10 Best Volatility 75 Index Forex Brokers in South Africa
The Volatility 75 Index (VIX) is an index that measures and tracks the volatility of the Standards and Poor’s 500 (S&P 500), one of the most prominent stock market indexes
in the world, which has a value from between 0 and up to 100.
A low number on the index indicates low volatility and a higher number subsequently represents higher volatility. When there is a reading below 30 on the index, it means that market
conditions are calm whereas any number below 20 shows a complacent market.
We discuss the 10 best Volatility 75 Index Forex brokers in South Africa.
The VIX has a very limited range, and this makes it the perfect financial instrument for a wide range of trading strategies. Two of the most popular trading strategies that traders use when they trade VIX includes:
- The Bearish VIX Strategy focuses on selling and to do so, the VIX must be above 40 because volatility is likely to decrease after some time.
- The Bullish VIX Strategy is based on the idea that volatility will return to the financial market and will cause the VIX to increase. This is the perfect strategy to use when the VIX is below 20 points.
One of the reasons why traders fail when they trade VIX relates to incorrect market timing. To trade VIX profitably, traders must possess the necessary knowledge, skills, and experience to know when to execute and close trades.
When traders can conquer the basic principles surrounding trading the VIX, they can perfectly time their open positions at the breakout or reversal points. When traders use various candlestick patterns, they can obtain indications of the correct time to enter a profitable trade and exit when they reach their goal profit target.
IFX Brokers
Features
IFX Brokers was established in 2018 and it is a popular ECN forex broker in South Africa that provides flexible trading solutions to beginner as well as professional traders.
IFX Brokers facilitates the trade across different financial instruments and offers the advantage of one-stop trading and a plethora of investing opportunities to retail traders as well as institutional investors.
IFX Brokers offers competitive trading conditions and innovative trading platforms with the benefit that traders can expect tailor-made trading solutions, education, and advanced trading tools.
Pros and Cons
| PROS |
MetaTrader suite supported |
Educational resources provided |
A wide range of advanced trading tools offered |
A choice between several financial instruments that can be traded |
Competitive trading conditions offered |
Well-regulated broker |
IC Markets
Features
Established in 2007, IC Markets is one of the largest true ECN forex brokers in the world that provides advanced trading solutions and user-friendly trading platforms. IC Markets caters for both beginner traders as well as professional retail investors, providing them access to over 230 tradeable financial instruments.
IC Markets also offers access to some of the best liquidity providers in the industry, hand-picked by the IC Markets team and added to an ever-expanding list. IC Markets offers tailor-made solutions that will cater for retail traders and professional investors’ needs and objectives.
Pros and Cons
PROS |
Well-regulated by reputable market regulators |
Low trading as well as non-trading costs |
Tight variable spreads are offered |
Welcomes a range of trading strategies and trading styles such as hedging and scalping |
Social trading opportunities are offered |
Offers flexible and powerful trading platforms |
| CONS |
|
US clients are not accepted |
|
There are no fixed spreads offered |
Pepperstone
Features
Founded in 2010, Pepperstone is one of the largest and most trusted forex brokers in the industry. Pepperstone is a well-regulated and well-established ECN and STP forex broker that is based in the United Kingdom and Australia, with corresponding regulation and authorisation through reputable licensing entities and market regulators.
Pepperstone offers some of the best and most competitive trading conditions in the industry, catering to both beginner and professional traders. Traders can trade a wide range of financial instruments including forex pairs, indices, CFDs, and more.
Pros and Cons
PROS |
Well-regulated by reputable entities |
Pepperstone is an award-winning broker |
Excellent customer service offered |
Social trading opportunities provided |
All trading styles are welcome |
Low variable spreads offered |
| CONS |
|
US clients are not allowed |
|
Fixed spread accounts are not provided |
HotForex
Features
HotForex is another popular and reputable broker with multi-regulation to offer comprehensive trading solutions in several jurisdictions around the world. HotForex facilitates the trade in a wide range of financial instruments that are spread across several asset classes.
HotForex is the brand name of HF Markets (Europe) Ltd and there is an immense emphasis on client fund security and providing traders with a fair, safe, and transparent trading environment.
Pros and Cons
PROS |
Strong international presence |
A range of bonuses and promotions are offered |
Competitive trading conditions provided |
A choice between different retail investor accounts |
Tight variable spreads and commission-free trading options are offered |
Islamic accounts and demo accounts offered |
CONS |
US clients are not accepted |
AvaTrade
Features
AvaTrade is one of the most popular trading brokers in the world, with regulation through several entities including ASIC, FSCA, FFAJ, IIROC, and several others. This provides AvaTrade with the permission that it needs to offer comprehensive trading solutions to traders from around the world.
Traders can trade over 1,250 financial instruments that are spread across several asset classes. While AvaTrade only offers one retail trading account, this account is feature-rich and flexible, catering for both beginner traders as well as experienced traders.
AvaTrade also offers a range of trading tools, educational sources, and excellent customer service that is available through several communication channels.
