Author: Jacob Bailey
Market Analyst
Jacob Bailey

Binary Options South Africa

South Africa Country

South Africa is a popular market as more and more investors open trading accounts.

Because binary options are unregulated here we can show you great brokers to trade with, without restrictions. These firms cater to most types of investor and offer an array of account types and features to please you all. Lots of ZA traders use binary options to make extra money and some of the better traders do it full-time.

In this article, you will learn:

  • The brokers best suited to your needs
  • What local payment methods are accepted
  • Taxes and fees that apply to ZA residents

Recommended binary Websites Updated: February 2019

Risk Warning / Ad Disclosure

Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain from referring new customers.

Websites You Should Avoid
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1.4 Blacklisted

Traders in South Africa

South Africa Brokers

Like we found in Indonesia with regard to the law on binary options, trading in South Africa is perfectly legal. There is nothing that prohibits an individual from trading online. The industry is however unregulated which means that there is no protection offered to those who choose to trade. It also prevents genuine South African companies from brokering. So how do you choose a trader and what should you be looking for?

Licensing And Regulation

As there are no regulated South African brokers you are going to need to find an offshore broker. There are many European brokers that are licensed by CySEC, FCA, MiFID etc. Australia also have good brokers, look for an ASIC license. There are many to choose from, it's just a case of picking the right one for you.

Deals and Incentives

If you are new to trading then you should probably look for a broker that offers a no deposit bonus. This allows you to try before you buy, so to speak. There are also deposit bonuses and trading contests to look out for as well.

Mobile Trading Tools

Most people prefer to trade on the go therefore it is important to check out what mobile offering the broker has. Do they offer a mobile app that is suitable for the device you are using and is it available for both iOS and Android? If you are keen to trade on the go then this is critical.

Free Demo Account

A demo account is important for a number of reasons. Firstly, it allows you to get familiar with the platform that you are going to be using. In addition to this, if you are using a reloadable demo, you can use it to try new assets and trade types.

The only way to legally invest and trade in binary options, in South Africa, is to use an off-shore broker. This means having to find one that has all the above benefits plus anything else that is important to you as an individual. That is where we come in. We provide you with only the best, most reputable brokers to ensure that your experience is a good one.

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Broker Fees And Tax

When looking at the tax requirements surrounding binary trading, South Africa is much like any other country. If you are an individual then you will no doubt be paying Personal Income Tax. You could be paying anything from 18% for income below R160,000 up to 40% for anything over R617,000. Local tax applies to profits made on any kind of income and this includes binary options trading.

If trading is a second income, you will need to declare your income and ensure that you pay the correct tax on this amount. Remember to deduct any losses and work out your net profit so that you don't pay too much tax.

Now whilst binary options brokers aren't responsible for informing the South Africa tax department that you have made an income from trading, they will have a record of your transactions within your account. Make sure that you have access to this information as you will need it when calculating your total profit for a certain period of time. We recommend keeping a monthly record of deposits and withdrawals and recording all profits and loss.

Whilst African taxes are the main cost that you will incur there may also be other fees to consider. These fees include:

  • Currency conversion fees for converting to and from the currency you will be trading in
  • Deposit fees usually associated with certain types of transactions. These fees can be charged by your account provider
  • Transaction fees from your credit card or e-wallet provider
  • Withdrawal fees from the broker for making each withdrawal

If you are making lots of deposits and withdrawals, the money will soon mount up. Consider making fewer, larger deposits and withdrawals to try and cut down on the number of fees charged.

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South African Licencing

Now whilst there are no legal issues that restrict South African citizens from trading there is unfortunately a lack of brokers local to the country. It is not a regulated industry, therefore there are no legal or licensed South African binary options brokers.

There are however plenty of good brokers off shore that have the relevant licenses and regulations. The ones to watch out for are those that are licensed by CYSEC or other European recognised licenses. In fact if you look out for those who are licensed in Europe you are more likely to find yourself a genuine broker.

Do not use a broker that doesn't have a license. There is a reason that they don't have one, they either can't get one or they aren't a serious broker doing things the right way. Why would you invest money with them if they haven't gone to the trouble of getting licensed?

Also make sure that any licenses are genuine. We have gone to the trouble of doing this with all of the companies that we review and recommend so you will be pleased to know that we only recommend genuine, trustworthy brokers that have a good reputation and history.

Our knowledge of all the legal requirements means we can ensure that your trading career is safe.

How we Recommend Brokers

There isn't a choice of trading with a local broker for South African traders so if you wish to trade it is going to have to be with an offshore broker. Now this may seem daunting and perhaps a little risky but there are genuine SA brokers that offer a good service with good incentives. Our job is to simply make your experience a more beneficial one by reviewing and rating South African brokers across the market.

Like all of our broker ratings and our best binary options reviews we take into account every aspect of trading and what each broker has to offer. Firstly we look at their licensing and eligibility to trade. We only bring you brokers that have the correct licensing and operate within regulations and legislation. We want your trading experience to be profitable and without issue. We also examine the logistics of each broker.

Some of the key areas include how easy it is to open an account, how easy it is to navigate the trading platform and whether the mobile website and app is user friendly. We also examine what benefits each broker has to offer. Do they offer good bonuses, a good payout and what other rewards are available? For VIP / Premium traders we look at the higher end accounts and what they have to offer and how they compare to other offerings available.

We review brokers all over the world and when it comes down to it South Africa steps up pretty good. Our reviews are based on an extensive knowledge and experience of the online options market. Our team of experts have many years of trading experience between them and know exactly what to look out for. Our commitment is to only bring you the best South African binary options brokers on offer.

Risk Warning / Ad Disclosure

Risk Warning: The trading products offered by the companies listed on this website carry a high level of risk and can result in the loss of all your funds. You should never trade money that you cannot afford to lose.

Ad Disclosure: Some of the links that you will find on this website are advertisements for which we do receive financial gain from referring new customers.

Frequently Asked Questions

South Africa FAQ

Is binary trading in South Africa legal and safe?

The answer to this is "yes" it is perfectly legal to trade binary options in most countries including South Africa. As it is unregulated though it is prohibited for South African based companies to become brokers.

Do I need to pay taxes on my trading profits?

South Africa has tax laws and regulations and it is important to abide by these rules and regulations to avoid large fines. Earnings from binary options trading need to be declared.

Can I test brokers before trading with real money?

Brokers will offer lots of incentives to stay competitive. These usually include a demo account to allow new traders to trade on the platform without depositing any of their own funds.

Is it easy to make deposits and withdrawals?

Making deposits and withdrawals is easy. Simply open an account and make your deposit. Withdrawls can take up to 3-5 days, some brokers offer a much quicker turnaround for those higher stakes traders.

Can I trade using my mobile or tablet device?

Yes, to stay competitive all brokers must have either a responsive, easy to use version of their website available for mobile or an app available for either Android or iOS.

Meet The Author
Jacob Bailey
Jacob Bailey
Market Analyst

Jacob has been an author for Binary Options Expert since our launch in 2012. He has over 40 years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations. Learn more.

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