1st Place! Best Binary Broker 2020!
Best Choice for Beginners — Free Education + Free Demo Acc!
Sign-up and Get Big Bonus:
2nd place! Good choice!
Best Binary Options Brokers in South Africa
Binary Options trading has rapidly gained popularity in South Africa and the rest of the world since its entrance in the financial market. There are only two possible outcomes of trading Binary Options, whether the price of the underlying asset will fall or rise. It has a fixed payout and expiry time that makes many people think that it is easier to trade binary options compared to other financial markets. In South Africa, trading Binary Options is not illegal and is thus growing in popularity day by day. This has also led to an increase in demand of the Binary Options brokers. However, Financial Services Board or FSB of South Africa does not yet regulate the Binary Options brokers. This also prohibits local South African companies to offer binary options trading. But, this does not mean that a person from South Africa cannot do binary options trading.
This leaves the traders confused to choose out a good binary options broker. When going by regulation the trader can choose a brokerage website that has been registered under CySEC, ASIC, or any European recognised licenses. The fight among the brokers to gain the top position keeps the competition alive.
Let’s look at the top three binary options brokers in South Africa.
Overview: Binary Broker Comparison Table
|1 Your capital is at risk|
|Broker||Website||Regulation||Min. Deposit||Min Investment||Max Return||Demo|
|Visit Broker 1
IQ Option Review
|CySEC and others||95% 2||Yes|
|Visit Broker 1
|Costa Media Interactive SRL||83%||Yes|
|Visit Broker 1
|MGA and others||$ 5||$ 5||100%||Yes|
|Visit Broker 1
#1 IQ Option
Minimum Deposit: $10 Minimum Trade Amount: $1 Maximum Return: 95% 2 Tradable Assets: over 500 assets Regulated by: CySEC Demo Account: Yes
One major reason why traders choose IQ Options for trading binary options is that the brokerage website offers a deposit as low as $10 to access a live account. IQ Options believes in their own software and so does its clients. The brokerage company constantly updates the software that make it the No. 1 platform to trade in South Africa. The interface is highly intuitive and does not require the client to download any other software for trading.
The broker company offers as high as 80% bonuses to the South African traders on each deposit made by their clients. The binary option trader can choose to open a demo account first where the broker offers 13 trading assets to their clients. The platform when doing live trading has more than 500 underlying assets are available to the South African traders. If anyone chooses the VIP account, they have the chance of receiving up to 100% bonus on deposits. IQ Option Europe Ltd. is registered at Cyprus, and is regulated by CySEC. IQ Option Ltd. is registered at Seychelles.
IQ Option has set the minimum trade price at $1 such that everyone can participate and the maximum option price is set at $5000 so as to prevent the traders from investing blindly and losing too much. IQ Option claims to take no fees or costs for trading Binary Options. It completely depends on the trader to choose Call or Put or even invest at all. The pay-outpercentage offered by the Binary Options broker is based on the tradable asset and the market condition.
Note: Your capital is at risk
Minimum deal size of only $1 Get started with less than $25 (0.10 ether) Free demo account available! Built-in economic calendar Min. expiry time: 10 seconds Max. payout percentage of up to 83% 24/7 support
Spectre or „speculative tokenized trading Exchange“ is an Ethereum blockchain powered broker-less trading platform, which is completely decentralized. With the aim of bringing binary options trading into the blockchain realm, Spectre.ai offers a smart option on a lot of different investment options. This includes currency pairs, commodities, and even certain cryptocurrencies or fiat currency pairs.
The Spectre.ai platform aims to fully utilize the potential of the Ethereum blockchain along with smart contract functionality to create a comprehensive and effective online trading platform. The team behind Spectre takes great care when it comes to security, as all the trades performed on the platform are governed and processed using a set of audited smart contracts. As a result, every single trade, outcome, and pay-out is predetermined by the aforementioned set of smart contract. This results in increased transparency in the platform’s execution. The decentralized nature of the platform enables it to offer traders a seamless and secure trading experience, without the possibility of interacting with third-party brokers.
Spectre’s decentralized nature means that the platform’s balance sheet is owned by the Spectre token holders themselves and is not in the hands of any single centralized entity. In return, token holders receive a dividend based on Spectre’s trading volume at that time.
Note: Your capital is at risk
1st Place! Best Binary Broker 2020!
Best Choice for Beginners — Free Education + Free Demo Acc!
Sign-up and Get Big Bonus:
2nd place! Good choice!
