Home Day Trading South Africa : Best Day Trading Platforms South Africa

Day Trading South Africa : Best Day Trading Platforms South Africa

Day Trading South Africa is one of the most popular online trading styles or strategies in South Africa. Day trading in South Africa is not something new. In this article, we will discuss critical things you need to know about day trading South Africa and how to get started. While there are many methods of investing in the financial markets, more and more traders are turning to day trading in South Africa. This investment strategy is an active trading technique that allows you to profit from market movements over a trading day.

Find out in this guide what day trading is and how to get started for beginners.

Best Day Trading South Africa Platforms

CM Trading South AfricaFSCA, MiFID, ASIC


Olymp TradeCySec, FSCA, ASIC, FCA


Just ForexCySec, FSCA, ASIC, FCA


Markets XCySec, FSCA, ASIC, FCA

AvaTradeCySec, FSCA, ASIC, FCA


6 simple steps to day trading in South Africa

To get started in day trading South Africa, follow these basic steps:

  • Step 1: Learn about day trading and how to become a day trader in South Africa
  • Step 2: Choose a broker with a suitable platform and low spreads
  • Step 3: Create a trading account on the broker and deposit funds
  • Step 4: Familiarize yourself with the platform and its features
  • Step 5: Shape your day trading strategy and organize your day
  • Step 6: Open your positions and monitor your account carefully

Day Trading South Africa

What is day trading?

As the name suggests, day trading is a strategy that involves the buying and selling of financial assets during the same day. The day trader therefore generally takes advantage of small price movements to speculate on the evolution of an asset from a few minutes to a few hours.

Day trading in South Africa is one of the trading techniques that requires the most attention and availability. Indeed, you must be in front of your screens to take advantage of each trading opportunity that arises during a trading day.

The main goal is not to pay overnight fees, also called rollover or swap fees. These fees usually have to be paid to your broker when you hold a position overnight.

Intraday trading method, day trading generally relies on leveraged products and margin trading to amplify market movements. CFDs or Contracts for the Difference are one of the most popular financial derivative products for investors with short-term strategies.

CFDs act like a financial contract in which you and your broker exchange the value of an asset between the opening price and the closing price of a position. Thus, you do not own the underlying asset that the CFD is dealing with. You are only speculating on the change in its price.

Additionally, online CFD brokers are generally good platforms. They offer plenty of markets, robust trading platforms, and reasonable trading fees. You still have to use the right broker.

What markets can I do day trading in?

Day trading is a strategy of taking advantage of price movements during a trading session without holding open positions overnight. Thus, it is possible to do day trading on any market available through your broker. Among the most popular are:

  • Forex
  • Actions
  • Indices
  • Raw materials
  • Crypto-currencies

How to do day trading South Africa: tutorial

But how do you go about day trading and where to start if you are a complete beginner? In the steps below, we explain the process to start day trading in a few easy steps with our recommended brokers.

Step 1: Choose a day trading broker

Since day trading requires a certain reactivity, your broker must be able to offer fast execution times. Depending on your day trading strategy, the tools and indicators you need should also be available in the trading platform.

Remember that a day trader takes many positions per day. Thus, brokerage fees such as the spread, which is the difference between the bid price and the ask price, should be as low as possible.

Step 2: Register and create an account

Once you have selected your broker, proceed to Step 2: Registration and KYC Process. In the steps below, we’ll show you how to start day trading with our recommended brokers.

With this registration form, registering on brokers only takes a few minutes. Once you have clicked on “Create Account “, you will be able to access the day trading platform.

Verify your trading account by providing the required documents.

Once you are on the trading platform, it is necessary to click on “Complete profile” (under your name on the left). Thus, you will be able to complete your profile and have your account verified to unlock all the broker’s features.

Step 3: Deposit money into your trading account

To start trading, click on the “Deposit Funds” button. Thus, you will be able to deposit funds into your trading account via your preferred method. Most brokers do not charge a deposit fee and you can use wire transfer, debit card, and PayPal.

Step 4: Familiarize yourself with the trading platform and its features

For example, there are many features on eToro the Marketplace. As the world’s leading social and copy trading platform, eToro allows you to share and access a lot of information about different financial assets. It is also possible to take advantage of an option to directly copy the portfolios of other successful traders.

Step 5: Use Platforms ProCharts

To take advantage of advanced graphing and trading tools, you can use the platform’s ProCharts option. So, you can use many trading indicators and drawing tools which are not available in the basic platform.

Since day trading consists of taking advantage of several trades in the same day, you can open your positions when your trading signals appear. Then click on “Portfolio” to view the status of your trades. Once you wish to close your positions click on “Close”.

Day trading advantages and disadvantages

To assess whether day trading is right for you, consider the pros and cons listed below.

