There are a variety of reasons to avoid a broker including if they are unregulated, offer unfavourable pricing, are too good to be true with their marketing, or give plain old poor customer service. We have compiled this list of the 30 Worst Forex Brokers in South Africa with the reason they should be avoided.
Why should you choose brokers that are recommended and regulated?
Every country has a regulatory financial body that governs the way companies handle client funds and monitor their financial and business activities.
In South Africa, the Financial Sector Conduct Authority (FSCA) governs financial institutions including Forex brokers.
Regulators help prevent fraud and encourage ethical business practices.
Not all unregulated brokers are fraudulent. Some brokers simply cannot afford to get licensed, especially if they are a start-up or provide services locally.
However, regulated brokers can face legal consequences if they fail to comply with regulations and since the Forex market is not centrally organized, trading with regulated brokers is generally more beneficial!
Forex brokers that comply with the same regulations are transparent and can be trusted, and are expected to do compulsory annual audits with licensed financial institutions.
Choosing a regulated broker also protects the customer because brokers are expected to deal with customers according to international standards.
Here are the 30 Worst Forex Brokers in South Africa.
There is no specific information on spreads offered and this broker is not regulated in any way.
HFX is also listed by the FSA as an unauthorized and fraudulent company. Research suggests that HFX may have been discontinued, despite the website still being active.
HFX facilitates trading with Forex, Indices and Commodities. The only platform used is the HFX proprietary platform for mobiles and desktops and they offer four types of accounts.
A minimum deposit of $100 is required for Mini accounts and $5,000 is required for the classic and premium accounts.
Despite seeming trustworthy, many users have reported not being able to reach the customer support team and traders are concerned about the high minimum trading volume of $800.
It is suspected that the company’s SVGFSA (the Financial Services Authority of St. Vincent and the Grenadines) licensing is invalid.
Bexplus is an online bitcoin exchange broker. A maximum leverage of 1:100 is offered for BTC, ETH, LTC, EOS and XRP.
Bexplus holds an MSB (Money Service Businesses) license, issued by FinCEN but is not licensed with the FSCA.
CFD is regulated by CySEC, but there is reason to believe the license is invalid. Trading conditions with this broker seem unreasonable and the minimum trading deposit is high, at $500.
The spreads are tight but this broker is not compatible with any trading platforms, such as MetaTrader or cTrader which is a big concern.
Coinfinex requires a high minimum deposit and offers, wide spreads and with the commission charged on trades indefinitely.
This broker is not recommended because it is not regulated and trading may not be profitable.
Coinfinex is a crypto broker that offers two types of accounts. A minimum deposit of 250 EUR is required and accounts have high spreads with the commission charged on trades.
The website seems user-friendly but several users have reported that their money was stolen.
Coinfinex does not seem to be regulated by any authority and it is not listed on the Financial Supervision Commission (FSC).
There are many poor reviews on Discount FX and despite being licensed, there is no guarantee that this broker is compliant with any regulations.
Discount FX appears to be regulated by CySEC, however, it is the parent company owning the license, which isn’t too concerning on its own.
However, despite having an office in Germany they do not have a license with BaFin which may imply they wouldn’t be compliant. This is enough of a red flag to be wary of dealing with them.
From a functional perspective, they also have a high minimum deposit of $500 and the only account options are demo accounts and live accounts.
This broker is not a profitable option because the spreads are wide, the leverage is restricted and payments can take up to one week to be processed.
ALB is transparent and regulated, so this broker is legitimate in the legal sense of business.
It provides a user-friendly platform with several trading instruments to choose from. ALB also offers demo accounts and has compatibility with MetaTrader 4 and 5, and cTrader.
However, their spreads are much wider than industry standards, the leverage is capped at 1:100 for all tradeable instruments.
EagleFX is completely unregulated but the website seems professional.
They make our list because of negative reviews. Unhappy Forex traders have reported that their emails to customer support have been ignored and funds were never paid out.
Some also complain about the poor performance of the servers and platforms, which delays trades and transaction speeds.
EagleFX has a well-presented website with only two account options to choose from, namely a demo account and a live account.
A low minimum deposit is required, there are 55 currency pairs, 33 digital coins and a maximum leverage of 1:500.
The website looks professional and their account types are flexible, but the spreads are wider than most brokers would offer.
Also, there is no evidence indicating that Eurotrader is regulated by any financial governing body.
Eurotrader is a registered company, but it is not a regulated Forex broker.
They have several different account options and provide trading instruments that include Forex, Cryptos, Indices, Commodities and Shares.
