Updated on: November 5th, 2021
Complete Guide to CFD Trading South Africa
In addition to trading binary options and so-called forex trading, providers for trading CFDs are gaining popularity for several years. But which is the best broker for CFDs in South Africa? Here we did the test and compared the best-known providers.
Here was easyMarkets South Africa out due to the massive trading range and low spreads because the winner.
The following overview should assist you to find the most effective broker with the most suitable offer. With a click on a logo you’ll go on to the corresponding test report.
Updated on: November 5th, 2021
In This Guide
Top CFD Trading Brokers South in Africa
VFSC, CySEC
100% bonus
$100
500:1
ASIC, VFSC
N/A
$100
500:1
ASIC, CBI, BVI, FSCA, IIROC, FFAJ, JFSA, ADGM FRSA
up to 40% bonus
$100
400:1
CySec, ASIC, BVI
up to 50% bonus
$100
400:1
VFSC, FSC, IBFC
N/A
$5
1000:1
ASIC, VFSC
$10 000 demo
$50
500:1
FCA, ASIC, CIMA, SIBL
up to 50% bonus
$100
500:1
How To Choose Good CFD Brokers In South Africa
In addition to the brokers listed here, we even have a separate area for CFD brokers without a further payment obligation.
- Trading offer – and underlying assets
- Leverage – what’s the max. Lever?
- Software – for trading the CFDs
- Information offer – for further training
- Forex bonus – additional capital for brand spanking new customers.
The differences between the brokers are often just as large as the number of brokers. Therefore, choosing the proper broker is key to trading success. Pay particular attention to the following points.
The main aim of ForexOnlineBrokers.com SA is to alert South African traders about reputable providers in the areas of forex trading, binary options, online casinos, CFD trading and lots of more. Our team therefore tests the best-known and most popular brokers from all of those areas and shows in the extensive experience reports what to believe both the provider and therefore the offer.
What are Online CFD Trading brokers?
In order to get ready to actively trade with CFDs, South African investors need a provider who gives them access to the market. They receive this access through so-called contract for difference brokers.
A registration is sufficient there, after which a deposit is required. This money can then be used to bet on different rates for very various things like stocks, commodities, currencies and indices. In contrast to stock trading, traders do not buy stocks in the DAX or any other index, but only bets how the market will behave. These bets are generally of a short-term nature, in order that the costs only change visibly in the last decimal places.
In order to still be able to make a profit from a relatively small stake of, for instance, 50 euros, the broker provides so-called levers. A leverage of 30: 1 says, for example, that if the trader stakes € 333.33, the end of the market are going to be a whopping € 10,000. this may quickly end in potential gains and losses.
Structure of our test reports
We have a particular basic structure for all of our experience reports. This process is adhered to in each of our tests and is ultimately reflected in our test reports as they’re published on our website. On the one hand, this helps us to not forget anything essential during testing and also helps our readers to make a far better comparison between the individual brokers. Our team of experts tests for the following categories:
In order to get ready to actively trade with CFDs, South African investors need a provider who gives them access to the market. They receive this access through so-called contract for difference brokers.
A registration is sufficient there, after which a deposit is required. This money can then be used to bet on different rates for very various things like stocks, commodities, currencies and indices. In contrast to stock trading, traders do not buy stocks in the DAX or any other index, but only bets how the market will behave. These bets are generally of a short-term nature, in order that the costs only change visibly in the last decimal places.
In order to still be able to make a profit from a relatively small stake of, for instance, 50 euros, the broker provides so-called levers. A leverage of 30: 1 says, for example, that if the trader stakes € 333.33, the end of the market are going to be a whopping € 10,000. this may quickly end in potential gains and losses.
Structure of our test reports
We have a particular basic structure for all of our experience reports. This process is adhered to in each of our tests and is ultimately reflected in our test reports as they’re published on our website. On the one hand, this helps us to not forget anything essential during testing and also helps our readers to make a far better comparison between the individual brokers. Our team of experts tests for the following categories:
Background check
When it involves the question of whether a specific provider is fraudulent, the background check is crucial. We do that before we register with a CFD broker and try to make a profit with our investment. Our classic check includes, among other things, that we from Forex Online Brokers take a glance at the corporate behind the broker. We take a detailed look at this and supply information and also about other products that come from the company.
