Forex Trading Africa annually reviews forex brokers regarded as the best in the world who accept South African traders. We provide valuable information on the platforms, analysis and tools as well as pricing for you to base your decision on when choosing the right broker for your trading needs.
To trade forex in South Africa, you need to open an account with a regulated broker. Forex is traded over-the-counter through a network of brokers and financial institutions as opposed to a centralised exchange. Forex is a risky instrument to trade. You can minimise the risk by trading through a regulated forex broker who you can trust.
IG Markets overview
IG Markets is a market-leader forex and CFDs broker. The UK-based global broker offers clients access to financial derivatives such as contracts for difference (CFDs) and financial spread betting. IG Markets is primarily a forex and CFDs broker and has offered stockbroking to retail traders since 2014.
Founded in 1974 as a spread betting business, IG Index as it was known was the first broker of its kind. It allowed investors to trade gold prices as an index instead of buying the physical commodity. In 2000, the company was renamed IG Group pic and was listed on the London Stock Exchange (LSE). In 2012, IG Group consolidated its businesses in the UK under one brand, IG.
IG Markets is a member of IG Group which is a publicly-listed and FTSE 250 company. IG has a 47-year proven track record and a solid reputation for being a reputable, regulation-compliant broker. Clients trade a multitude of asset classes via MetaTrader 4 (MT4) or the IG proprietor trading platform. IG accepts clients in the United States but they can only trade forex.
The international broker is regulated by several top-tier authorities including the preeminent FCA in the United Kingdom. IG Markets is also regulated by the FSCA and is considered safe to use by South African forex and CFDs traders.
IG Markets offers tight spreads, low commission, low margins, an extensive product range and an excellent trading environment as well as an outstanding research and educational portal.
The award-winning broker is one of the largest forex and CFDs brokers in the world. It’s represented across five continents and has over 240 000 registered clients.
IG Markets fast facts
London, United Kingdom
Regulation and license
FCA Financial Conduct Authority, United Kingdom
FSCA Financial Sector Conduct Authority, South Africa
ASIC Australian Securities and Investments Commission
BaFin Federal Financial Supervisory Authority, Germany
CFTC Commodity Futures Trading Commission, United States
NFA National Futures Association, United States
FINMA Financial Market Supervisory Authority, Switzerland
MAS Monetary Authority of Singapore
FMA Financial Markets Act, New Zealand
DFSA Dubai Financial Services Authority
JFSA Japan Financial Services Agency
Does IG Markets accept forex traders in South Africa?
Stock Index CFDs
Note: FCA bans the sale of crypto-derivatives to UK retail consumers from 6 January 2021.
IG Markets is best forex broker for
IG Markets is recommended for forex and CFDs traders who are interested in trading multiple financial assets via the popular MT4 platform or IG’s user-friendly proprietory trading platform.
IG Markets is a market-leader broker and suitable for new, intermediate and advanced forex and CFDs traders.
IG trading model
NDD No Dealing Desk
ECN Electronic Communication Network
Available base currencies
IG proprietory platform
Web-based trading platform
IG Markets is a MetaTrader 4 broker and offers WebTrader and a user-friendly proprietory trading platform.
Mobile trading app
The IG trading app has been natively designed for iOS and Android devices, including smartphones and tablets.
Minimum deposit US$250 (R3 800)* if funding by bank transfer
* Conversion rate at January 2020
Maximum leverage of 200:1 on Standard account
Maximum leverage of 200:1 on DMA account
Spreads and fees
IC Markets is one of the lowest fee forex brokers and offers a Standard and Raw Spread account. The Standard account has higher spreads but no commissions while the Raw Spread account has the tightest ECN spreads and a low commission of $3.50 per $100k traded.
The minimum spread for the majors starts at 0.8 pips. The advertised average spread ranges between 0.9 (EUR/USD, USD/JPY) to 5.4 (GBP/CAD).
