Banks in South Africa That Allow Forex Trading


Best Banks for Forex Trading in South Africa Banner
 

This list provides an overview of the 5 Best Banks for Forex Trading in South Africa. Forex Trading in South Africa has seen a major boost in popularity over the past decade and not only does the country offer up some of the Best Forex Brokerage firms coupled with world-renowned Forex Traders, but the service providers in South Africa are above par in comparison to the rest of the world. This includes Central Banks who make Forex trading available.

The term “foreign exchange account” typically refers to an account that is used to trade and hold foreign currencies online and making use of these accounts in South Africa has become easier than ever.

5 Best Banks for Forex Trading in South Africa Revealed:

  1. 🥇FNB
  2. 🏅Mercantile Bank
  3. 🥉Nedbank
  4. Absa
  5. Standard Bank

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


A review about FNB
 

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.
Read:  Forex Trading Tutorial for Beginners Video

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 whereafter the
FNB
representative will inform the client on Documentation needed in order for the process to be successfully completed.


A review about Mercantile Bank
 

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 authorised
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.


A review about Nedbank
 

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.

Read:  Is Forex Trading Profitable in Kenya

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.


A review about ABSA
 

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

How do you qualify and apply?

In order for clients to apply and confirm if they qualify, they must email the
International Banking Services division of
Absa Bank.


A review about Standard Bank
 

Standard Bank

Standard Bank
is known to be a leading provider of
online Forex trading for investors worldwide.
Standard Bank
prides itself on competitive pricing, good liquidity and a range of 160+ different
forex crosses.
Standard Bank
allows clients to Invest in a wide range of financial instruments such as
CFDs,
FX Spot,
Shares,
Exchange Traded Funds
and
Exchange Traded Commodities
across various
international stock exchanges.

Available Features

  • Expert insights
  • Access to large institutional investors
  • Extensive Risk management across the African continent
  • Maximized transaction safety

How do you qualify and apply?

Investors who are interested in
Forex Trading with Standard bank
can apply in order to confirm if they qualify via the providers official website or via email.

Conclusion

The global foreign exchange market
is the largest and most actively traded
financial market
in the world. When looking for the best bank with which to invest, both beginner and experienced traders must keep in mind that no one banking institution will be well-suited to every unique investor.  Investors must compare all options on offer in order to choose the Bank which best suits their individual forex trading needs.

Read:  What You Need to Know Before Trading Forex

Frequently Asked Questions

Is Forex Trading Legal in South Africa?

Yes.
Forex Trading
is legal in
South Africa
as long as it is done lawfully.  All investors must also declare any and all profits made from
Forex Trading
to
the South African Revenue Service.

Is Forex Trading Taxed in South Africa?

Yes. Any profits made through
Forex trading
is indeed
taxable
and investors must file a
Personal Income Tax form
with
the South African Revenue Service. The tax rate can range from 18% to 40% – depending on profits made.

Do all South African Banks make Forex Trading Available?

No.  Not all
South African banks
make
Forex Trading
available.  However, the major banking institutions, such as those mentioned here, do indeed make
Forex Trading
available.

Does Capitec offer Forex Trading in South Africa?

Yes. Forex trading is made available through
Mercantile Bank
which is a division of
Capitec Bank.
Capitec
clients must contact
Capitec Forex
in order to register their interest and
Capitec
will arrange to open a
Mercantile trading account
which will be linked to the client’s
Capitec account.

Which Bank account is Best For Forex Trading in South Africa?

The Best Bank for Forex Trading in South Africa
will solely depend on the client and their individual preference.

Do I need a Foreign Exchange account in order to trade?

Yes.  Aforeign exchange account
is used to hold and
trade foreign currencies.

Can I deposit currency into my Foreign Exchange Account via Internet Banking?

Yes. All of the above-mentioned institutions accept
Internet Banking.

Banks in South Africa That Allow Forex Trading

Source: https://sashares.co.za/best-banks-for-forex-trading-in-south-africa/

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