Minimum Deposit: 5$ Minimum Trade Amount: 5$ Max. Return: Up to 100% Tradable Assets: +100 Regulated by MGA and others Demo Account: YES
Binary.com has the experience of gaming websites other than online Binary Options trading. It is supervised by the Binary Investments Ltd. Like IQ Option, Binary.com has its own interactive Java(R) run charting software for the benefit of its clients. This translates to a large number of trading tools and several underlying assets to trade on. The minimum deposit as well as the minimum investment in Binary.com is a mere $5. The maximum deposit is however $100,000. The binary options broker offer bonus up to $150.
The pay-out percentage depends on the market situation and the underlying asset and can be as high as 100%. The time period of trading an underlying asset can range from 15 seconds to150 days (expiry time). The traders have the option to choose from different underlying assets like forex, stocks, commodities and indices.
On registering for the demo account on Binary.com, the traders will receive $10,000 virtual money. Besides this, the inexperienced South African traders can benefit from the educational section of the Binary.com website. They can join any webinar and interact with the market analysts and experienced traders/investors. One unique feature introduced by Binary.com is Asian & Digits that runs on the Random idea. The influence of the gaming industry can be directly seen from this as this feature allows the trader to calculate bets on the last digit of the expiry time instead of counting it on the pips.
Note: Your capital is at risk
Minimum Deposit: $10 Minimum Trade Amount: $1 Maximum Return: Up to 85% Tradable Assets: 80 Trading Platform: Proprietary Trading Software Regulated by: CROFR Demo Account: Yes
Binomo had started out in 2020 and is registered in Seychelles. Even though the binary options broker is awaiting CySEC license they have already received an FMRRC certificate. The minimum deposit at Binomo is $10 only and the minimum investment made by a trader is $1. The minimum deposit for gold account is $500 and for the VIP is $1000. Providing security to its clients is the key issue for Binomo and thus they rely on modern SSL security certificates. Binomo claims that the winning rate on their platform on an average is 85% and the stats can even reach up to 90%.
The demo account of Binomo offers $1000 of virtual money for the traders to gain experience and test a market situation. The expiry time for the options usually ranges from 15 seconds to 1 day on this platform. The payout percentage offered by Binomo ranges from 70 percent to 87 percent and it is based on the underlying asset, the account type (standard, gold or VIP) and the market situation. Other than the initial deposit bonuses, Binomo continues to offer promotional offers and organises games to make the Binary Options trading arena more interesting and competitive. The topping up of the bonuses can be as high as 85% as it depends on the funds transferred by the trader.
All the binary options brokers mentioned above provide demo account that is an essential feature. They offer comparatively low initial deposit such that anyone can open a live account on their platform easily. IQ Option, Binary.com and Binomohave developed own apps that enable their clients to do Binary Options trading from their smartphones (Android and iPhone) from any region. The customer support for the three Binary Options broker websites mentioned in this article is comprehensive and eager to help out their clients in every step.
Note: Your capital is at risk
2 Amount will be credited to account in case of successful investment
African Traders Guide
Binary options trading in South Africa has become an increasingly popular market in recent years as more and more investors seek to open online trading accounts. As awareness of this particular method experiences growth, so does the number of international brokers offering their services.
Binary trading is unregulated, and as such local South African companies are prohibited from offering their services to SA traders. However, through our extensive knowledge of the binary options industry and the rules and regulations that apply to trading we can still show you, great brokers, to trade with.
Our team of experts have searched the internet for the best brokers, and we bring you only those with international licenses that are legally allowed to offer their services to South Africans. Our knowledge of all the legal requirements means we can ensure that your trading career is a safe and profitable one.
In this article, you will learn:
The brokers best suited to your needs What local payment methods are accepted Taxes and fees that apply to ZA residents
Traders in South Africa
Like we found in Indonesia about the law on binary options, trading in South Africa is perfectly legal. There is nothing that prohibits an individual from trading online. The industry is however unregulated which means that there is no protection offered to those who choose to trade here. It also prevents good South African companies from brokering. So how do you select a company and what should you be looking for in features?
Licensing And Regulation
As there are no regulated South African brokers, you are going to need to find an offshore broker. CySEC, FCA or MiFID license many European brokers. Australia also has good brokers, look for an ASIC license. There are many to choose from, and it’s just a case of picking the right one for you.