IG Markets has low non-trading fees and they are only charged after 2 years. There is no fee for withdrawals.
Scalping and hedging
How to deposit funds into IG account
You can deposit funds into your IG account by wire transfer, automated clearing house (ACH) or debit card. To deposit funds, log in to My IG and click ‘add funds’ next to the account you’d like to deposit into. To deposit funds by ACH, you need to add your bank account first through My IG
How to withdraw funds from IG account
To withdraw funds from an IG account, log into My IG, go to the ‘live accounts’ tab and select ‘withdraw funds’. You can withdraw funds as a bank transfer (assuming all anti-money laundering regulations have been met) or back to a card as a refund.
Approximately 240 000 registered clients (2020)
Most recent awards
- Best Multi-Platform Provider : ADVFN International Financial Awards
- Best Finance App : ADVFN International Financial Awards
- Best CFDs Provider : Online Personal Wealth Awards
- Best Stocks and Shares ISA Provider : Online Personal Wealth Awards
- Best for Forex Trading : Investopedia Online Brokers Awards
Multilingual 24-hour, Monday to Friday
Live phone support operates in several locations on a toll-free number
Live chat available on the IG mobile app
Is IG safe to use?
IG Group has been in business for over 47 years and has a solid reputation for being a regulation-compliant, stable and safe financial services group. IG Markets is regulated by several top-tier authorities including the preeminent FCA in the United Kingdom.
IG Markets is regulated by the FSCA and is regarded as one of the most reliable and safe brokers in South Africa for forex and CFDs traders.
The global broker is licensed and registered in every country where they have offices. The primary regulatory agencies in these regions are responsible for regulating IG Markets:
- South Africa
Financial Services Compensation Scheme (FSCS)
IG UK clients have additional asset protection through the FSCS up to £85 000.
IG Markets’ software security
IG Markets’ software security is aligned with the best the forex and CFDs trading industry has to offer. A two-factor and bio-metric authentication is required as well the fact that clients are logged out of bot the web-based and mobile applications for inactivity.
IG Group is listed on the London Stock Exchange (LSE). IG has signed up to the Forex Global Code of Conduct which sets out the guidelines for good practice in trading the financial markets. As a publicly-listed company, IG is required to disclose financial information that the broader public may review.
The Markets in Financial Directive (MiFID) allows IG to operate as a regulated entity throughout the European Union. MiFID II allows investment firms to provide investment and ancillary services within the territory of another member state and/or a third country, provided that such services are covered by the investment firm’s authorisation.
Financial Services Compensation Scheme (FSCS)
IG UK is a member of the Financial Services Compensation Scheme (FSCS). FSCS is an independent compensation fund of last resort for customers of authorised UK financial services firms, set up under the Financial Services and Markets Act 2000.
The FSCS’s objective is to pay compensation up to the value of £85 000 per client if a firm is unable or likely to be unable to pay claims against it in the event the firm has stopped trading or has declared to be in default.
Segregation of funds
All IG Markets’ client funds are held in segregated client bank accounts at regulated banks.
All retail client money is distributed across major banks and regularly assessed against IG Markets’ risk criteria.
Negative balance protection
IG Markets grants negative balance protection to all clients. The company may chose not to grant negative balance protection if the negative balance has been incurred as a result of fraudulent purposes or market abuse.
IG US does not offer negative balance protection nor guaranteed stop loss orders. US client funds are not insured by FDIC or SIPC.
What does IG offers its clients?
IG Markets offers leverage up to 50:1 on the Standard CFDs account.
Leverage is a powerful and useful feature of CFDs. It gives clients the flexibility to take significant positions on key markets without tying up excessive amounts of capital. It magnifies the size of any profits you might make but it also magnifies losses if you are wrong about a trade.
Competitive spreads and fees
Floating spreads from 0.6 pips
Web-based and mobile trading
IG Markets offers clients the MetaTrader (MT4) trading platform, WebTrader and its own proprietory trading platform. These popular electronic trading platforms can be accessed via desktop or a mobile device.
