also, compared to other brokerage firms in this area, they require lower margins.

3.  AvaTrade

Overview

Regarding NASDAQ trading, AvaTrade is one of the best options due to its multi asset classes, multi-regulated, and multi-award-winning status.

AvaTrade is a market maker and an STP broker. It was established in 2006 and is one of the most trustworthy firms in the industry.

Trade with AvaTrade and take advantage of a range of tradable markets, including stock indices, individual stocks, CFDs on stock markets, currency pairs, cryptocurrencies, options, and more.

It offers a transparent trading environment with multiple educational tools.

With competitive spreads, rapid trade execution, flexible funding options, and multilingual customer support available 24/5, traders can expect a great trading experience.

Pros

• Easy and fast NASDAQ account opening.
• This regulated broker offers free deposit and withdrawal options.
• Great educational tools and advanced trading platforms.
• AvaTrade offers trading ideas and some market analysis.

Cons

• Only CFDs, forex, and cryptos are offered.
• High inactivity fees.
• Average NASDAQ trading fees.
• Limited tradable financial instruments.

Regulation

Among the many authorities and bodies regulating AvaTrade worldwide is the Central Bank of Ireland and the Financial Services Commission of the British Virgin Islands.

These include the Australian Securities and Investments Commission (ASIC), South Africa’s Financial Sector Conduct Authority (FSCA), the Japanese Financial Services Agency (FSA), and the Financial Futures Association of Japan (FFAJ).

Minimum deposit

With AvaTrade, you do not have to pay any trading fees for deposits, and there are many electronic wallet options apart from bank transfers and credit/debit cards.

A minimum deposit of $100 or equivalent is required.

Spreads

With AvaTrade, you can take advantage of competitive spreads. At AvaTrade, the spreads over the financial markets on the NASDAQ 100 are $1.00.

Commissions

Trades with AvaTrade are not subject to commissions. Nasdaq 100 futures on AvaTrade require a minimum margin requirement and a minimum contract size. The Nasdaq 100 index options contract gives the buyer the right, but not the obligation, to purchase or sell the underlying asset.

Trading platforms

Traders can choose from a variety of online trading platforms with AvaTrader.

The AvaTradeGo app is very popular among beginner and professional traders, making it one of the most popular features on the website.

On the platform, users can choose between MetaTrader4 and MetaTrader5. Every operating system can trade on multiple trading platforms, including Windows, iOS, and Android.

Safety and Security

According to the American Institute of Certified Public Accountants, Ava adheres to WebTrust standards.

To prevent identity theft and credit card fraud, Ava uses McAfee Secure (HackerSafe). AvaTrade keeps all client funds separate from mutual funds.

Account offered

You can open an AvaTrade account in three different ways: a Retail Account, a Standard Account, and a Professional Account.

Every account type has its own set of commissions, trading fees, margin calls, leverage, minimum deposit requirements, and the option to use it as a demo account or Islamic account.

4.  Hotforex

Overview

HotForex is an STP broker and Cyprus-based company that was established in 2010.

A leading forex and commodities broker, providing retail and institutional traders with a wide array of trading services and facilities.

The trading platform is suitable for both novice and experienced investors.

Forex pairs like GBP/JPY, NASDAQ (NAS100) index, USOIL, US30, and others are available to trade.

Pros

• You can get free deposits and withdrawals.
• It offers a proprietary trading platform.
• This ECN/ STP broker accepts M-Pesa to ease deposits for South African traders.

Cons

• A very limited number of asset classes is available with the NASDAQ account.
• The minimum deposit is high for premium trading accounts and fixed spread accounts.
• No social trading feature is available.

Regulation

A Financial Service Provider (FSP), HF Markets SA (PTY) Ltd, holds license number 46632 from the Financial Sector Conduct Authority (FSCA) in South Africa. As an independent institution, the FSCA oversees the non-banking financial sector in South Africa.

Minimum deposit

HotForex ZERO Spread Trading Accounts have just 200 USD opening requirements, so they are an excellent option for any trader.

However, they are handy for scalpers, high-volume traders, and those trading with expert advisors (EAs).

Spreads

On HotForex, USA100 has a spread of 2.

Commissions

A commission of $3 to $4 per single side is charged on fixed spread accounts, and a commission of $6 to $8 per round turn is applied.

The commissions are also based on financial instruments and volumes traded in two different structures. Commission-free trading is not available.

Trading platforms

Both desktop and mobile versions of MetaTrader 4 and 5 are available from HotForex. Moreover, browser-based trading is possible through a Webtrader trading platform.

Safety and Security

HotForex is overseen by the UK-based FCA, which requires the company to comply with several legal requirements to maintain investor safety.

In UK-based retail investor accounts, segregated client account numbers and negative balance protection are standard features.

Meanwhile, other jurisdictions may want to check their local regulatory body’s specific requirements.

Customers should feel more confident about this broker’s long track record and regulatory mandate as a result of its long track record.

