Forex Brokers List 2021

The choice to choosing Forex brokers is not an easy task for traders. They take a lot of factors into consideration and even then, depositing their hard-earned money is a scary feeling. It is not as easy as choosing a bank to transact with daily! This is serious business and that is where we come in, providing you with open and transparent broker reviews.

Forex brokers list, charts background with laptop and mobile trading

Ever since Forex trading in South Africa has become immensely popular, fastest-growing on the African content, just below Nigeria, brokers are swarming into the SA space. These can be seen as positive and negative. This gives traders a wider variety of brokers to choose from but also opens the door for fly by night brokers to take advantage of traders. This is why we designed a Forex brokers list!

After conducting our 2021 survey, we have found that traders find the following most important when choosing their broker of choice. The regulation came up as most important, no surprise. This is due to the fact that clients are becoming more educated on its importance when it comes to fairness and the safety of funds. This is closely followed by withdrawal time, leverage and minimum deposit.

An interesting observation was that clients are 3 times more likely to open an account if the broker has a local office in the country they reside in. Trust seems to play a big role.

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

Enjoy our latest up to date April 2021 Regulated Forex Broker List – Reviewed, Trialed and Tested for our Forex traders! Browse our top Forex brokers and learn more about them as a company and what they can offer you as a trader.

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.
4.6 stars from 201 ratings
easyMarkets provide fixed spreads without hidden fees on over 200 global markets. Trade on their award-winning easyMarkets platform.
Broker Disclosure
CFD service. your capital is at risk.
73% of retail investor accounts lose money when trading CFDs with this provider.
4.6 stars from 198 ratings
Trade Nation is a truly Multi-Regulated Forex and CFD broker with offices located globally. They offer 24/5 support from market open to close.
Broker Disclosure
CFD service. your capital is at risk.
57.1% of retail investor accounts lose money when trading CFDs with this provider

Top Forex Brokers

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

FSCA

up to 30%

ZAR 1000

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.
easyMarkets Broker Review
4.6 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.
3.
Trade Nation Broker Review
4.6 stars from 198 ratings

FCA, FSCA, ASIC, SCB

Loyalty Program

USD 5

1:200

Review Visit Site Visit Site
Broker Disclosure
CFD service. your capital is at risk.
57.1% of retail investor accounts lose money when trading CFDs with this provider
4.
Plus500 CFD Provider Review
4.5 stars from 205 ratings

FSCA, ASIC, FMA

N/A

USD 100

up to 1:30

Review Visit Site Visit Site
Broker Disclosure
CFD service. your capital is at risk.
Rrmember 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.
AvaTrade Broker Review
4.1 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.
6.
CM Trading Broker Review
3.6 stars from 77 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.
7.
HotForex Broker Review
3.6 stars from 99 ratings

FSCA, FCA, CySEC, FSC, DFSA

up to 100%

ZAR 70

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
3.5 stars from 88 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.
OctaFX Broker Review
3.4 stars from 108 ratings

CySEC

up to 50%

USD 5

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.
10.
eToro Broker Review
3.4 stars from 82 ratings

ASIC, FCA, CySEC

up to 40%

USD 200

1:400

Review Visit Site Visit Site
Broker Disclosure
CFD service. your capital is at risk.
62% of retail investor accounts lose money when trading CFDs with this provider.

The Top Forex Brokers List in South Africa, all regulated, most even multi-regulated. Reviewed on TradeFX, ensures client funds’ security and safety! Whether you trade CFDs on Forex, Indices, Equities, or Commodities. We want to link you with a trading broker that you can trust with your funds and have a positive trading experience with.

Yes, Give Me Access to a Risk-Free Demo Account!

Forex Brokers Reviews

Our broker reviews are anything but bias. It is a transparent and comprehensive list of the Best Forex Brokers and Trading Platforms in South Africa. It is focused on our traders, especially beginners, trading for themselves. No more guessing, leave the reviews and due diligence up to us. We do not promote or recommend Forex Trading Signals. Education first!

Let’s go through our Top Forex Brokers List, these only include companies that are regulated and trustworthy, verified by us!

