Best Forex Brokers in 2025

What is Forex or the foreign exchange market?

The Forex (Foreign Exchange) market is the largest financial market in the world, where currencies are traded continuously. It operates 24 hours a day, 5 days a week, with daily trading volumes exceeding several trillion dollars. This market is based on trading currency pairs, where one currency is bought while the other is sold simultaneously. Each pair is denoted as XXX/YYY — for example, USD/ZAR (US Dollar versus South African Rand) or GBP/JPY (British Pound versus Japanese Yen). The first currency in the pair is called the base currency, and the second is the quote currency. So, if USD/ZAR is trading at 18.00, it means 1 US dollar equals 18 South African Rand.

The Forex market is driven by various types of participants. Central banks influence it through monetary policy decisions. Financial institutions and hedge funds execute large-scale transactions, while multinational corporations exchange currencies for international operations. Individual traders can access the market through Forex brokers, allowing them to speculate on currency movements using leverage.

This market offers several advantages that attract investors. It’s accessible around the clock, providing opportunities at any hour. Its high liquidity allows for rapid trade execution without the fear of a lack of counterparties. The leverage offered by Forex brokers enables traders to open positions much larger than their initial capital, though this also increases the risk. Moreover, unlike stock markets, Forex allows speculation on both rising and falling prices by selling one currency against another.

What is a Forex broker?

A Forex broker is a platform that allows investors to buy and sell currencies on the foreign exchange market. It serves as an intermediary between the trader and the interbank market, where large financial institutions exchange currencies on a large scale. Thanks to online brokers, Forex has become accessible to individuals, who can speculate on the evolution of exchange rates from an intuitive interface and with relatively little capital.

Forex brokers offer currency pairs such as EUR/USD, GBP/JPY or USD/CHF, and allow positions to be opened with or without leverage, depending on the desired level of risk. They provide advanced tools to analyse the market, such as real-time charts, technical indicators and automatic trading functionalities. Some brokers also offer access to CFDs (Contracts for Difference), allowing speculation on currency fluctuations without actually owning the underlying asset.

Compare the best Forex brokers regulated in South Africa.

How to choose a Forex broker?

Choosing a Forex broker is an essential step for trading currencies under good conditions. Several criteria must be taken into account to select the platform that best suits your needs and trading style. Here are the main elements to analyze before opening an account.

1. Regulation and Security of Funds

A reliable Forex broker should be regulated by a recognised financial authority, ensuring the protection of clients' funds and transparent trading practices. In South Africa, traders should ensure the broker is authorised and overseen by:

• The Financial Sector Conduct Authority (FSCA) – the main regulatory body for financial services in South Africa
• The Financial Conduct Authority (FCA) in the United Kingdom
• The Cyprus Securities and Exchange Commission (CySEC) in Europe
• The Securities and Exchange Commission (SEC) or Commodity Futures Trading Commission (CFTC) in the United States

A regulated broker is required to keep clients' funds in segregated accounts, separate from the company's own funds. This significantly reduces the risk of loss due to insolvency or fraud and ensures a greater level of transparency and oversight.

2. The type of broker: Market Maker or ECN/STP

There are two main categories of Forex brokers:

What type of broker should you choose?

• Beginner: Market Maker (fast execution, no commission)
• Advanced Trader: ECN/STP (more transparent execution, tight spreads)

3. Spreads and Commissions

Forex brokers primarily earn revenue in two ways:

• The spreads: difference between the buying price and the selling price of a currency pair. They can be fixed or variable.
• Commissions: applied to each transaction, usually per lot of 100,000 currency units.

4. The Leverage Offered

Leverage allows traders to control larger positions with a smaller amount of capital, which can magnify both gains and losses.

In South Africa, the FSCA permits brokers to offer higher leverage compared to many other jurisdictions. The maximum leverage often depends on the broker's risk classification and the type of financial instrument:

• Up to 1:400 is commonly offered by FSCA-regulated brokers for major currency pairs
• Up to 1:200 for minors and exotics, though it may vary depending on the broker’s risk profile
• Leverage may be lower for new or inexperienced clients, and brokers are expected to conduct appropriateness tests

While high leverage can boost potential returns, it also increases exposure to risk. Traders should always use risk management tools like stop-losses and only trade with leverage levels they fully understand.

5. The available trading platforms

A good Forex broker should offer an intuitive and high-performance platform. The most popular are:

• MetaTrader 4 (MT4) : ideal for automated trading and technical indicators.
• MetaTrader 5 (MT5) : improved version of MT4 with more assets.
• cTrader : appreciated for its speed of execution and transparency.
• Proprietary platforms: some brokers develop their own online and mobile trading software.

6. Deposit and Withdrawal Methods

A reliable broker should offer several methods to deposit and withdraw funds easily. Check the available options:

💳 Credit card (Visa/Mastercard)
🏦 Bank transfer
📱 E-wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (Bitcoin, USDT, etc.)

