South Africa boasts a plethora of Online Trading Platforms to choose from. Selecting the right South African online broker hinges on factors such as available securities, user-friendliness, and service reputation. In this comprehensive guide, we delve into the Best Trading Platforms in South Africa. This summary is the result of extensive research, evaluating leading Online Brokers in South Africa based on criteria such as fees, minimum account requirements, security, customer feedback, customer support, and more.
Our guide delves into the top-rated and most cost-effective online trading platforms available in South Africa.
List of the Best Online Trading Platforms In South Africa 2023:
We've compiled a list of the finest investment Trading Platforms in South Africa, taking various factors into account.
Here is the roster of the best online brokers in South Africa:
- Pepperstone – South Africa's Premier Trading Platform
- AvaTrade – Top Choice for Forex Trading in South Africa
- Interactive Brokers – South Africa's Premier Stock Broker – Visit Interactive Brokers
- Plus500 – CFD Trading Platform in South Africa
- XTB – Best CFD Trading Platform in South Africa
- XM – Trusted Online Broker in South Africa with Low CFD Fees
- Capital.com – Outstanding Mobile Trading Platform in South Africa
- OANDA – Exceptional Forex Trading Platform in South Africa
- IQ Option – Leading Trading Platform for Digital Options in South Africa
Best for Forex
PFI Rating 4.9
Best Overall
PFI Rating 4.9
Best Market Access
PFI Rating 4.9
In-Depth Review of the Top Online Brokers in South Africa
South Africa boasts numerous online trading platforms, each with its unique offerings and strengths. It can be a challenging endeavor to determine the ideal platform that aligns with your trading preferences and objectives. Some brokers excel in stock trading, while others specialize in CFDs, and a few stand out as prominent cryptocurrency exchanges. In this section, we provide a comprehensive analysis of the finest trading platforms in South Africa. Our evaluation considers a range of critical factors, including fees, available deposit methods, customer support, regulatory compliance, and security.
| Trading Platform | Info | PFI Score | Minimum Deposit | |
|---|---|---|---|---|
| #1 | Pepperstone | Low Spreads | 4.9 | $0 |
| #2 | AvaTrade | Best Overall | 4.9 | $100 |
| #3 | Interactive Brokers | Wide Market Access | 4.9 | $0 |
| #4 | Plus500 | CFD Broker | 4.7 | $100 |
| #5 | XTB | Low CFD Fees | 4.7 | $0 |
PFI Rating: 4.9/5
1. Pepperstone – The Top-Rated Online Trading Platform in South Africa
Our top choice for the best online trading platform in South Africa is Pepperstone. They excel in CFD trading and offer a diverse range of CFDs in South Africa.
Pepperstone is under the strict regulation of top-tier authorities including ASIC, CySEC, FCA, SCB, DFSA, BaFin, and CMA.
With Pepperstone, you can trade CFDs on over 1000 instruments, encompassing Forex, Shares, Indices, Commodities, and Cryptocurrencies.
One of Pepperstone's standout features is its extensive offering of third-party solutions like MetaTrader and cTrader, along with competitive forex spreads. This opens doors to a multitude of trading tools and allows you to tap into various trading ideas.
Particularly noteworthy is their copy trading functionality, enabling retail traders to replicate the trading strategies of seasoned professionals.
74-89 % of retail investor accounts lose money when trading CFDs
PFI Rating: 4.9/5
2. AvaTrade – The Top Forex Trading Platform in South Africa
AvaTrade stands out as our top choice for the best forex trading platform in South Africa.
Founded in 2006, AvaTrade provides access to forex, cryptocurrencies, and an extensive selection of CFDs within South Africa.
Headquartered in Dublin, Ireland, AvaTrade offers a swift and entirely digital account opening process with no deposit or withdrawal fees. Their user-friendly platform is complemented by a diverse range of research and educational tools.
Key Highlights:
- Stringently Regulated
- Extensive Market Access
- Competitive Low Fees
- Minimal Initial Deposit Requirements
71% of retail investor accounts lose money when trading CFDs with this provider.
PFI Rating: 4.9/5
3. Leading Share Trading Platform in South Africa for Index Funds
Interactive Brokers secures its spot as the top online trading platform in South Africa. With its inception dating back to 1993, Interactive Brokers' trading platform provides access to shares, options, forex, futures, bonds, index funds, and funds across 150 global markets. They cater to both professional active traders and beginners, offering a comprehensive suite of powerful tools.
