As a South African investor, it’s important that you find a reliable and safe trading platform.
The best stock trading platform in South Africa should be selected based on its investment choices, ease-of-use, and service reputation.
Here is a detailed guide to online trading in South Africa that will help kickstart your investing journey.
Best Brokers In South Africa 2021
This analysis of the top brokerage accounts in South Africa is based on hours of research. We took popular brokers and analyzed them based on fees, account minimums, security, customer reviews, customer support and more.
Top Brokers for 2021 are:
- IQ Option – Best Overall
- eToro – Best For Commission Free Stock Trading
- Plus500 – Best CFD Broker in South Africa
- AvaTrade – Best for Forex and CFDs
- XTB – Low Forex Fees
- XM – Low CFD Fees
- CMC Markets – Great Mobile Trading App
- IG – Long-Standing Reputation
- Saxo Markets – Well Designed Platform
- FXCM – Great Trading Tools
- Swissquote – Best For High Net-Worth Individuals
- Dukascopy – JForex and MT4 Support
- City Index – High Quality Research Tools
- Capital.com – Commission Free Trading
- Interactive Brokers – Best for Professionals
- Pepperstone – Great For Forex
- Forex.com – Best Forex Trading Tools
- TD Ameritrade – In-depth Research
- Darwinex – Great Trading Education For Beginners
- Tickmill – Low non-trading fees
- Easy Markets – Unique Trading Tools
- Oanda – Powerful Research Tools
IQ Option – Best Overall
IQ Option is one of the fastest-growing brokerages in South Africa.
With its strong and reliable reputation, this trading platform is a safe choice for South African traders. IQ Option offers options and ETFs trading.
A downside is that the company can have slow customer service, particularly during busy trading periods.
PROS | CONS |
|---|---|
Smooth account opening process | Only 4 Commodities Available |
Wide range of trading instruments available | |
No deposit and withdrawal fees |
eToro – Best Overall
eToro is the overall best trading platform in South Africa. With a versatile mobile app, this trading platform is great for both beginners and experienced investors alike.
The trading platform features a broad range of trading strategies to copy. This includes cryptocurrencies, Forex, and CFDs trading strategies.
eToro offers South Africans a variety of useful research material. Paper trading is available, giving you access to $100,000 of virtual money to try out your trading strategies.
A downside is that this broker has expensive Forex and CFDs trading fees.
PROS | CONS |
|---|---|
Easy platform to navigate | Forex and CFD fees |
Beginner-friendly | |
Wide range of securities available | |
Excellent crowdsourcing community | |
Cryptocurrency tools |
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Plus500 – Best For CFD Day Trading
Plus500 is a clear winner for day trading in South Africa. It boasts over 2,000 CFDs available. This includes cryptocurrency, Forex currency pairs, and options.
Plus500 gives beginners an easy way to test out forex and CFDs trading.
This brokerage has limited educational resource offering and research tools. Beginner traders will need to look for extra resources elsewhere. Read Full Review
PROS | CONS |
|---|---|
Wide selection of market instruments | Lack of educational and research tools |
Competitive broker fees | |
Fast order execution | |
User-friendly trading platform |
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Interactive Brokers – Best for Professionals
Interactive Brokers is a great broker choice for experienced active traders, but beginners will find the trading platform difficult to navigate.
Thanks to Interactive Broker’s IB SmartRouting technology, they offer efficient order execution of trades.
The mobile trading platform is supported across all types of devices. The platform is aimed at experienced traders, so beginners may find it tricky to use. Read Full Review
PROS | CONS |
|---|---|
Fast order execution | Not beginner-friendly |
Wide range of securities available | |
Customizable trading alerts | |
Offers fractional shares |
Pepperstone – Best for Forex
Pepperstone is an Australian private company that offers forex brokerage services to South Africans. There is also a limited selection of CFDs available for trading. The brokerage is best known for its extensive selection of third-party trading platforms. MetaTrader and cTrader are included in this selection. This allows you to crowdsource trading ideas and gain access to a range of different trading tools.