Hidden Fees

Some brokers charge withdrawal fees or impose long delays for processing requests.

7. The Quality of Customer Service

A good broker should offer responsive and available customer service in case of technical or administrative problems. Before opening an account, test:

• Contact methods: online chat, telephone, email
• Responsiveness: quick response and in English if possible
• Availability: 24/7 support, especially during trading hours

8. Educational Tools and Resources

If you're new to Forex trading, choose a broker that offers:
📊 Webinars and online training
📈 Market analysis and trading signals
📘 Guide to learning how to use the platforms

Which Forex broker is best for a beginner?

Choosing a Forex broker when you are starting out can be complex, as you need to prioritise a simple, secure platform with transparent fees. A good broker for beginners should offer:

• An intuitive interface: a platform that's easy to get to grips with, with clear tools and mobile access.
• A free demo account: to practice risk-free with virtual money.
• Competitive fees: reasonable spreads and no hidden commissions.
• Responsive customer service: available in English and accessible via chat, telephone or e-mail.
• Reliable regulation: a broker approved by a recognised authority (FSCA, FCA, CySEC, etc.).
• Access to educational resources: guides, webinars, market analysis and tutorials.
• Appropriate leverage: limited to protect against risks and avoid rapid losses.
• A wide choice of currency pairs: to trade the main Forex pairs (EUR/USD, GBP/USD, USD/JPY...).

How to trade Forex with an online broker?

Trading Forex with an online broker involves several key steps. 

1. Choose a reliable Forex broker

The first step is to select a regulated broker that offers an intuitive platform, competitive fees, and appropriate leverage. Check the following criteria:

• Regulation by a recognised authority (FSCA, etc.).
• Competitive spreads and no hidden fees.
• Access to a high-performance platform (MetaTrader 4, MetaTrader 5, cTrader...).
• Responsive customer service.

2. Open a Trading Account

Once a broker has been selected, an account must be created. The procedure generally includes:

• Complete a registration form with your personal information.
• Verify your identity by submitting an ID and proof of address.
• Select the account type (standard account, ECN account, demo account, etc.).
• Accept the broker's terms of use.

3. Deposit funds into your account

To start trading, you need to fund your account via:
💳 Bank card (Visa/Mastercard)
🏦 Bank transfer
📱 Electronic wallets (PayPal, Skrill, Neteller)
💰 Cryptocurrencies (depending on the brokers)

4. Choosing a currency pair to trade

Forex trading is based on trading currency pairs such as:

• Majors: EUR/USD, GBP/USD, USD/JPY (the most liquid and least volatile).
• Minors: EUR/GBP, AUD/NZD (less traded but interesting).
• Exotics: USD/ZAR, EUR/TRY (more volatile with higher spreads).

5. Analyse the market and define a strategy

Before opening a position, it is necessary to analyze the market using:

• Technical Analysis: Using charts, indicators (RSI, MACD, moving averages) to identify opportunities.
• Fundamental Analysis: Monitoring economic news (interest rates, inflation, employment) to anticipate trends.
• Trading Plan: Defining objectives, acceptable risk, and money management.

6. Placing a Trading Order

On your platform, you need to:

• Select the currency pair to trade.
• Define the position size (in lots).
• Choose the order type:✅ Market order: immediate execution at the current price.✅ Limit order: buy or sell at a defined price.✅ Stop order: execution when the price reaches a certain level.
• Add a stop-loss (to limit losses) and a take-profit (to secure profits).
• Validate the order.

7. Manage Your Positions and Adjust Your Trading

Once the order is executed, it is important to track your trade in real time:

• Adjust the stop-loss or take-profit according to market movements.
• Follow the evolution of economic news that may impact the currency pair.
• Close a position manually if necessary to secure profits or limit losses.

8. Withdrawing Your Profits and Optimising Your Strategy

Once you have accumulated profits, you can request a withdrawal to your bank account or e-wallet. Remember to:

• Verify the withdrawal times and fees imposed by the broker.
• Analyse your trading performance and adjust your strategy.
• Continue to learn and improve through the broker's educational tools (webinars, market analysis, demo accounts...).

What currency pairs to trade on Forex with an online broker?

Forex relies on the trading of currency pairs, classified into three main categories: majors, minors and exotics. Each type of pair has specific characteristics in terms of liquidity, volatility and spreads. Here is a summary table of the main currency pairs to trade with an online broker.

Which currency pair to choose?

• Beginner? → Favour major pairs (EUR/USD, USD/JPY, GBP/USD) for their tight spreads and liquidity.
• Experienced trader? → Opt for minor pairs (EUR/GBP, GBP/JPY) for more volatility and opportunities.
• High risk appetite? → Exotic pairs (USD/ZAR, EUR/TRY) offer high potential gains, but with wider spreads and significant volatility.