Interactive Brokers boasts low trading fees, and their order execution ranks among the industry's best. Their versatile trading platform is available in web, desktop (Trader Workstation), and mobile (IBRK mobile) versions, accommodating traders of all experience levels.
Notably, Interactive Brokers leverages IB SmartRouting technology, enhancing their order execution to stand out in the industry.
On Interactive Brokers Official Website
PFI Rating: 4.7/5
4. Plus500 – Outstanding CFD Broker in South Africa
Plus500 stands out as an excellent choice for CFD day trading in South Africa. With a vast selection of over 2,000 CFDs, including cryptocurrencies, Forex currency pairs, and options, it caters to a wide range of trading interests. Plus500 offers traders an opportunity to explore forex and CFDs effectively.
However, it's worth noting that Plus500 has limited educational resources and research tools. Traders seeking comprehensive learning materials and research resources may need to supplement their needs with additional sources.
86% of retail investor accounts lose money when trading CFDs with this provider.
PFI Rating: 4.7/5
5. XTB – Top Choice for Market Access in South Africa as a CFD Broker
XTB is renowned for its competitive forex fees and user-friendly trading platform equipped with excellent charting tools. It's known for its accessibility and ease of use, making it a favored choice among traders.
However, it's important to note that XTB's fees for share CFDs are higher than the industry average. Additionally, its product range is somewhat limited, primarily focusing on CFDs and Forex, which may not suit all traders' needs.
On XTB Official Website
PFI Rating: 4.6/5
6. XM - Favorable Stock CFD Fees and User-Friendly Account Setup
XM stands out for its low fees on stock CFDs and hassle-free account opening process. It offers numerous educational resources, making it beginner-friendly, and provides a demo account for those who are just starting out.
However, it's essential to be aware that South African customers using XM do not benefit from investor protection. Additionally, XM's product range is somewhat limited, primarily focusing on forex and CFDs, which may not cater to all traders' preferences.
On XM Official Website
PFI Rating: 4.5/5
7. Capital.com – Commission-Free Trading Across Diverse Assets
Capital.com distinguishes itself with its unique commission-free approach across all its investment products, a rarity in the industry. It provides access to a wide range of assets, including stocks, indices, forex, commodities, and cryptocurrencies.
While Capital.com does impose inactivity fees, these only come into play if your account stays inactive for a year, aligning with industry norms.
On Capital.com Official Website
PFI Rating: 4.5/5
8. OANDA – User-Friendly Interface with Limited Investment Products
OANDA presents itself as another strong option for South African investors. It boasts a user-friendly interface complemented by robust research tools and a wide array of technical indicators. However, it's worth noting that OANDA's range of investment products is somewhat limited, primarily focusing on forex and CFDs trading in South Africa. Additionally, their customer support, while decent, falls short of being available 24/7.
On OANDA Official Website
PFI Rating: 4.9/5
Best Trading App in South Africa – AvaTrade
When it comes to trading apps in South Africa, AvaTrade stands out as the top choice. AvaTrade provides CFDs on a wide range of assets, including stocks, Forex, Cryptocurrencies, Indices, Commodities, Options, and ETFs. As a globally recognized CFD trading platform, AvaTrade enjoys the trust of millions of traders worldwide. What makes it even more appealing is its user-friendly proprietary platform and mobile app, catering to traders on the go.
You can make a side-by-side comparison of the leading trading platforms in South Africa to evaluate their features and offerings.
On AvaTrade Official Website
Compare Trading Platforms In South Africa
You can compare the Best Trading Platforms in South Africa below to see how they stack up.