Account offered

With HotForex, you can choose a wide range of live trading account types, including Micro, Premium, Zero Spread, Auto, and HFCopy, a Risk-Free Demo Account, and an Islamic, Swap-Free Account.

HotForex strives to provide its clients with competitive trading conditions. This is why it offers five different types of retail investor accounts to suit traders’ specific needs.

With a Micro, Premium, or Islamic Account, you can trade at the level you want, regardless of whether it is a Demo account or a Live account.

Whether you prefer micro to unlimited trade sizes, whatever your trading strategy or level of funding, we have an account for you.

In addition to offering a wide range of different account types, HotForex offers highly competitive trading conditions specifically designed to meet the needs and demands of all traders.

How to trade NASDAQ?

There is a regulatory authority for brokers in South Africa called the FSCA.

Most South African regulated Forex brokers offer CFDs on the NASDAQ Index.

According to the brokers’ trading platforms and contract specifications, the instrument will be known as NAS100, US100, or USTEC.

Opening a CFD trading account on NASDAQ

First, we will explain how to open a CFD account on NASDAQ, then explain what CFDs on NASDAQ are and why trading them should only be done by beginner and professional traders.

A South African resident who wants to trade NASDAQ with a Forex broker must open a live trading account with a regulated broker who offers competitive trading conditions.

To open an account with HotForex, we must follow some simple steps. You can open a real account by filling in your registration details.

NASDAQ broker account opening

• After completing that, your email address needs to be verified. If you do not verify your email, you will be unable to proceed to the next step.
• Complete the form by entering your personal information. It will require you to enter information such as your full name and address. At the broker, you’ll also have to complete an adequacy test.
• Ensure your personal information, such as your address and identity, is accurate. A copy of your ID and proof of your address is required. In most cases, the verification process takes under 48 hours if all your documents are in order.
• Deposit into your MyHF wallet. The majority of South African brokers accept central bank transfers for funding.
• If you’re biased toward long or short positions on NASDAQ, you can open a long or short position.

Trading CFDs on NASDAQ

Let’s now discuss what CFDs on NASDAQ are and why they must be traded with caution.

Trading CFDs on NASDAQ involves certain risks; if you aren’t aware of them, you could suffer losses.

Many retail investor accounts lose money when trading spread betting and/or CFDs with unregulated securities dealers.

As the name implies, contracts for difference (CFDs) are agreements between traders and brokers in which the difference is settled as profit or loss based on the difference between the opening and closing prices during the trade.

When you trade CFDs on it, you do not own any stocks or the NASDAQ Index; you are simply speculating on price movement trajectory based on your biases on whether it will go up or down.

An example of NASDAQ trading

Let’s look at how it works using an example.

Following your analysis, you can sell if you believe that NASDAQ will decline. If the price moves in your direction, you will be able to make money on your trade.

However, if the NASDAQ rises, your CFD position will lose money.

Note

As an additional consideration, CFD trades on the NAS100 involve leverage and margin. Margin trading is available with the best South African brokers for the NASDAQ 100 index.

Trading with leverage allows you to trade positions higher than your account balance.

In essence, you can trade positions worth more than your capital. Among the CFDs on USA100 (NASDAQ) that HotForex offers on their trading platform, there is a leverage of up to 1:200.

Leverage for NASDAQ brokers

What is the mechanism behind this leverage? Let’s better understand what it means with the help of an example.

Example

If one has $150 funds in their account balance, one can buy or sell almost one lot of the NASDAQ CFD at a 1:100 leverage. Lots are used to calculate CFD trades and index contracts.

If NASDAQ rises by 2% by the end of the trading day, a trader will make 100 times their investment without leverage.

Leverage magnifies profits because it multiplies them.

Although leverage can increase profits in trade, it can also increase losses if a trader’s speculation fails.

Traders can lose both their capital and profits within minutes of this. NASDAQ-100 stocks that offer leverage of 1:5 are available through interactive brokers. Trades are conducted using 20 USD.

During the trading day, he believes Alphabet’s stock price will rise. Alphabet’s stock price increased by ten percent as a result.

As a result of this example, a trader would have earned $2 without leverage. With leverage, however, the profit rises to $10.

With a leverage of 1:2, the trader would have lost half of his online trading capital if Alphabet’s stock price fell by 2 percent against his speculation.

According to FCA-regulated interactive brokers in the UK, more than 75-85 percent of retail traders lose money on their trades.

Some Forex brokers have even higher losses, so traders should be cautious when trading leveraged CFDs.

The primary regulators have imposed leverage restrictions on indices because of their risk. SA NASDAQ brokers offer incredibly high leverage, which is extremely risky if you use it.

CFDs on indices must be self-regulated, and leverage cannot exceed 1:5.

Overusing leverage can result in huge losses, so you must fully understand the risks involved.