The HWFX website account has been suspended. This broker was founded in 2017 and it was regulated by CySEC, but it was reported that HWFX was not listed by CySEC.
Accounts were misrepresented because the spreads turned out to be very wide and unexpected fees were charged to clients.
Trading with HWFX required a minimum deposit of $200, $1,000 or $5,000. Users could choose from three accounts with tight spreads and a maximum leverage of 1:30.
MaxCFD has been flagged as a fraudulent firm by the Forex Peace Army and users have been urged to withdraw all funds from their accounts.
Users reported that bonuses were deposited into their accounts without permission and they were bound to unlawful terms and conditions attached to the bonuses.
It appears that the MaxCFD website has been removed or suspended.
MRG FX is an unregulated Forex broker that promises tight spreads and unlimited cashback.
It does not appear to be regulated by any financial bodies and the primary focus of the website seems to be on earning cashback on trades.
The product offering seems unrealistic and trading with MRG FX may be risky and lacking profit and support.
In comparison to the range of regulated Forex brokers, you can choose from, choosing a broker with an underdeveloped website should be reconsidered.
MyteamFX is not a profitable Forex broker and minimum deposits are suspiciously high.
Research suggests that this broker’s CySEC and FSC licenses were invalid or suspended and posts have been made by unhappy customers about scam alerts.
NetoTrade is an unregulated Forex broker that is not authorized to conduct business in any country.
Financial Regulatory bodies have issued multiple warnings to this broker and clients have been advised to withdraw any funds from their accounts.
Netotrade should not be considered at all.
NoaFX is an unregulated Forex broker that has a reputation for stealing client’s funds.
Users complain about their emails not being answered by the customer support team and no refunds have successfully been made. The Forex Peace Army confirms that NoaFX is a scam.
NoaFX fraudulently claimed to be regulated and licensed by the Financial Conduct Authority (FCA) of New Zealand and should not be trusted.
Option.fm should be avoided at all costs. Traders have reported the theft of their funds and complained about withdrawals being blocked.
Customer support is unresponsive and many cases of theft have been reported to the Forex Peace Army.
Option.fm has a history of fraudulent and illegal activity, so this broker should not be used.
Panamoney attracted many traders during its lifetime and the website shut down in 2010 before investors could withdraw their funds.
User accounts can no longer be accessed and there appears to be no way to be refunded.
In 2010, Panamoney received a warning issued by FINRA and the firm was suspended. Some investors report a loss of up to $160,000.
Panamoney is blacklisted by the Forex Peace Army and should not be considered at all.
PorterFinance is blacklisted by the Forex Peace Army and legal consequences have followed the actions of this broker.
The FPA has categorized this broker as a scam, along with the Greymountain Management group that is the holding company of PorterFinance.
Traders were forced into inconvenient trading arrangements with unrealistic requirements, and PorterFinance allowed trading over weekends, which is illegal.
RFXT is regulated by multiple jurisdictional financial bodies but some users complain that deposits were made and but they could not withdraw funds from their accounts.
It’s also been reported that their customer support team is unresponsive and the feedback to queries is unhelpful.
The SinoSoft FX website seems professional, but it is an unregulated Forex broker that operates without being monitored or authorized to provide financial services to the public.
A $20 Sign-up bonus is promised and the maximum withdrawal amount is $100. The terms and conditions are also unreasonable.
TNFX appears to have no official licensing from any financial regulatory body. This broker also claims to have its parent company in Dubai, but that company is not licensed either.
This broker offers high leverage of 1:1000 and minimum deposits of $300, promising low spreads.
TNFX offers an account that has a minimum deposit of $50,000. Professional and educated traders will know that depositing this much money into a single account and trading investment, could be extremely risky.
Trade-24 is an unregulated Forex broker with a reputation for stealing deposits, freezing accounts and withholding funds from clients by preventing withdrawals.
This broker has also faced allegations of forgery and lying about an IFSC license.
The IFSC of Belize has given notice that Trade-24 is not officially regulated and urges traders to avoid this company.
TradInvestor operates without any regulations or licenses, and the minimum deposits required to start trading range from $2,500 to $100,000.
This broker offers low spreads, four account options, and a variety of tradeable assets, but trading conditions and costs are not fully disclosed.
Tradorax has officially been declared a scam by the FPA Traders Court. It has received 4 guilty votes in court and is known for freezing trading accounts and preventing users from withdrawing funds.
Accounts have been cleared and funds were stolen multiple times.
It was reported that a pensioner lost $60,000 and was never able to withdraw the money from his Tradorax account.
UFX Market has been given many poor reviews from unhappy customers.