Deals And Incentives
If you are new to trading, then you should probably look for a broker that offers a no deposit bonus. No deposit bonuses allow you to try before you buy. You should also take advantage of matched deposit bonuses, and trading contests so look out for them.
Mobile Trading Tools
Most people prefer to trade on the go therefore it is important to check out what mobile offering the broker has. Do they offer a mobile app that is suitable for the device you are using and is it available for both iOS and Android? If you are keen to trade on the go then this is critical.
Free Demo Account
A demo account is vital for many reasons. Firstly, it allows you to get familiar with the platform that you are going to be using. In addition to this, if you are using a reloadable demo, you can use it to try new assets and trade types.
The only way to legally invest and trade in binary options, in South Africa, is to use an off-shore broker. Finding one that has all the above benefits plus anything else that is important to you as an individual is difficult. That is where we come in. We display to you, only the best, most reputable brokers to ensure that your experience is a good one.
Broker Fees And Tax
When looking at the tax requirements surrounding binary trading, South Africa is much like any other country. If you are an individual, then you will no doubt be paying Personal Income Tax. You could be paying anything from 18% for income below R160,000 up to 40% for anything over R617,000. Local tax applies to profits made on any income, and this includes binary options trading.
If trading is a second income, you will need to declare your income and ensure that you pay the correct tax on this amount. Remember to deduct any losses and work out your net profit so that you don’t pay too much tax.
Now while binary options brokers aren’t responsible for informing the South Africa tax department that you have made an income from trading, they will have a record of your transactions within your account. Make sure that you have access to this information as you will need it when calculating your total profit for a certain period. We recommend keeping a monthly record of deposits and withdrawals and recording all profits and loss.
While African taxes are the main cost that you will incur there may also be other fees to consider. These fees include:
Currency conversion fees for converting to and from the currency you will be trading in Deposit fees usually associated with certain types of transactions. Your account provider can charge these fees Transaction fees from your credit card or e-wallet provider Withdrawal fees from the broker for making each withdrawal
If you are making lots of deposits and withdrawals, the money will soon mount up. Consider making fewer, more substantial deposits and withdrawals to try and cut down on the number of fees charged.
South African Licencing
Now while there are no legal issues that restrict South African citizens from trading, there is, unfortunately, a lack of brokers local to the country. It is not a regulated industry; therefore there are no legal or licensed South African binary options brokers.
There are however plenty of good brokers offshore that have the relevant licenses and regulations. The ones to watch out for are those that are licensed by CySEC or other European recognised licenses. Genuine brokers are more likely to be licenced in Europe, so look out for the brokers that display this licencing.
Do not use a broker that doesn’t have a license. There is a reason that they don’t have one, they either can’t get one, or they aren’t a serious broker doing things the right way. Why would you invest money with them if they haven’t gone to the trouble of getting licensed?
Also, make sure that any licenses are genuine. We have gone to the trouble of doing this with all of the companies that we review and recommend so you will be pleased to know that we only recommend genuine, trustworthy brokers that have a good reputation and history.
Our knowledge of all the legal requirements means we can ensure that your trading career is safe.
How we Recommend Brokers
There isn’t a choice of trading with a local broker for South African traders so if you wish to trade it is going to have to be with an offshore broker. Now, this may seem daunting and perhaps a little risky, but there are genuine SA brokers that offer an excellent service with proper incentives. Our job is to make your experience a more beneficial one by reviewing and rating South African brokers across the market.
Like all of our broker ratings and our best binary options reviews, we take into account every aspect of trading and what each broker has to offer. Firstly we look at their licensing and eligibility to trade. We only bring you brokers that have the correct licensing and operate within regulations and legislation. We want your trading experience to be profitable and without issue. We also examine the logistics of each broker.
Some of the critical areas include how easy it is to open an account, how easy it is to navigate the trading platform and whether the mobile website and app are user-friendly. We also examine what benefits each broker has to offer. Do they provide good bonuses, a good payout and what other rewards are available? For VIP / Premium traders we look at the higher end accounts and what they have to offer and how they compare to other offerings available.
We review brokers all over the world, and when it comes down to it, South Africa steps up pretty good. Our reviews focus on the options market are based on our extensive knowledge and experience of it. Our team of experts have many years of trading experience between them and know what matters. Our commitment is to only bring you the best South African binary options brokers on offer.
Frequently Asked Questions
Is binary trading in South Africa legal and safe?
South Africa has tax laws and regulations, and it is crucial to abide by these rules and regulations to avoid hefty fines. Earnings from binary options trading need to be declared.
