Binary Broker Guides ¦Tips For Safe Binary Trading South Africa

• Forex traders located in the United States
• MetaTrader 4 users
• Beginner forex traders
• Active forex traders

1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

• Impressive, easy-to-navigate platform
• Wide range of education and research tools
• Access to over 80 currencies to buy and sell
• Leverage available up to 50:1

• Cannot buy and sell other securities (like stocks and bonds)
• Confusing margin requirements that vary by currency
• Limited customer support options
• Cannot open an IRA or other retirement account

Current Promotion

Currently no promotion

Interactive Brokers

• Access to foreign markets
• Comprehensive mobile app that makes trading simple
• Wide range of available account types and tradable assets

1 Minute Review

Interactive Brokers (IBKR) is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. With access to over 125 global markets, you can buy assets from all around the world from the comfort of your home or office. Options, futures, forex and fund trading are also available — and most traders won’t pay a commission on any purchase or sale. IBKR is geared primarily toward experienced investors. The platform offers limited assistance and can be a challenge for new users to become acclimated to. The broker’s tiered pricing strategy can also be frustrating for traders who focus on hourly or daily price movements.

• Comprehensive, quick desktop platform
• Mobile app mirrors full capabilities of desktop version
• Access to massive range of tradable assets

• Frustrating and confusing tiered pricing
• Bloated website that makes finding information a challenge

Current Promotion

$200 refer-a-friend bonus

IG Group

• New forex traders who are still learning the ropes
• Traders who prefer a simple, clean interface
• Forex traders who trade primarily on a tablet

1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.

• Easy-to-navigate platform is easy for beginners to master
• Mobile and tablet platforms offer full functionality of the desktop version
• Margin rates are easy to understand and affordable
• Access to over 80 currency pairs

• U.S. traders can currently only trade forex
• Customer service options are lacking
• No 2-factor authentication on mobile

Current Promotion

Currently no promotion

Oanda

• New forex traders looking for an easy-to-use platform
• Mobile traders who need a comprehensive on-the-go offering
• Experienced forex traders who seek a wide selection of charting tools, indicators and currency pairs

1 Minute Review

OANDA offers commercial and standard access to the forex market, with over 70 currency pairs to trade. OANDA’s platform is comprehensive, offering a wide range of indicators and charting tools for experts as well as a simple and intuitive layout that’s perfect for beginners.

You won’t find retirement savings or stock trading on OANDA — the platform doesn’t offer any type of trading beyond the forex market. However, the broker does forex trading especially well — though it could stand to offer more in the way of customer service and lower fees.

• Over 70 unique currency pairs to trade
• Comprehensive and easy-to-understand platform
• Mobile platform improves upon the desktop version

• Only forex trading available
• No retirement accounts available

Current Promotion

Currently no promotion

TD Ameritrade

• Novice investors
• Retirement savers
• Day traders

1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

• World-class trading platforms
• Detailed research reports and Education Center
• Assets ranging from stocks and ETFs to derivatives like futures and options

• Thinkorswim can be overwhelming to inexperienced traders
• Derivatives trading more costly than some competitors
• Expensive margin rates

Current Promotion

$600 cash & free trades for 60 days

Overview: Trading Forex in South Africa

The South African Rand, symbol R (ZAR) is the nation’s currency and ranks 20 th by the Bank of International Settlements with respect to daily volume and turnover among currencies traded in the forex market.

South Africa’s growing economy and population of 50 million make forex trading in the country attractive to foreign-based brokers and South Africans alike. Keep in mind, however, that trading forex and having knowledge of the currency market does not involve the geographic location of the trader. Traders based in South Africa should remain aware of several elements about trading forex in South Africa are unique to the country.

The first involves taxation. The South African Revenue Services (SARS) taxes trading profits for individual traders who operate within the country just like regular income. Tax rates range from 18% to 42% depending on the amount of profits generated and other factors relating to each individual’s tax status.

The second involves regulation. The forex market and the financial sector, in general, are regulated by the South African Financial Sector Conduct Authority (FSCA), which took over from the previous agency, the Financial Services Board, in April of 2020. Forex brokers licensed by the FSCA are required to maintain client funds in segregated accounts, and they are also prohibited from disclosing your information to third parties.

Many foreign-based brokers that accept South African clients and are regulated by other major regulating agencies also get an FSCA license. Brokers that operate without oversight from any agency should be avoided at all costs since your entire deposit could be at risk.

