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Regulated Forex brokers in South Africa

In South Africa, Forex trading has earned popularity in the past couple of years. Unemployment rates have spiked due to the coronavirus. Adding into the equation, inflation rates have also increased. Thus, teenagers and young adults have found a haven in the Forex trading market. However, Forex trading can be very risky.

The first step for a new Forex trader is to find a trusted broker. Remember, every good broker can’t suit the trading needs of every trader. If you are someone new, you might find it troublesome to deal with the best-in-class brokers due to their sky-high limitations.

Without further ado, let’s look at the regulated Forex brokers in South Africa. 

Regulation

What does it exactly mean to be regulated for a broker? Being regulated means that a broker is under the supervision of government authority and is legitimate. There are several reasons that the government has placed these authorities to regulate the financial entities. Especially since the war on terror broke out, governments are obliged to monitor money flow. These authorities ensure that no money is channeled to some terror groups. Similarly, money laundering has been a very big issue in financial circles. The legal authorities ensure that all bodies work under government laws and pay their taxes.

Benefits

Ok, so being regulated is a very good thing for the greater good of people. But how does it benefit an average trader, you? You can earn a lot of benefits by trading with a regulated broker, which you’ll not get by trading with an unregulated broker, such as;

  • Regulated brokers have to explain their T&Cs and all promotional schemes.
  • They are very less likely to run a scheme to bait you
  • In case there is an illegal activity going on against you, the authorities will take action
  • In case the broker goes bankrupt, your funds will stay secure
  • The funds of brokers are kept segregated from the brokers’ funds

Regulation in South Africa

In South Africa, traders are not obligated to trade with a regulated broker. However, there is no point in trading with an unregulated broker. Even if you trust the broker, you will be on your own, unlike a regulated broker where the government will have your back. 

You can still take an unregulated broker to court, but the odds of proving anything and winning are less. 

Regulated Forex brokers in South Africa

Here’s a list of our top picked regulated forex brokers in South Africa.

1. TickMill

If you are looking for a broker who doesn’t beat around the bush and gets the job done, go with TickMill. TickMill is a straightforward broker with a simple user interface and better functionality. 

The FSCA in South Africa regulates Tickmill. It offers a leverage rate of 1:500 and requires a minimum deposit of 100 USD.

2. Exness

If you are a new user, you might want to try Exness. Exness’ highlighting feature has to be its low deposit limit of 10 USD paired with a 10 % bonus program. On top of that, Exness offers leverage rates of 1:2000.

Summary

If you are looking for a broker in South Africa, our review will help you understand the benefits of going with a regulated broker. You can also do your research and find a broker that does the job for you. 

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