Deposits and withdrawals with local methods
How a rand deposit becomes a broker balance
When money leaves a South African bank account, it does not arrive at a broker as rand. It passes through at least one payment provider, and the broker records the result in the currency of the instrument being traded. For a USD/ZAR position, the broker holds the balance in US dollars. That is why the rand amount on the bank statement and the dollar figure in the trading account are never the same number.
The conversion uses a rate the broker sets, not the rate on a news website. At USD/ZAR 18.4100, R1 000 buys about USD 54.32 before any charge. A broker might apply 18.4500 instead, which gives about USD 54.20. The difference of roughly USD 0.12 is the spread the broker earns on the conversion. That spread is separate from the spread on the trade itself.
Payment providers add their own layer. Instant EFT and bank cards are processed by third parties that may convert rand to another currency and back before the broker sees it. EFT moves directly between banks and usually avoids that extra conversion. The method chosen therefore changes the cost, not just the speed. Brokers publish these differences in their fee schedules, and the figures vary between brokers.
Why the return leg follows the deposit route
A withdrawal is not a fresh payment. It is a reversal of the original deposit, and the broker must be able to match it to the account that sent the money. If a deposit arrived from a specific bank account or card, the broker will usually send the withdrawal back to that same source. This is a fraud control, and it is also a condition in most broker agreements.
The rule has a practical effect. A reader who deposits by card cannot later withdraw to an EFT bank account, even if that account belongs to the same person. The card network becomes the return path, and the card network may convert rand to another currency and back again. Each conversion can carry a charge or a rounding adjustment, so the rand amount received can differ from the rand amount sent.
Timing also differs by leg. EFT deposits typically clear in one to two business days, while instant EFT and cards can credit sooner. Withdrawals are often slower because the broker reviews the request before releasing funds. The broker may also set a minimum withdrawal amount, and any amount below that minimum stays in the account. These timings and minimums vary between brokers, so the schedule on one platform is not a guide to another.
What to confirm before sending or requesting money
Before a first deposit, read the broker's withdrawal policy rather than the deposit page. The deposit page describes how money arrives. The withdrawal policy describes how it leaves, which method it must use, and what minimum applies. If the policy is not published, that absence is itself information about the broker.
Check whether the account currency matches the instrument being traded. A rand-denominated account avoids one conversion, while a dollar-denominated account converts on every deposit and withdrawal. The FSCA licenses brokers that operate in South Africa, and a licence can be checked against the register. A licence does not remove conversion costs, but it confirms the firm is accountable to a regulator.
Keep a record of each deposit: date, method, rand amount, and the reference number. When a withdrawal is requested, the broker may ask for the original reference to trace the funds. A record also makes it easier to compare the amount sent with the amount returned and to see where a charge was applied. Without it, a difference of a few rand is difficult to explain.
R1 000 in and out: three local methods
| Step | Amount | Note |
|---|---|---|
| EFT deposit | R1 000 | You send rand from your bank account; the broker may receive it in one to three business days, depending on the bank and cut-off times. |
| Instant EFT deposit | R1 000 | You approve a payment from your online banking; the broker may credit it within minutes to a few hours, though this varies. |
| Bank card deposit | R1 000 | You pay by card; the broker may credit it quickly, but the card network may convert the rand to another currency first. |
| USD/ZAR reference rate | 18.4100 | A working rate for this example only; the live rate moves and your broker will use its own rate. |
| R1 000 at 18.4100 | USD 54.32 | R1 000 divided by 18.4100 equals about USD 54.32 before any conversion charge. |
| Withdrawal back to the same method | R1 000 | A withdrawal usually returns to the method used for the deposit; timing and any fees vary by broker and bank. |
The broker may round the exchange rate, add a conversion charge, or apply a minimum withdrawal amount. Your bank may also charge a fee. These figures are illustrative and will differ between brokers.
Doing it once, step by step
The following sequence describes what happens to a rand deposit and a later withdrawal, in the order the events occur. Each step names the party involved and the point at which a cost or a delay can appear.
- 01
Choose the deposit method
Decide between EFT, instant EFT and a bank card before entering any amount. EFT usually avoids an extra conversion, while cards and instant EFT may add one. The choice affects both the cost and the time to credit.
- 02
Send the rand amount
Transfer the rand from the bank account that will also receive any future withdrawal. The broker matches the sending account to the trading account. Using a different account later can block the return leg.
- 03
Watch the conversion
The broker converts the rand at its own rate and credits the account in the account currency. At USD/ZAR 18.4100, R1 000 becomes about USD 54.32 before charges. The rate used may differ from the published market rate.
- 04
Trade or hold the balance
The credited balance is what the trading account shows. Any charge taken during conversion has already reduced it. The original rand figure is no longer the relevant number.
- 05
Request the withdrawal
Submit the request to the same method and account used for the deposit. The broker reviews it before releasing funds. A minimum withdrawal amount may apply, and amounts below it remain in the account.
