HERE IS A LIST OF FOREX BROKERS THAT OFFER SUPER SMALL ACCOUNTS
Best Brokers with Micro Accounts in South Africa
As forex trading becomes more and more accessible to a majority of individuals, there is a need for brokers that accommodate traders with small investment capitals. Unfortunately, most forex trading accounts require traders to invest with considerably large capital each time. Luckily, there are a variety of forex brokers that offer traders micro accounts which support trading in micro lots. This is crucial for beginner traders from all around the world, especially South Africa. Forex trading is gradually gaining popularity in the country with new traders entering the market regularly.
In this review, we will look at some of the best brokers with micro accounts in South Africa. We are going to look at the trading instruments they have to offer, the trading conditions, the trading platforms available, and their regulatory statuses. But before that, let’s first understand the difference between a standard account and a micro account.
Understanding Micro Accounts
Micro accounts are designed to cater to traders who are just starting or those who prefer to trade with smaller amounts of capital. These accounts typically allow traders to execute trades with smaller lot sizes. They are also perfect for traders who want to test out new trading strategies without using a large capital. As such, they reduce the risk associated with trading while still providing exposure to the forex market.
While a standard lot represents 100,000 units of a currency, a micro lot represents only 1,000 units of a currency. Thereby, a micro lot is 1,000 times smaller than a standard lot. This allows clients to trade without investing a lot of money. With that, let’s look at some of the best brokers with micro accounts in South Africa.
Best Forex Brokers with Micro Accounts
Exness
Exness is one of the best brokers that allows South African traders the ability to trade in micro lots. The broker offers traders five different accounts, all of which allow trading in micro lots. These include two different standard accounts and three different professional accounts. Notably, the spreads when trading with these accounts are fairly low and affordable for most traders.
The standard account features spreads as low as 0.2 pips for major currency pairs with no commission. The standard cent account, on the other hand, has a spread from as low as 0.3 pips with no commission. In comparison, the professional accounts feature lower spreads with two of the accounts requiring a commission.
The raw spread account has spreads that start from 0.0 pips and an accompanying commission of up to $3.5 per side per lot. Contrarily, the zero account has spreads from 0.0 pips and a commission that starts from $0.2 per side per lot and upwards. Finally, the pro account provides spreads from as low as 0.1 pips with no accompanying commission.
In terms of trading platforms, Exness offers traders three main trading software. These include MetaTrader 4, MetaTrader 5, and Eness Terminal. These platforms give traders an intuitive interface to access a plethora of market products. Specifically, traders gain access to CFDs on forex, indices, metals, cryptocurrencies, stocks, and energies.
On another positive note, Exness is regulated by multiple recognized organisations from around the world. These include the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, and the CySEC in Cyprus, among others.
FP Markets
FP Markets is another quality broker that allows South African traders to trade in micro lots. There are two main accounts provided by the broker to its traders. Both of these accounts allow traders to invest in micro lots at a time. The two accounts include the standard and the raw accounts. The standard account has a spread that starts from as low as 1.0 pips for major currency pairs, with no commission required. On the other hand, the raw account has a spread that starts from as low as 0.0 pips with a low commission of $3 per side per lot when trading.
Notably, FP Markets provides its traders with five different trading platforms to choose from. These include MetaTrader 4, MetaTrader 5, Iress, cTrader, and TradingView. With these platforms, traders can invest in a variety of global markets. Traders gain access to over 10,000 different market products that include forex alongside CFDs on shares, cryptocurrencies, commodities, bonds, and ETFs.
Further, this broker is under the regulation of the local authority in South Africa, the FSCA. It also holds regulatory licenses from other organisations including the ASIC in Australia and the CySEC in Cyprus.
XM.com
XM is another reputable broker that offers traders two different micro accounts. On this broker site, traders can trade lots as small as 0.01 on the standard account and the XM Ultra Low account. Notably, both of these accounts feature competitively low spreads. In particular, the standard account has a spread that starts from as low as 1.0 pips for major currency pairs with no commission required. In contrast, the XM Ultra Low account has a spread that starts from 0.6 pips for major currency pairs with no commission charged.