Do I need to pay fees and taxes on my profits?
South Africa has tax laws and regulations and it is important to abide by these rules and regulations to avoid large fines. Earnings from binary options trading need to be declared.
Can I test brokers before trading with real money?
Brokers will offer lots of incentives to stay competitive. These usually include a demo account to allow new traders to trade on the platform without depositing any of their funds.
Is it easy to make deposits and withdrawals?
Making deposits and withdrawals is easy. Just open an account and make your deposit. Withdrawals can take up to 3-5 days; some brokers offer a much quicker turnaround for those higher stakes traders.
Can I trade using my mobile or tablet device?
Yes, to stay competitive all brokers must have either a responsive, easy to use mobile version of their website or an app available for either Android and iOS.
Robert has consulted for our website for five years and is a well-established member of the team. While he is passionate about the site, most of Robert’s time is focused on his current position as CEO of a professional coaching company.
How to Choose Binary Options Brokers in South Africa?
Choosing safe and reliable binary broker is the most important factor in binary options trading.
With many binary options brokers available on South African market, traders can select preferred one according to trading instruments and features these brokers provide.
In this article, we will cover all relevant elements of trusted binary options brokers in South Africa.
Traders can get clear overview of the most important segments of successful trading and how to choose the right broker with whom traders will be able to achieve high payouts in binary options.
If you want to trade with a regulated broker, definitely try IQ Option – the most popular broker in South Africa!
Importance of Binary Options Brokers in South Africa
South African traders can experience profitable binary trading journey with trusted binary options broker present on South African. Here on our list of binary options brokers in South Africa, traders can find many brokers who accept South African traders; some are CySec regulated while others are not.
However, it is important to note that we pay a lot of attention on Binary Options South Africa to promote only trustworthy brokers. This way, our readers can avoid scam and unpleasant trading experience.
As mentioned above, South African traders can choose whether they want to trade with regulated broker or not. Regulation is not obligated and binary options brokers in South Africa can decide do they want a regulatory licence or they think it is not necessary. For more on regulation of binary options in South Africa, read our article here.
Brokers, such as Banc de Binary, 24option, Daweda Exchange, Opteck and IQ Option are just some of regulated brokers available for South African traders.
CySec stands for Cyprus Securities and Exchange Commission and its licence ensures investors to have a safe trading experience and they provide brokers a set of rules and regulations that they have to follow.
CySec supervises and monitors business conduct of regulated brokers and pays attention of their behavior in relation with investors.
Traders should know that it does not mean that unregulated brokers by default are scam. because that’s not the case. As stated above, regulatory status is entirely up to the broker and their goals and vision.
These brokers are trusted ones and present on South African market for a long time ago without any negative reports. Therefore, we strongly recommend traders to carefully read all broker reviews and see what types of trading tools and features these brokers offer and based on that, select preferred trading platform.
Terms & Conditions
In binary options trading, as an online investment, safety is the main thing most traders are interested in. This is why it is very important to wisely choose trustworthy broker with whom traders can have positive experience from the start.
Often traders wonder, is there a way how to spot right away is particular broker a scam. We advise our readers to invest little more effort into checking the review and their site to get a whole picture of the platform. But to start, traders should first check broker’s terms and conditions.
Today, a lot of traders just click Accept and don’t even read terms & conditions of a specific broker and we find this as a big mistake.
That is because terms and conditions should provide traders a complete and detailed information on available trading features and instruments. By not reading it carefully, South Africans can miss on the important segment of trading process.
In case traders have any questions after reading terms & conditions, the best thing would be to contact their customer support and get needed explanation.
Customer Support and Education
While choosing best binary options brokers in South Africa, customer support service is one of the main features important for successful binary trading process. Having up to date customer support, South Africans can get needed information during trading process, from how to deposit and withdraw funds to what tools and features can be used.
Brokers, such as StockPair offer various ways of how traders can get in touch with them, including email, live chat, web form and phone. Depending on the broker, customer support is available on other languages, besides English.
Easily reachable customer support is significant in the trading process, especially for new traders who lack experience and who have a lot of questions regarding binary options trading.
Education Center is also considered as one of the main elements in profitable binary trading. While selecting preferred trustworthy broker, traders should keep in mind that a variety of education materials is very useful for registered traders.
With the help of Education Center, South Africans can learn more tips and tricks about binary options and be few steps closer to maximizing profit.