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Our Score: | 5/5 | 4.9/5 | 4.8/5 | 4.8/5 | 4.8/5 | 4.7/5 | 4.6/5 | 4.5/5 | 4.5/5 |
| Founded: | 1993 | 2007 | 2013 | 2006 | 2010 | 2002 | 2009 | 2013 | 1996 |
| Regulation: | MAS,FCA,CFTC,SEC,CBI,IIROC,ASIC,CSSF | CySEC, FMA, MAS, SFSA, FSCA, ASIC, FCA | CySEC | CySEC, ASIC,FSCA, FFAJ, ADGM,ISA,Central Bank of Ireland | FCA,ASIC,DFSA,CySEC,CMA | FCA, CySEC, IFSC | CySEC, ASIC, IFSC | ASIC,FCA,CySEC,MiFID | IIROC,ASIC,CFTC,FCA,MAS,MFSA |
| Headquarters: | Greenwich, Connecticut, United States | Israel | Cyprus | Dublin, Ireland | Melbourne, Australia | Poland | Cyprus | London, UK | Ney York, USA |
| U.S. Clients Allowed: | Yes | No | No | No | No | No | No | No | Yes |
| Available Outside U.S. | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum Deposit: | $0 | $100 | $10 | $100 | $0 | $0 | $5 | $20 | $0 |
| Deposit Methods: | Credit Cards,Wire,Check,Online Bill Payment Check,ACH,EFT,Rollovers | Credit/Debit Cards,PayPal,Skrill,Bank Tradsfer | Credit/Debit Card,WebMoney,Neteller,Skrill,Wire Transfer | Credit/Debit Cards,Neteller,WebMoney,Wire Transfer | Credit/Debit Card,Bank Transfer,PayPal,POLi,Netteler,Skrill,MPESA,BPay,UnionPay | Bank Transfer,Credit/Debit Cards,Skrill | Wire Transfer,Neteller,Skrill,Credit/Debit Cards | Credit/Debit Cards, Wire Transfer,Sofort,iDEAL,MultiBanko,Trustly,WEbMoney,Qiwi,Skrill,Neteller | Credit/Debit Cards,Wire Transfer |
| Min. Trade: | $1 | Varies | Varies | Varies | 0.01 lots | 0.01 lots | 0.1 lots | Varies | $1 |
Features Compared
Compare the main features such as leverage, margin, copy trading, trading signals, demo account, Islamic account and more.
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Demo Account: | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Islamic Account: | Yes | Yes | Yes | Yes | Yes | Yes | Yes | No | Yes |
| Margin: | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Leverage: | 1:4 | up to 1:30 | 1:30 | up to 1:400 | up to 1:800 | up to 1:500 | up to 1:888 | 1:30 | up to 1:100 |
| Copy Trading: | No | No | No | Yes | Yes | No | Yes | No | Yes |
| Trading Signals: | No | No | No | Yes | Yes | Yes | No | No | No |
Platforms Compared
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Mobile App: | Yes | Yes | Yes | Yes | Yes | Yes (xStation Mobile) | Yes | Yes | Yes |
| Proprietary Platform: | Trader Workstation, Client Portal | Yes | Yes | Yes | No | xStation 5 | No | WebPlatform | Yes (OANDA Trade) |
| Desktop: | Yes (Trader Workstation) | Yes | No | Yes | Yes | Yes (xStation 5) | Yes (MT4,MT5) | Yes | Yes (OANDA Trade) |
| cTrader: | No | No | No | No | Yes | No | No | No | No |
| DupliTrade: | No | No | No | No | No | No | No | No | No |
| MetaTrader4: | No | No | No | No | Yes | No | Yes | Yes | Yes |
| MetaTrader5: | No | No | No | No | Yes | No | Yes | No | No |
Customer Service Compared
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Email: | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Phone Support: | Yes | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Live Chat: | Yes | Yes | No | No | No | No | Yes | No | No |
What is the Best Online Trading Platform for Beginners in South Africa?
The best online broker for beginners in South Africa is AvaTrade. They offer an easy-to-use trading platform, low fees, and a wide variety of tradeable instruments. On top, AvaTrade also has copy trading for a whole hands-off trading experience.
Which Bank Account is best as a Trading Platform In South Africa?
Here is a list of the best bank accounts for trading in South Africa:
- FNB
- Mercantile Bank
- Nedbank
- Absa
- Standard Bank
Online Trading South Africa
The best online trading platform for beginners in South Africa is AvaTrade, offering an easy-to-use platform, low fees, and a wide range of tradeable instruments. As for the best bank accounts for trading in South Africa, some options include FNB, Mercantile Bank, Nedbank, Absa, and Standard Bank.
Online trading in South Africa involves the buying and selling of stocks on a stock market, and this can be done by placing buy and sell orders through a brokerage account. Your chosen broker will execute these orders on your behalf.
The Best Trading Platforms in South Africa offer the capability to trade various types of investment securities. Typically, the responsibility of selecting which companies' stocks to invest in falls on the trader, as only full-service brokerages provide investment advice.
How Does It Work?
Getting started in online trading is accessible to anyone with a stable internet connection and a means to fund their trading account. Numerous online platforms are available, granting access to various securities. Opening a trading account in South Africa is a straightforward process.
