Does Capitec Bank Allow Forex Trading with Forex Brokers

Capitec is one of the leading banks in South Africa. It has cut itself above the rest, thanks to its state of the art technology and digital banking options. If you are an online trader, the question probably lingering in your head is whether Capitec allows forex trading with Forex Brokers. Remember, South Africa is one of the biggest forex markets in Africa. It follows that some of the forex traders have bank accounts with Capitec.


Unfortunately, Capitec does not support international payments, so you will not be able to deposit to a lot of international brokers. Luckily, there is a way around this. Which is that you can select a broker that has a bank account located somewhere in South Africa. There are a couple of FSCA regulated brokers with a good reputation that comply with this condition, notably AvaTrade and Exness.

Forex brokers that work with Capitec Bank

Exness

Regulation: FSCA, IFSC, FCA, CySEC

Spreads: as low as 0,3 pips

Max. leverage: 1:2000, Forex pairs: 107

Min. deposit: 15 ZAR/1$


Exness is a broker regulated in South Africa by the local regulator FSCA. This company offers two most popular retail forex trading platforms – MT4 and MT5. The company supports speculation on 107 forex pairs with up to 1: 2 000 leverage and with one of the most competitive spreads in the industry that start from as little as 0,3 pips.

Trading Forex and CFDs entail risk. Your capital is at risk.

AvaTrade

Regulation: FSCA, ASIC

Spreads: as low as 0,9 pips

Max. leverage: 1:400, Forex pairs: 55

Min. deposit: 100$

AvaTrade, an FSCA regulated broker, supports speculation on 55 forex pairs with up to 1:400 financial leverage. The minimum deposit for opening a real account is 100 USD, spreads start here on major currency pairs from 0,9 pips. The broker provides access to MT4 and MT5.


Trading Forex and CFDs entail risk. Your capital is at risk.

Why Does Capitec Not Support International payments?

So why is it impossible to deposit money to your forex trading account when using your Capitec bank account? Well, Capitec does not have the necessary SARB license to offer international transfers. While the bank is duly licensed and authorized to offer retail banking services, it is not a fully-fledged bank like First National Bank and ABSA. In other words, some of its services are limited. 

Capitec does not offer outward international payments service and buying and selling foreign banknotes. While outwards international transfers are not supported you can receive money from abroad using your South African Capitec bank account. The money is routed through Nedbank where it is exchanged at the prevailing market rates if the sender did not convert the currency into Rands. To receive funds you must adhere to strict processes and guidelines. First, you must ensure the bank details are correct including your full name, bank account number, and SWIFT code. That is pretty obvious. Also, SARB regulations require individuals to declare the amount received via phone if it exceeds the limit of R50, 0000. 

The good news is that the bank is in the process of acquiring the necessary licensing. That would mean you could then send money to any international forex broker. In the meantime, you can either choose a forex broker with a local bank account or open a different bank account, or use e-wallet payments.

What are the options to trade with international brokers

Authorized banks

The other option is using an authorized bank to make international payments. In South Africa, only four banks: Nedbank, Absa, FNB, and Standard Bank, are authorized to make international wire transfers. You should be ready to pay relatively higher fees.


Skrill and Paypal

Skrill and Paypal are e-wallets that support international currency exchange services. Skrill and Paypal allow South Africans to transfer money to foreign countries including Australia, UK, US, and European Union. However, you need a debit card to fund your Skrill or Paypal account. Both Skrill and Paypal are ideal for low and medium-sized transfers.


Parting Shot

Capitec is a leading bank with top notch services. Despite the fact it doesn’t offer international payments, you can still open a forex trading account with a good hand of well reputable forex brokers. If you want to trade with an international broker that does not have a bank account located in South Africa, there are numerous alternative payment services in South Africa that support forex trading. For instance, you can use third-party gateway payment services such as Skrill or Paypal. Perhaps going forward Capitec will integrate forex trading into its services as it enhances its operations.