Brokers, such as Opteck have an exquisite Education Center where traders all levels have access and can benefit from it. These education materials cover both relevant topics and strategies for beginner trading and advanced trading. This way, all levels of trading knowledge is completely covered.
Education materials include features, such as ebook, market news, economic calendar, different graphs and charts, numerous short term and long term strategies, guide articles etc.
How to Deposit and Withdraw?
Both deposit and withdrawal process are very important when selecting best binary options brokers in South Africa. Brokers who have unclear terms and conditions and bad reviews are not good choice to pick.
Trustworthy binary broker will list available deposit and withdrawal methods and provide detailed information for deposit and withdrawal procedure.
To get access to trading platform, traders first have to register. Each trusted broker will ask for few documents to confirm identity of the traders.
Scam broker often don’t pay attention to the procedure and later on, traders may experience bad business conduct while withdrawing funds. These documents are: copy of photo ID, proof of address and copy of credit card, if it’s going to be used in the trading process.
Reliable brokers from our broker list, use highly developed system of security, such as SSL encryption technology. Brokers who promise traders payouts right away should be taken with good watch.
Usually, it takes few business days from the time when broker receives and confirms withdrawal process to the time when money arrives on traders’ account. It can take up to 5 business days, with most brokers.
But to be absolutely sure, it all depend on a particular broker and chosen account type, since each account type has different characteristics.
Trading Features and Services
When choosing the best suitable broker, traders in South Africa should pay attention to what trading instruments and features are available. Reliable binary options brokers in South Africa offer many different services and trading tools to be used during binary options trading.
They include demo account, a variety of assets, trade options, number of trading accounts, mobile application, bonuses etc. All these features can be of great help while trading and if used properly, can lead to a high payouts in binary options.
Brokers offer South Africans a wide selection of different assets, including stocks, currencies, commodities and indices. By offering a lot of assets, traders can diversify and trade with different assets on different markets to increase chances of winning. One of benefits broker offer traders in South Africa is bonus.
Bonuses serve as great way to maximize profit in a way that they motivate traders. They may come as welcome bonus or redeposit bonus. Bonuses are not obligatory and they usually come together with a bonus terms that require a bonus turnover. It can be 20x or 30x and only after that, traders can withdraw their funds.
Also, trusted brokers offer a set of short term and long term trade options, such as 60 Seconds, High / Low, Boundary, One Touch, Ladder etc. Combined with them, traders need time of expiry and they can choose among those that expire in 60 seconds, hours or up to 150 days. All these depend on the particular broker and its trading platform.
Demo accounts and mobile app are one of the most popular features in binary options trading.
Trustworthy brokers, such as 24option, IQ Option and many more provide these services to their registered traders. With mobile app, traders can trade from anywhere and invest not only via computer, but on tablets and smartphones as well. They can get the app via Google Play or App Store.
Demo account is a very valuable service that has a lot of benefits. Demo is mostly used by traders beginners because it allows traders to test the platform for traders to get the touch of how real trading will look like. Both 24option and Banc de Binary offer demo to their traders.
On demo account, there is no risk involved since brokers ensure traders with a specific amount of virtual money. This is a great way for traders to trade with different assets and use strategies with no risk. The main goal is to practice and gain more trading experience for later on to invest in real account type and start profiting.
Binary Options Trading in South Africa
As Africa’s second largest economy, South Africa is one of the most important markets for binary options trading in the region. With a developed infrastructure, an established middle class, and a currency that affords both stability and global competitiveness, the nation is seen by many as the gateway to the continent’s largely untapped investment markets.
South Africa is a powerful and prosperous economy. Second only to Nigeria in terms of African Gross Domestic Product (GDP), South Africa has cultivated an affluent middle class. The growth of personal wealth has led to an increased appetite among private individuals to invest their money in products that provide greater returns than a cash savings account. Understandably, interest in binary trading has grown considerably in recent years.
Because South Africa is one of the continent’s leading economies, it is seen as an appealing marketplace from which entrepreneurs can launch their enterprises across the whole of Africa. For binary options brokers, this has meant tailoring a service that will most readily accommodate South African clients. Today, nearly every international broker is able to provide facilities for South African clients to execute trades with, and – while international firms, rahter than domestic brokers, dominate the market – binary options trading in South Africa is a growing industry.