PROS | CONS |
|---|---|
Low non-trading fees | Financial information not publicly available |
No deposit and withdrawal fees | |
Access to third-party trading platforms | |
Great customer service |
AvaTrade – Best for Forex and CFDs
AvaTrade gives South African traders access to forex, cryptocurrencies, and a range of CFDs.
Opening a trading account through AvaTrade is fast and easy. There are no fees charged for deposits and withdrawals. It offers user-friendly and diverse research and educational tools.
On the negative side, inactivity fees are high if you are a passive trader.
PROS | CONS |
|---|---|
Easy account opening | No ETFs offered |
No deposits and withdrawals fees | High inactivity fees |
Wide range of research tools |
XTB
XTB brokerage service is best known to South Africans for its low forex trade fees.
The trading platform runs smoothly, allowing traders to deposit and withdraw at a low cost.
There are a few downsides though. The brokerage charges high fees for CFD stock trading. XTB has a limited product portfolio for South Africans, covering mainly CFDs and forex trades.
PROS | CONS |
|---|---|
Low forex fees | Limited product portfolio |
Free and fast deposit and withdrawal | High fees for stock trading |
Easy and fast account opening |
XM
XM provides traders with low stock CFDs fees and a user-friendly account opening. There are many educational resources as well as a demo account for beginners.
A significant downside is that there is no investor protection for South African customers. XM also has a limited product portfolio as it only offers forex and CFDs.
PROS | CONS |
|---|---|
Low stock CFD and non-trading fees | No investor protection for South African traders |
Easy account opening | Limited product portfolio selection |
Great educational tools | |
Paper trading |
FXCM
Forex Capital Market (FXCM) offers a great range of CFD investment products to South African traders. Stocks, commodities, and cryptocurrencies are available for trading.
This broker supports several third-party trading platforms such as ZuluTrade, and MetaTrader 4. The variety of platforms gives you access to an abundance of drawing tools and technical indicators.
FXCM charges inactivity fees, but this only applies if your account is inactive for more than a year.
PROS | CONS |
|---|---|
Well-established and reputable broker | Expensive inactivity fees |
User-friendly mobile trading app | |
No commission fees | |
Tight spreads offered | |
Wide range of third-party trading platforms |
SwissQuote
Swissquote gives South Africans access to a variety of markets all around the world.
The brokerage charges no inactivity fee, which is an added bonus for more passive investors.
Swissquote does have high fees though, so this isn’t the best choice for South Africans on a budget. Some of its research tools have added costs, which is unusual for a trading platform.
PROS | CONS |
|---|---|
Access to a wide range of products and markets | High trading fees |
No inactivity fee | Research tools have hidden costs |
Safe and reliable |
Capital.com
Capital.com’s selling point is its completely commission-free platform structure across all of its investment products. This is very rare for a brokerage.
The platform not only offers stocks, but includes indices, forex, commodities, and cryptocurrencies.
A big downside is that you can only choose from selected trading strategies as there are no options to customize.
There are also inactivity fees, but these only apply if your account remains inactive for a year.
PROS | CONS |
|---|---|
Commission-free trading | Cannot build custom trading strategies |
Access to a wide range of US and UK shares | |
Good educational resources | |
Useful AI assistant | |
Excellent charting and analysis interface |
Forex.com
Forex.com is a well-respected forex trading platform for South Africans. Besides forex, the platform supports a range of other assets too.
The platform is also popular amongst South Africans as it supports the MT4 trading platform. This lets you choose from more than 50 drawing tools and 70 technical indicators.
A possible downside is that you won’t be buying the underlying stock, only share CFDs are offered by this brokerage.
In terms of inactivity fees, forex.com charges $15 per month after one year of remaining dormant.
PROS | CONS |
|---|---|
Great reputation | Limited stock selection available |
Competitive spreads | Inactivity fees apply |
Wide range of investment products | |
Versatile charting tools and technical indicators |
TD Ameritrade
TD Ameritrade is another excellent option for South African investors. The broker stands out with its in-depth market research and trading tools.