  1. πŸ₯‡ Blackstone Futures – Best Overall Spreads without Commissions 2021
  2. πŸ₯ˆ EasyMarkets – Fair Trading Conditions 2021
  3. πŸ₯‰ Trade Nation – Most Transparent Multi-Regulated Broker 2021
  4. βœ…Β  Plus500 – Best Global Multi-Regulated Provider 2021
  5. βœ…Β  AvaTrade – Best International Broker 2021
  6. βœ…Β  CM Trading – Biggest Broker in Africa 2021
  7. βœ…Β  HotForex – Highest Leverage Broker 2021
  8. βœ…Β  XM – Lowest Minimum First Time Deposit 2021
  9. βœ…Β  OctaFX – Best CySEC Regulated Broker 2021
  10. βœ…Β  eToro – Best Copy Trading Platform 2021

Top Regulated Forex Brokers

Blackstone Futures Logo

Blackstone Futures

Blackstone Futures is a locally FSCA regulated broker and has been around since 2009. They are not new on the block and is expanding rapidly. They are expanding within the whole of Africa with clients in neighbouring countries such as Swaziland, Lesotho and Namibia. They offer the tightest spreads without any commissions. Withdrawals are processed daily and clients receive their funds the same day or 24 hours later, depending on their bank.

They offer excellent support as well as a dedicated account manager, webinars and free training. They have a client-first approach with the goal to increase client longevity. One of their standout features is their negative balance protection. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 0.6
  • GBP/USD: 0.8
  • USD/JPY: 1.0
  • AUD/USD: 0.6
Pros / Cons
  • Same Day Withdrawals
  • FSCA Regulated
  • Negative Balance Protection
  • Outstanding Customer Service
  • No Islamic Account
  • No MetaTrader 5

up to 30% Welcome Bonus

Open Trading Account

 

easyMarkets Logo

easyMarkets

easyMarkets was established in 2001, making them one of the first brokers introduced to retails Forex traders. They have a long history and track record, which has been mostly positive throughout the years. They are regulated by ASIC and CySEC, sadly the FSCA is missed from this list. Non the less, they are multi-regulated. They offer excellent support whenever the market is open, 24/5. Their leverage ranges from 1:200 – 1:400 depending on the platform you use.

The easyMarkets platform offers respectable fixed spreads. They offer 3 account types across their two platforms, MetaTrader 4 and easyMarkets platform. They have good values and really try to provide an enjoyable trading experience. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD:
    – easyMarkets Platform: 1.2
    – MT4: 0.9
  • GBP/USD:
    – easyMarkets Platform: 1.7
    – MT4: 1.3
  • USD/JPY:
    – easyMarkets Platform: 1.5
    – MT4: 1.0
  • AUD/USD:
    – easyMarkets Platform: 1.5
    – MT4: 1.2
Pros / Cons
  • Fixed Spreads
  • ASIC Regulated
  • easyMarkets Platform
  • MetaTrader 4
  • Guaranteed Stop Loss
  • High Spreads
  • No Micro Account
  • No FSCA Regulation

up to 50% Welcome Bonus

Open Trading Account

 

Trade Nation TN Logo

Trade Nation

Trade NationΒ is one of the most regulated brokers globally, regulated by the FCA, FSCA, ASIC and SCB. They strive to provide a fresh approach to trading whilst being open and transparent. They offer a wide variety of account currencies to their clients. Trade Nation, along with MetaTrader 4, have their own trading app, offering fixed spreads. This is also accommodated by negative balance protection and a guaranteed stop loss.

If you are in South Africa or countries outside of ASIC and the FCA you can also enjoy a very respectable loyalty program. They are an overall outstanding broker that is going to take the industry by storm, not just based on their offerings, but their culture and brand values. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 0.6
  • GBP/USD: 0.8
  • USD/JPY: 0.7
  • AUD/USD: 0.6
Pros / Cons
  • Multi-Regulated
  • 24/5 Customer Support
  • MetaTrader 4
  • Trade Nation App
  • Fixed Spreads
  • Negative Balance Protection
  • Jurisdiction Dependent Loyalty Program
  • No Islamic Account
  • No MetaTrader 5

Loyalty Program

Open Trading Account

 

Plus500 Logo

Plus500

Plus500Β is classified as a CFD Provider and not a Broker. They are a very unique provider in the sense that they have such a variety of product, assets, and offerings to their traders. They are no newcomer and have been around since 2008. They offer traders conservative leverage, which shows they enforce responsible trading! They have super competitive dynamic spreads all around. What we appreciate most is that they treat all clients equally, no matter their account size.