How to Start Trading Forex in South Africa

Before you dive into forex trading, you first and foremost need to understand the forex market. The forex market is like no other market in the world. It trades continuously throughout the trading week from 5 p.m. EST on Sunday until 5 p.m. EST on Friday.

The forex market also dwarfs all other capital markets combined, with an average daily turnover of more than $5 billion. The market has its own dynamics, which depend on the relative economic circumstances particular to the countries that issue their currencies.

Even if you have experience in other markets, such as the commodities or stock market , a background in the forex market is invaluable before you begin to trade. Below, you will find some preliminary steps to take before you begin trading from South Africa.

Step 1: Consider Your Forex Broker Needs

The first consideration to take into account is the need for a trustworthy broker. Next, your level of knowledge and trading experience also impact what you will need in a forex broker.

If you already have considerable trading experience, you can focus on choosing a broker with adequate trading tools and a sufficiently advanced trading platform. If you have a limited amount of experience, then a broker with an excellent customer service department and educational resources would be your best bet.

Whether you’re experienced or a novice, open a free demo account with any forex broker. Less-experienced traders often find that trading in a demo account gives them insight into how the forex market trades and whether they like the trading environment. If you already have experience trading, then demo trading gives you an idea of how the broker’s trading platform works, as well as an understanding of the broker’s dealing spreads and order slippage, which can occur during fast markets.

Remember, forex trading carries considerable risk, especially when you choose to use a high leverage ratio since leverage lets you control a significantly larger position with your money. This magnifies profits and losses as well. Furthermore, if you leverage a position too much, an adverse move could even wipe out your entire account.

Again, experience will determine your leverage needs. If you have experience, then you could probably leverage sizable positions. If you have limited experience, then you would probably be better off with a lower leverage multiple to avoid excessive losses. Also, your trading should begin with small lots, such as micro lots, since you can start trading smaller amounts and can better fine tune position sizes when you ramp up your dealing size.

Step 2: Pick a Forex Broker

Make sure to carefully consider your needs before opening an account because not all forex brokerages are created equal. Once you have acquired knowledge of the forex market and determined your needs for trading, you can then proceed to pick a broker.

Features to look for to find the best forex broker for your needs include:

Regulation

The broker you choose should be duly regulated by the South African FSCA or another major regulator such as the U.K. Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) or the U.S. National Futures Association (NFA) or Commodities Futures Trading Commission (CFTC).

Dealer spreads

Brokers make their money with the bid/offer spread or dealing spread. When the broker acts as a market maker, it takes the other side of your trade, but if the broker uses an electronic communications network (ECN), then several market makers’ exchange rates are used to create a quote with the best rates you can trade on. ECN firms also sometimes charge a commission on top of the dealer spread. The narrower the dealing spreads, the lower your overall transaction costs, which makes more of a difference the more often you trade.

Leverage or margin

The leverage ratio consists of the position size you can hold with one unit deposited in your account. For example, the 50:1 leverage ratio commonly used by U.S. based forex brokers means that you control a position worth $50 with just $1. Leverage ratios for some brokers can be as much as 3,000:1 depending on their location and regulatory agency.

Margin is the amount of money you put up to hold the trade. For example, the margin on a $100,000 position at 100:1 leverage would be $1,000.

Trading platform

Many forex brokers let clients use their own proprietary trading platform, though in many cases, they also offer customers NinjaTrader and/or the MetaTrader 4 and 5 trading software from MetaQuotes. If you have experience, then you would probably opt for the software package that conforms best to your needs. If you have limited experience, learning how the popular MetaTrader platforms work gives you excellent technical analysis resources and a news feed.

The platforms are also very customizable and programmable if you are interested in automated trading and developing custom indicators.

Customer service/educational resources

This feature would be an important one for inexperienced traders. Many forex brokers offer educational resources such as audio, video and articles on forex technical and fundamental analysis. The more prepared you are before trading, the more confidence you’ll have after you’ve begun.

Demo account

Regardless of your choice of broker, it usually makes sense to trade in a free demo account first before committing any funds to a live account.

Step 3: Open a Forex Account

Several forex brokerages base their operations in South Africa. Also, you can open an account with an internationally based forex broker that accepts South African clients and is regulated by the FCSA.

