Best OTC Forex Brokers in South Africa
Having an approved OTC application from the FSCA is vital to continue offering a trading platform in South Africa. There have only been a few OTC applications approved.
OTC brokers need to adhere to strict capital adequacy, corporate governance, and compliance requirements. These licences have been granted to ensure the safe trading environment for all South African forex traders.
When compared to STP brokers or NDD brokers, OTC providers offer smoother quotes during volatile conditions in addition to their standard deposit bonuses.
This presents a significant advantage for a variety of trading strategies and is one of the reasons why OTC providers are becoming increasingly popular.
We examine the best OTC Forex brokers in South Africa.
Khwezi Trade
Forex trading is offered through Khwezi Trade, a South African company. Khwezi Trade is subject to stringent regulations from the FSCA and possesses a complete authorization to operate as an ODP.
OTC derivative contracts are issued by a party referred to as an ODP, which stands for “over-the-counter derivatives provider.”
Khwezi Trade provides CFD and trading accounts denominated in Rand, and all customer monies are kept in accounts that are fully segregated and individualized within the South African banking system.
The MetaTrader 4 trading platform is one that Khwezi Trade makes available to their customers. Not only is the MT4 trading platform simple to operate, but it also comes loaded with a ton of helpful features.
Khwezi have secure servers ensuring an ultra -fast trading experience with low and consistent spreads.
Users of MT4 have access to a diverse range of charting tools, as well as a platform that is entirely modifiable and comes equipped with an embedded programming language.
This allows users to extend the platform’s capabilities by adding trading strategies, scripts, and indicators, among other things.
Pros and Cons
| 👉 Pros | ❌ Cons |
|---|---|
| 💵 ZAR Accounts are available | ❌ Individual stock trading not possible |
| 👮♂️ FSCA regulations apply to this South African-based company | |
| 🧰 Provides a wide variety of trading tools | |
| 💰Trading costs are reasonable | |
| 🕵🏻 Ensures compliance with OTC regulations | |
| ⚖️ A vast variety of trading options are available |
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 |
QuickTrade
QuickTrade is a South African broker that has been granted authorization as a Financial Services Provider (FSP) by the Financial Sector Conduct Authority of South Africa. QuickTrade is a brand that belongs to QuickTrade (Pty) Ltd.
Additionally, an application for QuickTrade to be authorized as such has been submitted to the FMA. As a result, QuickTrade is subject to the restrictions that the FMA has in place for OTC derivatives providers as well as the legislation that the FSCA has in place that apply to OTC derivative providers.
You will find over 30 currency pairings to trade on the QuickTrade trading platform, some of which are exotic or minor, such as USD/ZAR, as well as equities, ETFs, Brent, crude oil, Natural Gas, gold, silver, platinum, and palladium, and 12 indexes.
The spread on forex trades begins at 1.2 pips and floats from there. This indicates that they are subject to change according to the circumstances of the market. For instance, if there is a lot of volatility in the market, the spreads will be a little bit greater, but they will never go lower than 1.2 pips.
Pros and Cons
| Pros | Cons |
|---|---|
| 👮♂️ FSCA Regulated Brokers | ⚖️ Limited number of instruments |
| 🇿🇦 ZAR Deposits allowed |
Features
| 👉 Feature | ℹ️ Information |
|---|---|
| 👮♂️ Regulation | 👮♂️ FCA |
| 👇 Minimum deposit from | ❌ None |
| ⚖️ Average spread from | ⚖️ 1.2 Pips |
| 💵 Commissions from | 💵 Variable |
| 💰 Deposit/Withdrawal Fees | 💰 Yes |
| 💳 Maximum Leverage | ⚖️ 1:500 |
| 🤗 Bonuses | 🥹 None |
| 🙋♂️Customer Support | 🏪 24/5 |
Velocity Trade
Velocity Trade is a highly reputable and stringently regulated broker that has headquarters in the United Kingdom, Canada, Australia, South Africa, and New Zealand.
Velocity Trade is regulated and authorized by the FCA, IIROC, ASIC, FSCA, and FMA, which are the respective authorities in each of these countries.
Because Velocity makes it possible to trade a wide array of financial products in a number of different marketplaces throughout the world, the company is able to maintain and continuously increase its worldwide exposure.
Trades can be carried out through Velocity Trade using one of the most well-known, trustworthy, highly regarded, technologically advanced, and user-friendly trading platforms available, namely MetaTrader 4.
Traders have access to the greatest possible trading environment and a one-of-a-kind, all-encompassing trading experience thanks to the multitude of features that are included within MetaTrader 4.
Pros and Cons
| 👌 Pros | ❌ Cons |
|---|---|
| 👮♂️Regulated across multiple jurisdictions | 🕵🏻 Wide spreads |
| 👉 Comprehensive portfolio of assets | 👉 No research or education |
| ☪️ Islamic Account available |
Features
| 👉 Feature | ℹ️ Information |
|---|---|
| 👮♂️ Regulation | 🕵🏻 FCA, IIROC, ASIC, FSCA, and FMA |
| 💳 Minimum deposit from | 💵 USD1 |
| ⚖️ Average spread from | ⚖️ 3 pips |
| 💵 Commissions from | 💵 Variable |
| 💳 Deposit/Withdrawal Fees | 💰 Yes |
| 💳 Maximum Leverage | ⚖️ 1:500 |
| 🤗 Bonuses | 🥹 None |
| 🙋♂️ Customer Support | 🏪 24/5 |
GT247
GT247 is an online brokerage company that has its headquarters in Johannesburg, South Africa. Trading foreign currency and contracts for difference (CFDs) online is the broker’s primary focus.
