Up-and-coming Brokers in South Africa

FXCM Logo
3.6 stars from 210 ratings

Broker Verified

FXCM, or Forex Capital Markets, is a broker established in the United Kingdom in 1999, offering forex and CFD trading to their clients.
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.
Vantage FX Logo
3.9 stars from 287 ratings

Broker Verified

Vantage FX is a subsidiary of the Vantage Group and has been involved in the forex market since 2009.Ā Vantage FX was established in Australia.
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 stars from 76 ratings

Broker Verified

IFX Brokers is an online trading broker set up in South Africa. Its core values are commitment, transparency and trust.
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.
NSBroker Logo
3.2 stars from 78 ratings

Broker Verified

NSFX Ltd, a Maltese regulated investment services firm that works under European and Maltese legislation, runs NSBroker since 2011.
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.
FP Markets Logo
2.5 stars from 89 ratings

Broker Verified

FP Markets, founded in 2005, is an Australian CFD and forex broker. FP Markets is a multi-asset broker with more than $1 billion in daily trading volume.
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.
HYCM Logo
3.5 stars from 66 ratings

Broker Verified

Henyep Markets, HYCM, offers competitive spreads as low as 0.2 pips and has an average execution time of 12 milliseconds.
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.
Khwezi Trade Logo
3.4 stars from 77 ratings

Broker Verified

Khwezi Trade, a Financial Services FSP 44816, is a relatively new online Forex and CFD brokerage launched in 2014. Proudly South African!
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.
FXGM ZA Logo
3.4 stars from 99 ratings

Broker Verified

FXGM ZA South Africa, operated by FXGM South Africa (Pty) Ltd, is a brokerage firm that works only in South Africa. An up-and-coming broker!
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.

Why Regulated Forex and CFD Brokers?

The foreign exchange market is considered to be the largest and most popular financial market in the world. With a daily transaction of about 5 trillion dollars, it has turned into a vast business that has made many traders millionaires overnight.

As a trader, if you want to enter into the world of forex trading, then there are some things that you should be careful about. One of these things is the broker that you will use. Of course, the brokerage company you will associate yourself with will have to be authentic. Otherwise, you will face setbacks.

Keeping all these factors in mind, you should choose a trustworthy and reliable broker so you can have the more significant possible returns on your investments.

Of course, there are certain things that you must consider when selecting a forex broker. These include commission rates, spreads, historical performance and leverage options. But still, one of the most important things to find out is whether the broker is regulated or not.

What is a Regulated broker?

By definition, a regulated broker means a company whose financial activities are controlled and monitored by a regulatory body. Brokers are also known as the watchdogs of the financial market because they oversee everything that is happening.

The regulatory body’s main aim is to stop any illegal or fraudulent activities that may be happening within the financial market while also increasing awareness to the customers.

According to the regulatory body, if a brokerage firm is regulated, whatever operations are done are within the guidelines, policies, and industrial standards. The supervisory authorities also have audits with the regulatory body regularly. If a brokerage firm fails to follow the guidelines, then legal action can be taken against them. The license will be cancelled, and the company will be shut down.

Benefits of Working with a Regulated Broker

There is a reason why traders always prefer a regulated broker over one that is not regulated. It is because it has some benefits. According to research, traders associated with regulated brokers can experience more transparent and honest working operations.

The regulated brokers have no other choice but to follow the rules, so no matter what they do, the results will always be transparent. This is because the brokers do not have any margin to manipulate the markets in their favour.

It is essential to check the regulated broker’s validity and the expiry of their license to avoid working with a falsely regulated broker. The law does not allow forex brokers to mix their investor’s funds with the firm’s.

It means that the firm should have a separate account for its client’s money and an individual for their own money.

The firm cannot use its client’s money at any given point to fulfil their own financial needs. In case a brokerage firm goes bankrupt, the funds should only be used to compensate the traders. Either way, as a trader, your money is safe no matter what happens to the broker.

Regulated financial brokers should not get involved in any illegal activity that could negatively impact their clients in any way. For example, tampering with the trading platform, manipulating the prices, opening positions against their clients, or withholding their clients’ money without any valid reason can cause severe damage to the company and even result in being banned from the financial industry.

In such a way, if a trader is working with an honest brokerage firm, you will be in good hands. Regulation is an essential part of the financial industry because it helps in any financial setbacks to the traders. Therefore, it is always crucial to know who you are working with to avoid any damage.

Forex Regulations

The Forex industry is a vast market, more popular than the equities or futures markets. As a result, the forex trading regulations in the UK, US, India, and Canada are on the rise.

The effect has spread to the entire globe. As a result, companies worldwide are trying to effectively oversee and regulate the forex trading market.

What are CFD Brokers?

CFDs are an over-the-counter derivative instrument, meaning that you never really own the underlying asset as a client. Instead, the profits in CFDs come from where you enter and close a trade and the price movements.

A CFD broker is an online trading platform that gives traders access to CFDs. In addition, different brokers can offer CFDs on other assets such as currency pairs, stocks, commodities and cryptos.

Types of CFD brokers

The CFDs is divided into two categories: the market makers and the direct market access brokers.

The market makers are concerned with brokerages purchasing significant positions from liquidity providers. These assets are then sold to individuals. As a result, market makers accept fewer deposits because they can cover liquidity deposits.

When it comes to the direct market access brokers, users are allowed to go straight to the liquidity providers. The most common type is the Electronic Communication Network (ECN) broker.

When you enter a position, your trade heads straight to the ECN, passing through the broker without any other factors interfering in it. However, the downside to DMAs is that the users need more money as the DMAs do not cover liquidity gaps.

How do CFD Brokers Work?

The CFD brokers facilitate the clients and the trading process through an online platform. The users are asked to sign up for an account, deposit funds, trade CFD products, and withdraw any profits left behind.

The account types, in this case, differ, and so does the quality of platforms, the fees, and the customer service. Sometimes, the products may also vary, but you can expect to trade online CFD products in forex, stocks, futures, opinions, commodities, cryptocurrency, and ETFs at the most prominent companies.

The best CFD brokers give attractive leverage options, a user-friendly platform, and a wide range of products. Therefore, it is essential to see which CFD broker you are choosing. There is no one fixed option; it comes to a person’s preference.

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