If you are based in South Africa and want to consider a local broker, take some time to see if the broker has a good reputation with other traders on forex forums and websites. A brief selection of forex brokers based locally and abroad who accept clients from South Africa is shown below:

Binary Options Brokers and Platforms – Reviews and Comparison

We have compared the best regulated binary options brokers and platforms in April 2020 and created this top list. Every broker and platform has been personally reviewed by us to help you find the best binary options platform for both beginners and experts. The sortable broker comparison list below shows which binary trading sites came out on top based on different criteria.

You can sort the list using payout (maximum returns), minimum deposit, bonus offers or if the operator is regulated or not. You can also read full reviews of each broker, helping you make the best choice. Below the comparison list is some advice on how to pick the best trading platform for you, as this will often come down to your personal requirements and needs.

Top Brokers in Russia

How to Compare Brokers and Platforms

In order to trade binary options, you need to engage the services of a binary options broker that accepts clients from Russia. Here at binaryoptions.net we have provided a list with all the best comparison factors that will help you select which trading broker to open an account with. We have also looked at our most popular or frequently asked questions, and have noted that these are important factors when traders are comparing different brokers:

1. What is the Minimum Deposit? (These range from $5 or $10 up to $250)
2. Are they regulated or licensed, and with which regulator?
3. Can I open a Demo Account?
4. Is there a signals service, and is it free?
5. Can I trade on my mobile phone and is there a mobile app?
6. Is there a Bonus available for new trader accounts? What are the Terms and
   conditions ?
7. Who has the best binary trading platform? Do you need high detail charts with technical analysis indicators?
8. Which broker has the best asset lists? Do they offer forex, cryptocurrency, commodities, indices and stocks – and how many of each?
9. Which broker has the largest range of expiry times (30 seconds, 60 seconds, end of day, long term etc?)
10. How much is the minimum trade size or amount?
11. What types of options are available? (Touch, Ladder, Boundary, Pairs etc)
12. Additional Tools – Like Early closure or Metatrader 4 (Mt4) plugin or integration
13. Do they operate a Robot or offer automated trading software?
14. What is the Customer Support like? Do they offer telephone, email and live chat support – and in which countries? Do they list direct contact details?
15. Who has the best payouts or maximum returns? Check the markets you will trade.

We cover as many of these comparison factors as possible in our list above, but we go into much more depth within each review.

Regulated Binary Brokers

Regulation and licensing is a key factor when judging the best broker. Unregulated brokers are not always scams, or untrustworthy, but it does mean a trader must do more ‘due diligence’ before trading with them. A regulated broker is the safest option.

Regulators

Leading regulatory bodies include:

• CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
• FCA – Financial Conduct Authority (UK)
• CFTC – Commodity Futures Trading Commission (US)
• FSB – Financial Services Board (South Africa)
• ASIC – Australia Securities and Investment Commission

There are other regulators in addition to the above, and in some cases, brokers will be regulated by more than one organisation. This is becoming more common in Europe where binary options are coming under increased scrutiny. Reputable, premier brands will have regulation of some sort.

Regulation is there to protect traders, to ensure their money is correctly held and to give them a path to take in the event of a dispute. It should therefore be an important consideration when choosing a trading partner.

Bonuses

Both sign up bonuses and demo accounts are used to attract new clients. Bonuses are often a deposit match, a one-off payment or risk free trade . Whatever the form of bonus, there are terms and conditions that need to be read.

It is worth taking the time to understand those terms before signing up or clicking accept on a bonus offer. If the terms are not to your liking then the bonus loses any attraction and that broker may not be the best choice. Some bonus terms tie in your initial deposit too. It is worth reading T&Cs before agreeing to any bonus, and worth noting that many brokers will give you the option to ‘opt out’ of taking a bonus.

Using a bonus effectively is harder than it sounds. If considering taking up one of these offers, think about whether, and how, it might affect your trading. One common issue is that turnover requirements within the terms, often cause traders to ‘over trade’. If the bonus does not suit you, turn it down.

Demo Accounts

Binary options demo accounts are the best way to try both binary options trading, and specific brokers’ software and platforms – without needing to risk any money.

You can get demo accounts at more than one broker, try them out and only deposit real money at the one you find best. It can also be useful to have accounts at more than one broker. For example, payouts for two different assets might be best at different brokers. You can shop around, and use whichever account has the best payout for that asset.