Pros and Cons
PROS |
Multi-asset and multi-regulated broker with a good reputation |
Client fund security is guaranteed |
Fast and reliable trade execution is guaranteed |
Perfect for beginner and experienced traders |
Offers professional traders a dedicated account and countless benefits |
Social trading opportunities provided |
| CONS |
Spreads are not the tightest |
Variable spreads are not offered |
There is only one retail investor account offered for retail traders and one for professional traders |
CMC Markets
Features
Established in 1989, CMC Markets is a well-regulated and reputable online trading broker that is regulated by several reputable market regulators. CMC Markets is well-known for its competitive trading conditions and flexible trading solutions.
CMC Markets offers a wide range of trading instruments to retail and institutional clients. Traders can use powerful and flexible trading platforms through which they can trade and conduct technical analysis, fundamental analysis, and more.
Pros and Cons
PROS |
Innovative trading technology offered |
No minimum deposit requirements |
Segregated client funds and several security protocols |
Multi-regulated and reputable |
Competitive variable spreads offered |
Offers a wide range of tradeable instruments |
| CONS |
Managed accounts are not offered |
Fixed spreads are not provided |
Spreads are marked-up to include broker fees |
US clients are not accepted |
Social trading and copy trading is not offered |
IG
Features
IG is another large, prominent trading provider that is regulated in several jurisdictions, with offices in the United States, Switzerland, UAE, Singapore, Japan, South Africa, and others. IG offers comprehensive trading solutions to both beginner traders and professional investors.
Traders have access to more than 17,000 financial instruments that can be traded through flexible trading platforms. Traders also have a choice in retail investor accounts and access to advanced trading tools, educational sources, and more.
Pros and Cons
PROS |
Well-regulated broker |
Offers over 17,000 tradable instruments |
Competitive trading conditions offered |
Longstanding reputation in offering flexible trading solutions |
A choice in retail investor accounts offered |
Powerful trading platforms offered |
| CONS |
|
High minimum deposit requirement |
Interactive Brokers
Features
Interactive Brokers is a multi-asset and reputable trading broker that is well-regulated in several jurisdictions around the world. It is one of the largest online brokers that cater for all types of traders regardless of their trading experience, needs, objectives, or trading styles.
Interactive Brokers offers a wide range of tradable instruments spread across different currency pairs including major currencies, minor and exotic currencies, commodities, indices, and several CFDs, amongst numerous others.
Pros and Cons
PROS |
Multi-regulated broker with flexible trading solutions |
Offers a choice between different investor trading accounts |
Innovative and powerful proprietary trading platforms offered |
Competitive trading conditions offered |
A variety of trading tools offered |
Offers educational materials and resources |
| CONS |
Fixed spreads are not offered |
Restricted leverage for some regions |
No Islamic accounts |
No MetaTrader platforms |
eToro
Features
eToro is one of the best trading providers in addition to being the leading online social trading platform in the industry, offering the use of its user-friendly, flexible proprietary trading platforms.
eToro has traders from around the world that use its comprehensive trading solutions and competitive trading conditions. eToro offers a suite of tradable instruments that can be traded, and traders can expect tight spreads, commission-free trading, and a wide range of advanced trading tools and education.
Pros and Cons
PROS |
Well-regulated broker |
Commission-free trading offered |
Large online community provided |
There is a powerful social trading platform offered |
Several financial markets offered |
Popular and trusted broker |
| CONS |
MetaTrader trading platforms are not supported |
US clients are not accepted |
Plus500
Features
Plus500 is another reputable online forex and CFD trading broker that offers flexible trading solutions to traders from around the world. Plus500 offers more than 2,000 financial instruments that can be traded through powerful proprietary trading platforms across several devices.
Plus500 offers unique and tailor-made solutions to both beginner and professional traders and investors alike, despite their unique trading styles or trading strategies.
Pros and Cons
PROS |
Well-regulated broker |
Offers more than 2,000 financial instruments |
Offers competitive trading conditions |
Decent maximum leverage provided |
24/7 multilingual customer service provided |
Powerful proprietary trading platform provided |
CONS |
Limited account types offered |
MetaTrader trading platforms not supported |
Restricted funding options |
FREQUENTLY ASKED QUESTIONS
What is volatility trading?
Volatility trading refers to trading strategies that traders use to trade during times of volatile market conditions.
How do I choose the best volatility 75 CFD broker?
This will require that you evaluate the regulation, commissions and fees, trading accounts, and all other components that you would normally use to evaluate any other broker.
What are indices and indices trading?
An index can be defined as a portfolio that contains stocks that represent a certain market or a sector in the market. This means that when traders trade indices, they can trade a group of shares that give them exposure to a large sector in a single trading position.
When is the best time to trade the volatility 75 index?
The best time to trade the volatility 75 index is when prices react to previous support or resistance levels that exist in the stock markets and in the index itself.
Why should I trade the volatility 75 index?
It can be traded to profit from changes in volatility in stock markets in addition to allowing traders to hedge their positions.