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South African Broker Account Types

What this page covers

Most brokers offer several account types on the same platform. The difference is almost entirely in how they charge you, and the cheapest headline is rarely the cheapest total.

1.4standard spread, pips
0.0-0.3raw spread, pips
USD 7raw commission per lot
5 lotswhere raw starts winning
The main types
AccountSpreadCommissionTypical minimumSuits
StandardWider, 1.0 to 1.8 pipsNoneR1,000 to R5,000Lower frequency trading
Raw or ECN0.0 to 0.3 pipsUSD 6 to 7 per lotR5,000 to R20,000Frequent trading
IslamicAs the base accountAdministration fee instead of swapAs the baseSwap-free requirement
ProfessionalRawNegotiatedHighLarge volume
DemoSimulatedSimulatedNoneLearning the platform
What each actually costs on one standard lot
AccountSpread costCommissionTotal per round turn
Standard, 1.4 pipsUSD 14.00USD 0.00USD 14.00
Raw, 0.2 pipsUSD 2.00USD 7.00USD 9.00
Raw, 0.0 pipsUSD 0.00USD 7.00USD 7.00
Standard, 1.8 pipsUSD 18.00USD 0.00USD 18.00
What to check before choosing
ItemWhy
Total cost at your volumeRaw wins above a few lots a month, standard below
Overnight swapDominates the cost on a position held for weeks
Base currencyA rand account avoids conversion on every deposit
Minimum lot sizeDecides the smallest position you can size properly
Whether the licence covers your accountAn offshore entity may hold it, not the local FSP

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How these figures work

The figures on this page come from the body that publishes them and change on a schedule rather than continuously, which is what makes them worth keeping in one place. Raw spread accounts are cheaper only above a certain volume. Below roughly five lots a month the commission usually outweighs the tighter spread.

An Islamic account replaces swap with a flat administration fee, which on a long-held position can exceed the swap it replaced. Compare the two over the period you actually hold.

★ What this means in practice

Check which legal entity holds your account. A broker with a South African FSP number may still book retail clients through an offshore entity, which changes what protection applies.

✕ Common mistakes

  • Raw spread accounts are cheaper only above a certain volume. Raw spread accounts are cheaper only above a certain volume. Below roughly five lots a month the commission usually outweighs the tighter spread.
  • An Islamic account replaces swap with a flat administration fee, which o. An Islamic account replaces swap with a flat administration fee, which on a long-held position can exceed the swap it replaced. Compare the two over the period you actually hold.
  • Check which legal entity holds your account. Check which legal entity holds your account. A broker with a South African FSP number may still book retail clients through an offshore entity, which changes what protection applies.
  • Taking a figure without its date. A number from a reference page is only as good as when it was last checked, which is why the date sits at the top of this one.

Notes on reading these figures

  • Raw spread accounts are cheaper only above a certain volume. Below roughly five lots a month the commission usually outweighs the tighter spread.
  • An Islamic account replaces swap with a flat administration fee, which on a long-held position can exceed the swap it replaced. Compare the two over the period you actually hold.
  • Check which legal entity holds your account. A broker with a South African FSP number may still book retail clients through an offshore entity, which changes what protection applies.

To put these figures to work, The Bid-Ask Spread Cost Calculator runs the arithmetic on your own numbers; Trading Cost Calculator covers the same ground in ordinary language; How to Verify an FSP Licence goes into the detail this table only summarises; Market maker versus ECN broker is the related figure worth reading beside it; and Leverage and Margin Limits covers what this page leaves out.

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Terms used on this page

Definitions
Standard account
Wider spread, no separate commission.
Raw or ECN account
Near-zero spread with a commission per lot.
Islamic account
Swap replaced by a flat administration fee.
Round turn
Opening and closing a position, the basis for quoting cost.
Booking entity
The legal entity that actually holds your account.

Frequently asked questions

Is a raw spread account cheaper?

Only above roughly five lots a month. Below that the commission usually outweighs the tighter spread.

What does a standard lot cost?

About USD 14 on a 1.4 pip standard account, against about USD 9 on a raw account at 0.2 pips plus USD 7 commission.

What is an Islamic account?

Swap is replaced by a flat administration fee. On a long-held position that fee can exceed the swap it replaced.

Should I open a rand account?

It avoids a conversion on every deposit and withdrawal, which adds up.

Does a demo account behave like a live one?

The prices are usually real but execution is not. Slippage and rejection do not appear on a demo.

Which entity holds my account?

Worth checking. A broker with a South African FSP number may still book retail clients through an offshore entity.