AfriMarkets: Trustworthy or Risky?
Stop! It’s a Scam! Your money is not safe if you are trading with this unregulated, off-shore broker.
AfriMarkets- DO NOT TRADE WITH THIS PROVIDER
2.4/10
$100
Minimum Depositupdated 2024
The details for opening trading accounts are not indicated on the broker’s website. In order to register with this broker, you only need to go to their sign-up page where you’ll be asked to enter your name, email address, phone number, and password. You’ll also be asked to accept their Terms and Conditions and confirm that you’re over 18 years of age. After this, the trading platform will be made available for you and you can start trading using their demo account.
Try these regulated brokers if you want to start trading cryptocurrencies
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
Website URL: https://afrimarkets.co.za/
Spread: 1.8
Regulations: FSCA
Languages: English
Minimum Deposit: $300
Free Demo Account: N/A
Leverage: 200:1
AfriMarkets is a forex broker based in South Africa, operating under the regulation of the Financial Sector Conduct Authority (FSCA). While this provides a foundational level of oversight, the broker does not hold licenses from internationally recognized bodies like the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), or the Cyprus Securities and Exchange Commission (CySEC). Brokers with multiple regulatory licenses often demonstrate higher credibility and offer enhanced protections for investors, making this a critical consideration for potential traders.
AfriMarkets offers its proprietary AfriMarkets X Trading platform, designed to be user-friendly and accessible across various devices. However, the use of a proprietary platform over industry-standard ones like MetaTrader can sometimes result in concerns over transparency, functionality, and reliability.
Prospective investors should proceed with caution, thoroughly researching the broker’s regulatory credentials and analyzing client feedback, which often highlights issues like delayed payouts and unclear trading terms.
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
Understanding AfriMarkets’ Regulatory Framework
AfriMarkets is operated by AfriMarkets Capital (PTY) Ltd., which is registered in South Africa on the 6th Floor, Atlantic Centre, Christiaan Barnard Street, Cape Town. The brokerage company is supervised by the Financial Sector Conduct Authority (FSCA) under license number 52813. Thus, this local regulatory environment guarantees the observance of South African financial laws. Meanwhile, traders must be aware of the fact that FSCA’s authority is relatively limited.
The FSCA governs operations within South Africa—meaning international traders may not benefit from equivalent regulatory protections in their regions. AfriMarkets adheres to FSCA guidelines by segregating client funds from company accounts, offering a measure of security against mismanagement. However, the broker lacks negative balance protection, exposing traders to potential losses exceeding their deposits during market volatility—a feature standard with many globally regulated brokers.
Unlike top-tier regulated brokers such as ASIC, CySEC, or FCA, AfriMarkets cannot offer the additional protections these entities enforce, including negative balance safeguards and compensation schemes. These will likely increase risks significantly, especially for traders outside South Africa.
AfriMarkets will suffice for FSCA’s requirements, but potential clients should analyze its limited safeguards. It can be advisable to compare it with strictly regulated brokers overseas to ensure the trading activities fit the required necessary securities and peace of mind.
AfriMarkets Trading Platforms and Minimum Deposit Options
AfriMarkets employs proprietary platforms rather than the market favorite, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Although this means that traders get unique trading tools, the absence of MT4 and MT5 may disadvantage a trader familiar with the advanced features offered with comprehensive indicators and automated trading capabilities. Here is a breakdown:
AfriMarkets Platforms
Highlight Features
- Real-Time Synchronization: Ensures data consistency between devices (PC, tablet, smartphone).
- Advance Tools: Integrated charting, customizable watchlists, flexible alerts, and risk management options like stop-loss and take-profit levels.
- User-friendly interface: Designed for all types of traders with the option to change them to suit individual needs
Simplex Trading Platform
This platform was developed with the focus on simplicity and basic trading tools necessary to monitor and execute trade using the market efficiently.
Limitations for MetaTrader Users
This prohibition of MT4 and MT5 leads the dealer away from popular features such as automated trading with Expert Advisors (EAs) and sophisticated charting tools, which may be off-putting to those relying on these industry standards.
