Economy
An In-depth Look into Best CFD Trading Platforms in South Africa by Traders Union
Recent years have witnessed a significant surge in the popularity of Contract for Difference (CFD) trading in South Africa. In light of this evolving market dynamic, Traders Union experts conducted a meticulous examination of the top CFD trading platforms catering to the South African market. Their insightful findings aim to assist novice and experienced traders in navigating through various platforms, each boasting unique offerings and services.
The experts considered numerous best CFD trading platforms in South Africa to ensure an unbiased assessment, eventually identifying a select few that demonstrated outstanding performance across all assessment criteria. A multifaceted approach, including comprehensive evaluations of regulatory compliance, asset variety, trading features, and overall user experience, underpinned the TU expert analysis.
The forthcoming sections present a detailed summary of their findings. Read and learn about the top platforms to trade CFDs in South Africa for novice and experienced traders.
Pioneering CFD Trading Platforms in South Africa
The Traders Union team, having scrutinized the market, has delineated several trading platforms. Learn about their features and tools.
RoboForex
Regulated by IFSC, RoboForex provides traders with an extensive array of 9 asset types for CFD trading, including Forex, stocks, indices, ETFs, commodities, metals, energies, and cryptocurrencies. With a low minimum deposit of $10, the platform offers multiple account types, catering to different trading styles and risk appetites. Their platform is easy to navigate, allowing traders to maximize their trading efficiency.
XM Group
XM Group stands out with its impressive regulatory portfolio, which includes ASIC and CySEC. They offer various CFDs on asset classes such as Forex, stocks, commodities, indices, and cryptocurrencies. Traders can enjoy competitive spreads, rapid execution of orders, and dedicated support for MT4 and MT5 trading platforms.
Tickmill MT4
Tickmill offers an assortment of CFDs, including Forex, stock indices, bonds, and commodities, on its MT4 platform. The platform, regulated by the FCA, CySEC, and FSA, requires a minimum deposit of $100. Key features include low spreads, high-speed order execution, and no requotes, contributing to a seamless trading experience.
IC Markets cTrader
IC Markets facilitates trading in Forex, indices, commodities, bonds, futures, and cryptocurrencies CFDs on its sophisticated cTrader platform. It boasts high-speed order execution, level II pricing, and detachable charts. Furthermore, it is regulated by ASIC, a globally recognized financial regulator.
Understanding CFDs
CFDs are complex financial instruments that enable traders to speculate on the price movements of various global financial markets. In CFD trading, traders do not directly own the underlying asset. Rather, they enter into a contract with the broker to exchange the difference in the price of an asset from the time the contract is opened to when it is closed. TU team discussed key steps in CFD trading:
- Checking the regulatory status of the platform.
- See the available markets.
- Verify the availability of direct share CFDs from the broker.
- Check the features and tools of the platform.
- Check commissions and fees, including spread and withdrawal costs.
- Confirm the minimum deposit amount.
- Learn about available software.
- Check the customer support service availability via email, phone or live chat.
- Sign up to start trading CFDs.
Evaluating the Legality of CFD Trading in South Africa
CFD trading is legal in South Africa and is regulated by various entities. The Financial Sector Conduct Authority (FSCA) is South Africa’s main financial regulator, ensuring fairness and integrity in the financial markets. The Australian Securities and Investments Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC) are well-recognized global regulators that oversee Forex and CFD brokers. The UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin) are further assurances of regulatory oversight, providing robust investor protection.
Assessing Tax Implications for CFD Traders in South Africa
Traders engaging in CFD trading are subject to South African tax laws. Income from CFD trading falls under gross income as per the Income Tax Act and must be reported to the South African Revenue Service (SARS). Capital Gains Tax (CGT) also applies to the profits earned from CFD trading. Traders Unions’ experts explain that traders must consider these tax implications when calculating their potential returns.
Identifying Ideal CFD Platforms for Beginners in South Africa
For novice traders, platforms that offer copy trading or PAMM accounts present an excellent starting point. Some of these platforms include XM Group and RoboForex. These features allow beginners to learn from experienced traders, gaining insights into successful trading strategies.
Conclusion
For a more exhaustive understanding of the CFD trading landscape in South Africa, readers are advised to visit the TU website. This rich repository hosts a plethora of detailed reviews, guides, and invaluable resources to equip traders with the knowledge they need for successful trading.
By Adedapo Adesanya
Three bellwether stocks lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.62 per cent on Friday, December 12 with the NASD Unlisted Security Index (NSI) jumping by 22.20 points to 3,600.43 points from 3,578.23 points.
In the same vein, the market capitalisation of the trading platform increased by N13.28 billion to close at N2.154 trillion from the previous day’s N2.140 trillion.
During the session, Central Securities Clearing System (CSCS) Plc went up by N2.53 to close at N39.71 per share compared with the previous day’s N37.18 per share, Geo-Fluids Plc added 35 Kobo to its price to finish at N5.00 per unit versus Thursday’s closing price of N4.65 per unit, and FrieslandCampina Wamco Nigeria Plc appreciated by 23 Kobo appreciation to sell at N60.23 per share versus N60.00 per share.