The Johannesburg Stock Exchange (JSE) serves as a regulated marketplace where financial assets can be traded among investors. In South Africa, the Financial Sector Conduct Authority (FSCA) plays a crucial role as a financial regulatory authority. All brokers are required to adhere to the rules and regulations established by this body.
South African investors are subject to capital gains taxes, and forex traders are also obliged to report their financial statements on their annual tax returns. To learn more about forex brokers in South Africa, you can refer to our comprehensive guide.
How To Pick the Best Trading Platform in South Africa?
When selecting the best trading platform in South Africa, it's essential to take into account several crucial factors. Below, we outline what you should consider:
Regulation
As a South African investor, it's important to be mindful of privacy and regulatory policies. Ideally, trading platforms should be regulated by the Financial Sector Conduct Authority (FSCA) or other top-tier regulatory bodies. All trading platforms must adhere to the regulations established by these governing bodies. While having multiple regulators is beneficial, we recommend that at least one top-tier regulator oversees the broker.
Fees & Commissions
Even the top trading platforms in South Africa have various fees that you should be aware of. It's crucial to understand all the fees upfront. Knowing how to calculate commission charges is essential. It's advisable to steer clear of brokers that earn commissions through unnecessary transactions.
See the table below to compare the trading fees:
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Inactivity Fee: | $0 | $10/month (after 3 months of no login activity) | $10/month (after 90 days of no login activity) | $50/quarter | $0 | $10/month (after 1 year of no login activity) | $15 one-off maintenance fee after one year of inactivity + 5$/month | $0 | $0 |
| Stocks ($1000 APPL Buy and Sell in 1 Week) | $0 Commission | Varied Spread: $10.5 (CFD) | $5.62 (CFD) | 0.13% Spread | $0 + market spread | 0.03 (CFD) | 0.27 (CFD) | 0% Commission (physical) 0.1 (CFD) | N/A |
| Forex: | min. $2/order | Varied Spread - 0.8pip Avg. | 0.7 pips | Spread (0.9 - 700) | 0.69 pips | 0.5 pip | 1.7 pip (average) | 0.00110 | Spread + commission |
| Bonds: | $0 per trade (remove liquidity)$0.10 per trade (add liquidity) | N/A | N/A | 0.03 - 0.06 Over Market | N/A | N/A | N/A | N/A | N/A |
| ETFs: | $0 Commission | Varied Spread | 0.025% | 0.13% - 0.15% | N/A | from 0.08% | N/A | from 0.01 | N/A |
| Crypto: | 0.18% | Varied Spread: 0.30% - 1% | 7% - 12% Over Market | 0.2% - 2% Over Market | 33.97 (average spread) | from 0.22% | N/A | 110 | Spread + commission |
| CDFs: | Spread | Varied Spread | Spread | Spread | Spread | Spread | Spread | Spread | Spread |
| Withdrawal Fee: | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Deposit Fee: | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Monthly Fee: | No | No | No | No | No | No | No | No | No |
Available Investment Products
Various investment products are available through online brokers in South Africa. These typically include common securities such as stocks, options, bonds, and derivatives. It's crucial to ensure that the specific asset you want to trade is offered by the broker you choose. Select a broker that provides the investment products that align with your trading interests and goals.
Compare the tradeable assets available at each platform below:
|
Interactive Brokers |
Plus500 |
IQ Option |
AvaTrade |
Pepperstone |
XTB |
XM |
Capital.com |
OANDA |
|
|---|---|---|---|---|---|---|---|---|---|
| Stocks: | Yes | Yes (CFD) | Yes | Yes | Yes | Yes | Yes | Yes (CFD and Physical) | No |
| Forex: | Yes | Yes (CFD) | Yes | Yes | Yes | Yes | Yes | Yes (CFD) | Yes |
| Commodities: | Yes | Yes (CFD) | Yes | Yes | Yes | Yes | Yes | Yes (CFD) | Yes (CFD) |
| Indices: | Yes | Yes (CFD) | Yes | Yes | Yes | Yes | Yes | Yes (CFD) | Yes (CFD) |
| Cryptocurrencies: | Yes | Yes (CFD) | Yes | Yes | Yes | Yes | Yes | Yes (CFD) | Yes (CFD) |
| ADR: | Yes | No | No | No | No | No | No | No | No |
| Options: | Yes | Yes (CFD) | Digital Options | Yes | No | No | No | No | No |
| Mutual Funds: | Yes | No | No | No | No | No | No | No | No |
| ETFs: | Yes | Yes (CFD) | Yes | Yes | No | Yes | No | Yes | No |
| Binary Options: | No | No | No | No | No | No | No | No | No |
Account Types
Online brokers in South Africa provide a variety of account types to cater to different investor needs. These can include margin accounts, cash accounts, and retirement accounts. It's important to be aware of the types of accounts offered, as they may have varying minimum investment requirements.
