VALR Review 2027: Fees, Volume and Safety

VALR was founded in 2018 by Farzam Ehsani, who had led blockchain initiatives at one of South Africa's major banks, and opened to the public the following year. The name comes from the word "valour". The company is based in Johannesburg.

It grew quickly. In 2022 it raised a large funding round led by a well-known US crypto investment firm, with participation from other venture investors, at a valuation that made it one of Africa's most valuable crypto companies. The exchange reports more than a million retail customers and a substantial number of corporate and institutional clients, among them local banks and asset managers who use it for liquidity.

VALR has the broadest range of any South African exchange.

• Simple buy and sell for beginners, with instant conversion in rand.
• The exchange, an order book with a large number of pairs against the rand, USDT, USDC and bitcoin.
• Margin trading on spot markets.
• Perpetual futures, including contracts quoted in rand, which are rare anywhere.
• Staking and lending, where customers earn returns on supported assets.
• VALR Pay, for instant transfers between users.
• Over-the-counter trading for large orders.
• API and sub-accounts for professional traders and businesses.

It lists well over a hundred assets, far more than local rivals that focus on a handful of major coins.

Two features of South African law affect every crypto user.

Exchange control. South African residents may move only limited amounts abroad each year without special approval: a discretionary allowance and a larger foreign investment allowance that requires tax clearance. The authorities regard sending crypto bought in South Africa to a foreign exchange or selling it abroad as an export of capital. Buying crypto on a local exchange with rand and holding it there, or in your own wallet, does not breach the rules. Using crypto to get around the limits does.

Tax. The revenue service treats crypto as an asset. Profits are taxed either as income, at your marginal rate, if you trade frequently, or as capital gains if you hold as an investment. The distinction depends on intention and behaviour. Exchanges provide transaction histories, and the revenue service has requested customer data from local platforms.

The well-known gap between the rand price of bitcoin in South Africa and the dollar price abroad exists because exchange controls limit arbitrage. Companies that offer to exploit it for you operate within the allowances described above.

VALR lets customers lend certain assets to other users who borrow for margin trading, and stake supported coins. Lending rates are set by supply and demand and can be attractive when leverage is in demand.

Lent assets are exposed to the borrower's positions, which are over-collateralised and liquidated when necessary, and to the platform's risk management. Staked assets earn rewards from the relevant network after a commission. Both are optional. Decide how much of your balance should be put to work in this way.

Perpetual futures priced in rand allow South African traders to speculate or hedge without first converting to dollars. That convenience brings the same dangers as any leveraged product. Positions can be liquidated by ordinary price moves, and funding payments accumulate. Under South African regulation, some derivative products also fall under separate rules. Beginners should stay with spot trading.

VALR accepts South African residents and, for crypto-only services, customers from many other countries. South Africans verify their identity with an ID document, a selfie and proof of address. Rand deposits must come from a bank account in your own name and are usually credited the same day, or instantly with certain banks.

Customer support operates through tickets and chat, and the help centre is comprehensive. The app and website are modern and responsive.

Strengths:

• Lowest trading fees among major South African exchanges.
• Wide selection of coins and advanced products.
• FSCA licences in two categories.
• Strong investor backing and no reported security breach.

Weaknesses:

• An interface that can feel busy for complete beginners.
• Higher cost in the simple buy feature.
• International services narrower than the domestic offering.
• Leverage products that are unsuitable for most retail users.

VALR suits South African investors and traders who want low costs and a broad range of assets under a local licence. It serves active traders well, and it is a good choice for long-term investors who are willing to use limit orders.

Absolute beginners who want the simplest possible experience and only bitcoin may prefer a more basic app, at higher cost.

Luno is the older, simpler and more widely known platform, with an easy app and a shorter coin list. Its instant-buy costs are higher, and its exchange has less volume. Other licensed local players and global exchanges also compete for South African customers. VALR leads on volume, fees and product depth.

• Use the exchange with limit orders to benefit from maker pricing.
• Understand exchange-control limits before sending crypto abroad.
• Keep full records for tax, and decide early whether you are investing or trading.
• Enable withdrawal whitelisting.
• Be extremely sceptical of anyone promising fixed returns.