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Therefore, South African traders need to look for international brokers who have the license and authorization to offer their services. This article will give you clarity on the legality of binary options trading in South Africa. Along with that, this guide will also elaborate on the top brokers who are offering trading services in the country.
A step-by-step guide to trade binary options in South Africa
To understand how binary options work in South Africa, it is important to go through a step-by-step guide of the same.
#1 Pick an available binary options broker in South Africa
The two possible outcomes of trading Binary Options are determined by the fall or rise of the price of your underlying asset. Since this has a fixed payout and an expiry time, many tend to think that trading in binary options is much easier than in other financial markets. However, FSB in South Africa does not allow the regulation of any Binary Options Brokers in the country. Although this does forbid some local South African companies from providing binary options trading, it does not prohibit residents of the country from participating in the trade.
List of 4 Best Binary Options Brokers in South Africa
There are 4 brokers we can recommend when you are trading as South African:
Let’s get more into detail.
These are the top 4 brokers for Binary Options in South Africa:
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
100+ Markets
- Professional platform
- Free demo account
- $10 minimum deposit
- Webinars and education
- High payouts
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
100+ Markets
- Min. deposit $10
- $10,000 demo
- Professional platform
- High profit up to 95%
- Fast withdrawals
- Signals
from $10
(Risk warning: Trading is risky)
300+ Markets
- $10 minimum deposit
- Free demo account
- High return up to 100% (in case of a correct prediction)
- The platform is easy to use
- 24/7 support
from $10
(Risk warning: Your capital might be at risk)
100+ Markets
- Professional platform
- Free demo account
- $10 minimum deposit
- Webinars and education
- High payouts
from $10
(Risk warning: Trading is risky)
100+ Markets
- Accepts international clients
- High payouts 95%+
- Professional platform
- Fast deposits
- Social Trading
- Free bonuses
from $50
(Risk warning: Trading is risky)
1. Quotex
Established in 2019, Quotex is a binary options broker that Awesomo Ltd owns. It is a Seychelles-based company regulated by an independent authority, International Financial Markets Regulatory Centre (IFMRRC).
This trading platform presents advanced technology, an interactive interface, and pioneering digital trading. It uses a simple proprietary based web-platform.
It has customization options, and the platform is available on desktops, smartphones, and tablets.
Is Quotex Legal in South Africa?
Quotex is regulated by the International Financial Market Relations Regulation Center, legitimizing its operations the world over. But South African traders must bear in mind that Quotex is not regulated in South Africa.
This is because, in the eyes of South African law, binary options are considered OTC derivative instruments. These instruments are regulated by the Financial Services Board, legalizing the trade of these options. That being said, the FSB does not offer licenses to any binary options brokers.
So, any offshore brokerage, including Quotex, can offer its services to South African traders so long as the brokerage is licensed and certified in its home country. Thankfully, Quotex goes the extra mile to protect its traders by offering features such as regulated payment methods, 2FA, and negative balance protection.
(Risk warning: You capital can be at risk)
2. IQ Option
IQ Option was founded in 2013 and is a part of IQ Option Ltd. It provides a diverse range of financial instruments to work with. Many awards have been given to the platform for its features and capabilities.
They established themselves as the binary options broker, but now they also offer Contract for Differences (CFD) on selected assets, including stocks, Forex, EFTs, commodities, digital and binary options, and crypto.
This platform is designated as an Investment firm based in St. Vincent and the Grenadines. Users of this online trading platform can trade with a high return of 100%+. You can access the platform on the desktop version as well as on smartphones.
With around 50 million users worldwide, it has become a well-liked international binary trading platform.
Is IQ Option Legal in South Africa?
IQ Option is an internationally recognized binary options broker and is regulated in its home country. So, trading binary options and other instruments using IQ Option is safe and legal in South Africa.
(Risk warning: You capital can be at risk)
3. Olymp Trade
Olymp Trade was introduced in the year 2014. It is owned by St. Vincent & the Grenadines-based Saledo Global LLC.
The platform is advanced and popular among binary traders. Every day, more than 25,000 users trade with Olymp Trade. In addition, the platform has ‘A’ category membership of the Financial Commission and offers fixed-time traders and FX.
This platform provides a very efficient trading method that enables traders to make predictions on the assets available on the platform.
Is Olymp Trade Legal in South Africa?
The International Finance Commission regulates Olymp Trade, making it a safe and legal option for South African traders interested in trading binary options.
(Risk warning: You capital can be at risk)
4. Pocket Option
Recently established Pocket Option is an emerging trading platform that is attracting traders to it. Owned and operated by Gimbell Ltd, it was introduced into the market in 2017 and is regulated by the International Financial Market Relations Regulation Centre (IFMRRC).
The platform provides more than 100 financial instruments like commodities, stocks, currencies, indices, forex. The trading type is very straightforward, with ‘high’ and ‘low’ options.
You can set the expiration time from 60 seconds up to 4 hours. Pocket Option’s unique feature is that it has a built live chat option that enables you to chat with other traders globally.