Their own proprietary trading platform is second to none! Traders will find it very user-friendly, yet providing all the basic tools needed. Plus500 is an industry leader and a veteran in the industry. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 0.8
  • GBP/USD: 1.3
  • USD/JPY: 1.0
  • AUD/USD: 0.8
Pros / Cons
  • Multi-Regulated
  • 24/7 Support
  • 2000 Instruments
  • Islamic Account
  • Tight Spreads
  • No MetaTrader 4
  • No MetaTrader 5
  • Low Leverage

CFD service. your capital is at risk.

Open Trading Account

 

AvaTrade Logo

AvaTrade

AvaTradeΒ is regulated across 5 continents! They are arguably the most regulated broker in the industry. Their offices also stretch globally. They have expanded and grown tremendously since 2006, climbing the leaderboard to becoming the best broker in the world. AvaTrade support is available whenever the markets are open, 24/5. If you are a Crypto enthusiast then you can enjoy trading popular cryptocurrency 24/7.

The leverage offered is nothing above average which is excellent, enforcing responsible trading. If you’d like to give them a try, you can make use of their free 30-day demo account, after filling in a single form. They want to invite clients to experience their exceptional service! Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 0.9
  • GBP/USD: 1.6
  • USD/JPY: 1.1
  • AUD/USD: 1.1
Pros / Cons
  • Easy account opening
  • No Withdrawal Fees
  • 24/7 Support
  • Multi-Regulated
  • Inactivity Fees
  • Not Beginner Friendly
  • No Local Deposit Options

up to 40% Welcome Bonus

Open Trading Account

 

cm trading logo

CMTrading

CMTradingΒ is an FSCA regulated broker in South Africa. Founded in 2012 they have been in the industry for well over 9 years, established and with a good reputation. They are a multiple award winner, winning best financial broker Africa 2020! They are arguably the biggest broker on the African continent. Cm Trading offers tight spreads across their 4 account types, which is tiered according to your account size, each providing more benefits.

3 Trading platforms are offered by them, including MetaTrader 4, STRIX (proprietory platform) and their CM Trading CopyKat platform. All of them offer mobile app capabilities. A wide variety of local deposit options are available, yet we’d like to see faster withdrawals. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 1.6
  • GBP/USD: 2.1
  • USD/JPY: 2
  • AUD/USD: 2.1
Pros / Cons
  • Multiple Award Winner
  • Low Spreads
  • Islamic Accounts
  • Not Multi-Regulated
  • No MetaTrader 5

up to 100% Welcome Bonus

Open Trading Account

 

HotForex Logo

HotForex

HotForexΒ is a highly regulated broker, including with the FSCA.Β  This provides security to South African traders. HotForex has been a well-respected broker for over a decade. They have local offices in Johannesburg, South Africa, which allows SA clients to visit them on an appointment, which adds an extra level of comfort. They offer a low minimum deposit, yet extremely high leverage.

These two are not positive factors to success. As a positive their spreads are excellent and fairly low. If you are a trader that enjoys rebates on top of tight spreads, then HotForex ticks that box. On the downside, they only offer MetaTrader 4 as a trading platform. We also found their support to be lacking a bit for a top runner in the industry. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 1
  • GBP/USD: 1.2
  • USD/JPY: 0.8
  • AUD/USD: 1.8
Pros / Cons
  • Low Minimum Deposit
  • Multi-Regulated
  • Tight Spreads
  • No Local Deposit Options
  • Average Support
  • High Leverage

up to 100% Welcome Bonus

Open Trading Account

 

XM Logo

XM

XM, although being multi-regulated, lacks an FSCA regulation in South Africa. They are in the circles of brokers that offer, what we call a no deposit bonus. On top of that, they over an up o 100% bonus, USD 5 minimum deposit. XM’s leverage is slightly above the norm, not much above the industry standard of 1:200 – 1:400. Their client base is widespread in over 190 countries globally.

