There are a few steps to opening a forex trading account in South Africa and in this post I’ll explain step-by-step what you need to do.
I’ve written an ebook that summarises all the key points and gives simple links to all the resources that you need to start trading safely and successfully.
Step One: Find A Broker
The first and most important decision to make is who to choose as a broker.
The forex industry is rife with scams and people collaborating and out there just to get your money and so choosing a trustworthy broker is essential for long term sustainable trading.
There are a few brokers that I recommend and trade with, you can find them here.
After you’ve done your research and chosen a broker, its time to open your account.
Step Two: Try A Demo Account
First start with a demo account and make sure you understand how to place orders (market orders and limit or stop orders), and know-how to place a stop loss and take profit levels.
Be aware that a demo account is not the same as a live account from a technical perspective, brokers sometimes use different servers than the ones used for live trading.
The emotional impact of trading with a live account is also much different for trading on a demo account, more on this in later posts.
Step Three: Open A Live Account
Once you’ve gotten used to practicing trading on your demo account
ALL registered and legal brokers will want some form of FICA from you.
Mostly that means sending them a copy of your ID and proof of address.
The admin process takes a few hours to a few days, the compliance department works to see that you are who you say you are and when they give you the all clear, they’ll send you the login details for y our platform (the better ones use MT4, one of the most popular platforms around.
Now its time to fund your account.
Step Four: Fund Your Account
Its more convenient to have a broker that’s resident in South Africa, you can make a local EFT into their bank account and receive EFTs when you withdraw.
Most of the international brokers also allow you to fund your account with Skrill, Paypal or some of the other online payment processors.
After your EFT or funding clears and the broker receives your funds, your platform with that amount and you’re now ready to trade.
Start trading and good luck.
Optional Step Five: Get Training
If you are a total beginner, you may strike it lucky and get a string of profitable trades.
But like most beginners, you will either get too cocky and over leverage or risk too much of your account and lose money.
Get some training, is my advice and learn from a professional trader.
My Favourite Forex Brokers
I have a few favourite local brokers. They are:
Blackstone Futures– They’re an STP broker, no dealing desk and they won’t trade against you.
I’ve also met the CEO to have a conversation with him and their level of service is great to see in this country.
They have bot Rand and Dollar Accounts and a very innovative copy trading program.
I trade my main live account with them, I’ve never had any problems. They have excellent trading conditions, responsive support and fast withdrawals..
They have one of the best copy trading systems around which have given good returns until February 2020
I highly recommend them.
Global Prime is a new broker that I’m learning about. They’re extremely transparent as a trading provider and go out of their way to educate traders about the shenanigans that other bad actors get up to in the industry.
They run a Discord chat to be in touch with anyone in the team, all the up to the CEO.
FxPrimus markets itself as the safest place to trade with clients funds being kept in segregated accounts, insurance for bankruptcy and no transaction costs for deposits or withdrawals.
They offer some of the tightest spreads around and seem to have an excellent reputation so if you’re an experienced trader and have had enough of the many market makers hunting for your stop-losses, then check them out.
Khwezi Trade– Another STP broker and also one that will train you personally if you fund your account with R50,000.If you fund with at least R15,000, you’ll get a handful of one on one sessions with them.
Unlimited sessions with the R50K deposit.Well worth checking out.
(You also get a tablet, T&Cs apply)
CM Trading – Sharing an FSP number with Blackstone, CM Trading is known to be a broker that’s perfect for beginners.
Their telephone agents and support staff are always there for you to make your life easier.
AVATrade Open an Office in Sandton
AVAtrade is another international broker that’s regulated by the FSCA (FSP Number 45984) and now has a physical presence in the country with their offices in Sandton.
They’re an established broker and looking to grow their presence in the African market.
And like all good modern brokers do, they also offer a sub-IB program so that you can earn a passive income from referring other traders as well as other IBs.
Markets will give you a No Deposit Bonus
AxiTrader – was the recommendation of the mentor I first chose.
The last time I checked, they weren’t regulated by the FSCA, but they do have an office in Sandton now and I’m sure they’re in the process.
I’m yet to withdraw any money from them (so I can’t tell you about this part of their service yet.)
I written a review of their services though, click here to read it.
Like all good (excellent brokers), all of FXTM’s client funds are deposited in segregated accounts at top-tier banks such as Barclay’s and Credit Suisse.
FXTM are one of the few brokers that offers all traders an insane leverage of up to 1:1000, tight spreads starting from 0.1 pips, and the ability to trade 100+ instruments.
They provide a great variety of optimised account types, desktop and mobile MT4/MT5 trading platforms, regularly hosts exciting demo and live contests, gives out trade-enhancing bonuses as well as useful free trading tools.
IronFX – They’ve had some trouble recently and I’ve moved to their FCA regulated entity, let’s hope it makes a difference, else I’ll choose another broker.I haven’t had any problems myself though.
- ICMarkets – was established in 2007 by a team of professionals in the financial services industry.International Capital Markets is one of Australia’s largest Forex Broker and CFD providers with their head office located in Sydney. IC Markets is one of the few True ECN brokers worldwide and their mission is to create the best and most transparent trading environment for retail and institutional clients alike. Their motto is “by traders for traders” and IC Markets has consistently proven to offer superior spreads, execution and service.
- Mt Cook is a boutique brokerage that offers superior trading conditions for qualifying traders (or those who are following a particular copy trading or PAMM strategy from a money manager on their platform).You need a minimum of $2,000 to trade a live account if you’re a trader or you need to know of a managed account that you can join to trade with less money.
I hope that you have an effective strategy to give you an edge in the market, proper money management techniques so that you win big and lose small and the mental skills to put in trades in a clear and carefree state of mind.
If not and you’re still looking for a mentor, then contact me.
And finally, if you’re a South African broker and would like to make yourself known to readers of this blog, then please do the same.
Good luck and happy trading.