Best FOREX Brokers in South Africa for 2022

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FAQ

Yes, FOREX trading is legal in South Africa. As long as the broker is correctly registered and abides by the financial oversight laws of the country, including the central bank for FOREX transfers, the South African Revenue Authority (SARS) for tax affairs, and the CIPC for company affairs, then FOREX trading is legal.

The FOREX market is the largest financial market in the world at some six trillion dollars daily, only followed by the credit market. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.

A first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While most FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX company. Top FOREX brokers typically offer a EUR-USD spread of three basis points. As for commissions, FOREX trading companies can be placed in three categories. The first offer fixed spreads, the second tender variable spreads, with a third category of companies offering low-cost spreads but that come with a (relatively high) fixed commission.

As timing is key to FOREX trading, you must pick a brokerage firm that is able to provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast and polite, which will, in turn spare you of having to worry about problems down the road.

Yes, profits from FOREX trading are taxable. FOREX traders who reside in South Africa are required to declare all their profits from FOREX trading, be it onshore or offshore, on their annual tax returns.

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