Demo accounts offer the best way to try out a brand, risk free. Likewise if we recommend a brand, you can try it first, before risking anything.

Low Minimum Deposits

If you are looking to get involved with binary options for the first time, low minimum deposit requirements may be of interest. For traders just looking to try binary options, a low minimum deposit broker might be best. A small initial deposit keeps risks low. Minimum deposits start at just $5 and there are a growing number of brokers offering low minimum deposits – “low” would be any minimum under $50.

Likewise, all brokers will have a minimum trade requirement or trade amount too. These can vary greatly between platforms. Minimum trade figures range from $1 to $25 – which is a large difference if a trader plans to trade frequently. For some traders, this might be less of a factor in terms of finding the best broker for them, but for others it will be very important. Practice accounts are a zero risk way of learning to trade.

Payouts

One element many traders use to find the best binary options trading account, is the payout percentage on offer. This is not always a simple comparison however. Payouts will change based on the underlying asset being traded, and the expiry time of the option. In addition, payouts will change as the broker manages their own risk. So if one broker was originally the best price, things may then revert and mean that another now has the top payout.

So the most an investor can do, is to check the payouts for assets, and expiry times they are most likely to make, and judge which brand offers the best terms most often. Demo accounts are good when researching payouts on specific assets and trades.

Exchange traded and over the counter brokers will have different payouts – and they will not be easy to compare. In general, exchange traded options offer superior value. Nadex are one example of an exchange.

So as you can see, finding the best trading account and broker is not always easy – but it is worth noting that you are free to move between brokers whenever you like. So even if an account turns out to be poor, it is easy to up sticks and find a new trading firm. Likewise, a trader could have multiple accounts, and open trades at the broker with the best terms for that particular trade.

Which is the Best Binary Trading Platform?

Naming the best trading platform is not easy, simply because trading platforms and proprietary (bespoke) software are normally a question of personal taste. One user might like a simple layout, while others might need a lot of data on screen all the time.

However, platforms do have different levels of quality, both in terms of ease of use, and features. Broadly speaking, brands which offer Contracts for Difference (CFDs) in addition to binary options, deliver a more feature-rich trading platform or advanced software.

So the likes of Nadex and IQ, will deliver a very professional trading platform. MetaTrader integration is also normally provided at the more professional brokers (Some use both mt4 and mt5 functionality) . This difference in quality is evidence of the maturity of binary options as a product, but binary brands will catch up very quickly.

Intro To The IQ Option Platform

How do Brokers Make Money?

Binary options brokers make money via one of two business models:

1. As a counter-party, ensuring an ‘over round’ via payout percentages. Known as ‘Over the counter’ (OTC)
2. Via a spread or commission on an exchange traded model

People who have experience of other forms of trading, and are now approaching over-the-counter (OTC) brokers for the first time may find themselves asking the question: “Where is the commission?”.

With OTC binaries however, there is no commission. In theory, the term ‘brokers’, is not correct. Binary firms are not arranging a deal or acting as a middleman, or as a market maker; What they are, is the counter-party to each of their customers’ positions. So there is no fee or commission for the trade. Instead, each customer is essentially betting against the house. Where brokers have both sides of a trade covered, they have a handsome margin. Where they do not, the payout still gives them a level of protection. In certain circumstances, the broker will also hedge it’s own position to mitigate risk.

Those companies (Nadex, for instance) that trade binary options via an exchange operate much more like a ‘broker’. Unlike the OTC market where the platform is the counter party, with exchange traded options, the broker is the middleman – matching buyers with sellers and charging a commission. This charge is normally hidden within the spread, rather than an explicit cost. There is far less risk involved for the broker, and therefore generally better returns per trade for the trader. Brokers can be actively compared using the spread – the tighter the spread (difference between buy and sell prices) the cheaper it is to trade.

Brokers using the spread model often also offer leverage, or trading on ‘margin’ via their software. This increases the trade size for the trader – and profit for the platform.

Should You Use Multiple Brokers?