Educational resources
Educational resources are valuable for those looking to enhance their trading strategies. These resources encompass videos, forums, and instructional articles. If you're new to trading, you'll benefit from guidance on market analysis and portfolio diversification. These educational materials can be instrumental in your trading journey.
Margin
Margin trading is a practice best suited for highly experienced investors. It involves trading assets using borrowed funds, effectively amplifying a trader's buying power. Brokerages impose varying margin rates, which act as interest on these transactions. It's important to note that margin trading is not recommended for beginners.
Account minimums
Most brokers don't require any minimum deposit amounts, but some high-end brokers may require a minimum balance of several thousand dollars.
Tools & Research
With access to premium tools and in-depth market research, you will 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.
Tools & Research
Access to premium tools and in-depth market research enhances your trading experience. A user-friendly and intuitive platform with charting tools, price alerts, and customizable screeners is essential.
Customer Service
Strong customer support is crucial, especially for beginners. Ensure you can easily contact support in your language 24/7/365.
Mobile Trading
A mobile app allows you to trade from anywhere globally, providing convenience and access to your accounts on the go.
Banking Services
Some brokers offer banking services, allowing you to manage both banking and trading within a single account.
Banking Services
Some firms offer banking services. This is a great way to combine banking and trading on the same account.
Order Execution
Efficient order execution is vital, particularly for active day traders, as it impacts the speed and accuracy of your trades.
International Trading
If you plan to invest in foreign markets, ensure your chosen broker allows trading on international exchanges like NASDAQ, NYSE, LSE, and others.
Access to a Financial Advisor
Financial advisors can provide guidance on wise money management. Consider a full-service broker if you're new to investing and seek professional advice.
Know the Terms and Conditions
Thoroughly research the trading platform and its reputation before signing up to understand the general terms and conditions.
How to Open a Broker's Account in South Africa
- Find a broker – Begin by selecting a reputable stock trading platform that aligns with your investing style and goals.
- Open a trading account – Follow the platform's instructions to create an account. You'll need to provide personal details and documentation for identity verification. Many discount brokers now have no minimum deposit requirements.
- Research before investing in your money – Before investing your money, thoroughly research the companies you want to buy shares in and make informed decisions.
- Develop a strategy – Create a diversified long-term share portfolio based on your goals, risk tolerance, and available time.
- Understand the risks – Be aware of potential risks, including share price fluctuations and company mismanagement or bankruptcy.
Risks of Online Trading In South Africa
Every beginner should be aware of the risks associated with trading. It's essential to conduct thorough research before investing your money.
Leverage Risk
Using borrowed capital (leverage) increases potential returns but also magnifies potential losses.
Margin Risk
Margin risk involves achieving expected profit margins and is influenced by economic developments.
Interest Rate Risk
Changes in interest rates can impact currency values and affect investor behavior.
Exchange Rate Risk
Fluctuations in exchange rates can affect the value of investments in foreign currency.
Best for Forex
PFI Rating 4.9
Best Overall
PFI Rating 4.9
Best Market Access
PFI Rating 4.9
Conclusion
After a comprehensive analysis and comparison of the best trading platforms in South Africa, Pepperstone emerges as the top choice for online trading.
FAQ
Is Trading Legal in South Africa?
Yes, trading is legal in South Africa for various securities, including stocks, CFDs, and cryptocurrencies. However, it is essential to adhere to financial laws to prevent money laundering and fulfill tax obligations.
What is the safest Platform in South Africa?
Interactive Brokers is a safe and reputable broker with a strong regulatory presence, including regulation by the FSCA.
Which Trading Platform in South Africa has low fees?
For stocks, Interactive Brokers stands out with competitive fees and a wide range of stock options. For forex trading, Pepperstone offers some of the lowest fees.
What is the best share trading platform for beginners in South Africa?
Interactive Brokers is recommended as the best broker for beginners in South Africa due to its user-friendly mobile and web platforms.
Do Traders Pay Tax in South Africa?
Yes, traders are required to pay taxes on their trading activities in South Africa. Even when using offshore trading platforms, tax obligations must be met.
