Best forex brokers in South Africa in 2022

To have a clear picture of forex fees, we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

All spreads, commissions and financing rate for opening a position, holding it for a week, and closing.

Based on our assessment and hundreds of data points we analyzed, here is our scorecard for the best online broker for trading forex in South Africa:

Here are a few things that are good to know before diving into forex trading and the financial markets:

What makes a top forex broker?

• First of all, fair forex fees.
• A good selection of currency pairs.
• A great forex trading platform with advanced charting.
• Educational tools to guide you through the basics of trading.

If you're a beginner, be careful with foreign currency trading as forex products are complex and risky, therefore not suitable for everyone.

Is forex trading legal in South Africa?

Forex trading is legal and regulated in South Africa. We only recommend regulated, safe, reliable brokers, so each of these top picks is a good choice to start trading. The South African foreign exchange market is regulated by the FSCA (Finance Service Conduct Authority), and the brokers we reviewed here are also regulated by at least one top-tier regulator, which is a good sign in terms of their safety. But if you are worried about scams, here are a few useful tips on what to look out for:

• No information about the broker’s details on the website
• Questionable or difficult to understand parts in the Terms and Conditions
• The broker has no license or it is difficult to find out of it has one
• There are no reviews or many negative reviews
• Few methods of contacting customer support, slow response
• The broker’s representatives are obtrusive, frequently write and call, asking you to deposit money to your account

Now let’s see our top picks in detail, starting with the winner, Saxo Bank.

The essence: Saxo Bank has low forex fees and gives access to 190 currency pairs. It is recommended for investors and traders looking for a great trading platform and solid research.

• Minimum deposit: $2,000
• The forex benchmark fee for EURUSD is $7.1
• No inactivity fee
• No withdrawal fee

Saxo Bank, a Danish investment bank founded in 1992, is regulated by several financial authorities globally, including the Danish Financial Services Agency (FSA) and the UK's Financial Conduct Authority (FCA). Being regulated by top-tier financial authorities, having a long track record and a banking background are all good signs for Saxo Bank's safety.

Visit broker

The essence: Fusion Markets has low forex fees and gives access to 89 currency pairs. The broker is recommended for forex traders looking for low fees and a chance to use the MetaTrader 4 platform.

• No minimum deposit
• The forex benchmark fee for EURUSD is $5.2
• No account fee
• No inactivity fee
• No withdrawal fee

Fusion Markets is an Australian discount forex broker founded in 2010. It is regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC).

Visit broker
74-89% of retail CFD accounts lose money

The essence: CMC Markets has low forex fees and gives access to 338 currency pairs. The broker is recommended for forex and CFD traders looking for an advanced trading platform with many research tools.

• No minimum deposit
• The forex benchmark fee for EURUSD is $8.8
• They charge an inactivity fee
• No withdrawal fee

CMC Markets is a global CFD and forex broker, founded in 1989. It is regulated by several authorities globally, including the top-tier UK Financial Conduct Authority (FCA). The company is also listed on the London Stock Exchange. Having a long track record, being listed on a stock exchange and being regulated by top-tier authorities are great signs for CMC Markets' reliability.

Visit broker
76% of retail CFD accounts lose money

The essence: Interactive Brokers has average forex fees and gives access to 105 currency pairs. It is recommended for traders looking for broad market access and a professional trading environment.

• No minimum deposit
• The forex benchmark fee for EURUSD is $10.5
• No account fee
• No inactivity fee
• No withdrawal fee

Interactive Brokers, one of the biggest US-based discount brokers, was founded in 1977. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC), and is considered safe.

Visit broker

The essence: Capital.com has low fees and gives access to 138 currency pairs. It is recommended for investors and CFD traders looking for a great trading platform and excellent customer service.

• $20 minimum deposit
• The forex benchmark fee for EURUSD is $8.7
• No account fee
• No inactivity fee
• No withdrawal fee

Captial.com is a global CFD broker founded in 2016. It has offices located in the United Kingdom, Cyprus, Australia, Seychelles and Gibraltar where each is authorized and regulated locally respectively by the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC) and the Financial Services Authority of Seychelles (FSA).

Visit broker
81.40% of retail CFD accounts lose money

Forex brokers can charge commissions, spreads and financing fees.

When it comes to commissions, there are two different fee structures forex brokers normally use:

1. All currency trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the forex market.
2. You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.

The second version is more transparent, but this doesn't always mean it's more expensive.

When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called the financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.

If you don't know how forex trading works, take a look at our forex education articles.

Still unsure? Use our broker finder tool to pick the best broker tailored to your investment needs.

Is forex trading legal in South Africa?

Forex trading is fully legal in South Africa. The FSCA (Finance Service Conduct Authority) regulates forex trading. FSCA handles licences and can also sanction companies that violate guidelines. Brokers that want to accept traders and investors from South Africa need to be FSCA-licenced, including having an office in South Africa, and complying with the operating capital minimums. Retail investors trading forex in South Africa are not automatically entitled to negative balance protection (meaning protection in case the balance on their trading account dips into negative territory), so you better check if your broker offers it to South African customers.

Which forex broker can I use in South Africa?

The best forex brokers in South Africa:

• Saxo Bank - low forex fees and great trading platforms.
• Fusion Markets - low forex fees and a superb selection of currency pairs.
• CMC Markets - low forex CFD fees and an excellent account opening experience.
• Interactive Brokers - low forex fees and diverse research tools.
• Capital.com - no inactivity fee and rock-solid background.

Save yourself hours of research and check out our broker recommendation tool that will give you a tailor-made list of the best forex brokers available to you.

Do forex traders pay taxes in South Africa?

Forex trading for the purposes of making a profit will be treated as revenue, and therefore will be taxed. The profit that you make will be added to your other incomes and taxed. However, all expenses incurred from forex trading would be deducted from the gross income of the trading to calculate the taxable profit. Eventually, the tax rate depends on how much you make and could range from 19% to 45%.

We recommend you consult a tax advisor for detailed guidance.