There is speculation that this broker is posting false positive reviews online and clients reported not being able to withdraw any funds from their trading accounts.
Customer support cannot be reached and accounts are frozen without notice.
UFX Market persuades traders to deposit money into their accounts, even when trying to close their accounts.
Clients complained that their accounts were entirely wiped when agreeing to the “Last Deal” option before closing accounts.
Vestle has a professional website and offers a 2-week start-up package at no cost. It offers more than 750 tradeable instruments, negative balance protection and a minimum deposit of $400 is required.
However, it is an unlicensed brokerage and there are not many reviews on their website.
OT Capital was a Forex broker that was discontinued. An ASIC announcement was made on the 12th of February, 2018, warning the public not to trade with this broker.
OT Capital’s business practices are unethical and many customers have complained about not being able to withdraw funds from their accounts.
Some brokers will use regulations to win the trust of clients, but that does not mean that it is a regulated company.
EU Capital has an offshore license and is registered in the Marshall Islands. The company’s address does not seem to be authorized or registered, and services are operating from a different location.
The official website is difficult to find, suggesting that it might have been suspended.
MultiplyMarket is an unregulated, offshore Forex broker. There is reason to believe that this broker is a scam because the minimum deposits are high, there are many negative customer reviews, and low spreads are only offered to high volume traders.
Demo accounts are not functional and traders are not able to access any of the MetaTrader platforms offered.
The Forex356Options website cannot be reached, suggesting that the brokerage has discontinued its services.
This is an unregulated Forex broker with offshore licensing and no official authorization to offer financial services to the public.
Like many other unregulated Forex brokers, accounts were frozen and funds were stolen.
BlueTrading is an unregulated Forex broker with no official licensing. This broker focuses on trading cryptocurrencies and offices are located in several countries, including Japan.
If a company can afford to open international offices, an official trading license should also be purchased because all Forex brokers should be regulated.
How to identify and avoid the worst Forex brokerages?
Is the broker regulated?
Ensure that the brokers you choose are regulated by the FSCA or at the very least one other Tier 1 license.
Some regulated Forex brokers disclose license numbers along with regulations, and you might be able to view their financial annual reports directly from the website.
Choosing a transparent Forex brokerage is an easy way of avoiding a fraudulent one.
Regulations are usually listed at the bottom of the page or under the “About Us” section of the website.
A broker should never lie about its regulations and licenses.
Have you educated yourself about Forex trading?
Educate yourself about how Forex trading works, what strategies can be used to trade with minimal risks and maximum opportunities and learn about how professional traders achieved their success.
Once you understand the ideal trading conditions and what features, spreads, instruments and costs align with your goals and budget, choosing the right brokerage should be no problem.
Don’t try to make profits overnight
Avoid using Forex brokers that expect big minimum deposits and high maximum leverages.
There is no such thing as fast returns in Forex trading because even short-term profits could take up to several weeks to position.
Understand that Forex trading is a long-term commitment that requires diligent planning and perseverance, even if you have short-term ambitions.
Don’t be tricked by aggressive marketing techniques
Forex brokers who try to persuade you with unrealistic sign-up bonuses, or promising profits if you invest at certain times of the day, should not be trusted.
If you feel like you are being pressurized into making unplanned deposits, then you might need to consider choosing a different broker.
Don’t choose a broker who suggests trading on the interbank market
Never use a broker that offers to trade on the Interbank market. Forex trading does not allow this because the Interbank is where large financial institutions and banks trade.
Any Forex broker that includes this in its service offering is definitely a scam!
Don’t be fooled by professional websites
When choosing a broker, carefully read through the terms and conditions of trading.
Fraudulent brokers will include cancellation clauses allowing them to cancel without notice and withhold any funds remaining in accounts.
Even if the website seems professional, a regulated brokerage could have terms and conditions allowing them to keep money or close accounts.
Unfortunately, some regulated Forex brokers do not comply to the regulations of financial authorities.
Dedicate sufficient time to research the broker you are planning on using. Read through customer reviews, including the bad ones to get a balanced view of the company.
Seek confirmation that the brokerage is in fact regulated.
Contact the customer support team with questions BEFORE you sign-up, to see how the response is.
Read article reviews about the broker and find out everything you can before investing any money!
Despite how tempting it may be to trade with an unregulated broker, there is no way of protecting your funds or any guarantee that you will receive monies payable to you, and it is best to avoid the 30 Worst Forex Brokers in South Africa. Using an unregulated broker means that your money can be stolen and you will not be able to take legal action. Forex Brokers that are regulated by CySEC, ASIC, FSA and FCA can be trusted.