Khwezi Trade Broker Review

Regulation: Founded in 2013, Khwezi Trade is a well-respected South African broker based in Cape Town.  It is regulated by the South African Financial Services Conduct Authority and received its ODP licence in November 2021, the second broker in South Africa to do so. This is a huge achievement, considering the regulatory changes and complexity of the local laws.

Safety Features: Although the FSCA’s rules are not as strict as regulators in the UK or Australia, South Africans will benefit from having their money segregated from Khwezi Trade’s company funds at local South African banks. Local bank accounts also mean that bank transfers between South African clients and brokers are faster and cheaper.

According to regulation, Khwezi Trade is also required to keep accurate records and accounts, distinguishing the assets held for one client from the assets of any other client and the company assets.  The company is also regularly audited by external auditors, and the auditor’s report is sent directly to the FSCA.

The account opening process at Khwezi Trade is easy, hassle-free, and fast.

Opening a live account at Khwezi Trade is easy and fast, and while it also offers Corporate Accounts and Joint Accounts, we will focus on opening an Individual Account:

1. Initially, you will need to click on “Open Account” and register your name, email address, phone number, and country of residence.  You will also have to agree to Khwezi Trade’s terms and conditions.  
2. You will then have to upload two different documents via a digital KYC:
   1. A clear photo or scanned copy of ID (preferably colour photo, facial features and ID number should be visible. If you have an ID card we require a copy of the front and back of the card)
   2. A clear photo or scanned copy of proof of address, no older than 3 months (no PO Box, registered address must match proof of address).  Valid documents include a utility bill showing your name and address, or a verified bank or credit card statement, a municipal rates and taxes account, or a rental or mortgage statement.  
3. Khwezi Trade will then send you an email confirming the receipt of documents, and you will be able to continue with the account-opening process.  
4. If you register for a live account, you will be directed to fill in the KYC (know your customer) information, including date of birth, identity number, place of residence.  You will also have to fill in your financial details so that Khwezi Trade can assess your suitability for trading.  This is a responsible move on the part of the broker in an industry that is often accused of an irresponsible approach to consumer protection.  
5. Once this step is complete, you must make at least the minimum required deposit for your chosen account via one of Khwezi Trade’s deposit methods. For more on Khwezi Trade’s withdrawal and deposit methods, click here.
6. We advise you to read Khwezi Trade’s risk disclosure, customer agreement, and terms of business before you start trading.

Overall, the account opening process at Khwezi Trade is hassle-free, and accounts are usually ready for trading within one day.  

Khwezi Trade offers trading on Forex, commodities, and indices.

Khwezi Trade has two very similar commission-free accounts: a ZAR account with a 500 ZAR minimum deposit and a USD Account with a 50 USD minimum deposit. Unfortunately, Khwezi Trade does not publish the spreads for each account on its website, but when we opened our account at Khwezi Trade, we found that spreads averaged about 1 pip (EUR/USD). 

Khwezi Trade’s minimum spreads are very competitive – most other brokers tend to charge around 9 USD per lot of EUR/USD. However, traders should note that spreads are variable, and they will change with volatility and trading volume.

We opened and tested Khwezi Trade‘s accounts:

ZAR Account

Khwezi Trade’s ZAR account requires a minimum deposit of 500 ZAR. The spreads on this account start at 0.4 pips on the EUR/USD, which is tighter than the spreads on other brokers’ entry-level accounts.

USD Account

Khwezi Trade’s USD account has a minimum deposit of 50 USD. Spreads start at 0.4 pips (EUR/USD), and there is no commission for forex trading. These are some of the lowest account fees in the industry, but it is unclear how often traders will see spreads this low. Leverage is up to 400:1 on both accounts, and traders with funded accounts have access to various educational materials and regular market analysis. They also benefit from the services of a dedicated account manager.

A well-regulated broker, Khwezi Trade ensures that all Anti-Money Laundering rules and regulations are followed. As such, all withdrawals are returned to the deposit source.  

Trading Account Currencies: Khwezi Trade offers accounts denominated in ZAR and USD, which is limited compared to large international brokers, but much the same as other brokers operating in South Africa. Should traders choose the USD account, the broker will convert the client’s Rand deposit at a fair rate obtained from Standard Bank to Dollar before depositing the funds into the Dollar trading account. Traders should note that withdrawals from the USD account will also be made in ZAR – Khwezi Clients cannot request withdrawals to be paid in Dollars.

