South Africa is big on online trading and luckily there are plenty of online brokers to choose from. However, as the number of investors increases throughout South Africa, so does the number of online brokers. With so many options to choose from, it can become difficult to determine which is the best online trading platform. Regardless of what you are trading (e.g. Forex, stocks, cryptocurrency, or options), having a well-known regulated broker is essential. To remove the complexities associated with choosing the best trading platform, we have outlined the best online trading platforms and highlighted how they work in South Africa. You can learn more about bitcoin in this article.
IQ option is one of the best online trading platforms for South African traders due to its popularity and features. In addition to its easy to use interface, IQ Option supports 20 languages, is well known and regulated by the FSA. Additionally, the platform has an online, desktop and mobile trading application, and accepts Zar. The minimum deposit is 180 Zar and the minimum investment is one Zar.
eToro is regulated by CySex and FCA, and is a highly rated Forex broker. The main feature of eToro is that it is a copy trading platform, which means users can copy other users’ trading strategies. This method can be useful for novice traders who are trying to acquire trading skills.
AvaTrade is another excellent online trading platform in South Africa. They offer a variety of trading options such as Forex, stocks, commodities, cryptocurrencies, and indices. They are regulated in South Africa as well as several other countries and one of their headquarters is located in Johannesburg. Overall, they have a 97% trust rating, making them a viable option for a novice trader who cares about reliability. There are also over 45,000 active traders in South Africa.
VideoForex, a Forex and CFD trading platform, is headquartered in Scotland. The VideForex website states that it is a regulated broker; however, it is unclear which regulatory body they adhere to. They offer a wide range of cryptocurrency for funding methods.
DaxRobot is a platform that offers automated trading for Forex and CFD transactions. It does not appear that Dax Robot is regulated, but they offer their services to South African residents.
IQ Mining is a platform used to assist in cryptocurrency mining, which is an increasingly popular form of investment. South African residents are free to use this platform as a means of mining Ethereum or Bitcoin.
Guide to trading in South Africa
the commercial industry in South Africa has been strong throughout history, which has attracted international investors. Specifically, the financial and banking infrastructure in South Africa has a solid and reputable history. One of the oldest stock exchanges in the world comes from South Africa, which provides further proof that trade is an integral part of the structure of the country. On average, 856,344,000 rand are traded every day in South Africa and the rand is one of the most popular currencies in Forex. All of these positive factors have attracted investors across the country, but there are business challenges in South Africa.
Trade challenges in South Africa
Commodities in South Africa, such as oil and gold, fluctuate constantly, impacting the health of the economy. South Africa is quite dependent on exports, as they make up around 30% of South Africa’s gross domestic product. At the time of writing, South Africa ranked second in gross domestic product which averaged R5,017,183,780,000.00 last year. Due to this high number, any shortfall in exports can cause fluctuations within the stock market. They are vulnerable to trade wars because they are highly dependent on exports. South Africa trades most often with the United States and China and is sensitive to fluctuations in import tariffs, which can hurt its economy.
Another challenge facing South Africa is the issue of currency. The main currency in South Africa is Zar, but many platforms do not accept Zar. South Africans should therefore use currency converters before going public (depending on the platform). Currency conversion can be expensive and unexpected changes in exchange rates can have an impact trade. So South Africans should make sure that if they have to convert their currency, convert it into something that will not lose value. This is difficult to predict as currency values fluctuate naturally, but some currencies are more stable than others, such as the Norwegian krone.
South Africa trade regulatory body
There are two independent regulatory bodies that each have their own unique objective. The Finance Service Conduct Authority (FSCA) manages Forex brokers and issues licenses and sanctions. Any broker that is not located in South Africa, but allows South African traders to use their platform, must be licensed by the FSCA. The other regulator is the Prudential Authority of South Africa. The Prudential Authority manages non-banking financial institutions. Most often you will see brokers regulated by the FSCA and not so much by the Prudential Authority. It is legal for South African citizens to engage in transactions on any platform that is not at least regulated by the FSCA. However, South African traders are strongly recommended to use brokers regulated by at least one regulatory body (i.e. CySEC, FSA, FCA).
Limit of the Johannesburg Stock Exchange (JSE)
JSE Limited is the largest stock exchange in South Africa. Under a regulated procedure, the JSE limited provides a market for the trading of securities. Hours of operation are Monday through Friday 9:00 a.m. to 5:00 p.m. All shares purchased through the JSE limited are subject to a 0.25% tax.
In sum, trading in South Africa is a booming business and more and more people are jumping at the chance to make financial gains. When entering the field of trading, be aware of the risk associated with trading. Nothing is guaranteed, so be sure to only invest what you can afford to lose if the trade does not work out in your favor. Happy trading friends!
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