10 Best FSCA Regulated Forex Brokers in South Africa

The Financial Sector Conduct Authority or FSCA is the financial regulator in South Africa. The FSCA is one of the most reputable regulatory authorities that ensures that all retail traders and consumers are treated fairly, that forex brokers are ensuring client fund security by keeping funds in segregated accounts, and that all financial service providers can meet their financial obligations.

The FSCA watches over forex trading in South Africa and provides retail traders frequent updates on forex brokers including warnings, risk warnings, and other important information. The FSCA also enhances and supports the integrity of the financial markets in South Africa. The FSCA is one of the most reputable regulatory entities in the world.

We explore the best FSCA regulated forex brokers in South Africa.

What are the benefits of trading with an FSCA regulated forex broker in South Africa?

When you trade with an FSCA regulated forex broker, you can be sure that your broker is adhering to strict financial regulations. This means that your broker is held to a high standard of conduct and must maintain a high level of transparency. Furthermore, your broker must keep your funds safe by segregating them in a segregated account. This ensures that your funds are not used for other purposes when it comes to deposits and withdrawals.

The best forex brokers in South Africa have been authorised by the FSCA with an OTC licence. This is called an Over-the-Counter (OTC) licence which derivative providers need to continue operating as a broker in South Africa for 2022. These brokers are now referred to as ODPs and must be licenced or have a pending application submitted to the FSCA. These brokers are allowed to offer a wide range of instruments on their trading platforms. There are various account types and trading fees associated to these regulated brokers when trading forex pairs.

Trading Platforms

MetaTrader 5 is a leading global Forex and CFD trading platform. It offers traders an intuitive interface with advanced features, charting tools, technical indicators and more. MT5 also allows traders to use automated trading strategies, EA’S or “bots”, to help them trade the markets. The best brokers in South Africa offer the MT5 to their traders with fast execution time and trading conditions.

How does Forex trading work in South Africa?

Investing in forex is very popular in South Africa. The Financial Sector Conduct Authority (FSCA) protects The South African Forex industry making it totally legal.

The act of speculating on one currency against another is known as forex trading. Financial institutions and investment banks employ Forex trading, also known as FX trading, to make money and protect their other investments.

Private persons in South Africa, known as retail Forex traders, are also active participants in the forex CFD market, and make up a huge proportion of Forex traders in South Africa.

Risks Involved

The high risk of losing your money does exist when trading currency pairs due to the leveraged speculative nature of trading forex cfds. For beginners, who don’t have the appropriate knowledge, these complex instruments can be challenging to understand and often lose money when trading. Retail investor accounts lose money when traders risk too much capital on margin and are exposed, due to the leverage, when markets are volatile. If you are new to trading it might be advisable to first open a demo trading account, completely risk free, in order to get to grips with the forex market. The broker will offer demo accounts as part of their forex service offering. The best forex brokers in South Africa will offer a low minimum deposit to part-time traders as there is less risk involved for these retail investor accounts.

How to trade the Forex market in South Africa

Approximately 100 trillion Rand (6.6 trillion USD – 2019) is traded daily in the Forex market, making it the world’s largest and most liquid financial market. And currency trading is done on the Forex market, which involves buying and selling currencies.

Foreign exchange traders acquire currency CFDs at current market prices and sell them for a price in the future. The difference between the purchase and sale price is the trader’s profit or loss because currency prices are always fluctuating.

Only by taking advantage of the market’s turbulence can Forex traders turn a profit. Despite the fact that the Forex market is open 24 hours a day, the most volatile times of the day are when the major stock exchanges in Sydney, Tokyo, London, and New York are open for business.

When London and New York open their doors at the same time, Forex traders are most likely to be in action. Because we share a time zone with London, we can take advantage of these market openings during regular business hours because of our location in South Africa.

A Forex broker is the only means for individual investors to have access to this global market. Clients of a Forex broker have access to trading software and the market, allowing them to do market analysis and buy and sell currencies as needed.