It offers traders a seamless mobile app platform suitable for both beginners and experienced traders. The mobile app features great educational resources to help new investors get started.
TD Ameritrade offers a free paper trading account for beginners. Plus, there is excellent 24/7 customer service available.
PROS | CONS |
|---|---|
Free stock, options, and ETF trades | No fractional shares |
Extensive educational resources for beginners | |
Well-designed and user-friendly mobile app | |
24/7 reliable customer service | |
Paper trading offered |
Darwinex
South Africans have access to a wide selection of investment products and fund management services through Darwinex.
There is a detailed education base for beginners who are looking to expand their knowledge.
Darwinex offers extensive copy trading, but its MetaTrader trading platform is not up to the same standard as its competitors. It has limited trading tools, so experienced traders should look elsewhere.
PROS | CONS |
|---|---|
Educational resources | Limited trading tools |
Paper trading offered | Minimum account deposit |
Easy account opening process |
Tickmill
Tickmill offers South Africans low forex trading fees as well as low non-trading fees. Opening an account is an easy and efficient process.
On the downside side, the trading platforms provided by MetaTrader have outdated designs. Tickmill has a limited product portfolio, offering only forex and CFDs.
PROS | CONS |
|---|---|
Low forex fees | Outdated trading platforms design |
Easy account opening | Only forex and CFDs available |
No deposit or withdrawal fees |
Oanda
Oanda has a user-friendly trading platform with powerful research tools and numerous technical indicators.
The trading platform has only a small range of investment products though. South Africans can only trade forex and CFDs. Customer support is not available 24/7 for traders.
PROS | CONS |
|---|---|
User-friendly trading platform | Customer support is not 24/7 |
Great research tools | Only FX and CFD available |
Fast account opening |
CMC Markets
CMC Markets offers South Africans low forex fees and a sophisticated mobile trading app platform.
Its trading platforms are easily customized. There are some unique features such as an advanced order panel. Extensive research and educational tools are also offered.
There are free deposits and withdrawals, except for international and same-day withdrawals.
On the negative side, the product portfolio only includes CFDs and forex trading. The account verification process is time-consuming and complicated.
PROS | CONS |
|---|---|
Low forex fees | Complicated account verification |
Great web and mobile platforms | Limited investment product selection |
Advanced research and educational tools |
IG
IG is a comprehensive forex broker. Beginner traders will love this broker’s user-friendly mobile and desktop platforms. At the same time, experienced traders have access to a great range of charting tools and indicators.
The broker only offers forex trading to its U.S.-based customers though, so only CFDs are available for South Africans.
A downside is that IG’s account opening process is slow. There are also high fees for stock CFDs and a high minimum account deposit.
PROS | CONS |
|---|---|
Reliable and well-known reputation | Slow account opening |
Premium education and research tools | High CFD fees |
No forex trading available in South Africa | |
Great web and mobile platforms |
Easy Markets
Easy Markets provides South African traders with multiple trading platforms to choose from.
Its trading app is intuitively designed with a user-friendly interface. It offers unique trading tools and guaranteed stop loss.
Some features aren’t compatible with MetaTrader4, which is a downside for many traders.
PROS | CONS |
|---|---|
Innovative trading platform | Some features don’t work with MetaTrader 4 |
User-friendly mobile app | |
Free guaranteed stop loss | |
Free deposits and withdrawals |
Saxo Markets
Saxo Markets gives South Africans access to a well-designed and versatile trading platform. The research service is high-quality, with a range of trade ideas offered.
Its product portfolio includes a wide selection to meet the needs of both retirement investors and active traders.
On the downside, Saxo has high trading fees for options, futures, and bonds. There is a high minimum deposit and customer service isn’t available 24/7.
PROS | CONS |
|---|---|
Versatile trading platform | High fees for options, futures, and bonds |
Outstanding research | High minimum account deposit |
Broad product portfolio |
Dukascopy
Dukascopy is a great option for market professionals in South African. It supports JForex and MetaTrade4, which are both top-tier trading platforms.
