In this article we hope to give you a baseline on which to understand how the Forex market functions in South Africa. The South African Forex market has grown substantially thanks to the support provided by the government for foreign investment. The forex market there is by far the largest of any other financial market in the country, tallying up to $5 billion in daily revenue. We can explain part of this as South Africa’s struggle against poverty. Many In South Africa are in unemployment, costs of living are high, as is the internet access. Therefore, the forex market is an accessible way for many south africans to make money without an income. South Africa’s high population of 50 million is also growing incredibly quickly, showing promise for economic growth.
As a result, traders’ interest in the region has ticked up significantly. This is from traders from both the international community and within South Africa itself.
South African forex brokers
There are many brokers in South Africa who specialise in the forex market. This is due, as we said, to just how large the forex market is within the country. We want to briefly make you aware of some of the most popular ones.
This is a relatively cheap broker (starting at $10) that gives you options for quick flexible trading. They are a straight through processing (STP) broker, meaning they direct you straight to the other party for processing your order. They also have leverage available, which they will measure out on a case by case basis
This is another STP broker. However their starting price is a bit higher, at $100. The leverage they offer is also a bit more concrete, come up at a maximum of 500:1. So while they are similar to FXTM, they are for higher investments and a more professional clientelle.
This is what we call a Market Maker broker, meaning it provides options for both sale and purchases. They base their service around their customer, rather than having the customer do eveything themselves. Their starting price is $100. They too offer leverage, slightly lower than the previous broker, at 400:1.