What are the fees charged by Forex brokers?

Forex brokers apply different types of trading fees that can impact the profitability of investors. These fees vary depending on the type of broker (Market Maker or ECN/STP), the currency pair traded and market conditions. Here are the main fees to know before choosing a Forex broker.

1. Spreads (price differences between buying and selling)

The spread is the difference between the buy (Ask) and sell (Bid) price of a currency pair. This is the main fee applied by Market Maker brokers. It can be fixed or variable, depending on market volatility.

Example of average spreads

• EUR/USD → 0,5 to 1,5 pips
• GBP/USD → 1 to 2 pips
• USD/JPY → 0,8 to 1,5 pips

Tip: an ECN/STP broker generally offers tighter spreads but applies a commission per trade.

2. Transaction fees

Some brokers apply a fixed commission per lot traded, in addition to the spread. This model is common among ECN brokers, where orders are executed directly on the interbank market.

ECN Commission Example:

$5 to $7 per standard lot (100,000 currency units) for a round trip (buy + sell).

3. Swap Fees (Overnight or Rollover)

Swap fees are applied when you keep a position open after the market closes (generally at 23:00 GMT). This cost depends on the interest rate differential between the two currencies in the traded pair.

Example of swap

• On EUR/USD, if the Euro has a lower interest rate than the Dollar, a trader buying EUR/USD will have to pay a fee to keep their position open.
• Conversely, if they sell EUR/USD, they may receive a credit (positive if the currency sold has a higher rate).

4. Currency conversion fees

If you trade a currency pair that is not denominated in your base currency (e.g. an account in ZAR trading USD/JPY), the broker will apply an exchange fee.

Example of conversion fees

A broker may charge 0.25% of the amount converted for a transaction in USD with an account in ZAR.

5. Inactivity fees

Certain brokers charge fees if you don’t make any transactions for a given period (usually 3 to 12 months).

Example of inactivity fees

ZAR160 to ZAR800 per month after 6 to 12 months without trading.

6. Deposit and withdrawal fees

Brokers may charge fees for depositing or withdrawing money from your trading account. These fees vary depending on the payment method used.

Example of withdrawal fees

• Bank transfer: fixed fees between ZAR 100 and ZAR 1000 depending on the country and the bank.
• Debit/Credit card: some brokers charge 1 to 3% of the amount withdrawn.
• E-wallets (PayPal, Skrill, Neteller): fees between 0% and 3%.

What strategies are there for trading with a Forex broker?

Forex trading offers various strategies adapted to the profiles and objectives of traders. Some methods favour quick gains on small movements, while others rely on long-term trends. Here is a summary table of the main Forex trading strategies and their characteristics.

What Taxes Apply to Forex Income in South Africa?

In South Africa, profits from Forex trading are subject to taxation under the jurisdiction of the South African Revenue Service (SARS). The specific tax treatment depends on the nature and frequency of your trading activities.​

1. Taxation for Individual Traders

For most individual Forex traders, profits are considered part of personal income and are taxed according to South Africa's progressive income tax rates, which range from 18% to 45%, depending on total annual income.

Traders are required to register as provisional taxpayers, necessitating at least two tax payments annually: one by the end of August and another by the end of February. An optional third payment can be made by the end of September if previous payments were insufficient. ​

2. Capital Gains Tax Considerations

If Forex trading is conducted sporadically and resembles investment activity, profits may be classified as capital in nature and subject to Capital Gains Tax (CGT). In South Africa, individuals are taxed on 40% of the capital gain at their marginal tax rate. However, frequent or systematic trading is typically regarded as revenue-generating, making income tax the applicable taxation method.

3. Taxation for Corporate Entities

Forex traders operating through a registered South African company are subject to a flat corporate tax rate of 27% on taxable income. 

4. Deductible Expenses

Traders can reduce their taxable income by deducting expenses directly related to their trading activities. These deductible expenses may include:​

• Costs of trading courses and educational materials
• Subscription fees for charting software and analytical tools
• Expenses for computer equipment and office furniture
• Internet and communication costs
• Travel expenses related to trading activities​

Proper documentation of these expenses is crucial for tax purposes. 

5. Treatment of Trading Losses

Forex trading losses can be deducted from your taxable income, thereby reducing your overall tax liability. It's essential to maintain accurate records of all trading activities to substantiate these deductions.

6. Reporting and Compliance

All South African residents are required to declare their Forex trading profits, regardless of whether they use a domestic or foreign broker. South Africa operates on a residence-based tax system, meaning residents are taxed on their worldwide income. Failure to declare such income can result in penalties and interest charges.

Example

If a trader earns R90,000 per year from Forex trading, they will have to pay tax on the R11,000 above the R79,000 threshold. At a tax rate of 26%, this results in a tax liability of R2,860.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.