Tips to Find Best Forex Brokers in South Africa
When it is about forex trading, South African forex traders have a variety of options. However, the South African Financial Sector Conduct Authority (FSCA) regulates the South African brokers, but international brokers possess the most competitive brokers. On top of that, local best forex brokers in South Africa also provide lucrative offerings to compete with the international brokers.
If you are a South Africa based trader, forex brokers in South Africa will definitely help you towards your trading journey. As there are hundreds of brokers available in South Africa, finding the best forex broker can be difficult sometimes if you don’t know how to find them.
Being said that¸, we have made a list of the tips that you can apply while choosing the best brokers in South Africa. Read on to know them with some facts related to the South African forex market.
Forex Regulations in South Africa
Before 2018 Financial Services Board (FSB) was used to regulate the South African brokers. It was then replaced by the Financial Sector Conduct Authority (FSCA) to regulate forex and other financial organizations. It is mandatory for all Forex brokers in South Africa to obtain a license from FSCA. Without a license, no brokers can operate legally.
However, it is not mandatory for the international brokers to get a license from FSCA, but they must have to be regulated by their respective jurisdiction. So, it is the traders’ job to verify a broker before investing in them.
So, how would you verify a broker?
You will get to know below.
Verify Forex Brokers with FSCA
FSCA has a database consisting of all the data of forex brokers in South Africa. The database can put out data of a regulated South African forex broker through the license number. However, you need to know the license number to verify the regulatory status of the broker.
The license number should be found on the broker’s website. Once you retrieved the license number, visit the FSCA website and input the number. Next, the website will pull out the data. Further, if you don’t find any data, the broker should not be considered as regulated.
Tips to Find Best Forex Brokers in South Africa
Since the South African government did not put any restriction on traders and they can trade anywhere in the world. As a result, finding the best forex brokers in South Africa becomes challenging as there are more than 1200 MetaTrader 4 forex brokers and several hundred more MetaTrader 5 forex brokers.
However, if you carefully follow the tips provided below, you can easily find the top 10 forex brokers in South Africa.
- Check with the proper regulatory bodies: Whether your selected forex trading platforms are located in South Africa or internally, you should always check them with the respective regulatory body. However, we have mentioned earlier about checking the South African brokers with FSCA. You can apply the same process for the international brokers too.
- Pricing environment: Pricing is a critical factor as many new investors ignore the negative impact of an expensive cost structure in the long run. So, it is highly mandatory to get familiar with the broker. You may conduct research on the cheapest forex brokers in South Africa to eliminate the pricey brokers.
- Check the execution speeds: Your actual cost of trading, profit, requotes, and slippage all depends on the execution speed. A quick speed can serve you the best trading experience with a good profit. So, it is essential to look at the execution speed to find the best forex brokers in South Africa.
- Know the offered asset: There are some instruments that are actually good for nothing. On the other hand, some assets can skyrocket your profit. For example, forex, stocks, crypto, indices are some of the top instruments. So, you can choose SA brokers with NASDAQ to access the world’s best stocks.
- Platform: To get the full benefits of forex, platforms play a vital role. While a significant number of forex brokers offer the MT4 platform, and the rest offer MT5 or their own platform. Our research shows that the MT4 platform offers the best output for any type of trader. So, we would recommend selecting the best brokers in South Africa that offer the MT4 platform regardless of your trading experience.
- Deposit and withdrawal: Here comes another crucial factor. Usually, all South African brokers have easy deposit and withdrawals methods. So, checking the transaction method will not make any difference. However, some of the brokers may offer a bonus when someone deposits. But this option may not be available with the international broker. To take this benefit, you can try finding the South African forex brokers with bonus and can get a chance to get some free money for your trading.
- Customer support: A prompt customer service can get your problem solved right away and keep your trading going. So, you may go through different forex broker reviews available online on customer service and choose your desired broker.
- Education feature: Nowadays most of the brokers offer education platforms for their traders as many newbies are interested in forex trading. Besides, experienced traders can learn new stuff from education tools. Having an education feature is not mandatory for a broker, but finding a broker with an education tool should be worth a try.
Tips to Avoid Forex Scam in South Africa
Here are some tips to keep yourself always from scammers.
- Avoid trading with unregulated forex brokers.
- Double-check the regulatory status of a broker.
- It would not be wise to trade a broker that keeps contacting you to trade with them. Reupdated forex brokers never force anyone to trade with them.
- Read all the terms and conditions.
- Contact customer support if you have any confusion.
The tips we have mentioned here will surely find you the best forex brokers in South Africa. While you follow the guidelines to find your desired South African brokers, you should be careful about the scam brokers too. Therefore, you can keep in mind the tips to avoid scam brokers.
We hope you will find this article helpful for your forex journey in South Africa.
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