The Best Performing Brokers in South Africa
It is expected that every broker should be fully licensed, and conduct its business in an open and honest fashion: that is the barest minimum. But to achieve a recommended status, a broker has to demonstrate additional value in their own services over their rivals’. Our top brokers are selected for their strengths in key areas: the responsiveness of their customer service, the usability and features of their online trading platforms, and the potential earnings on investments that are available to clients.
Every brokerage is constantly improving their own services for existing clients, and increasing their value offering for new investors. Due to this constant evolution, it is likely that some of the specific details in our reports will change over time. Al features and services are described accurately at the time of publishing, however.
BD Swiss review
Recommended Broker: Option Fair
As part of the TechFinancials group, Option Fair legitimised its claim to being among the most innovative trading platforms when it became the first publicly-traded binary options broker on the London Stock Exchange, in 2020.
Using Tech Financials’ own proprietary binary options trading platform, and regulated by CySec, Option Fair provides secure, high performance facilities that suit the needs of advanced and novice investors alike.
The company landing page heavily promotes its 100% return on successful investments. However, with a $2.50 fee levied against all trades – even those which result in a zero return on investment – the actual figure is somewhat lower, in real terms.
The fixed-value fee encourages clients to execute fewer trades, at higher values – thereby minimising the impact of the charges over time. To accommodate this strategy, trading limits on Option Fair are relatively broad: while the minimum initial stake is $10, a maximum single investment of $15,000 permits investors to reap healthy returns which more than justify the initial fees paid to access the market.
Recommended Broker: BD Swiss
With binary options contracts available to purchase in more than 250 underlying assets, and all major foreign exchange (FX) currency pairs, BD Swiss is one of the most versatile trading platforms for South African investors to choose.
The site uses the SpotOption trading interface, which will already be familiar to many veteran traders. BD Swiss also provides support for a number of mobile trading apps, for investment on the move – and in the preferred environment of the individual trader.
We found the site very easy to navigate, and account creation was fast and intuitive. With a minimal amount of personal information required, plus a below-average initial deposit requirement of $100, we were able to execute our first trade within a matter of minutes.
Contracts are relatively flexible, with the account holder free to define multiple parameters and trade types. The initial stake can be set as low as $10, or as high as $1,500, and the maximum yield from any individual contract is 85% of the investment. These generous limits allow traders of all experience levels to use BD Swiss to match their own trading strategies: from minimising early losses, to maximising returns on expert investments.
Recommended Broker: 24 Option
One of the larger enterprises available to South African traders, 24 Option has been operating online since 2020. While primarily focused on the European market from its headquarters in Cyprus, the international arm of the company is domiciled in Belize and receives oversight from the International Financial Services Commission (IFSC) of Belize. It is via the Belize branch that South African investors will execute their own trades.
24 Options allows account holders to invest their money in binary options and CFDs, as well as foreign exchange trading in most of the primary currency pairs.
Binary options contracts can be bought for a minimum stake of $24, with a generous upper limit of $100,000. Combined with the top bonus per trade of 89%, the earning potential on an individual contract is substantial. However, with limited stop-loss and call option facilities on trades, 24 Option remains a less forgiving trading environment for new investors.
24 Option permits a range of trading conditions, and speculation on more than 100 underlying assets. As such, contracts are flexible, but do not provide the greatest versatility in today’s market.
For an initial minimum deposit of $250, account holders can access a free demonstration account and begin trading on the new Scipio trading platform within minutes, without risking any of their starting balance until they have gained confident with the system. The site also hosts free educational webinars on trading strategies on a semi-regular basis.
How To Invest in Binary Options in South Africa
As the name suggests, binary options trades are investments for which there are only two potential outcomes. Usually, these are trades made against the value of an underlying commodity. In this instance, the two possible outcomes may be that commodity either rises in value, or falls, over the course of an allotted time. Equally, the investor may speculate that the final value will fall within a certain price spread, or will touch a specified price point at least once within the duration of the contract.
In each of these examples, the trader’s speculation either occurs, or it does not. Should the terms of the contract be met within the allotted time, the trader will receive a return on their investment. If the terms are not met, the trader is likely to forfeit some, or all, of the initial stake. The conditions and rate of return are stipulated when the contract is formed, making binary options trading a very open and transparent method of speculating on financial markets.
Many brokers will offer advanced trading features that allow increased freedoms for the investor. These may include flexible contract durations, the ability to terminate contracts early within favourable conditions for a reduced profit, or the option to recoup losses should market conditions become unfavourable. Every brokerage will provide its clients with a different range of trading conditions, and it is these options which will form the basis of many investors’ final choice of broker for their own investments.