There are some very good arguments for having more than one binary trading account:

• Brokers suit certain trades. Different brokers will suit different trading styles, or trade types. So one broker might be excellent for shorter term trade types, and have great payouts on forex pairs. But that same brand may be slightly less good when it comes to offering boundary trades or indices payouts. If a rival had a full set of long term expiries with great payouts, and lots of choice of boundary trades – it makes sense to have accounts with both platforms, and place trades with the broker that offered the best deal for each trade.
• Demo accounts. Multiple demo accounts makes perfect sense – you want to try as many brokers and trading platforms as possible before deciding where to trade.
• Reduce risk. Accounts at more than one broker protects you from any issues with a particular firm. From issues as serious as insolvency, to smaller things, like website downtime, software issues or a market being closed – multiple accounts reduces your risk of being affected by any hardship a broker might face.
• Multiple offers. Each sign up can mean a new bonus, so it might be worthwhile taking up more than one account to receive all the offers. As ever, read the terms – and also note that on occasion, larger deposits might mean larger bonuses – so splitting them may not be the best choice.
• Spread winnings. Some brokers may look for winning traders on their books, with a view to restricting their trading, perhaps limiting trade size – or worse. While this threat is thankfully small, multiple accounts means spreading the winnings out. Most brokers will search for “winners” based on total profit rather than strike rate, so hiding the volume across broker accounts can help you stay below their radar.

Exchange versus OTC (Over the Counter) Brokers

Exchange Brokers

A broker that offers an exchange is much closer to a traditional ‘broker’ than OTC brokers. An exchange performs the job of ‘middleman’. They will match a seller of an asset, with a buyer of the same asset, and charge a commission for putting the deal together. The market itself will decide the prices – if there are more sellers than buyers, the price will drift down until demand rises. If there are more buyers than those willing to sell, the option price will rise.

A broker operating an exchange does not mind who wins and who loses. They take no risk on the trade themselves (unless the traders are trading on credit). The broker will make their commission on the trade regardless of the outcome.

Due to this reduced risk for the broker, the returns for a winning trader are generally larger. Commissions are usually small relative to the size of the trade, meaning they do not impact the payout too much. Other benefits include the fact that stop losses can be applied, and also that trades can be closed at any time (to take a profit or reduce losses).

The complications with exchanges, comes from the structure. An exchange traded binary option will “trade” somewhere between 0 and 100. Where 0 is the figure used where an event did not occur, and 100 where it did. If the current price is currently 30, a ‘buyer’ would risk 30 times his trade size, to potentially win 70. A ‘seller’ therefore, would risk 70 to win 30. While not a complicated equation, it is slightly more complex than the straight forward over the counter option.

OTC (Over The Counter) Brokers

The most common type is the Over the counter (OTC) broker, but this type of firm is not really a ‘broker’ at all strictly speaking. They are the counter-party to one side of the trade. So where a trader opens a position, the broker will win or lose money, based on whether the trade wins or loses. Only where the broker has another trader who has made the exact opposite trade, will they have assured profits.

Due to this increased risk, the brokers will offer a lower payout which mitigates some of the risk they are taking. It is therefore likely to be lower than an exchange traded broker. Some firms will also have built in ‘hedging’ mechanisms to reduce risk further. In some cases, one side of trade might be made unavailable if liabilities get too large.

The simplicity of binary options is retained with OTC brokers. They have also made great strides in competing with exchanges by offering ‘cash out’ values for options, allowing traders to close positions early, and set up stop losses. Once those features become common the gap between OTC and exchanges will get smaller. For now, traders are better off trading on an exchange – but might be advised to learn the differences via demo account.

Have you had a problem with your broker? Submit a complaint

Payment Methods

Deposit and withdrawal options do vary at each brokerage. Each of our reviews will explain which each firm offer, but below is a list of the most common options.

If you are looking for brokers that support a specific payment method:

• Neteller
• Paypal
• Skrill
• Webmoney
• Paysafecard
• Ukash
• Visa
• Amex
• Bitcoin
• Wire Transfer
• Credit cards / Debit cards

Read More

All of the factors covered above will ultimately affect the way a trader plays the market, and therefore, their profitability. The ideal situation is to get a binary broker that offers:

• Several financial assets spread across several markets
• Offers a reasonable bonus with a good payout approaching 90%
• Offers flexible expiration dates without boxing traders into very long expirations.

Trading using a broker’s platform will only be enjoyable, and profitable, if you are using a reputable operator. You also need to choose one that suits your trading style best – only you will know what that is. Read the above binary broker reviews carefully before making that crucial trading decision, but remember you are not tied in to any single broker, and can pick and choose.

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