New Forex traders in South Africa should choose brokers who are regulated by the FSCA and have been issued or have an application pending for the new OTC license in order to ensure secure access to the Forex markets.

The best way to conduct Forex trading in South Africa

The Financial Sector Conduct Authority (FSCA) in South Africa is responsible for regulating Forex trading and currency CFDs. Deliverable Forex is also under SARB control. Protecting South African citizens from financial fraud and promoting a healthy and competitive financial marketplace are the responsibilities of the FSCA.

The Johannesburg Stock Exchange, banks, hedge funds, and other financial service providers are all under its watchful eye.

Customers’ money must be kept separate from the company’s operating finances and examined on a regular basis by FSCA-regulated Forex brokers to guarantee that customer funds are not misused.

For the sake of Forex traders in South Africa, all FSCA-regulated brokers are required to apply for an Over-the-Counter Derivative Provider (ODP) license, which ensures that Forex brokers are overseen by trained non-executive directors, who sit on the board and that they have a sufficient cash reserve to avoid insolvency.

For South African traders who choose a forex broker who holds their cash in a local bank like Khwezi this gives an additional layer of security. Your funds can be reclaimed in the event of a broker’s insolvency or closure by the Financial Sector Conduct Authority (FSCA).

Rand (ZAR) trading accounts are also available to Forex traders in South Africa from local brokers. Only USD or EUR trading accounts are offered by the vast majority of offshore Forex companies.

It costs South African traders money every time they deposit or withdraw funds from a USD trading account. There are no conversion fees while using a ZAR trading account. Withdrawals and deposits are also faster because most ZAR trading accounts are held in South African banks.

What is the spread in forex?

The spread is the difference between the bid and ask prices. The ask price is the price at which a trader can sell a currency, while the bid price is the price at which a trader can buy a currency. The smaller the spread, the more expensive it is to trade.

The average spread eur usd is 2.5 pips. The best forex broker will try and offer the best spread possible to its clients. Depending on your account type and your minimum deposit will determine which spreads you receive from your broker. Khwezi Trade offers the best spread on EUR USD of 1.5 pip to its clients.

Forex trading with a pips calculator

Pip is an abbreviation for “percentage in point,” which can also be translated as “price interest point.” The smallest price movement that an exchange rate can make in accordance with forex market standard is referred to as a pip.

A pip is a fundamental notion in the world of Forex trading. Forex pairings are used to communicate exchange quotations, which are accurate to four decimal places, through bid and ask quotes that are displayed on a chart.

‘Fractional pip pricing’ is a feature that most forex brokers provide in addition to the normal pip pricing. A fractional pip is one tenth of a pip as a result of the addition of a fifth decimal place.

The use of fractional pip spreads can allow for tighter spreads and a better understanding of the changes of a currency’s price. These minuscule units of measurement, when used to measure price change, safeguard investors from suffering large losses.

As an example, if a pip were worth 10 basis points instead of one, a change of one pip in the exchange rate would produce significantly greater volatility in the value of a currency.

Using a pip value calculator will provide you with the value of a pip in the currency in which you wish to trade in. This information is critical in deciding whether or whether a transaction is worth the risk, as well as in effectively managing that risk.

Khwezi Trade

Khwezi Trade is one of the most reputable FSCA-regulated forex brokers.

Khwezi Trade is an FSCA licensed OTC provider and caters to beginner traders and professional investors by providing a wide range of tradable instruments.

Khwezi Trade is both suited for beginner and experienced traders.

The broker features low minimum deposits on retail trading accounts, providing traders with a low barrier of entry into forex markets and some of the best educational materials.

Traders can expect competitive spreads, decent maximum leverage, and a transparent trading environment where client funds are secure.