Dukascopy provides cutting-edge market research and trading tools. With a focus on market professionals, this platform is not suited for beginners.
Although its trading fees are high, they are one of the most trusted and low-risk brokers for forex and CFDs.
PROS | CONS |
|---|---|
Great brokerage reputation | High Initial deposit Requirement |
Offers JForex and MT4 platforms | Only aimed at professional traders |
Wide range of market research tools | |
Advanced trading tools |
City Index
City Index gives South Africans access to a small range of products which includes forex, cryptocurrencies, and CFDs. While non-trading gees and forex commission rates are low, the feeds for stock CFDs are high.
The trading platform isn’t user-friendly, but it does provide a range of high-quality research tools for traders.
For stock and ETFs, South Africans will need to find another trading platform.
PROS | CONS |
|---|---|
Low forex trading fees | Outdated desktop trading platform |
Fast and smooth account opening | High fees for stock CFDs |
Wide range of research tools |
Online trading In South Africa
Online trading involves buying and selling stocks on a stock market. By opening an account with an online broker, you are able to place buy and sell orders online through your broker. Your broker will then execute these orders on your behalf.
Different trading platforms allow you to trade different types of investment securities. In most cases, you are responsible for choosing which companies to buy stocks in. Only full-service brokerages offer investment and trading advice.
How Does It Work?
Anyone can start trading online in South Africa as long as they have access to a stable internet connection and a way to fund a trading account. There are many online brokers available that give you access to trading securities. Brokers make it easy to open a trading account.
The Johannesburg Stock Exchange (JSE) provides a regulated market where you can trade financial assets with other investors.
All brokerage services in South Africa are regulated by the Financial Sector Conduct Authority (FSCA). FSCA is a financial regulating authority. All firms need to follow the rules and regulations set by this body.
Individual traders in South Africa have to pay taxes on capital gained through trading. South African forex traders are also required to declare any profits made through foreign exchange on their annual tax returns. Read about the best forex brokers in South Africa in our guide.
What can you trade?
Stocks
There are many different types of assets available to put your money into. Stocks are the most common. Stock trading allows you to buy and sell shares in a particular company. This means that you own a piece of the company.
Forex
Forex trading is when you exchange one currency for another currency. This means that you sell one currency while buying another one at the same time.
Commodities
Trading in commodities means investing in physical assets such as gold or oil. Most commodity trading involves futures contracts, although physical trading is still common.
Options
An options contract is a contract that offers a buyer the opportunity to buy or sell an asset at a future date. Options are derivatives based on the value of securities such as stocks.
Futures
Future trading is when you buy and sell contracts for the delivery of a security or commodity on an agreed future date. The date of delivery of the security or commodity is set at a certain price.
Bonds
Bond trading involves loaning money to institutions such as companies or governments. Traders make a profit by taking advantage of changes in the value of corporate or government bonds.
CFDs
A contract for difference (CFD) is when you agree to exchange the difference in the price of an asset from when the contract is opened to when it closes.
Traders predict fluctuations in the prices of fast-moving global financial markets.
ETFs
An exchange-traded fund (ETF) lets you invest in a wide range of shares or bonds in one package. ETFs are different from other funds as they are traded on the stock market.
Mutual Funds
A mutual fund is when money from a third party is used to invest in securities such as stocks or bonds. Investors buy shares in the mutual fund to get part ownership in the fund and the income that is generated.
Cryptocurrencies
Cryptocurrency trading is buying and selling a digital currency via an exchange.
Investors buy cryptocurrency in the hopes that its value will increase. Bitcoin is a common example of a cryptocurrency.
How To Pick A Trading Platform In South Africa?
Regulation & Safety, Account Security
As a South African investor, you should be aware of the privacy and regulation policies of your online brokerage. South African brokers are regulated by the Financial Sector Conduct Authority (FSCA). All firms need to follow the rules set by these bodies regulating bodies. More isn't always better. It is important that the broker is regulated by at least one tier-1 regulator.