This makes them one of the biggest brokers. They offer an exceptional amount of account currency options, including ZAR. If you are a Crypto fan, you would be happy to know that you can find your account in Bitcoin. XM support runs 24/5, ready to assist when the markets are open. Read the Full Review.

Average Standard Account Spreads on Majors

  • EUR/USD: 1.7
  • GBP/USD: 2.2
  • USD/JPY: 1.7
  • AUD/USD: 1.9
Pros / Cons
  • Low Minimum Deposit
  • Multi-Regulated
  • Bitcoin Deposit Option
  • Multiple Account Currency Options
  • No FSCA Regulation
  • No Local Offices
  • No Demo Account
  • High Leverage

up to 100% Welcome Bonus

Open Trading Account

 

OctaFX Logo

OctaFX

OctaFXΒ is a CySEC only regulated broker. As you know, we are not big fans of this regulatory body, especially if they are the only regulator. Non the less, OctaFX has a fairly good reputation without many complaints reported. This is encouraging to see. Established in 2011 they are not new on the block. They offer a good combination of leverage and minimum deposit.

Their bonus is also within a realistic range of up to 50%. They do run promotions that allow for higher bonuses, risk-free trades or prizes up for grabs. We are disappointed that they do not offer ZAR as an account currency option. They have a modest amount of deposit options, not many local methods for South Africans. A big positive is that their support runs 24/5. Read the Full Review.

Average Standard ECN Account Spreads on Majors

  • EUR/USD: 0.7
  • GBP/USD: 0.8
  • USD/JPY: 0.7
  • AUD/USD: 0.9
Pros / Cons
  • Bitcoin Deposit Option
  • cTrader Platform
  • Low Minimum Deposit
  • Limited Forex Pairs
  • No Local Offices
  • CySEC Regulated
  • No FSCA Regulation

up to 50% Welcome Bonus

Open Trading Account

 

eToro Logo

eToro

eToroΒ is famous for its copy/social trading platform. They are multi-regulated with strong FCA and ASIC ties. An FSCA regulation is missing, sadly so for SA traders. They are one of the older brokers, joining the industry in 2007.Β  They have a respectable minimum deposit of USD 200, leverage within the standard range, pushing good risk management.

Their bonus offering is up to 40%. A major downside is their account currency options, only being offered in USD. Although most South African traders somewhat prefer USD, ZAR is always welcome to those who do not want to take an exchange risk. eToro offers 24/5 support and also has a live chat option, offering easy access to clientele support. Read the Full

Average Standard Account Spreads on Majors

  • EUR/USD: 3 pips
  • GBP/USD: 4 pips
  • USD/JPY: 3 pips
  • AUD/USD: 6 pips
Pros / Cons
  • Unique Broker
  • Social Trading
  • Fully Verifiable Trading Stats
  • High Spreads
  • No MetaTrader 4
  • Only One Account Currency Option

up to 40% Welcome Bonus

Open Trading Account

 

Ask Your Broker These Important Questions

  • Where are you regulated and can I see proof of such regulations(s)?
  • What type of broker are you, Dealing-Desk (DD), Non-Dealing-Desk (NDD)?
  • What account types do you offer?
  • Do you offer ECN accounts?
  • What are the commissions per round trip on ECN accounts?
  • What Leverage/Margin requirement do you offer?
  • What is your minimum deposit amount?
  • Are there any fees and deposit or withdrawals?
  • How often are withdrawals processed?
  • How long does a withdrawal take to reach my account?
  • Which trading platforms do you offer?
  • What education is offered?

Choosing the Best Forex and CFD Broker

Scrolling through all the available brokers can be overwhelming since the Forex market is so large and constantly being flooded with new brokers. Choosing the right Forex broker to trade with can be a huge challenge, especially if you are new to the industry and don’t know what to look for.

This guide is going to highlight how to choose a Forex broker by important factors to be on the lookout for before making the ultimate decision.

Regulation

Regulation is King. A broker without regulation is like a door that cannot lock. It leaves the door wide open for mismanagement and poor security of funds. Not all regulatory entities are rated equally. Stick to the well know ones i.e. FSCA, FCA, ASIC, CySEC, SCB, B.V.I, DFSA, IFSC.

