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 Aduragbemi Omiyale
A minority equity stake in Chappal Energies Mauritius Limited has been acquired by a Nigerian energy firm, Aradel Holdings Plc.
This deal came a few days after Chappal Energies purchased a 53.85 per cent equity stake in Equinor Nigeria Energy Company Limited (ENEC).
Chappal Energies went into the deal with Equinor to take part in the oil and gas lease OML 128, including the unitised 20.21 per cent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for Nigerian society and various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
The Nnwa discovery is part of the giant Nnwa-Doro field, a major gas resource with significant potential to deliver value for Nigeria.
In a separate transaction, on July 17, 2024, Chappal and Total Energies sealed an SPA for the acquisition by Chappal of 10 per cent of the SPDC JV.
The relevant parties to this transaction are working towards closing out this transaction and Ministerial Approval and NNPC consent to accede to the Joint Operating Agreement have been obtained.
“This acquisition is in line with diversifying our asset base, deepening our gas competencies and gaining access to offshore basins using low-risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource.
“We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” the chief executive of Aradel Holdings, Mr Adegbite Falade, stated.
By Adedapo Adesanya
Afriland Properties Plc helped the NASD Over-the-Counter (OTC) Securities Exchange record a 0.04 per cent gain on Tuesday, December 10 as the share price of the property investment rose by 34 Kobo to N16.94 per unit from the preceding day’s N16.60 per unit.
As a result of this, the market capitalisation of the bourse went up by N380 million to remain relatively unchanged at N1.056 trillion like the previous trading day.
But the NASD Unlisted Security Index (NSI) closed higher at 3,014.36 points after it recorded an addition of 1.09 points to Monday’s closing value of 3,013.27 points.
The NASD OTC securities exchange recorded a price loser and it was Geo-Fluids Plc, which went down by 2 Kobo to close at N3.93 per share, in contrast to the preceding day’s N3.95 per share.
During the trading session, the volume of securities bought and sold by investors increased by 95.8 per cent to 2.4 million units from the 1.2 million securities traded in the preceding session.
However, the value of shares traded yesterday slumped by 3.7 per cent to N4.9 million from the N5.07 million recorded a day earlier, as the number of deals surged by 27.3 per cent to 14 deals from 11 deals.
Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
By Adedapo Adesanya
The Naira continued to appreciate on the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), gaining 0.7 per cent or N10.23 on Tuesday, December 10 to trade at N1,542.27/$1 compared with the preceding day’s N1,552.50/$1.
The Central Bank of Nigeria (CBN)-backed Electronic Foreign Exchange Matching System (EFEMS) platform introduced to tackle speculation and improve transparency in Nigeria’s FX market has been attributed as the source of the Naira’s appreciation.
Speculators holding foreign currencies, particularly the US Dollar, have seen the value of their money drastically drop due to the appreciation of the local currency. This is forcing them to dump greenback into the system and take the domestic currency alternative- a move that has seen available FX increase.
Equally, the domestic currency improved its value against the Pound Sterling in the official market during the trading day by N6.81 to sell for N1,955.12/£1 compared with Monday’s closing price of N1,961.93/£1 and against the Euro, it gained N10.84 to close at N1,613.00/€1, in contrast to the previous day’s rate of N1,623.84/€1.
Data from the FMDQ Securities Exchange showed that the value of forex transactions significantly increased yesterday by $228.85 million or 257.2 per cent to $401.17 million from the preceding session’s $112.32 million.
However, in the parallel market, the Nigerian currency weakened against the US Dollar on Tuesday by N5 to settle at N1,625/$1 compared with the previous day’s value of N1,620/$1.
In the cryptocurrency market, Dogecoin (DOGE) lost 4.8 per cent to sell at $0.39116, Litecoin (LTC) depreciated by 3.3 per cent to trade at $110.25, Binance Coin (BNB) went south by 2.3 per cent to $681.44, Ethereum (ETH) dropped 1.6 per cent to finish at $3,671.08, and Cardano (ADA) slid by 0.5 per cent to $0.8837
Conversely, Ripple (XRP) jumped by 5.4 per cent to $2.23 amid a continued shift for the coin with its parent company seeing the benefits of a crypto-friendly regulatory environment for US-based companies.
XRP is closely related to Ripple Labs, a high-profile payments company targeted by the SEC in 2020 on allegations of selling the token as a security to U.S. investors. Ripple fully cleared a long-drawn court case in 2024.
Further, Solana (SOL) expanded by 0.8 per cent to $219.75, Bitcoin (BTC) grew by 0.4 per cent to $97,446.95, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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