Another well-liked and best forex brokers in South Africa is XM Trading. However, they are not subject to FSCA regulation; rather, their parent business is under the supervision of international regulators ASIC (Australia), CySEC (Cyprus), and IFSC. We appreciate their quick order execution, ultra-low spread, and no fees for deposits or withdrawals.
A division of the 2009-founded Trading Point of Financial Instruments Ltd is the XM Group. When it comes to daily trading volume, they are currently among the top forex brokers. We classify XM as a moderate risk broker because its parent business, Trading Point of Financial Instruments Ltd, is governed by CySEC and ASIC (Trading Point of Financial Instruments Pty Ltd since 2015).
It should be noted that SA traders at XM are registered under “XM Global Limited,” which is governed by the FSC and has its corporate headquarters in Belize.
Since XM is a market maker broker (creating a potential conflict of interest), they can offer quick transaction execution with hardly any re-quotes or rejection. Their Ultra Low Account fees are likewise reasonable. With each of their many account types, they provide negative balance protection.
When using one of XM’s three account types, the minimum deposit is $5. (Micro, Standard & Ultra Low). Leverage is capped at 1:000 for all of these account types.
For the majority of CFD instruments, their usual spreads with Micro & Standard account types are extremely high. For instance, their typical difference for EUR/USD with a Micro account during regular market hours is 1.9 pips, which is pretty high. Additionally, the majority of the instruments have extremely high Swap fees.
XM offers web-based and mobile trading on the MT4 and MT5 platforms. Additionally, a large variety of trading instruments, such as currencies and CFDs on metals, indices, and commodities, are available. As the basis currency for the trading account, they give the option of ZAR. Their trading terms are fairly favorable.
Their customer service responds to issues quite quickly, especially through their live chat feature, which is open seven days a week, 24 hours a day. They don’t impose any fees on deposits or withdrawals, which is an additional benefit.
XM Pros
XM Group is subject to CySEC and ASIC regulation.
- A typically moderate EUR/USD spread of 0.8 pips when using an Ultra Low Account. The account type does not come with an additional commission.
- Rapid order processing with no requotes.
- A $5 minimum deposit is needed to open an account.
- XM provides 11 base currency alternatives, including base currency accounts in ZAR and USD.
- There is a negative balance protection option.
- There are no charges for deposits or withdrawals.
- Prompt & expert live chat help.
Cons XM
- In South Africa, XM is not covered by the FSCA. This is a crucial factor in our opinion because FSCA regulation assures better fund protection and compliance.
- Under FSC offshore regulation, traders from SA are registered.
- Extremely high spreads for Standard & Micro Account types.
Pluss500
A well-known CFD trading site, Plus500, is listed on the London Stock Exchange as well. They are governed by key regulators including CySEC, ASIC, and FCA (UK), among others.
Plus500 was established in 2008, and since they are overseen by two major regulators and are also publicly traded, we believe they are safe for South African traders.
We found Plus500 to be highly competitive for the majority of CFD instruments despite its variable spread, which varies depending on the instrument being traded and the market conditions and are best forex brokers. Additionally, they don’t impose any additional costs on deposits or withdrawals, and their R1500 minimum deposit is not too expensive.
They provide their exclusive platform via online and mobile. Their platform is incredibly user-friendly and simple to use. The disadvantage is that PC users cannot access it. Additionally, Plus500 does not offer well-known third-party platforms like MetaTrader or cTrader.
According to ASIC laws, the maximum leverage for trading CFDs is 1:30 for forex and lower for other CFD instruments (such CFDs on cryptocurrencies, commodities, etc.).
In comparison to other brokers, we have found their customer service to be good. They are reachable via live chat, email, and WhatsApp. However, their education part is rather little.
ZFX
ZFX is a regulated broker that was established in 2016 and is regulated by the International Financial Services Commission (IFSC) in Belize. This regulatory body ensures that ZFX operates transparently and fairly, giving clients peace of mind knowing that their funds are secure.
ZFX offers clients three different account types: Premier, Pro, and Islamic. For Malaysian residents, Cent, STP, and ECN accounts are also available. The Premiere account is the most basic, with spreads starting at 1.2 pips. The Pro account is for advanced traders who require lower spreads, starting at 0.0 pips. The Islamic account is available for traders who need Sharia-compliant trading.
One of ZFX’s strengths is its low spreads, which makes it an attractive option for cost-conscious traders. The broker offers low spreads on currency pairs and gold, making it the lowest-spread forex broker for gold in Malaysia. ZFX is also listed among the low-spread brokers in Malaysia , making it an excellent choice for traders seeking the tightest spreads in the market for forex, stocks, commodities, and indices.
ZFX provides the popular MetaTrader 4 (MT4) trading platform, which is reliable and user-friendly. With MT4, traders can access a range of trading tools and features to help them execute their trades.