- 06
Receive the rand and compare
The funds return through the original route, and the card network or bank may convert and charge again. Compare the amount received with the amount sent. Any difference comes from conversion, rounding or fees, and the exact result varies between brokers.
The mistake most people make here
A common mistake is to deposit with one method and expect to withdraw to a different one, or to assume the rand amount will be identical in both directions. Brokers often require the withdrawal to go back to the same bank account or card used for the deposit, to reduce fraud and meet their own rules. If you deposit by card, the card network may convert your rand to another currency and back again, so the amount returned can differ from the amount sent. Before depositing, check the broker's withdrawal policy, the minimum withdrawal, and whether any conversion applies.Check yourself
You deposit R1 000 by EFT. The broker credits it at USD/ZAR 18.4100. About how many US dollars is that before charges?
R1 000 divided by 18.4100 equals about USD 54.32.
You deposit R1 000 by card and withdraw R1 000 later. Why might the rand amount you receive back not be exactly R1 000?
The card network may convert rand to another currency and back, and the broker or bank may apply a conversion charge or rounding. The exact result varies.
Questions that come up next
1 withdrawal, 2 methods — can I send it to my other bank account
Usually not. Brokers match a withdrawal to the account or card that funded the deposit, so the return path is fixed when the money arrives. If the deposit came from a card, the withdrawal goes back to that card. If it came by EFT from one bank account, it goes back to that same bank account. A different account, even one in your own name, will normally be refused or held for review.
3 days later, still no money — what is actually happening
The request is probably between two stages. First the broker reviews and approves the withdrawal, which can take a day or more. Then the payment leg runs, and EFT between banks often takes one to two business days on its own. Weekends and public holidays sit outside both stages. If the broker shows the withdrawal as sent, the delay is with the bank, and only the bank can trace it.
4 checks before I deposit — which ones matter most
Check the withdrawal policy first, because it decides where your money can go back to. Check the minimum withdrawal, since a small balance below that minimum can stay locked in the account. Check whether a conversion applies on the deposit leg and again on the return leg. Check the fee schedule for the method you plan to use, because instant EFT and cards are processed by third parties that may convert rand and back.
5 rands in, 4 rands out — where did the rest go
Each leg can carry a cost. The broker may use its own exchange rate rather than the rate on a news site, which quietly reduces the dollar amount credited. A card network may convert rand to another currency and back, and each conversion can add a charge or a rounding adjustment. Your own bank may charge a fee as well. The exact result varies between brokers, so no single figure fits every case.
6 pips of patience — why is a withdrawal slower than a deposit
Deposits are built for speed because the broker wants the funds. Withdrawals run the other way and carry more risk, so the broker reviews each request before releasing anything. That review is a manual step and takes time. The payment leg then follows, and bank transfers add their own delay. The gap between the two directions is normal rather than a sign that something has gone wrong.
7 months of trading — does the route ever change
It can, but not by choice. If a card expires or a bank account closes, the original return path may no longer work, and the broker will ask for documentation before approving another route. Some brokers allow an alternative after identity checks. Others hold the funds until the original method is available again. Ask the broker before depositing if you expect the funding source to change.
In South Africa
- Currency
- Rand, written R (ZAR)
- Common local deposit methods
- EFT, instant EFT and bank cards
- Regulator
- FSCA
- Example instrument
- USD/ZAR, around 18.4100
- Withdrawal rule of thumb
- Money usually returns to the method used for the deposit, but this varies by broker
The words used on this page
- EFT
- An electronic funds transfer between South African bank accounts. It usually clears in one to two business days and moves directly between banks, so it often avoids an extra currency conversion.
- Instant EFT
- A faster payment handled by a third-party provider rather than by the banks alone. It can credit sooner than ordinary EFT, and the provider may convert rand to another currency and back, which can add a cost.
- Conversion charge
- A fee or rate adjustment applied when one currency is exchanged for another. It can appear on the deposit leg, the withdrawal leg, or both, and the amount varies between brokers.
- Minimum withdrawal
- The smallest amount a broker will release. Any balance below that figure stays in the account until it grows past the minimum or the account is closed.
- Return path
- The route a withdrawal takes back to the source that funded the deposit. Brokers fix this route to reduce fraud, so a card deposit returns to the card and an EFT deposit returns to the same bank account.
- USD/ZAR
- The exchange rate between the US dollar and the South African rand. Around 18.4100, one US dollar buys about eighteen rand and forty-one cents, and the broker's own rate may differ slightly from this.
What to take away
- The method you deposit with usually decides the method you withdraw with, so choose it before sending money.
- Each leg can carry a conversion charge or a rounding adjustment, and the rand amount returned can differ from the rand amount sent.
- Timing differs by leg: deposits are built for speed, withdrawals are reviewed first and then follow the banking route.
- Check the withdrawal policy, the minimum withdrawal and the fee schedule, and remember that these figures vary between brokers.