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. Usually, if a broker offers to have a base account currency in ZAR, it's a good indication they have a bank account located somewhere in South Africa and deposits and withdrawals via the Capitec Bank could be possible.
Forex brokers that work with Capitec Bank
HFM
HF Markets supports the South African Rand as a base account currency for South African traders. Traders in South Africa can make local bank deposits using Capitec Bank with no fees on deposits. The minimum deposit when using Bank Transfers as a payment option is R100. Once traders make a deposit, they gain access to over 50 different currency pairs alongside a plethora of other instruments. The spreads on this broker site are competitively low starting from 0.2 pips on the Pro-plus account* with no commission (Min. deposit 4,700 ZAR). The trading platforms available to use include MT4, MT5, and HFM Platform.
Exness
Exness, an FSCA regulated broker, offers two most popular forex trading platforms - MT4 and MT5. The company supports speculation on 107 forex pairs with unlimited leverage and with one of the most competitive spreads in the industry that start from as little as 0.3 pips for standard accounts and 0.1 pips on profesional accounts (min. deposit 200$). The broker supports having a trading account held in ZAR and USD.
XM.com
XM.com is a popular broker with a big base of South African traders. The company features two popular forex retails platforms; MT4 and MT5 and offers to new clients a no deposit bonus of 30 USD (terms and conditions apply). The broker offers having a base account currency in ZAR. The maximum available leverage to South African traders is up to 1:1000.
Plus500
Plus500 is another FSCA-regulated broker that is available to South African traders and supports having a base account currency in USD or ZAR. The company has dynamic spreads but on major currencies that start from as low as 0.6 pips. The company has its own built trading platform and allows speculation on over 2600 trading assets including 60 + currency pairs (through CFDs).
FXGT
FXGT allows traders to have accounts in various account-based currencies including ZAR. This means that traders can make deposits using the local bank, Capitec Bank. The minimum deposit for this broker sits at $50 or about 880 ZAR and there are no charges on deposits. This FSCA-regulated broker allows traders to access a variety of global markets with spreads as low as 1.0 pips on the standard account and 0.0 pips on the ECN account (plus a commission).
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?
ohe fption 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 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.
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.