WebTrader gives clients quick and easy access to the markets with no need for additional software, downloads or installations.
IG Markets mobile app
IG Markets’ user-friendly mobile trading app is available in both iOS and Android.
Derivative trading instruments
IG Markets offers multiple derivative instruments for forex and CFDs trading
A derivative is a contract between two or more parties where the value of the underlying asset is agreed upon and settled when the contract is closed. Parties do not take ownership of the financial asset, they merely speculate on price changes.
IG Markets product portfolio
|Forex||80 major, minor and exotic currency pairs|
|Indices||Deal on global stock indices with more 24-hour markets than any other provider|
|Commodities||Trade metals, energies and soft commodities with spreads from 0.3 points; choose from 35 commodities or a range of commodity stocks and ETFs|
|Shares||Choose from over 17 000 international shares and exchange traded funds|
|Bonds||Long-term Gilt, Short-term Gilt, German Schatz, Long-term BTP Italian government bond|
|Cryptocurrency*||Trade 8 cryptocurrencies, including Bitcoin, Ether, Ripple, And Litecoin – no wallet needed; get broad exposure in a single trade with IG’s Crypto 10 index|
Note: Cryptocurrency trading is only available to professional traders on the IG international account
Free demo account
IG Markets offers beginner forex traders a free Demo account that they can use to hone their trading skills before trading on a live account with real money.
The IG Demo account allows beginner traders to trade forex and CFDs in real time, test tools and strategies and sharpen your trading skills in a completely risk-free environment as they trade with ‘fake’ money.
MetaTrader trading platforms
IG Markets is a MetaTrader broker. MetaTrader 4 (MT4) is available for desktop, web trading, multi-terminal trading and trading on mobile devices. This includes Android, iPhone and iPad. MT4 is the most popular trading platform in the world and offered by the majority of retail brokers.
The MT4 trading platform comes complete with 18 custom indicators and Autochartist which offers forex and CFDs traders an outstanding trading experience. Direct market access (DMA) trading is available on the L2 Dealer and IG Markets fully supports automated trading solutions via numerous APIs.
IG proprietory platform
IG Markets’ proprietary trading platform features an extensive charting package, analytics, alerts, signals, and IG Live. It’s available as a WebTrader or mobile version while the ProRealTime platform offers advanced traders an excellent upgrade.
MT4 and IG’s proprietary platform are available on WebTrader.
WebTrader is available directly in your browser. WebTrader opens in seconds and gives you direct access to the markets through a reliable and intuitive interface. The trading platform gives you one-click functionality to open and close positions, employ effective risk management and access an exceptional range of charts.
L2 Dealer is downloadable on IG Markets’ DMA trading platform. It provides powerful, flexible DMA access for advanced forex and CFDs traders. L2 Dealer was designed by IG for traders who are comfortable with the increased complexity of DMA trading.
ProRealTime is online charting software for technical analysis and trading. It’s integrated with the IG trading platform. ProRealTime is used by experienced forex and CFDs traders who employ advanced technical analysis. The software gives users a fully customisable interface and trading experience.
The Autochartist tool hides irrelevant market data and highlights those currency pairs, market data and technical indicators that indicate large market movements.
Autochartist is an important tool to identify relevant movements in the markets. It also provides automated notifications as soon as emerging and complete chart patterns such as “triangles, wedges, tops and bottoms“ are recognized.
IG Markets’ professional clients gain access to account features not available to retail clients but lose certain investor protections. This includes:
- cash rebates: if you trade in high volumes, you may be eligible to receive a rebate on your spread each month
- collateral service: use up to 95% of the value of your shareholdings as margin for CFDs
- greater flexibility: your margins could decrease by up to 90%
You are eligible to open an IG Professional account on the following criteria:
- your trading averaged 10 significantly-sized leverage transactions per quarter over the last 4 quarters
- you have a financial instrument portfolio exceeding the ZAR equivalent of €500 000, including cash deposits
- you have worked in the financial sector in a professional position for at least a year that required knowledge of derivatives trading
Market analysis and trading tools
IG Markets offers an extensive choice of market analysis and trading tools.