Benefits of CFD Trading on Nasdaq

• Indexes are popular and growth-oriented indices that can be accessed without ownership of the underlying companies.
• A trader who uses leverage maximizes the portfolio’s potential – but note that the trader can also lose when financial markets move against their speculation.
• Trades can be taken speculatively, whether they believe the market will rise or fall.
• A trading index reduces the cost of holding a portfolio of companies.
• Trading on NASDAQ CFDs is convenient due to the availability of a large pool of regulated interactive brokers.
• Although CFDs are highly leveraged, they carry a significant risk of capital loss because they are highly leveraged. Investing in these instruments is only recommended for experienced traders comfortable with risk.

A US-TECH 100 (NQ) CFD is available at Plus500, an authorized and regulated CFD broker offering negative balance protection. The CFD is based on the underlying E-mini Nasdaq 100 futures.

An initial margin requirement is 0.33, and trades in the trading instruments are offered with a spread of 1.7.

The intuitive trading platform automatically calculates margin and minimum trade sizes. For manual calculations, use the following formula: CFD Margin = V (lots) × Contract × Market Price × Margin Rate, %.

How to choose a NASDAQ broker?

Trading NASDAQ CFDs in South Africa requires you to consider a few things. The following is a checklist you can follow:

Broker Regulation

First and foremost, ensure that the CFD broker is regulated by a top-tier regulator such as the London Stock Exchange LSE, FSCA, FCA, etc.

The FSCA must regulate trading with a South African broker. Only reputed forex and CFD brokers regulated by CySEC, FSCA, or FCA have been listed in our directory.

You can find the broker’s FSP number on their website.

It is usually listed on the websites of most brokers. FSCA regulations are mentioned in the footer section of Hotforex South Africa’s website.

As explained in our guide to FSCA-regulated brokers, you should verify the FSP number on FSCA’s website. Regulated Forex brokers will protect your funds and ensure they are not misused.

For SA traders, investing involves risk with unregulated brokers who do not follow the policies established by the FSCA and other regulators. So, consider the brokers who offer negative balance protection.

Overall NASDAQ broker trading fees:

Explore the overall NASDAQ trading fees and non-trading fees.

In most cases, brokers display their typical spreads for NASDAQ and other instruments.

The NASDAQ is referred to as the “US Tech 100” on most brokerage websites.

To find the most cost-effective broker, comparing trading fees and non-trading fees is essential.

Ease of Withdrawals:

Make sure the withdrawal and deposit methods are convenient before opening an account.

You should check the broker’s website for the average withdrawal time if you want to withdraw through a particular withdrawal method.

Your broker should offer funding and withdrawals via Internet Banking Transfer or EFT in ZAR.

A local payment method will make funding your trading account and withdrawing funds easier.

Customer Support:

An effective customer support team is vital to the broker’s success.

There will be times when you’ll need support, and the broker should be available in that situation.

You should ask the broker if he has a South African phone number, if he offers English language 24/7 chat support and if he offers quick email support.

Platform’s ease of use:

Traders should have access to charting and analysis tools on the trading platform.

To place new orders and close existing orders, you should be able to do so quickly.

The Metatrader trading platform (MT4 & MT5) is available with most of the NASDAQ CFD interactive brokers on our list, but execution speeds vary.

Instant order execution is offered by market maker brokers like XM, while brokers like Hotforex offer market execution.

FAQs

What is the difference between the NASDAQ Composite and the NASDAQ 100?

The NASDAQ Composite index represents stocks listed on the New York stock exchange, whereas the NASDAQ 100 represents the top 100 non-financial companies according to their market capitalization.

Why is the NASDAQ 100 important to traders?

A NASDAQ stock exchange index consists of the exchange’s largest and actively traded companies. This index provides a benchmark for American technology stocks, retailers, industrials, biotechs, and healthcare companies.

What time does NASDAQ open for trading in South Africa?

Trading on the NASDAQ stock exchange takes place between 3:30 pm and 10:00 pm South African Standard Time. Trading outside of regular market hours is possible with some Forex brokers in South Africa.

Can I trade the NASDAQ 100 in South Africa?

Some regulated Forex brokers in South Africa accept traders to trade the NASDAQ 100 through contracts for difference (CFD).

How do I check if a broker that offers NASDAQ CFDs is regulated in South Africa?

A broker’s regulatory status in South Africa can be viewed by visiting the FCA’s official website and searching for its name.

Bottom line

The Nasdaq is an electronic stock exchange, while the Nasdaq index includes market-mover stocks and is one of the most comprehensive market indices.

Sectorally, the index is well-diversified and has outperformed multiple other indices.

The ETFs and various derivative products such as CFDs use the index as their benchmark and underlying value.

NASDAQ index funds are among the most successful index funds in recent years.

Undoubtedly, his largest-weighted stocks – Apple, Amazon, Facebook, and Tesla – outperform the broader market year-over-year.

With NASDAQ South Africa, XM is one of the best brokers for getting started with an investment today.

The regulated broker offers leveraged CFDs and ETFs for investing in the index. In any case, you will be provided with commission-free trading!

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