Khwezi Trade Pros and Cons

✔ Pros	❌ Cons
Well-regulated by the Financial Sector Conduct Authority and caters specifically for South African traders	Limited account currency options
Innovative mobile apps offered through MetaTrader	Individual stock trading not supported
Trading tutorials and market analysis provided
Dedicated account manager is provided
There is a choice between trading ZAR accounts

Khwezi Trade features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👍 FSCA
💵 Minimum deposit from	💰 ZAR500
⚖️ Average spread from	👉 0,6 pips
📈 Commissions from	N/A
💸 Deposit/Withdrawal Fees	N/A
⚖️ Maximum Leverage	⚖️. 1:400
🤑 Bonuses	👍 30%
❓ Customer Support	🏪. 24/5

Velocity Trade

Velocity Markets was established in 2007.

Velocity Trade is a leading global provider and a reputable forex broker that accepts South African clients.

Forex traders who register a trading account with Velocity Trade can expect powerful and innovative trading technology.

Velocity Markets gives advanced and flexible trading services and a plethora of trading opportunities.

Velocity Trade Pros and Cons

✔ Pros	❌ Cons
Well-regulated broker and financial service provider	Limited funding options offered
There is a wide range of assets that can be traded	Limited educational materials offered
Flexible and innovative trading platforms supported	Not suited to beginner traders
Client fund security is guaranteed, and funds are kept separate from company funds
Recommended for institutional traders

Velocity Trade features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👉 ASIC, AFSL, ASX
💵. Minimum deposit from	💰 $1 / 16 ZAR
⚖️ Average spread from	👉 3.0 pips
📈 Commissions from	📈 None
💸 Deposit/Withdrawal Fees	🙅. Not indicated
⚖️ Maximum Leverage	⚖️ 1:500
🤑 Bonuses	💰 Yes
❓ Customer Support	🏪 24/5

Colmex Pro

Colmex Pro is a well-regulated and well-established No-Dealing Desk (NDD) forex broker that is well-regulated by the Financial Sector Conduct Authority (FSCA) and the Cyprus Securities and Exchange Commission (CySEC).

Colmex Pro has been offering comprehensive trading solutions for more than a decade.

The forex broker has strategic partnerships with international banks, ensuring that forex traders have some of the most competitive pricing in the industry.

Colmex Pro offers MetaTrader 4 in addition to a powerful proprietary trading platform that can be used when carrying out trades.

Traders can also expect a reliable trade execution policy and innovative trading software infrastructure.

Colmex Pro Pros and Cons

✔ Pros	❌ Cons
Well-regulated by CySEC and FSCA which are both top-tier regulators	Demo accounts are only available for 14 days
All trading strategies are accommodated	Limited education materials offered
Trading platforms are flexible and innovative	Market News and analysis are not offered
Reliable trade execution speeds with minimal slippage	Limited funding options offered
Competitive trading conditions are provided	High minimum deposit requirement

Colmex Pro features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👉 CySEC, FSCA, FCA, BaFin, CNMV, ACPR
💵. Minimum deposit from	💰 $10 000 / 160 000 ZAR
⚖️ Average spread from	👉 0.9 pips
📈 Commissions from	📈 $1.50 / 24 ZAR
💸 Deposit/Withdrawal Fees	🙅. None
⚖️ Maximum Leverage	⚖️ 1:30
🤑 Bonuses	💰 Yes
❓ Customer Support	🏪 24/5

IG Markets

IG Markets South Africa Limited is another FSCA-regulated broker that accepts South African residents.

IG has regulations and authorization with several other regulatory bodies around the world to offer more than 17,000 financial instruments that can be traded across asset classes.

IG Markets offers a transparent fee schedule with competitive rollover fees, tight spreads, low commissions, and no hidden fees.

IG caters to experienced traders by offering advanced trading tools, technical analysis, fundamental analysis, and more.