Benefits of Day Trading South Africa

  • It can generate very high returns if you are willing to take the risks that come with it
  • Leverage day trading can multiply your profits
  • Open the door to more trading opportunities and strategies
  • Fast results: you get your daily results relatively quickly
  • Avoids broker’s overnight fees
  • Avoid price fluctuations that can happen overnight
  • High liquidity, especially in forex day trading
  • Possibility of making a living from day trading

Disadvantages of Day Trading South Africa

  • High risk and no guarantee that you will make money
  • Taxation can be difficult to bear and hurt your profits
  • Relatively large capital required to start: to get started with day trading you need to have enough spare money that you can afford to lose, in case your trades don’t go as planned
  • Learning Day Trading is Difficult: Day trading SA requires a steep learning curve, knowledge and good strategy to be successful

Day Trading SA

How much capital to start day trading with in SA?

It must first be remembered that you should only trade with money that you are willing to lose and never borrow to invest.

With the many brokers available in the market, there are options for all budgets. For example, you can start day trading with the sum of $250. For many traders, starting with an amount of $2,000 is reasonable.

The most important thing when it comes to day trading SA is that your trading costs do not outweigh your profits.

Is day trading right for me?

Day trading SA is ideal for short-term traders who do not want to hold any overnight trading position to avoid overnight fees. It is also an interesting technique to completely disconnect from your trading once the day is over.

Since no more trades are open overnight, it also avoids the risk stress that can arise while the trader is asleep. It is indeed possible that the portfolio will experience strong price movements due to an event in another part of the world.

Basic technical indicators for day trading

Since the success of day trading depends greatly on the timing of entering and exiting a position, day traders rely primarily on technical analysis. This method of market analysis is mainly done by studying the evolution of prices on the charts.

Thus, a technical analyst can identify trends and determine areas on which prices can react such as supports and resistances or pivot points.

Beyond purely graphical analysis, there are many popular indicators for day trading. There are several categories of indicators:

  • leading like the RSI (Relative Strength Index)
  • lagging like moving averages
  • oscillators like stochastic

Among the most popular technical indicators for day trading are:

  • RSI
  • Bollinger bands
  • Moving Averages
  • Fibonacci retracements

To find the best indicator (s) for your day trading strategy, you must take into account your trading plan and a few other elements:

  • What is the general situation?
  • What is the underlying trend in your assets?
  • Is the indicator responsive enough to fluctuations in the price of the assets you are trading?
  • Is it easy to interpret and use?
  • Can you use it for free in the trading platform?

How to define a day trading strategy?

When determining what are the best technical indicators to use in your day trading plan, remember that what works for another day trader may not work for you. It all depends on your goals, your initial capital and your relationship to risk.

However, it will be easy for you to use the list of popular indicators for day traders to find the right ones for you. It will suffice to set them up and configure them according to your trading:

  • support and resistance levels,
  • trend lines,
  • canals,
  • Fibonacci retracements,
  • graphic figures of continuation, reversal or indecision
  • candlesticks
  • pivot points
  • crossing of two moving averages
  • RSI

Day trading tips in South Africa

15 day trading tips

  1. Invest in yourself to improve your trading knowledge
  2. Only risk what you can afford to lose
  3. Find the best broker for your needs
  4. Always follow your trading plan
  5. Adopt strict risk and money management rules
  6. Keep a trading journal and get in the habit of reviewing your trading history
  7. Refine your trading plan and optimize your strategy first through a demo account
  8. Know the trading hours of the markets you are trading
  9. Always keep an eye on the economic calendar
  10. Be careful with margin trading and the use of leverage
  11. Stay neutral
  12. Be disciplined, patient and focused
  13. Accept the losses
  14. Learn from your mistakes
  15. Know when to stop trading

Conclusion: How do you get started with day trading South Africa?

If you want to take advantage of the price fluctuations of different financial assets within a single trading session by closing all of your positions at the end of the day, then the day trading strategy is for you.

A very short-term trading technique, the use of day trading is generally done via CFD brokers which offer a wide choice of assets, a robust platform, a leverage effect adapted to your strategy and analysis tools.

To be successful as a day trader, it is important to control your risk well, always follow your trading plan, constantly improve your knowledge of the markets and use a good broker like eToro to easily spot trading opportunities and quickly.

Day Trading FAQs

Here are the answers to the most frequently asked questions about Day Trading South Africa.

Is day trading risky?

Day trading, like any type of investment, involves a certain risk of loss of capital. Since day trading takes advantage of relatively rapid price fluctuations, it is mostly speculation through leveraged products. Margin trading and leverage amplify price movements, which can quickly increase your profits as well as your losses. This is why day trading is not a style of trading for everyone.

How much money do you make in day trading in South Africa?

It all depends on your starting capital, how much you risk per trade and how serious you are in following your trading plan. You also have to take into account the market you are trading (volatility and liquidity) and the time you devote to your trading training. Your income potential through day trading is also determined by your personality and the strategies you use.

What tools do I need to start day trading in South Africa?

Note that you need the right equipment and powerful software to be able to quickly spot and respond to important financial information.

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