The binary options industry of South Africa currently resides in a state of complex legal limbo. While by no means illegal, there are few statutes which actively govern the industry. This is perhaps partly due to the relative youth of the industry – these forms of sophisticated, online investments were not technologically viable even twenty years ago. Yet at the same time it would not be unfair to say that South African financial authorities have been slow to react to the growing significance of the binary options industry.
As such, binary options contracts receive no form of regulation by either the Financial Services Board of South Africa (FSB), nor the Financial Advisory and Intermediary Services Agency (FAIS). As a consequence, it is currently not possible for a brokerage to obtain licensing or accreditation from South African regulators, simply because no such regulation exists.
However, it would be incorrect to assume that the present situation makes binary options trading an illegal activity in the region. In fact the opposite is true, and all citizens of South Africa over the age of 18 years have the legal right to invest in binary options contracts online. The lack of government regulation of the industry simply means that it is not possible for a trader to hold an account with a broker domiciled in South Africa, at present.
The legal rights and responsibilities of binary options traders in South Africa are therefore the same as every other investor: clients must comply with the terms and conditions of the brokerage with which they hold an account, as well as with the local laws of their own nation in matters concerning the movement of cash when depositing funds or withdrawing earnings.
Withdrawing and Depositing Funds
Residents of South Africa who choose to trade in binary options are unlikely to face many obstacles when attempting to add funds to a trading account, or withdraw their earnings. Today’s consumer has expectations of easy payment methods for all goods purchased online, and this has allowed digital transaction services to evolve. Virtually every online broker will accept payments made via major credit cards and bank transfers, as well as from a number of established e-Cash solutions.
South Africa has, in particular, benefited from certain regional factors in relation to E-cash. With a relatively low percentage of African citizens having access to a private bank account, the E-cash industry has performed particularly well throughout the continent – especially within less developed economies. As such, South African investors already enjoy access to any number of payment systems which may be used to fund a binary options trading account.
Every broker will employ a different policy for their money transactions. It is not uncommon for brokers to stipulate a minimum deposit to be made before an account holder can execute their first trade, for example. The amount required to meet this minimum is set by the brokerage however, and may vary significantly from just $10 to several hundred US dollars.
It is also a common policy for brokers to only permit withdrawals of earnings via the same payment method as was used to make the initial deposit. This is seen as the most efficient means of tackling money laundering activities. Account holders must consider both the terms and conditions of their trading account, as well as the specific laws of their country of residency before trading or transferring money in any form.
At present, binary options traders who reside in South Africa are most likely to employ the services of an overseas broker when executing trades. While some traders will see this as a disadvantage, they are unlikely to experience any difficulties using an international service in terms of legality or security.
The lack of a domestic binary trading industry does produce some obstacles for South African investors. Despite the relative strength of the local currency, our investigation was unable to identify any brokerage which offered both a top quality, internationally competitive service, and the facility to deposit currency in the form of Rand (ZAR). Because of this, virutally every payment method will leave South African investors exposed to both a currency conversion fee, and the compound expenses associated with fluctuations in the value of the Rand on the forex market.
Although this situation is hardly ideal, it is a relatively minor concern – and one unlikely to deter any but the most timid of investors in the region. Equally, the first broker that is eventually able to facilitate deposits in South African Rand is likely to win a favourable stake in the continent’s burgeoning binary trading market. For this reason, it seems likely that a domestic brokerage may emerge sooner rather than later.
Binary Trading in South Africa: at a glance
- A wealth of competing brokers lets traders select the right trading platform for them
- Fund investments through any of the most popular bank, card, and digital payment services
- Investors’ accounts and activities overseen and protected by local financial law
- One of the fastest, most accessible methods of trading on the internet
- Potential for experienced investors to realise significant earnings on their investments.
24Option – Best Broker for binary options in South Africa
Binary Options Brokers South Africa
Over 56 million people do of course live in South Africa, and it is a nation that is built on international trades, and also has market sectors that over the years has seen a lot of changes regarding the way that people can make and place all manner or unique and different financial trades.
One of the most popular financial products that have struck a chord with a huge and growing number of people in South Africa are what are known as Binary Options, and I am sure that you will be very interested to find out more about them.
The beauty of such financial trades is that you are not going to have to have a huge and in-depth knowledge of the financial and business worlds to be a successful and profitable trader, for you are faced with just two decisions when pacing such a trade.