AfriMarkets Minimum Deposit Options
AfriMarkets accommodates traders with varying budgets through multiple account types:
- Foundation Account: $300 minimum, ideal for beginners.
- Pro Account: $10,000, for seasoned traders.
- Ultimate Account: $100,000, tailored for high-capital traders.
- Supreme Account: $250,000, offering premium features and personalized support.
The minimum deposit accounts for AfriMarkets are higher than most top brokers, so only advanced or serious investors can open accounts with them. While leading forex brokers accept deposits as low as $50 for Micro accounts, AfriMarkets only offers its entry-level Foundation Account at $300. Although this is structured towards the experienced trader, onlookers seeking low-cost entry points will find these requirements quite restrictive.
Traders should weigh the platforms’ unique benefits and account requirements against the absence of MetaTrader platforms and higher minimum deposits compared to other brokers.
AfriMarkets: Accessibility, Payment Methods, and Trading Options
Payment Methods and Limitations
AfriMarkets supports reliable options like:
- Bank Wire: 2–5 business days for deposits; withdrawals take 5–10 days with fees starting at $25.
- Credit/Debit Cards: Instant deposits; withdrawals within 24 hours at no cost.
- AstroPay: Quick processing within an hour for deposits; withdrawals take 24 hours with a 2% fee.
However, the absence of popular e-wallets such as Skrill, Neteller, and PayPal is a drawback. These alternatives offer faster transactions and lower fees, making them preferred by many traders.
Trading Instrument Variety
AfriMarkets provides access to:
- Forex: Diverse currency pairs.
- Indices: Market-wide performance.
- Stocks: Individual equities.
- Commodities: Physical assets like gold and oil.
This means that for a trader interested in digital assets, the absence of cryptocurrencies can be a disadvantage. Although this offers an all-inclusive option for traditional markets, it will always fall short on cryptocurrencies, which can be limited to their interests. Digital asset traders might need to look somewhere else.
AfriMarkets: Spreads, Leverage, Withdrawals, and Fees
Spreads at AfriMarkets
AfriMarkets offers the following spreads on major currency pairs:
- EUR/USD: 1.8 pips
- GBP/USD: 3.9 pips
- USD/JPY: 4.4 pips
These spreads are higher than the market average, and many brokers offer tighter spreads, including on the EUR/USD pair. Higher spreads can increase trading costs, especially for frequent traders or those who use strategies sensitive to transaction fees.
Leverage at AfriMarkets
- Max Leverage: 200:1 for Forex
- Other Instruments: No specified leverage for stocks, crypto, or gold
AfriMarkets offers leverage up to 200:1, much higher than most regulated brokers, who usually limit leverage to 30:1. While high leverage can multiply gains, it is also a significant risk, especially since AfriMarkets does not have negative balance protection. As such, traders must consider their own experience and risk tolerance before using high leverage.
Withdrawals and Processing Times
AfriMarkets charges no withdrawal fees but processes requests in 3-7 working days, which can be longer than most rivals, which take 1-3 days. For traders wanting to access money more quickly, this may cause them a problem.
Inactivity Fees
The accounts of AfriMarkets customers that have zero trading activity are charged an inactivity fee:
- 3 months: $10/month
- 6 months: $15/month
- 12 months: $30/month
To avoid such charges, traders must maintain some activity or close inactive accounts.
Invest at Your Own Risk!
AfriMarkets features FSCA regulation, a unique trading platform, and high leverage. However, higher minimum deposits, wide spreads, and lack of negative balance protection are some negative aspects on the horizon for potential traders. It is not a scam, but these factors must be weighed carefully, considering risk tolerance and the perfect goals.
AfriMarkets
Pros
- None
Cons
- Anonymous and Unregulated Broker
- Blacklisted by Bank of Russia
- Poor Trading Platform
- Incomplete Trading Conditions
- Issues with Payments
Do not trade with unregulated brokers that will steal your funds - try these regulated brokers:
82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.
The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more