What is Forex Trading?
The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies.
This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.
Which Bank Is Best For Forex Trading In South Africa?
Below are the best for Forex Trading In South Africa:
In order for investors to buy and sell currency as they see fit, they need to open a new account and simply deposit the amount of money they desire in their country’s local currency.
Each service provider or central bank will offer their own options for account funding, most popular of which is credit cards. Here is an overview (in no particular order) of the 5 Best Banks for Forex Trading in South Africa
FNB
FNB is the oldest and most established bank in South Africa and can be traced back to the Eastern Province Bank – established in 1838. Today, FNB trades as a division of FirstRand Bank Limited.
FNB Forex has simplified the process of sending funds abroad for foreign investment purposes. Local investors will now have the ability to access the international markets, and if they so wish, diversify their savings by making use of their foreign investment allowance.
South African residents over the age of 18 can invest offshore by making use of the Single Discretionary Allowance of R1 million, as well as the Foreign Investment Allowance of up to R10 million per calendar year (1 January – 31 December).
FNB further simplifies the process by doing Forex transfers on the client’s behalf or offering them the option of investing in one of the providers Global Accounts which hold the clients’ money in foreign currency until they have decided on the best offshore investment for their unique needs.
Available Features
- Clients will be able to facilitate their transfer(s) abroad online anytime, anywhere, 24 hours a day, 7 days a week, 365 days a year.
- FNB will provide clients with expert guidance and assistance from an exchange control point of view.
- FNB Forex will process a client’s payment electronically via SWIFT which ensures that their funds reach their destination safely and securely.
- FNB will verify all documents and process the payment at an exchange rate that best suits the client.
- Clients can make use of FNB’s hedging solutions in order to protect them against exchange rate fluctuations.
- Clients can earn up to 50% back in eBucks on the transaction charges when making a payment in foreign currency via Online Banking or the FNB App on their smartphone.
How do you qualify and apply?
Clients must be:
- A South African resident
- A registered Tax Payer
- 18 Years or older
- The holder of a qualifying FNB Cheque account which is in good standing.
Clients who wish to apply can make use of the Call me back option on the FNB website hereafter the FNB representative will inform the client on Documentation needed in order for the process to be successfully completed.
Mercantile Bank
Mercantile Bank, a division of Capitec Limited, has more than 50 years of experience and offers its clients personalized service, tailored solutions, transparent pricing and the assistance of skilled, experienced and flexible teams.
Mercantile Banks core focus falls on Business and Commercial Banking but they also provide a wide range of international and local banking services, credit card, debit card and payment services plus a full suite of foreign exchange products.
As an authorized Foreign Exchange dealer, Mercantile Bank is able to offer a wide range of services to both import and exporters who are active in cross-border trade.
Available Features
- Clients are able to trade in the spot market in order to ensure favorable rates on offshore dealings.
- Clients will be able to protect their business from unexpected fluctuations in currency prices through the use of a Foreign Exchange Contract (FEC).
- A wide range of derivative products are made available, tailored to suit the client’s unique risk profile. This includes Futures contracts, options and Swaps.
- Foreign Cash/Currency can be purchased from Mercantile Bank.
How do you qualify and apply?
Clients who are interested in the above-mentioned offerings can contact Mercantile Bank via an online contact form, whereafter a Bank representative will “call back” and provide the client with further information.
Nedbank
Nedbank Group is one of South Africa’s four largest banks, with Nedbank Limited as their principal banking subsidiary. Nedbank, whose history traces back to 1831, offers their clients a range of solutions through their frontline clusters, Nedbank Corporate and Investment Banking, Nedbank Retail and Business Banking, Nedbank Wealth and Nedbank Africa Regions. Solutions on offer include:
- A wide range of wholesale and retail banking services.
- Growing insurance, asset management, and wealth management offering.
Nedbank offers clients a Customer Foreign Currency (CFC) account which proves useful for managing all major foreign currency receipts and payments.
A CFC is ideal for clients who import, export, make or receive payments in foreign currency. The benefits of a CFC include currency risk management and flexibility for both advances and settlements plus a low opening balance of R1500.
Available Features
- Clients will not pay any monthly fees.
- Clients will receive an electronic tax certificate yearly.
- Clients can deposit and withdraw from their accounts by email.
How do you qualify and apply?
Clients who wish to qualify must be South African residents older than 18 years. This account is also available to foreign nationals and non-residents over said age. In order to apply, clients must visit the provider’s official website and complete the needed application form.
Absa
Absa Bank, a subsidiary of the Absa Group, is a bank that offers its clientele an impressive range of retail, business, wealth management, corporate and investment solutions.
Absa Group Limited is not only one of Africa’s largest diversified financial services groups but the company is also listed on the JSE. Absa Bank has a presence in 12 countries across the African continent, with offices situated in the United Kingdom and the United States respectively.
Absa allows clients to buy or sell foreign currency through the use of their 24-hour forex trading platform – BARX Africa. The platform offers access to a full suite of Forex products, including spot, forwards and swaps.
Available Features
- Improved control over the client’s foreign exchange trade execution
- Treasury operations efficiency
- Full audit trail on all transactions
- The ability to control individual trading limits
- Live news feeds
- Efficiency
- Instant deal confirmation
Which bank is good for forex in South Africa?
Provider in South Africa. FNB has been awarded as the Best Foreign Exchange Provider in South Africa for the sixth year in a row in the annual World’s Best Foreign Exchange Provider awards hosted by the Global Finance Magazine.
Who is the best forex trader in South Africa?
Ref Wayne. Ref Wayne is the best and most successful Forex trader in South Africa. Ref Wayne has developed the trading skills that he could transfer into the business after he was suffering from a lack of career development opportunities growing up.
Do forex traders pay tax in SA?
The answer is an unequivocally ‘yes’. Even when you generated profits in your offshore forex trading accounts, you are obliged to pay income tax on the profits.