Transactional Cost

Cost is something we can not avoid. It is either paid as a commission or as a spread. Swaps are also a form of commission for holding a position overnight. Find out what these costs are upfront. You don’t want to be paying a fortune on spreads. This directly has an impact on your profits and losses.

Trading Platforms

A user-friendly trading platform is high on the list of things you need to be on the lookout for. Ask your broker which platform(s) they offer and if they have free educational material on it.

Education

Look for a broker that truly wants to educate their clients. Free weekly webinars, e-books and one-on-one sessions. Never let a broker tell you which trades to execute or worse, execute the trade for you.

Deposits and Withdrawals

When we want our funds, we need our funds. Swift withdrawals are key. Local brokers withdrawal times can be as quick as the same day. Look for a broker with a lot of different deposit options. Check all these variable factors with the broker before you join.

Customer Support

There is nothing more dreadful than terrible customer support. Word travels fast in this industry. Make sure your broker has a friendly staff that are willing to help and assist. Also, be aware of the contact methods and times they are available. 24/5 Is becoming the norm.

South African Forex Trading Stats and Information

The Forex or FX market for short is the fastest growing industry within Africa, especially South Africa and Nigeria. The Foreign Exchange market allows you, a trader, to trade the global financial Forex market from almost anywhere in the world. It is also the largest financial market, with over USD 5 trillion in volume exchanged on a daily basis.

As a trader, you should seek the best possible trading conditions, allowing for a fair trading environment and positive experience with your broker of choice. This will significantly increase your odds to return a profit. Although not the only factors, this gives you the best possible start. A lot of work such as educating yourself and screentime (time spent in front of the charts) is yet to be done.

Without a good reputable broker your significantly decrease your odds of success.

πŸ”’ Who Regulates (Regulatory Body) the South African Financial Sector?

The FSCA (Financial Services Conduct Authority), was formerly known as the FSB (Financial Services Board) before the rebrand on 1 April 2018.

πŸ“ Financial Conduct Authority Office and Contact Details.

41 Matroosberg Rd, Ashlea Gardens, Pretoria, 0002
Phone: 012 428 8000
Website: https://www.fsca.co.za
Email: info@fsca.co.za

πŸ‘¨πŸΌβ€βš–οΈ Is Forex & CFD Trading Legal in South Africa?

Yes, it is legal to trade these financial products within South Africa. NOTICE: Do Not Trade with an Unregulated Broker!

πŸ“Š Most Popular Forex Currency Pairs Traded in South Africa by Search Volume.

USDZAR – United States Dollar vs. South African Rand
EURUSD – Euro vs. United States Dollar
GBPUSD – Great Britain Pound vs. United States Dollar
USDCHF – United States Dollar vs.
USDJPY – United States Dollar vs. Japanese Yen
AUDUSD – Australian Dollar vs. United States Dollar

πŸ’΅ Is Trading Taxable in South Africa?

Yes! Please consult with your accountant for advice.

πŸ† Top 3 FSCA Forex Brokers List in South Africa.

Blackstone Futures
Trade Nation
CM Trading

πŸ’° How Much do I Need to Start Forex trading in South Africa?

There is no definite answer. It is depended on your Goals and Financial situation. A good starting point is ZAR 2,500 to ZAR 5,000.

⬆️ Upcoming FSCA Regulated Broker in South Arica.*

Trade Nation (FCA, FSCA, ASIC, SCB)

πŸ‡ΏπŸ‡¦ Estimate Amount of Current Active Traders in South Africa?

It is estimated to be over 100,000 +. The number is a soft estimate, Updated in April 2020.

⏰ Most Optimal Time to Trade Forex in South Africa?

24/5. It depends on your trading style, strategy and experience level. The most liquidity is when markets open and overlap.

Times are in GMT+2
Sydney open and close – 11 PM to 7 AM
Tokyo open and close (Asia) – 1 AM to 9 AM
London open and close (Europe) – 9 AM to 6 PM
New York (NY) open and close – 2 PM to 10 PM

πŸ‘‰ Why Are All Your Brokers on The Site not Local South African Brokers?

We put every broker through an incubation period, where we trial and test them before and if they make it on our website. We are not in the game to add as many brokers as possible for our own financial gain, putting our clients at risk! If a broker accepts South African clients and has good regulation we are more than happy to list them. We do give FSCA brokers preference.