IG Markets Pros and Cons

✔ Pros	❌ Cons
Free forex trading signals are provided along with excellent market analysis	Inactivity fee charged
Excellent education materials are provided	A high minimum deposit required
A wide range of advanced trading tools are offered
Powerful and user-friendly trading platforms provided along with innovative forex trading apps
Fast, low-cost trading guaranteed
Multi-regulated and trusted financial service provider and forex broker
Deposit fees and withdrawal fees are not charged
Offers a choice between retail trading accounts for South African clients
Offers Islamic Accounts for Muslim Traders

IG Markets features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👉 FCA, BaFin, CySec, FINMA, FSCA, MAS, JFSA, ASIC, FMA, CFTC, BMA,
💵. Minimum deposit from	💰 $250 / 4 000 ZAR
⚖️ Average spread from	👉 0.8 pips
📈 Commissions from	📈 1% and up
💸 Deposit/Withdrawal Fees	🙅. None
⚖️ Maximum Leverage	⚖️ 1:50
🤑 Bonuses	💰 No
❓ Customer Support	🏪 24/5

HotForex

HotForex is the trading arm of HF Markets and its parent.

HotForex is well-regulated in several jurisdictions around the world, including South Africa through the FSCA.

HotForex has more than 1.5 million registered traders from around the world.

Hotforex has already won more than 25 industry awards.

Awards for excellent customer services, powerful trading platforms, and competitive trading conditions are just a few of the many awards received by Hotforex.

Hotforex Pros and Cons

✔ Pros	❌ Cons
Well-regulated by several entities through its parent company, giving traders peace of mind	Fixed spreads are not offered
Allows all kinds of traders including active traders, high volume traders, and others
Commission-free trading offered along with free financial education
Negative balance protection applied to retail accounts

Hotforex features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👍 CySEC, DFSA, FCA, FSA, FSCA
💵 Minimum deposit from	💰 $5
⚖️ Average spread from	👉 0,0 pips
📈 Commissions from	📈 USD 0.03 per 1K lot.
💸 Deposit/Withdrawal Fees	🙅 None
⚖️. Maximum Leverage	⚖️. 1:1000
🤑 Bonuses	👍 100% Supercharged Bonus
❓ Customer Support	🏪 24/5

Blackstone Futures

Blackstone Futures was established in 2009.

Blackstone Futures is a reputable South African broker that offers traders some of the best trading conditions in the country.

Blackstone Futures is well-known for providing a safe trading environment in which client deposits and assets are protected.

Traders can choose between useful trading tools, a powerful CloudTrade proprietary platform MetaTrader 4, and a plethora of trading opportunities.

This gives traders the ability to use different trading strategies and trading styles across financial markets.

Blackstone Futures Pros and Cons

✔ Pros	❌ Cons
A well-regulated financial services provided and broker in the forex industry	Limited retail account options
Offers a wide range of currency pairs and several other instruments	Limited funding options
Advanced trading tools offered, adding a competitive edge to trading strategies of experienced traders	Spreads are not the tightest
Educational materials are offered alongside a powerful forex trading platform
Offers currency trading, CFD trading, and a plethora of trading opportunities

Blackstone Futures features

👉 Feature	ℹ️. Information
👮‍♂️ Regulation	👍 FSCA
💵 Minimum deposit from	💰 ZAR R1000
⚖️ Average spread from	👉 2.0 pips
📈 Commissions from	📈 N/A
💸 Deposit/Withdrawal Fees	🤷 N/A
⚖️. Maximum Leverage	⚖️. 1:400
🤑. Bonuses	💰 25%-50% percent of base salary
❓ Customer Support	🏪. between 9:00 – 17:00 (GMT +1)

Exness

Exness is a reputable FSCA-regulated broker that has offices in several regions around the world.

Exness is well-known for its flexible trading account types, competitive trading conditions, and high maximum leverage ratio.

Exness is known for offering a transparent trading environment, low minimum deposit requirements.

Exness is also known to have some of the best averages spreads in the industry.