Another essential point of our background check relates to the awards that the broker may have received in the past. Well-known sites like AVAtrade.co.za regularly award prizes and laurels to the best CFD broker in South Africa, which distinguish themselves from the others through special things. Various awards such as a gift for customer satisfaction are distributed. We take a glance at what the broker in our test has already received from the very best authority within the past.
Customer opinions
Another important aspect of our analysis and research is that the question of how other customers perceive a particular CFD broker. to try to this, we enter the depths of the planet Wide Web and see which comments are already available on the given broker.
We would wish to means once more that dissatisfied customers are generally more inclined to offer a rating than those that were really satisfied with the services of a broker. This phenomenon is often found altogether companies, but especially in those on the web. For instance, if a broker has received three reviews on an internet site and every one of them are negative, it doesn’t mean that the CFD broker is really a fraud or the provider is dubious. There are other factors that play a task here. We attempt to differentiate with every evaluation of the broker’s services and thereby determine what’s really to be made from the opinions.
The offer of the best CFD broker
The second a part of our review of CFD brokers relates entirely to the overall offer. For this purpose, we’ve developed various categories that we’ll test the broker in a structured manner.
Trade types and trade opportunities
Most providers aren’t just equipped to trade CFDs alone. Instead, they also contain a neighbourhood for currency trading and may therefore also be called as a forex broker. A couple of also have more types of trading like binary options betting. In this category we’ll enumerate which values are tradable.
Maximum leverage
The lever is the crucial tool in CFD trading. With a higher leverage it’s possible to make more profit in the end through lower bets and deposits. However, it should be mentioned that trading CFDs also poses a risk precisely due to this leverage. Because just as quickly as high profits can be achieved, it’s also possible to have to accept larger losses. We therefore always have to take a differentiated check out the maximum leverage.
In principle, the maximum leverage for CFD brokers is 30: 1. This implies that with a stake per position of 333.33 euros, the market will end up trading at 10,000 euros. However, the utmost leverage varies greatly depending on the share, raw material or other value. The following table shows which leverage applies to which underlying:
| Products | Maximum leverage | additional margin for private investors |
| Major FX pairs | 30: 1 | 14x |
| Major Indices Minor FX Pairs Gold | 20:01 | 5x |
| Commodities Minor Indices | 10:01 | 10x |
| shares | 05:01 | 4x |
| Cryptocurrencies | 02:01 | – |
The reason for this lies in the price itself: If this changes significantly within a short period of time and not just in one among the last decimal places, then no particularly large leverage is important for trading. this is often different for currencies, for example. In most cases they only change their value in the fifth or sixth decimal place, at least within 15 minutes, for instance. this implies that high leverage is critical in order to generate a profit.
Depending on the CFD, the leverage can diverge. Before registering, traders should therefore not only determine about the maximum leverage, but also about the individual leverage for certain CFDs if they’re planning to trade with exactly these. within the section of the utmost leverage we are saying what to consider the offer.
CFD Trading software
Each broker provides its customers with their own trading software. this is often designed to supply all necessary information on the various courses in a clear and intuitive way. Usually anyone can come to terms with the basics of the software within a short period of time.
This software also plays a crucial role in our test. We check to what extent the trading software corresponds to what we might expect from such a program. We also test a provider’s mobile app, if it’s available. At this point, too, we would prefer to point out again that the utilization of a mobile app is not recommended, especially for beginners. The overviews are too small to be able to make good decisions based on the courses.
Deposit and withdrawal
With what means can deposits be made in one’s own account with the broker? Which deposit options are available? How long is the time until a payout is really made and what things need to be considered? We address all of those and a couple of other questions within the section on deposits and withdrawals.
Educational opportunities
Most brokers for CFDs have their own area in which traders can train themselves. Not only the characteristics of the provider and therefore the trading software are explained there. there’ll also be general introductions to the planet of CFD trading. Webinars and seminars aren’t uncommon. Many best CFD brokers also provide their customers with their own eBooks, with which they will form on very different topics. The broadest possible educational opportunities with the broker himself also are the idea for successful trading for us. there’s also the question of whether a demo account is out there and the way long it is often used freed from charge.