They make over 250 different financial instruments available for trading on the advanced and potent trading platform known as MetaTrader 5 (MT5, which can be accessed via the web, desktop computers, and mobile devices.
GT247 is proud to have an effective customer support desk as well as a modern infrastructure, both of which contribute to the company’s ability to provide dependable transaction execution speeds together with competitive spreads.
Clients of GT247 have access to a research team that provides them with the most recent market news in addition to fundamental and technical analysis on a consistent basis.
Because there is no requirement for a minimum deposit, GT247 enables all of their customers to trade without any limitations. In addition, they support automated trading, scalping, and hedging strategies.
The MT5 trading platform that is made available to users is highly effective and packed with a variety of trading tools and functions.
However, the number of trading instruments offered by brokers might be expanded given the limited number of cryptocurrencies, commodities, and indices that are currently available for trading online.
Instead of expiring after one month, the sample account might have an infinite storage capacity. They only accept card payments and bank transfers for account funding; there is no opportunity to use an electronic wallet to fill your account with them.
Pros and Cons
| 👌 Pros | ❌Cons |
|---|---|
| 👮♂️ Regulated by the FSCA | 💸 Inactivity fees |
| 🙋♂️Market research provided | ⚖️ Limited deposit methods |
| 💻 MT5 available | |
| 🛠 250 trading instruments available |
Features
| 👉 Feature | ℹ️ Information |
|---|---|
| 👮♂️ Regulation | 🕵🏻 FSCA |
| 💵 Minimum deposit from | 💵 None |
| ⚖️ Average spread from | ⚖️ Variable |
| 💵 Commissions from | 💸 None |
| 💳 Deposit/Withdrawal Fees | 💵 None |
| ⚖️ Maximum Leverage | ⚖️ 1:80 |
| 🤗 Bonuses | 🥹 None |
| 🙋♂️ Customer Support | 🏪 24/5 |
IG Markets
IG is one of the most prominent providers of online trading, and it gives investors access to chances in thousands of different financial markets through user-friendly platforms and mobile applications.
Both the Financial Conduct Authority (FCA) and the Financial Sector Conduct Authority (FSCA) have granted IG their authorization and regulation respectively.
The IG Trading Platform is an in-house trading platform that may be utilized for market research, the placement of trades, the monitoring of trades, and the editing of trades.
Users of IG have access to a diverse range of platforms, such as desktop platforms, trading apps, web-based platforms, and third-party programs such as MT4, ProRealTime, and APIs.
Users can select the platform that best suits their needs. Despite this, your best option continues to be the proprietary Trading Platform developed by IG.
Not only does IG offer one of the broadest selections of shares available for trading in the market, but there are also three distinct ways to engage in share trading with the company.
Additionally, it provides cutting-edge CFDs that other brokers do not offer, such as Sectors, the Crypto Index, and South African equities.
Pros and Cons
| 👉 Pros | ❌ Cons |
|---|---|
| 👍 Advanced proprietary platform | 💸 High minimum deposit |
| ⚖️ Extensive selection of assets | |
| 👮♂️ High level of regulation |
Features
| 👉 Feature | ℹ️ Information |
|---|---|
| 👮♂️ Regulation | 🕵🏻 FSCA, ASIC, FCA, FMA |
| 💵 Minimum deposit from | 💸 $200 |
| ⚖️ Average spread from | ⚖️ 0.8pips |
| 💵 Commissions from | 💰 USD6 |
| 💳 Deposit/Withdrawal Fees | 🤗 None |
| ⚖️ Maximum Leverage | ⚖️ 1:200 |
| 🤗 Bonuses | 🥹 None |
| 🙋♂️ Customer Support | 🏪 24/5 |
ThinkMarkets
Although ThinkMarkets’ entry-level account has trading costs that are higher than average, this international broker that is also regulated by the FSCA is popular among experienced traders who place a high value on having access to a diverse selection of tradable assets and a comprehensive set of trading tools.
When compared to other brokers, ThinkMarkets provides trading on a greater variety of tradable assets. These assets include currency pairs, indices, commodities, more than 1500 share CFDs, and over 20 crypto pairs.
ThinkMarkets provides support for the MT4, MT5, and in-house ThinkTrader trading platforms. Additionally, traders have access to some of the most advanced trading tools available in the market, such as Trading Central, Zulutrade, and a Virtual Private Server (VPS) hosting service.
Pros and Cons
| 👉 Pros | ❌ Cons |
|---|---|
| Low minimum deposit requirement | Limited info on spreads |
| Wide selection of trading platforms | |
| High regulation |
Features
| 👉 Feature | ℹ️ Information |
|---|---|
| 👮♂️ Regulation | 🕵🏻 FCA, ASIC, CySEC, FSA, FSCA |
| ⚖️ Minimum deposit from | ⚖️ None |
| ⚖️ Average spread from | ⚖️ 0.0pips |
| 💵 Commissions from | 💸 USD7 |
| 💵 Deposit/Withdrawal Fees | 💵 None |
| ⚖️ Maximum Leverage | 💸 1:500 |
| 🤗 Bonuses | 🥹 None |
| 🙋♂️ Customer Support | 🏪 24/5 |
Other Resources
10 Best FSCA Regulated Forex Brokers
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