Last updated: July 4th 2019
Table compares the best FSCA (former FSB) regulated forex brokers of 2019.
FSCA FSB regulated forex brokers comparison table
|FSCA Forex Broker's Name||Trust Score||Bonus||Minimum deposit||Open Account in ZAR currency ?||Trading Platform||Trading costs (Spread)||Our Review|
66% of CFD retail accounts lose money.
|9.8 / 10 ||-||$200||No ZAR / USD only||CopyTrader™ ||from 2 pips||Read eToro's review here|
|9.5 / 10||-||$10||YES ZAR or USD||Forex (80+ pairs)|
|Read IQ OPTION full review|
|8 / 10||40%*||$100||No ZAR / USD,EURO only||MetaTrader 4||from 0,9 pip||Read AvaTrade full review|
|8.6 / 10||ZAR250 no deposit required||$100||YES in ZAR||MetaTrader 4||from 1.7 pip||Read Markets.com full review|
|7.5 / 10||-||$200||USD,EUR|
|7 / 10||-||$200||USD||WebTrader||from 1.7 pips|
|5 / 10||-||$100||No ZAR / USD only||WebTrader||from 1.7 pips|
|4 / 10||-||$100||USD only||WebTrader|
|from 1 pip||Read Instaforex full review|
|0 / 10||Scam broker!|
The forex trading has been booming in South Africa since the last few years.
As more and more retail investors speculate in this online venture, no wonder that regulators need to keep an eye on this fast growing industry to prevent scam from happening.
Although we recommend you to open an account with FSCA (former FSB)regulated forex trading companies, you should know that there are also many world renowned and trusted forex brokers in South Africa who operate on this market without an south african finance regulator (Financial Services Board) oversight. It doesn’t mean these companies are bad, but they simply don’t hold a license issued by local regulators.
How to choose the right forex trading broker
Before you start trading forex with your hard earned cash, you must answer yourself few important questions:
- What is your past experience with currency trading ? If you are a PRO trader you probably already know the best fx strategies that work well for you, and based on that you chose the best platform wisely. But if you are a newbie, you are likely to become a victim of snake oil salesmen. Although the scam is not happening with FSCA registered forex brokers often, you should never sign up with unknown company without license! There is simply no reason to do such a stupid thing.
- How much money are you going to deposit ? Did you know that you can safely play with forex demo account without any stress and risk involved? Always choose a platform that is offering you a practice demo account without time limit. Some of the top south african forex brokers featured on this website even allow you to deposit in south african Rand, which is the best option for you since you can avoid a currency risk later, when you withdraw your money back to your bank account.
- Which currency pairs do you intend to trade ? If you plan to trade Rand against USD or GBP or EUR then we must tell you NOT all forex brokerages will allow you to do that because Rand belongs to exotic currencies and therefore there is less demand from traders around the world. Luckily, we were able to choose some, that have no problem to trade south african rand and other 45 currency pairs! Read the comparison table with the full list and choose. We suggest that you test few platforms first with virtual money and then based on your experience and overall feeling you decide where you deposit real money.
- Do you want to trade other assets besides forex pairs ? – nowadays many want to trade cryptocurrencies or even shares and choose cheap share trading platform for South Africans.
- Do you require Metatrader broker? – in case your trading strategies require you to use MT4, we have listed some of the best fx platforms that allow you to trade on Metatrader4 (MT4).
Why is it a good idea to choose FSB regulated forex brokers
IMPORTANT UPDATE: Just recently the SA government in Pretoria has decided on creation of FSCA (Financial Sector Conduct Authority) with the chair Mr.Abel Sithole and disestablishment of FSB “Financial Services Board”. The transition has started on 01/04/18.
FSB has been an independent regulatory body of South Africa since 1990. It is known as of the most reliable finance market regulatory institution in the whole African region. Its main role is to oversee country’s financial market, mainly non-banking financial services (e.g. insurance, investments, CFD trading etc.) and protect investors from possible fraud and keep south african finance environment sound. Here is the link to FSCA Financial Services Board – regulated entities in case you want to lookup any specific FSCA-regulated forex company or other type of financial services provider (also known as “f.s.p.”).
How to file a complaint against a forex broker with FSCA regulation
Have you had any issue with an FSCA regulated company? You can file a complaint through the office of FAIS OMBUD established by the Financial Advisory and Intermediary Service. Their main mission is to resolve any possible disputes between traders and financial service providers. Please visit www.faisombud.co.za for more info.
How local traders are protected by FSCA regulated brokers
South African forex trading market situation has become more stabilized and the market is overall more mature than in other big developing african countries like in Nigeria or Kenya and mainly thanks to the strict anti fraud rules implemented by the local regulator the amount of forex fraud has been diminishing over the past two years. The local police has accused several infamous SA forex millionaires and the law enforcement is trying hard to crack down on scam schemes across the country. Indeed a good news also for other countries in this region.