5 Best Banks for Forex Trading in South Africa – ☑️ (2021 - reviewed) (2024)

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

FNB

FNB is the oldest and most established bank in South Africa and can be traced back to the Eastern Province Bank – established in 1838. Today, FNB trades as a division of FirstRand Bank Limited.

FNB Forex has simplified the process of sending funds abroad for foreign investment purposes. Local investors will now have the ability to access the international markets, and if they so wish, diversify their savings by making use of their foreign investment allowance. South African residents over the age of 18 can invest offshore by making use of the Single Discretionary Allowance of R1 million, as well as the Foreign Investment Allowance of up to R10 million per calendar year (1 January – 31 December). FNB further simplifies the process by doing Forex transfers on the client’s behalf or offering them the option of investing in one of the providers Global Accounts which hold the clients’ money in foreign currency until they have decided on the best offshore investment for their unique needs.

Available Features

• Clients will be able to facilitate their transfer(s) abroad online anytime, anywhere, 24 hours a day, 7 days a week, 365 days a year.
• FNB will provide clients with expert guidance and assistance from an exchange control point of view.
• FNB Forex will process a client’s payment electronically via SWIFT which ensures that their funds reach their destination safely and securely.
• FNB will verify all documents and process the payment at an exchange rate that best suits the client.
• Clients can make use of FNB’s hedging solutions in order to protect them against exchange rate fluctuations.
• Clients can earn up to 50% back in eBucks on the transaction charges when making a payment in foreign currency via Online Banking or the FNB App on their smartphone.

How do you qualify and apply?

Clients must be:

• A South African resident
• A registered Tax Payer
• 18 Years or older
• The holder of a qualifying FNB Cheque account which is in good standing.

Clients who wish to apply can make use of the Call me back option on the FNB website whereafter the FNB representative will inform the client on Documentation needed in order for the process to be successfully completed.

Mercantile Bank

Mercantile Bank, a division of Capitec Limited, has more than 50 years of experience and offers its clients personalized service, tailored solutions, transparent pricing and the assistance of skilled, experienced and flexible teams. Mercantile Banks core focus falls on Business and Commercial Banking but they also provide a wide range of international and local banking services, credit card, debit card and payment services plus a full suite of foreign exchange products. As an 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.

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 andBusiness Banking, Nedbank Wealth and Nedbank Africa Regions. Solutions on offer include:

• A wide range of wholesale and retail banking services.
• Growing insurance, asset management, and wealth management offering.

Nedbank offers clients a Customer Foreign Currency (CFC) account which proves useful for managing all major foreign currency receipts and payments. A CFC is ideal for clients who import, export, make or receive payments in foreign currency. The benefits of a CFC include currency risk management and flexibility for both advances and settlements plus a low opening balance of R1500.

Available Features

• Clients will not pay any monthly fees.
• Clients will receive an electronic tax certificate yearly.
• Clients can deposit and withdraw from their accounts by email.

How do you qualify and apply?

Clients who wish to qualify must be South African residents older than 18 years. This account is also available to foreign nationals and non-residents over said age. In order to apply, clients must visit the provider’s official website and complete the needed application form.

Absa

Absa Bank, a subsidiary of the Absa Group, is a bank that offers its clientele an impressive range of retail, business, wealth management, corporate and investment solutions. Absa Group Limited is not only one of Africa’s largest diversified financial services groups but the company is also listed on the JSE. Absa Bank has a presence in 12 countries across the African continent, with offices situated in the United Kingdom and the United States respectively.

Absa allows clients to buy or sell foreign currency through the use of their 24-hour forex trading platform – BARX Africa. The platform offers access to a full suite of Forex products, including spot, forwards and swaps.

Available Features

• Improved control over the client’s foreign exchange trade execution
• Treasury operations efficiency
• Full audit trail on all transactions
• The ability to control individual trading limits
• Live news feeds
• Efficiency
• Instant deal confirmation

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.

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 bestbank 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.

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.