Is Pocket Option Legal in South Africa?
Since Pocket Option is regulated by the FMRRC on the Marshall Islands, it serves as a viable legal brokerage for binary options traders in South Africa.
(Risk warning: You capital can be at risk)
#2 Sign up for a trading account
Once you have chosen a satisfactory broker from the country, it is time to create your account for binary options trading. Creating an account is easy with most broker websites since they only require a few personal details of the trader. These include the first and last name of the account holder, date of birth, e-mail id, etc.
Many fake binary options websites take advantage of this information and start practicing fraudulent activities. However, authentic and recommended binary options trading websites take necessary security measures to prevent the breach of any personal information.
(Risk Warning: Your capital can be at risk.)
#3 Use a demo or live account
The third step essentially involves choosing the type of account you want for binary trading. There are majorly two types of binary options trading accounts – a demo account and a live account.
Although most platforms offer both these accounts, beginners or amateur traders should always start with a demo account. Binary Options Demo accounts involve no real money, and you will have to trade in virtual money. Since they involve no financial risks, these accounts are best for improving your skills in online binary trading. Live accounts, on the other hand, involve real money. It is majorly suggested for professional investors as profits and losses affect your money from your pocket.
#4 Pick an asset to trade
Assets are majorly divided into four categories: forex, commodities, stocks, and indices. Currency pairs or forex include EUR/USD, GBP/USD, USD/JPY, or CHF/USD. Commodities like trading gold, oil, copper, wheat, and sugar are some exciting options for binary trading. Major stock exchanges include stocks like Google, Apple, IBM, BMW, and Netflix. Stick indices in South Africa include Nasdaq and S&P 500, and domestic indices like NIKKEI (Japan) and DAX (Germany) are also available.
(Risk Warning: Your capital can be at risk.)
#5 Make an analysis
The analysis of various binary trading options and their outcomes widely depend upon several technical indicators. These can be implemented in charts and further used for analyzing market movements. Experienced traders study these technical indicators to identify patterns and trends in the market and make positive trading decisions.
Technical categories are of 3 categories,
- Trend – These indicators indicate price movements. They are also referred to as oscillators sometimes.
- Momentum – Momentum signals are utilized to determine how strong a pattern is. They also indicate reversal moments in your trade.
- Volatility – Volatility indicators measure the degree to which market changes cause price swings.
#6 Place the trade
Now you have to decide your stake and place a binary options trade. The minimum and maximum limits depend on the broker of your choice. After you fix your bet, you can also assume your potential profit or “win.” You will also have to assess if your bet will go up or down.
If the price of an underlying asset goes up, choose the call option. This means you assumed that the prices after your designated timeframe would be higher than when you purchased it. Conversely, if the price of the asset goes down, you can subsequently choose a put action.
#7 Wait for the result
Once the timeframe of your bet has expired, the final price will be revealed. You can finally see if your prediction was right or wrong.
(Risk Warning: Your capital can be at risk.)
Is Binary Options trading legal in South Africa?
There are not many hints about the legalization of Binary Options in South Africa to date. There is a clear insight about it being regularized soon within the country. But, there are even chances that the South African industry will put up a ban on binary options trading in the country. And as of now, the government has not imposed any regulation of illegal status on it. But, the local traders are not permitted to do their business with South African citizens.
There is a very rare chance that the country will completely ban binary options! Instead, they will soon impose regulations that will be in favor of traders. Many countries have already banned or regulated the adaptation of binary options trading. It is because of the risk factor that makes traders even go bankrupt. South Africa won’t stand out to be an exception by permitting it as a whole trading option.
But currently, there is no such regulation or ban on Binary Options trading in South Africa. And this is the right time for people to leverage it.
Binary Options Trading in South Africa
Binary options trading is a huge market, and it is spreading continuously. The trading quickly raised popularity in South Africa. South Africa is one of the leading market economies in Africa and is an evolving destination for binary options. Brokers from different countries permit South African traders to invest on their trading platforms.
Is binary trading legal in South Africa?
Currently, Binary Options Trading is legal in South Africa. There are no ongoing or current regulations that are out of order regarding this trade. In South Africa, there are no particular laws that mention this practice being illegal as well. In fact, there are no laws about online investment in the country.
To perform online binary trading, all you need to do is register with a credible binary options broker, deposit some money and withdraw any amount that you might have won.
(Risk Warning: Your capital can be at risk.)
Financial Regulation in South Africa
Financial Services Board (FSB) regulates the financial market in South Africa. Accordingly, the binary options there are considered as Over Counter (OTC) derivative instruments.
Companies interested in binary options trading in South Africa are obligated to obtain a Financial Service Provider License. Nevertheless, offshore brokers are allowed to market their products if they have a license in their home countries.
The traders can choose a brokerage that is registered under any European recognized license, ASIC or CySEC.
(Risk warning: You capital can be at risk)
Parameters and the legality
In South Africa, no law makes binary trading illegal, but they are not regulated either, although the Financial Services Board (FSB) might make a move to provide the license to the local traders.