On another note, this broker has regulations from various organisations. These include the FSC in Belize, the FCA in the UK, and the ASIC in Australia. Such regulations make XM one of the best brokers with micro accounts in South Africa.
Further, this broker offers a wide selection of market products totalling over 1,000 different instruments. In particular, traders gain access to over CFDs on forex currency pairs, stocks, indices, commodities, cryptocurrencies, and energies. The trading platforms available to use include MT4, MT5, and the XM Trading App.
FXGT
FXGT offers traders four different accounts to choose from. All these accounts allow traders to invest in small amounts with trades of as little as 0.01 lots. On top of that, the broker offers reasonably low fees when trading. Both the standard account and the mini account have spreads as low as 1.0 pips for major currency pairs with no commission paid.
In contrast, the pro account has spreads from as low as 0.5 pips with no commission paid. Finally, the ECN account offers spreads from as low as 0.0 pips and a commission depending on the asset an investor is trading. As an example, trading forex classes on this account charge a commission of $6 per round while precious metals classes charge a $5 per round commission.
Other than forex and precious metals, traders have access to a plethora of other market products. The full scope of market products includes CFDs on forex, precious metals, indices, cryptocurrencies, synthetic crypto pairs, and the GTi12 index. These market products are available on two main trading platforms which include MetaTrader 4 and MetaTrader 5.
On regulations, this broker operates under the supervision of a variety of organizations. These include South Africa’s local regulator, the FSCA. The broker also has regulations from the FSA in Seychelles, and the VFSC in Vanuatu.
XTB
XTB allows traders to use micro lots when trading CFD instruments. For these instruments, the minimum investment size is a mere 0.01 lot. In total, the broker offers trading for over 5,800 different market products. These include CFDs on forex, indices, commodities, equities, cryptocurrencies, and ETFs. Such a collection of instruments allows South African traders to spread their risk of investment. The only trading platform available to use is the xStation 5, produced by the company.
On another note, this broker site offers traders competitively low spreads when trading. Spreads on XTB’s standard account start as low as 0.5 pips for major currency pairs like the EURUSD pair. This is fairly low on a broker that has regulations from various institutions. These include the FSC in Belize, the FCA in the UK, the CySEC in Cyprus, and the KNF in Poland.
FXTM
Trading Forex and CFDs entail risk.
Your capital is at risk.
FXTM has three main trading accounts: the Micro account, the Advantage account, and the Advantage Plus account. All of these accounts feature a minimum trade volume of 0.01 lots. The Micro account and the Advantage Plus account both feature spreads starting from 1.5 pips upwards. On the other hand, the Advantage account features commissions of about $0.4 to $2 based on the volume with spreads from 0.0 pips.
Notably, FXTM offers clients attractive trading platforms which include MT4, MT5, and FXTM Trader. These platforms allow traders to invest in forex currency pairs, metals, commodities, indices, forex indices, stocks, stock baskets, and stock CFDs.
Finally, let’s look at the regulation of this broker. FXTM is regulated by various authorities such as the the FSCA in South Africa, the CMA in Kenya, the FCA in the UK, and the CySEC in Cyprus, among others.
For both seasoned and beginner South African traders, the availability of brokers offering micro accounts is paramount. Fortunately, a range of reputable brokers caters to this need, providing opportunities for traders to engage in the market with smaller capital investments. From Exness to FP Markets, FXGT, XM, XTB, and FXTM, each broker offers distinct features.
These include features such as low spreads, diverse trading platforms, and regulatory compliance. With micro accounts, traders can mitigate risk, explore trading strategies, and gradually build their trading skills. Nonetheless, there are many other brokers with micro accounts that were not included in this article. As such, thorough research is still a requirement before investing with any broker.