It was observed that yesterday, the price of Golden Capital Plc went down by N1.05 to N9.45 per unit from N10.50 per unit, and UBN Propertiy Plc declined by 21 Kobo to N2.01 per share from the N2.22 per share it was traded a day earlier.
There was a significant improvement in the level of activity for the day, as the volume of transactions increased by 6.2 per cent to 37.4 million units from the previous day’s 35.2 million units, the value of trades went up by 265.1 per cent to N4.9 billion from N1.4 billion, and the number of deals soared by 13.80 per cent to 33 deals from 29 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the last trading day of this week as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, the second spot was taken by Okitipupa Plc with 178.9 million units traded for N9.5 billion, and third space was occupied by a new comer in MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc also finished the session as the most active stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units valued at N420.3 million, and Impresit Bakolori Plc with 537.0 million units sold for N524.9 million.
By Dipo Olowookere
The bullish run on the Nigerian Exchange (NGX) Limited continued on Friday with a further 1.00 per cent growth buoyed by gains recorded by Guinness Nigeria, Champion Breweries, and others.
Data showed that the consumer goods space expanded by 1.53 per cent during the last trading session of the week, as the insurance counter grew by 0.51 per cent, and the industrial goods sector marginally gained 0.01 per cent.
However, the banking index depreciated by 0.54 per cent due to a pocket of profit-taking, and the energy industry shrank by 0.09 per cent, while the commodity sector closed flat.
Guinness Nigeria gained 10.00 per cent to trade at N217.80, Morison Industries rose by 9.84 per cent to N4.69, Champion Breweries jumped by 9.69 per cent to N14.15, Austin Laz grew by 9.66 per cent to N2.27, and C&I Leasing appreciated by 9.62 per cent to N5.70.
Conversely, eTranzact lost 10.00 per cent to finish at N12.60, Chellarams slumped by 9.00 per cent to N13.20, Eunisell depleted by 9.89 per cent to N75.15, Africa Prudential moderated by 9.77 per cent to N12.00, and DAAR Communications decreased by 9.18 per cent to 89 Kobo.
The busiest stock on Friday was Access Holdings with 107.6 million units sold for N2.2 billion, Consolidated Hallmark traded 59.9 million units worth N245.8 million, Zenith Bank transacted 48.2 million units valued at N3.1 billion, Transcorp Power transacted 42.8 million units for N13.1 billion, and Champion Breweries exchanged 36.4 million units valued at N510.2 million.
At the close of business, a total of 602.8 million units worth N30.7 billion exchanged hands in 20,550 deals yesterday, in contrast to the 529.7 million units valued at N12.3 billion traded in 18,159 deals on Thursday, representing a surge in the trading volume, value, and number of deals by 13.80 per cent, 149.59 per cent, and 13.17 per cent apiece.
Business Post reports that the All-Share Index (ASI) soared during the session by 1,485.89 points to 149,436.48 points from 147,950.59 points and the market capitalisation moved up by N945 billion to N95.264 trillion from N94.319 trillion.
By Adedapo Adesanya
An intervention of the Central Bank of Nigeria (CBN) in the foreign exchange (FX) market eased the pressure on the Naira on Friday.
The apex bank sold forex to banks and other authorised dealers in the official window to defend the domestic currency, helping to calm the FX demand pressure, with the Nigerian currency appreciating against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.11 per cent or N1.57 to sell at N1,454.50/$1 compared with Thursday’s closing price of N1,456.07/$1.
Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N3.95 to close at N1,946.15/£1 versus the previous day’s N1,950.11/£1 but lost 10 Kobo on the Euro to quote at N1,706.46/€1 compared with the N1,706.36/€1 it was exchanged a day earlier.
At the black market segment, the Nigerian Naira maintained stability against the Dollar during the session at N1,470/$1 and also traded flat at N1,463/$1 at the GTBank forex counter.
Despite the sigh of relief, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.
Gross FX reserves increased for the twenty fifth consecutive week, growing by a strong $396.84 million week-on-week to $45.44 billion.
As for the cryptocurrency market, it was down on Friday as pressure remained after Federal Reserve chair Jerome Powell’s speech on Wednesday, which hinted at a possible rate cut pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three.
However, Chicago Federal Reserve President Austan Goolsbee, who was against a December rate cut, said he expects more in 2026 than the current median projection.
Ethereum (ETH) slumped by 5.1 per cent to $3,090.61, Solana (SOL) declined by 4.5 per cent to $132.79, Cardano (ADA) depreciated by 3.8 per cent to $0.4103, and Dogecoin (DOGE) dropped 2.5 per cent to trade at $0.1373.
In addition, Bitcoin (BTC) lost 2.4 per cent to sell at $90,342.74, Litecoin (LTC) tumbled by 1.9 per cent to $81.86, Binance Coin (BNB) fell by 0.6 per cent to $886.93, and Ripple (XRP) slipped by 0.5 per cent to $2.02, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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