Would you like to learn how to get started with forex trading in South Africa?
Read on and find out all the steps you need to take from finding out what trading is, to finding a broker, funding that account and then starting to trade.
But before you open that trading account its best that you read this free beginners course first. It’s written by my mentor and it gives a good idea about what forex trading is all about and after reading it, if you still think its something for you to pursue, then carry on reading.
Another good resource is this ebook I wrote that summarises all the key points you need to know about and gives simple links to all the resources that you need to start trading safely and successfully. In this article, I write more about how to open demo and live accounts with regulated brokers and slowly begin your journey towards being a successful trader.
Before you dive right in, I want you to know about this first; If you have very little money to start, as many of us starting out do, then investigate these brokers who will give you a “No Deposit Bonus” to test their platform out.
If you don’t want to bother with learning how to trade forex and just want to make the money, then you’re better off with one of the managed accounts services that are available as trading yourself can be a very long and arduous process.
If you’re ready to learn how to start forex trading in South Africa, then read on:
Step One: Find A Broker
The first and most important decision to make is who to choose as a broker.
You see this industry is rife with scams and people collaborating and out there just to get your money.
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.
Here is how you can do so:
Stop. Fill in this form if you want me to help you get started.
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. Your broker will give you the details on how to do so safely.
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, mostly through a credit card. 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 someone who’s a successful trader.
You can also learn from the free site BabyPips.
My Favourite Brokers
I have a few favourite local brokers. You can find them below, but before you do that, please share this article with fellow traders.
Blackstone Futures – They’re an STP broker, no dealing desk and they won’t trade against you.
I’ve met the CEO to have a conversation, been to their offices in Rivonia and I think that their level of service is great.
They have Rand as well as Dollar Accounts.
I trade a live account with them myself, and I think that they’re just great.
I have had no problems thus far.
I highly recommend them.
They’re currently running a competition, find all the details here.
FXPrimus The Safest Place To Trade
FXPrimus operates in Africa under the name Primus Africa (Pty) Ltd, regulated by FSCA, with license number 46675. 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.
Investor’s funds are insured, free of charge by Lloyd’s for up to 2.5 million euros and is available to ALL clients.
They’re also have an ECN type account with STP (Straight Through Processing) so unlike market makers they don’t trade against you, and there’s no conflict of interest.
Recently they posted a video on how to open an account, so you may want to check that out if you’re very interested in signing up with them and would like a short tutorial.
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.
GT247 – They’re a very uniquely South African broker.
They allow you to trade a CFD (contract for difference) on JSE stocks so if you’d like to make money on trading some of your favourite local companies and brands, then this is the account for you.
They’ve also recently launched an MT5 platform (instead of the own proprietary platform which was unique, but a bit dated.
I’m looking forward to trading a new live account with them.
JP Markets is a global Forex powerhouse. They are licensed and regulated by the Financial Services Board, South Africa, FSP 46855.
Negative Balance Protection
The biggest pro for using this broker is that your account will never go into a negative balance (which is theoretically possible with other brokers and which you are liable for)
Zero Fees on deposits and withdrawals because they want you to prosper
They don’t charge you any fees for bank deposits or withdrawals made through their payment gateways. They also offer a prepaid Mastercard so you can get access to your profits quickly.
Quick & Sufficient Trading Platforms
Their platform is fast and sufficient for your trading activity. They do not lag and do not re-quote on orders. What you want you get.
Fast, Reliable Deposits & Withdrawals
With their almost instant deposit and almost instant funds withdrawal technology. You can enjoy your success almost instantly. No long waiting periods.
State of the Art Security for your Money
Safety is their top priority. Your money is always save with them and are kept in a separate banking account as requested by the regulator. Your money is safe and secure.
24/7 Friendly Customer Support
Customer Support, one of the most prized position – to what makes them different. They provide support 24 hours a day, 7 days a week. Call
Free Forex training course!
Open a live account and deposit a minimum of R3 000 to qualify for free training and be trained by experienced Forex traders with years of trading experience. Or open a demo account and test out their platform.
AVATrade Opens An Office in Sandton
AVAtrade is another international broker that’s regulated by the FSB (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.
Sign up as an affiliate here and earn some passive income from your referrals.
Markets.com will give you R250 to try their Live Account
Markets.com is operated by Safecap Investments Limited (“Safecap”).
They’re a regulated investment services firm authorized by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08 and by the Financial Services Conduct Authority (“FSCA”) in South Africa as a Financial Services Provider with license no. 43906.
They’ll give you R250 to try their trading conditions out and its something that every new trader should try.
Especially if you haven’t traded before.
Khwezi Trade – Another STP broker A broker that will train you personally if you fund your account with R50,000 or more. 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, I think.
(You also get a tablet, T&Cs apply)
TD Markets is regulated South Africa by the FSCA with an FSP number of 49128. They’re the preferred broker of Global Forex Institute, the agency that many South Africans are choosing to learn from.
They have some interesting free funding or free training with GFI, if you FICA your account and train with them.
They also supply Direct Market Access and an interesting leverage structure to limit your risk so its easier for beginners not to blow their accounts like most of us do.
Open an account and get some free funds.
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.
ForexTime: A New Broker Regulated in South Africa
FXTM is now licensed by South Africa’s FSB with FSP number 46614.
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 (don’t take them up on this, unless you know what you’re doing. High leverage is terrible if you don’t), 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.
HotForex Is Another Newly Regulated FSB Broker
HotForex is owned by The HF Markets Group and in addition to existing licenses and regulation from the Financial Services Commission (FSC) of Mauritius, the Financial Services Authority (SVGFSA) of Saint Vincent and the Grenadines and the Cyprus Securities and Exchange Commission (CySEC).
HotForex is now licensed and regulated by the Financial Services Board (FSB) of South Africa , through HF Markets SA (PTY) Ltd, under the Financial Service Provider (FSP) license number 46632.
I’ve only started working with them now, I haven’t yet started trading an account with them yet. I hope to do so soon.
I like that they have free funding, so even if you’re using a wire transfer to fund your account and your bank charges you for that, they will still fund your account with the amount that you initially transferred.
IronFx – I used to trade a live account with them but they’ve had some really bad press recently and I’m no longer convinced that they have what it takes to give good service.
My experiences with their Johannesburg office leaves much to be desired, I think they’re suffering. Your experiences may be different, however.
They remain a broker to investigate to see if you would like an account with them.
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.
Trading CFDs with leverage is risky and you could lose your money. This kind of investment is not suitable for everyone so please ensure that you understand all the risks fully.