Fees & Commissions
Different brokers will charge a range of different trading and non-trading fees. You must be aware of all fees that your broker charges in advance. It's important to know how to determine commission charges. You should avoid choosing a broker that earns commissions through unnecessary transactions.Different stock brokers charge a range of different fees. You should be aware of all fees in advance. It's important to know how to determine commission charges. You should avoid choosing a broker that earns commissions through unnecessary transactions.
Active Traders vs long-term buy and hold investors
Active trading is trading that lasts for seconds or minutes. This takes advantage of brief changes in the price of an asset. Long-term buy and hold investing is passive. This usually means buying and holding trades for several months or years.
Different brokers reward different investment styles, so you need to make sure your broker suits your trading style.
Investment Products Available
There are a variety of different investment products available to put your money into. The most common securities are stocks, options, bonds, and derivatives. Make sure you choose a broker that offers the right investment products for you.There are a variety of different investment products available to put your money into. Stocks, bonds, options, and derivatives are the most common types. You should choose a brokerage that offers the investment products you're interested in.
Account Types
Brokerages offer many different types of accounts. These include margin accounts, cash accounts, and retirement accounts.
You need to be aware of which accounts your broker offers as there might be different minimum investment amounts for different accounts.
Educational resources
Education resources are great if you’re wanting to expand on your trading strategies. These include videos, forums, and how-to articles. If you're a beginner trader, you'll need some advice on how to analyze the market and diversify your portfolio.Education resources are great if you’re wanting to expand on your trading strategies. These include videos, forums, and how-to articles. If you're a beginner, you'll need advice on how to analyze and diversify your portfolios.
Margin rates
Margin trading should only be for very experienced investors. This is a method of trading assets with funds from a third party. This allows traders to access greater sums of capital.
Brokerages will charge different margin rates as interest on transactions. New investors should stay clear of margin trading.
Account minimums
Most online brokers these days don’t require any minimum deposit amounts when opening a brokerage account. Other high-end brokers still might require a minimum balance of several thousand dollars.
Trading Tools & Research
A good stock broker offers you access to premium trading tools and in-depth market research to make the most of your trading experience. It should be easy to navigate and intuitive. Charting tools, price alerts, and customizable screeners are key features to look for.A good stock broker should offer access to a wide range of tools and market research for you to make the most of every trade. It should be easy to navigate and intuitive. Charting tools, price alerts, and customizable screeners are key features to look for.
Customer Service
A good brokerage service should have a strong customer support system. You need to have easy access to your broker, especially if you are just starting out on your trading journey. Make sure you are able to contact staff for urgent advice.
Mobile Trading
A mobile trading platform is a mini version of a desktop trading platform. This takes place on an app on your smartphone. If you're looking for easy access to your accounts, then you should look for a broker that offers a mobile trading app.
Banking Services
Most brokerages nowadays don't offer banking services. A bank broker is a good option though if you’re looking to combine banking and brokerage services. This also means you can organize your finances through a single provider.
Order Execution
Order execution happens when a brokerage completes a buy or sell order on your behalf. All your orders are sent to your broker to be executed. It's important to choose a broker with efficient order execution, particularly if you are an active trader.
International Trading
If you want to trade on foreign markets then you need to choose a brokerage that offers international trading.
Access to a Financial Advisor
Financial advisors guide you on how to spend your money wisely. It might be worthwhile looking into a full-service broker, especially if you’re new to the investment world.
Terms and Conditions of the Broker
You must be well aware of general terms and conditions before signing any brokerage contract. It’s important to do thorough research into the firm and its reputation.
How to Start Trading Online as an South African
- Find a broker – The first step to start investing is to find a broker. As a new investor, selecting the right broker requires some careful thought. Different brokers will suit different investing styles and goals.
- Open an online trading account – The next step is to open up a trading account. Follow the instructions on your broker’s site to set up an account. This requires you to upload relevant documents and personal details to verify your identity. You will need to make a deposit to fund your account. Many discount brokers nowadays don’t have a minimum deposit amount.
- Research before investing in your money – The easiest way to get started is to search for a company that you want to buy shares in. Make sure you’ve done your homework if you plan to invest your hard-earned money. Once you’ve made a decision, place an order through your broker.