Exness Pros and Cons

✔ Pros	❌ Cons
A perfect option for beginner forex traders in South Africa	Limited financial instruments offered
Offers tight average spreads, a high maximum leverage ratio, and low USD minimum deposit
Regulated by top-tier regulators in the forex industry
Offers advanced trading tools, excellent education, and award-winning customer service

Exness features

👉 Feature	ℹ️. Information
👮‍♂️ Regulation	👍 CySEC
💵 Minimum deposit from	💰 $10 / ZAR R160
⚖️ Average spread from	👉 0.0
📈 Commissions from	📈 ‎$0.1 / ZAR R1.60 to $3.50 / ZAR R56.00
💸 Deposit/Withdrawal Fees	🤷 Variable depending on method
⚖️. Maximum Leverage	⚖️. 1:2000
🤑. Bonuses	💰. 10% of Deposit Bonus
❓ Customer Support	🏪. 24/7

Markets.com

Markets.com is a reputable broker for beginners and experienced traders from South Africa.

Markets.com provides over 2,200 financial instruments that can be traded through MetaTrader and a powerful proprietary trading platform.

Markets.com has more than 5 million registered traders that use its services, proving that it is a trusted forex broker.

Markets.com has won several industry awards and it is one of the best brokers in South Africa to offer personalised training, dedicated customer service, and a range of advanced analysis tools and technical indicators.

Markets.com Pros and Cons

✔️ Pros	❌ Cons
Markets.com is a broker with a high trust score that offers ZAR as the base currency and deposit currency	A high minimum deposit is required when traders register a live account with Markets.com
User-friendly trading technology supported with a proprietary mobile app	An inactivity fee is charged on dormant accounts
A tight average spread is offered on forex major pairs
Commission-free trading is provided
There are no deposit fees or withdrawal fees charged
Caters for all trading styles and trading strategies

Markets.com features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👉 FSCA
💵 Minimum deposit from	💰 $100 / ZAR R1 600
⚖️ Average spread from	👉 1.9 pips
📈 Commissions from	📈 $0 / ZAR R0
💸 Deposit/Withdrawal Fees	🙅 None
⚖️ Maximum Leverage	⚖️ 1:300
🤑 Bonuses	💰 Yes
❓ Customer Support	🏪 24/7

Globex360

Globex360 is a South African-based forex broker regulated by the Financial Services Conduct Authority.

Globex360 provides South African traders access to more than 100 tradable financial instruments that can be traded across forex pairs, commodities, and indices.

Traders can trade major currencies, minor pairs, exotic pairs, by using the powerful trading platform that Globex360 provides across web browsers, desktop apps, and mobile trading.

Globex360 Pros and Cons

✔ Pros	❌ Cons
Copy-trading offered	Limited trading instruments
Well-regulated	Individual stock CFDs not offered
Islamic Account offered	Lack of education
FIX API provided	Limited funding options
User-friendly trading platform provided

Globex360 features

👉 Feature	ℹ️ Information
👮‍♂️ Regulation	👉 FSCA
💵. Minimum deposit from	💰 $25 / 400 ZAR
⚖️ Average spread from	👉 1.6 pips
📈 Commissions from	📈 None
💸 Deposit/Withdrawal Fees	🙅. None
⚖️ Maximum Leverage	⚖️ 1:400
🤑 Bonuses	💰 Yes
❓ Customer Support	🏪 24/5

Frequently Asked Questions

Some offer ZAR accounts, but not all. FSCA-regulated brokers who are headquartered in South Africa tend to offer ZAR accounts with South African banks, but international forex brokers who have FSCA regulation will not always offer ZAR-denominated trading accounts.

Yes, if the regulation of the forex broker has been verified on the FSCA’s official website, these brokers can be trusted. However, keep an eye out for any warnings issued by the FSCA about brokers.

Several brokers, both local and international, have FSCA regulation and the brokers on this list are some of the best.

Yes, as a South African trader you should consider trading with an FSCA-regulated forex broker to ensure that you are covered and that your funds are safe.

The FSCA is a governing body and competent regulatory authority in South Africa that oversees the financial markets in South Africa, including the forex market.