Deposits and Withdrawals: Khwezi Trade does not charge any fees for deposits or withdrawals and even absorbs any third-party charges. Deposits can be made via bank transfer and credit or debit card, but unfortunately, this information is not published on its website. Withdrawals are processed daily, but only to South African bank accounts, and on the same day if a request is made before 2 pm.

Note that for first-time withdrawals, clients will need to provide ID and a recent copy of their bank statement for security purposes. Funds usually reflect within 1 to 3 working days.   

Khwezi Trade’s mobile trading platforms are limited compared to other brokers – it only offers MT5.

In October 2022, Khwezi Trade added MT5 to its platform offering but no longer offers MT4. MetaTrader 5 (MT5) is available on Android, Apple and Huawei mobile phones and tablets. The app will connect to the same account as the desktop software, allowing a synchronised and mobile trading experience. Metatrader 5 can also be accessed via mobile browser through their WebTerminal platform, however, the platform may be slower than the mobile app.

Traders should be aware that there is some loss in functionality when compared to the desktop trading platforms, including reduced time frames and fewer charting options. Still, traders can close and modify existing orders, calculate profit and loss, and trade on the charts.

Like mobile trading, Khwezi Trade only provides support for the MetaTrader 5 platform, which is available on Windows, MacOS, Linux, and iOS and Android-downloadable app, as well as an in-browser option.

Metatrader 5

MT5 comes with Expert Advisors, automated trading support, strategy backtesting, depth of market, customisable charting, indicators, and copy trading functionality. Although MT5 is an excellent trading platform, many other CFD brokers also offer their own web-based platforms, which tend to be easier to use for beginner traders.

On the other hand, the benefit of Khwezi Trade offering a third-party platform such as MT5 is that traders can take their own customised version of the platform with them should they choose to migrate to another broker.

Khwezi Trade offers traders one third-party tool: Dynamic Outcomes. This tool costs 395 ZAR per month and it offers a 14-day free trial for first-time users.  

Dynamic Outcomes

Khwezi Trade offers its clients access to Elliott Wave Analysis information on the Rand through a trusted third-party provider, Dynamic Outcomes Rand Forecasting Service. This tool covers the major Rand-based financial markets such as the ZAR/USD (Dollar vs Rand), EUR/ZAR (Rand vs Euro) and GBP/ZAR (Pound vs Rand). The forecasts are delivered via an online portal and are updated twice a week, on a Wednesday and a Friday evening (USA close). These forecasts come in four timeframes for each market. While this information is useful, it is limited to Rand-based instruments. 

Most other brokers offer a range of trading tools free of charge to help traders make better trading decisions, which is not available at Khwezi Trade.

Khwezi Trade offers little in the way of research and analysis compared to other brokers.

Khwezi Trade offers its client access to a portal showing analysis on all pairs. Further analysis is also available via a 395 ZAR monthly subscription – analysis includes Multi-Timeframe Elliott Wave South African Rand Forecasts (as mentioned in the trading tools section).

Overall, Khwezi Trade would do well to add a new section frequently updated by an in-house team of experts.

While Khwezi Trade does not offer a vast amount of educational material, what it does have is of a high standard and useful for new traders. For new traders who would like to expand their knowledge, there are also short courses for intermediate and advanced traders. The courses cover topics like risk management, understanding trends and channels, and using indicators, all with helpful charts and summaries. 

The video tutorial section covers the basics, such as MT5 setup, charting, and tips and tricks for MT5. If you have any trouble with these tutorials, support staff can also offer assistance via telephone and email.

Khwezi Trade has an extensive collection of blog articles that cover a variety of educational articles such as “Forex Strategies You Should Know”, “Forex Trading for Beginners” and “Why You Should Invest in a Trading Mentor”

Overall, while the education section is limited, the wealth and variety of blog articles are very educational and informative and can help beginner traders especially to become more rounded in their approach to trading. However, the section can be improved by providing more in-depth material aimed at more experienced traders.

Khwezi Trade’s customer support is available 5 days a week from 7 am to 6 pm via email, telephone, and a call-back service. It has a live chat feature on its website, however it seems to be unresponsive.

Client service is a bit disappointing at Khwezi Trade – we contacted them several times via their live chat feature and we never got a response on any of our queries. 

Help is available in English, Afrikaans, Zulu, Sotho, and Xhosa.