πŸ’₯ What is the Optimal Leverage to Use in South Africa?

The less/lower leverage you can get away with the better. Higher leverage does not make you a better or more profitable trader. Your skills do. Use leverage responsibly and try to stick to 1:100 - 1:400.

Forex Trading Education – Is it Important?

Success or failure of any traders financial outcome is based on a key factor, Forex trading education. Africa is arguably the most uninformed country, yet the fastest-growing trading geographic in the world. Forex trading in South Africa is expanding by the day. If you are one of the many traders you should consider expanding your knowledge. Put in the time and become a smart trader.

Forex Terminology – Know you A, B, Cs

Knowing your terminology, just like in any other industry, is an important factor. The last thing you want to do is trade the markets blindly. Repetition is key, take it from a professional’s experience and view. The more you do something, the more natural it becomes. You want it to become second nature. Do what is working 10 times, do it 10 more times and you will start reaping the benefits of success.

Time spent in front of the charts plays a big role in your journey to becoming a successful trader. It all starts by knowing your trading A, B, Cs! It starts with you.

Signals, EAs and Robots – The Solution?

Out of the 30 years between us here at TradeFX we can tell you with all the honesty and confidence in the world that Signals, EAs and Robots are not long term solutions! Beginners and Experienced traders that are not happy with their results turn to these so-called solutions, mostly out of fear and greed, thinking it will lead to success. These are short term solutions that might look promising.

Save yourself the disappointment and price tag that comes with it. If you are not willing to educate yourself, you should not be trading. Sadly there is not a magical quick-fix solution.

Leverage in Forex – Explained

Opened a trading account and heard about leverage for the very first time? Not understand what it is or how it works? Leverage allows you to trade on margin. You can trade positions 100s of times bigger than the margin required to open and maintain the position. It is normally noted as 1:200 or 1:400 etc. It is a double-edged sword when abused! The higher the reward equals higher the risk.

You essential “borrow” money from the broker which allows you to open these big positions. Your margin is the collateral you put aside. The profit or loss gets added or subtracted from your equity and the “borrowed” funds are returned to the broker.

Margin in Forex – Explained

Margin, in simple terms, is capital or collateral required by your broker for you to open and maintain an open position. This gives you the ability to open a leveraged position, much bigger than what you normally could under normal circumstances. Margin is not a cost paid to the broker. This is a misconception. As soon as the position is closed the margin is returned to your balance.

The margin does temporarily get deducted from your equity and free margin as it is a liability. Do not abuse the fact that margins are 100s of times smaller than your open positions. You might just get a margin call.

  • 1:400 Leverage – 0.25% margin required
  • 1:200 Leverage – 0.5% margin required
  • 1:100 Leverage – 1.00% margin required
  • 1:50 Leverage – 2.00% margin required
  • 1:20 Leverage – 5.00% margin required

Swap Rollover Interest – Explained

What is Swap or Rollover Interest? In simple terms, it is an interest you as a trader are charged on open positions. Positions carried overnight accumulates an interest. This interest can be positive, in your favour, or a negative swap, which you pay to the broker. The rates and calculations can usually be found on the broker website or trading platform.

There are specific trading strategies built on swap – rollover interest, where the trader opens a position, either long or short, just before interest is paid. The trader then gains a substantial positive interest due to the big position size. All they need to do is analyse the market and ensure the position goes in their favour for that short period of time.

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easyMarkets Broker Review
4.6 stars from 201 ratings

up to 50%

easyMarkets provide fixed spreads without hidden fees on over 200 global markets. Trade on their award-winning easyMarkets platform.

Visit SiteVisit Site
Broker Disclosure
CFD service. your capital is at risk.
73% of retail investor accounts lose money when trading CFDs with this provider.

πŸ† Top 3 Brokers in
South Africa

Minimum
Deposit

ZAR 1000

Minimum
Deposit

USD 100

Minimum
Deposit

USD 5

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Blackstone Futures Logo

Minimum
Deposit

ZAR 1000

Max. Leverage

1:400

easyMarkets Logo

Minimum
Deposit

USD 100

Max. Leverage

1:400

Trade Nation TN Logo

Minimum
Deposit

USD 5

Max. Leverage

1:200