- Fundamental analysis
- Technical analysis
- Sentimental analysis
- Economic Calendar
- Forex Calculators
- IG VPS
- News and trade ideas
- Trading strategy
- Financial events
- Subscriptions to market and industry reports
- Podcasts, seminars and webinars
- IG Academy
Virtual Private Server (VPS)
IG Markets offers Virtual Private Server (VPS) hosting that allows clients to upload and run MT4 Expert Advisors (EAs) and algo bots 24-hours a day without needed to keep a trading terminal running.
The benefits of trading using VPS hosting include minimising the chance of system downtime due to technology and connectivity failures. VPS is also used to create applications for backtesting trading strategies.
IG Markets’ VPS is hosted by Beeks in London. It’s the fastest, most reliable VPS on the market. Clients get 25GB of disk space and 1 300MB of RAM with lightning fast response times on an easily accessible platform. You can access the full MT4 offering on IG Markets’ MT4 VPS, including key forex, charts, indicators and add-ons.
Direct Market Access (DMA)
IG Markets offers a Direct Market Access (DMA) account.
DMA is a way of placing trades directly onto the order books of exchanges. It offers traders flexibility and transparency when trading but due to the risks and complexity of DMA, it’s only recommended for advanced traders.
IG Markets’ clients can access DMA by trading CFDs on shares or with IG’s share dealing service as well as through IG’s Forex Direct offering.
Podcasts, seminars and webinars
IG TV channel
Live trading sessions
In-house trading manuals
News and trade ideas
IG Academy’s course covers material for people at different stages of the trading spectrum. Clients can also access courses and articles through the user-friendly IG Academy mobile app.
An efficient search function and a comprehensive glossary are very useful features for new forex and CFDs traders.
The IG Community site has active forums and numerous trade picks through forum entries and blog posts.
@IGSquawk on Twitter contains thousands of tweets from IG dealers sharing news and client sentiment.
There’s no dedicated or third-party social platform and the broker site contains no client positioning data for CFDs, forex, or spread bets. However, IG Client Sentiment at DailyFX.Com provides useful forex positioning data, updated in real-time.
Types of IG accounts
IG Markets falls under IG Group which has been in business since 1974. The company was the first of its kind spread-betting broker and has continued in this pioneering spirit, having spearheaded many revolutionary trading features.
The award-winning global brokerage is regulated by several top-tier authorities, including the preeminent FCA in the United Kingdom. On top of that, IG is listed on the London Stock Exchange and held accountable to the highest standards of financial trading practices. IG Markets is regulated by the FSCA and regarded as a trustworthy, reliable and safe broker to use for South African forex and CFDs traders.
IG Markets’ costs are very competitive across the gambit of spreads, commissions and fees. The global broker is ideally suited for new, intermediate and advanced forex and CFDs traders with access to thousands of trading instruments via state-of-the-art trading platforms and a great deal of flexibility in the different types of accounts. This includes a DMA account for professionals
What IG is best known for is their outstanding research and educational portal. The online and live streaming content that IG produces to improve their clients’ trading knowledge and expertise is a cut above what other brokers publish. The IG Academy plus the IG MarketsWelcome Bonus makes IG Markets one of the best brokers for beginner forex and CFDs traders.
FOREX TRADING AFRICA DISCLAIMER
Trading foreign currencies on margin carries a high level of risk and it may not be suitable for all traders and investors. Forex is a highly leveraged financial instrument and these high risk stakes can result in you losing a substantial amount of money. Consider your appetite for risk before trading forex using real money on a live account.
Featured Writer on SA Shares, Forexsuggest and Forextrading.africa