What next for IG clients in South Africa?

IG Group has announced the closure of its domestic South African operations, ZAR-denominated trading accounts. The broker will cease accepting new position openings immediately and has given existing clients until 28 July 2025 to wind down their local accounts.

However, this only impacts traders with domestic accounts. Those denominated in South African Rand. IG Clients in South Africa who have accounts with IG’s UK or with other entities overseas can continue trading without any disruption.

IG has kept quiet about why they have taken this course of action. Their communications with clients describe it as a “difficult decision” but offer no concrete explanation for the withdrawal from the South African market.

IG has provided a 60-day notice period. and clients must close all their open positions by 4 p.m. Central Africa Time on 28 July 2025.

It seems that IG is retrenching to focus on its core operations and those in more developed markets, such as the USA.
Although significant growth there may be difficult to come by, given that OTC derivatives are off-limits for all retail traders.

Instead, the US culture is one of exchange-traded derivatives such as futures and options. Some of these markets are highly active and extremely popular with retail traders. However, at the same they are also ultra-competitive, low-margin businesses.

Are other brokers pulling out of South Africa?

No, quite the opposite. While IG is retreating, competitors are moving into South African territory with CFI and XS both having secured operational licenses in the country last year. That suggests that the market still holds an appeal for some players.

The contrasting approaches might reflect different attitudes towards risk and differentiated business models. IG’s departure could be a result of regulatory complexity or profitability thresholds.

Newer entrants into SA may see an opportunity thanks to reduced competition, or have different operational cost structures.

Of course, as we have noted, IG now has significant operations in the US. President Donald Trump has been highly critical of the political situation and the government in South Africa in recent weeks. And that could have had a bearing on IG’s long-term thinking, though I doubt it’s the only reason.

Restrictions on the movement of currency into and out of the country, and a difficult working environment, thanks to a very high crime rate and unreliable power supplies, are also likely to have been factors.

What should IG’s existing South African clients do now?

A client’s best bet will probably be to move their account to another South African trading platform.

Though some may choose to look at an offshore account with IG. That would not be easy to obtain, and to be honest, if you could have one, you probably already do.

The 60-day window will give IG’s customers time to wind down their positions and to evaluate the other providers that operate in the country, these include Investec, FXCM and Plus500.