- Develop a trading strategy – You should aim to build a diverse long-term share portfolio, depending on what you want as a trader. Your trading strategy should consider your profit goals, how much risk you can absorb, and how much time you can allocate to trading.
- Understand the risks – Although a large portion of listed companies is well-run, it’s safer to dip your feet into online share trading with both eyes open and a lot of research under your belt. Some common risks to be aware of include decreases in share prices and potential mismanagement or bankruptcy of a company.
Risks of Trading Online
Every beginner must be aware of the risks that come with online trading. It’s important to research thoroughly where you’re putting your money.
Leverage Risk
Leverage is using borrowed capital to make an investment. While this increases your potential returns, it also increases your potential risk. High leverage often leads to high profit or high loss, depending on how the trade goes.
Margin Risk
Margin risk is the risk associated with achieving an expected margin. This is the probability that changes in economic development will negatively impact a profit margin’s expected cash flow.
Interest Rate Risk
An increase in the interest rate of a country leads to a strong currency. This usually raises the value of the currency and its interest rates. On the other hand, decreasing interest rates lead to a weaker currency. This causes investors to withdraw their investments and leave the country.
Exchange Rate Risk
Exchange rate risk is caused by changes in an investor's local currency compared to foreign-investment currency. Exchange rates sometimes change in the 24-hour period before your trade is settled.
Learning Online Trading
The learning curve for new investors often seems rather steep. It’s important to establish your risks, profit goals, and how much time you can devote to trading. Here are the first few steps to learning online trading.
Understanding Price Fluctuations
Many new investors make the mistake of throwing money at securities without understanding why prices move up or down. Your goal should be to learn how to trade with skill and authority. This starts with educating yourself on financial markets with charts and price actions.
Learn to Analyze
Once you understand price movements, start by studying the basics of technical analysis. This allows you to start predicting price changes and how to take advantage of them.
Paper Trading
A demo account, or paper trading, is the perfect way for beginners to test out the waters. Paper trading allows you to invest fake, virtual money into real-time market simulations. This lets you track the theoretical performance of your buy and sell decisions.
FAQ
Yes, online trading is legal. While the South African government doesn’t have any laws regarding the legality of forex trading platforms, all cash-outflow is monitored by the South African Reserve Bank. There is a limit of 10 million Rands per person.
Most broker services nowadays don't have a minimum deposit amount. This means that you don’t need any amount to open an account. Thanks to commission-free brokers that offer fractional shares, it’s possible to start investing as little as R100. To get started you need to look at diversifying your portfolio. You should aim to open multiple trading positions with different investment vehicles. In order to do this, you would need at least R1000 to get started.
Share trading is buying and selling of a company’s stock in order to make a profit. A share represents a portion of ownership in the company. You can buy shares in a company via trading platforms through online brokerage services.
Forex trading is exchanging one currency into another currency. You always sell one currency while buying another one at the same time.
Yes, trading is legal in South Africa. All securities including stocks, CFDs, and cryptocurrencies are legal. You are required to follow all financial laws in place to prevent money laundering and you must declare your income tax.
eToro is a safe and well-established brokerage choice. Its online trading platform has a good reputation and is regulated by the FSCA in South Africa.
Yes, international students can trade. Just make sure that you choose a reliable and well-known broker that abides by the laws and regulations set out by South African financial regulating bodies.
For stocks, eToro is the cheapest trading platform in South Africa. It offers a large selection of commission-free stocks and low fees. For forex trading, Pepperstone offers the cheapest online platform for South Africans.
eToro is the overall best trading app in South African. The trading app is easy to navigate, with an excellent crowdsourcing community and a broad range of useful research materials.
eToro is recommended for its strong crowdsourcing community. New investors have access to a range of trading strategies to copy and test out. Both the mobile and web platforms are easy to use.
Trading is a great way to generate extra income on the side. Only a select few investors will earn enough profit to turn trading into a full-time career. This requires a lot of time and active portfolio management.