You will need to place a trade on which you simply have to guess whether the value of something such as Gold or Wheat for example will rise or fall over a period of time chosen by you, and if the value move isn’t he way that you predicted you have placed a winning trade.
Popular Trade Types in South Africa
As all that you have to try and do is to predict the way something will move in value, you may fancy dipping your toes so to speak in the Binary Options trading environment, and if so here are just a few of the many different trading opportunities that will be available to you.
USD/CHF Pairings – Currency pairings are very easy to place at Binary Options Brokers sites and on their apps, you pick out a base currency and then select any other in the hope it will rise if you selected rise or fall if you selected fall in value over any time period, one popular currency paring is USD with CHF.
Trading Crude Oil – The price of Crude Oil can often be very volatile and as such you will not be too surprised to hear that is another product that you can use as the basis for any Binary Options trades you set about placing.
Copper Prices – If you are much more interested in placing Binary Options trades based on the price of precious and semi-precious metals, then a good one to start out with will be placing trades just which way you think the price of Copper will rise or fall.
Top 10 Trading Options in South Africa
Make no mistake about it you are going to have the opportunity of placing any type of Binary Options trades you fancy placing online or via your mobile device and below are the top 10 trade types currently being placed by traders over in South Africa.
- Crude Oil Prices
- Brent Oil Prices
- Natural Gas Values
- Corn Value
- Double One-Touch Binary Options
- Coffee Values
- Sugar Values
- 60 Seconds Trades
- Trading USD/CAD
- Asset Trades
South Africa Binary Options Trading Tip
I would very strongly advise you to set your own personal limits when trading Binary Options for real money as by doing so you are always going to know when the best time to stop trading is, so do make sure that is something you do set about doing when you are about to have a trading session.
Never lose track of the fact that you can place any type of Binary Options trade that you want to place, and as such if it is Currency Pairs Trades that are most of interest to you then there is nothing stopping you from learning how to place such trades at a Binary Options Brokers site or app.
One currency pairing that most if not all Brokers sites and apps are going to let you place are Trading EUR/USD pairings and you can pick out any other pairing two include have a cryptocurrency such as Bitcoin include in any of them you do decide to place too.
Frequently Asked Questions
Are There Benefits to Trading Commodities?
It will always be the potential financial benefits that will make any type of trade worth placing, and that does of course include the huge and ever-growing number of commodities backed trades that you will always find on offer to you at all Brokers sites.
It is the way that any commodity is going to move regarding its value that you will first need to try and get your head around, there will only ever be two ways the value of any commodity can move you do therefore have a 50-50 chance of ending a trade with a winning profit.
How Can I Go About Trading Gold Options?
I would strongly advise you to make sure that you sign up to more than one Binary Options Brokers if you are thinking about placing Gold related Binary Options trades, and the reason for me saying that is you will then be able to compare the pay-out odds on such trades.
Comparing the pay-out odds on any type of Binary Options trade you fancy placing on the price of gold is important as you will always want to know the trades you have placed are always going to be giving you the maximum pay-out potential and all of our Brokers listed upon this website will offer you more than enough Gold related trading opportunities.
Is Trading Silver High Risk?
You should always work out the risks attached to any type of trading, and one precious metal that you may one day get the urge to place a trade on is Silver, and whilst not usually an overly volatile precious metal the price of it can and does rise day in and day out.
As there are only two different ways that the value of solver can go, that being up or down of course, there is a 50-50 chance of placing a winning trade, so I wouldn’t call it an overly risky type of Binary Option trade to place as you will always have a very reasonable chance of placing a winning trade.
Are Crude Oil Options Volatile?
There can be times that the value of Crude Oil really can shoot up, and as such when compared to come other commodities, placing trades on Crude Oil can be risky, but as long as you are aware of the risk and try to lower then as much as is possible then you may find them interesting trades to place.
But you must always be aware of the fact that there are lot of different reasons as to why the value of Crude Oil can and does shoot up one minute and then drop down in value the other and it is often political and worldwide events that will cause the price of Crude Oil to move in one direction or another.
Which Traders Tend to Trade Indices?
It is often those traders with a deep insight and understanding of the stock markets that are going to be tempted to and will often place many different Indices related trades during the course of their working week, and there will be more than enough of those types of trading opportunities if you fancy placing any.
If there is one thing that can always be guaranteed, that is the price of companies are going to rise and fall and when placing indices related trades you will be able to pick from many different worldwide stock markets to place your trades on.
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