As per the current situation, offshore brokers are allowed to offer their services in South Africa as long as they are certified and licensed in their respective home countries.
Payment method for traders in South Africa
You can use several payment methods for trading binary options in South Africa. However, it is important to note that whatever method you choose for depositing money into the offshore account, you will receive payments in the same way as well.
How to make deposits and withdrawals?
South Africa boasts an efficient, financially technological industry that can accommodate traders with various means of transactions on binary platforms. Some deposit/withdrawal methods available in South Africa are,
- Cards – You can use a MasterCard or a VISA card to pay from binary trading in South Africa. Although deposits are processed instantly, it generally takes up to 24 hours to process withdrawals.
- Standard bank – This is the most preferred bank in South Africa that is used for segregating funds from binary traders. Some local brokers have developed a wire transfer system to help local traders with their deposits. Many also use the international wire transfer system to conduct business.
- Digital Wallets – Some Digital Wallets available in South Africa are Skrill, Neteller, WebMoney, and Payza.
Pros and cons of Binary Options trading in South Africa
The pros of binary trading options are
- Despite being an online trading platform that involves substantial risks, there is a very low chance of considerable loss. The real money involved in the trading is completely in your control.
- Since deposits start from a minimum amount of $5 with most brokers, you can easily manage, track, or alter the level of risk according to your preference.
- It is quite easy to understand when compared with other traditional trading options
- You receive quick and efficient results from the trade, and the payout is mostly given within minutes or hours.
The cons of binary trading options are
- If you have invested in bigger payouts, it will subsequently come with bigger risks. With inconsistent market movements, it can be quite challenging to make the correct decisions.
- Without proper informative materials and tools, you cannot perform efficient trading. Many brokers lack the means to perform advanced, high-paced, and high-risk trading.
- Just like traditional trading, failures will incur losses of up to 1000% of your first investment. However, winning trades will yield up to 70% profits of your original investment as well.
- Trading in binary options can often be more expensive with lower payouts when compared to forex positions.
- The trade might not be legal in some countries and parts of the world.
(Risk Warning: Your capital can be at risk.)
Risks of Binary Options trading in South Africa
Huge losses
Losses are a major part of any trading platform. Similarly, binary options traders can often incur huge losses. If a trade ends out of money, there is a considerable chance that the investor will suffer a 100% loss of their initial amount. This can become a serious disadvantage while making large trades. Therefore, it is always best to trade in small amounts and derive substantial profits.
Added risk
Binary Options Trades are majorly short-term trades by nature. Such trades have added risk. A prediction that has more time to fulfill itself has a higher chance of becoming more accurate.
Identity theft
Most brokerage platforms require a trader’s personal information in order to register. Such information includes a lot of personal details such as ID cards, driving licence, copies of passport or debit card. If a broker is not transparent and trustworthy, there is always the possibility of losing both money and access to your account.
Countries bordering South Africa
If you live or work in any of these countries, you may be interested in the information on binary options trading in these countries that you can obtain from us by following the link below.
South Africa shares borders with several countries. These are:
Conclusion: The best Binary Brokers are available in South Africa
Binary trading options are an emerging source of passive income in many countries. Although trading tools are very simple, it is, however, a complex process. Therefore, specific knowledge and on-point analysis are required.
A novice will minimal, or no knowledge may start with the demo accounts offered by the best binary options trading platform.
You must choose the right place to invest your money. One wrong move could prove fatal for you. So select those Binary trading options which are promising and are regulated by a recognized authority.
It is all about strategies and how you judge the situation. Your forecast will determine the future of your fortune. Deliberately decide on the platform and the asset to avoid any monetary loss. In addition, read our guide to trading Binary Options in Africa!
(Risk warning: You capital can be at risk)
Frequently Asked Questions (FAQs) about Binary Options in South Africa:
Is Binary Trading Options Legal in South Africa?
Yes, binary trading options are legal in South Africa. There are no laws about online investment in the country. Therefore, no ongoing or current regulations are out of order regarding this trade.
Which is the most trusted binary options broker in South Africa?
IQ Option is the most trusted and reliable binary options broker in South Africa.
What are the risks of binary trading options in South Africa?
Some of the risks of binary trading in South Africa include huge losses, added risks, and identity theft.
How much money do you need in South Africa to trade binary options?
Considering that many binary options brokerages demand a minimum deposit of 10 USD, South African traders need at least 192 South African Rand to trade binary options.
What are common payment methods for binary options brokers in South Africa?
South African traders can easily deposit money into their brokerage accounts via credit and debit cards. Many brokerages also accept payments via wire transfer, online wallets, and cryptocurrency.
Can you trade binary options for free in South Africa?
Creating a free demo account with a reputed binary options broker is an excellent way to trade binary in South Africa without paying any money. Bear in mind that demo accounts offer virtual dummy money, so, you cannot withdraw the profits you make into your bank account.
