Chanting and dancing outside the court, many members of the ANC Youth League are holding up placards saying "Hands off our leader".
Mr Malema is currently inside the police station opposite. He will be transferred to the court later.
There is a heavy police presence but the atmosphere is calm.
Julius Malema and his business associates are accused of profiting from government contracts in Limpopo, an accusation which he strongly denies.
The 31-year-old politician is also the subject of a separate tax investigation.
He is well-known in South Africa for his fiery populist rhetoric and lavish lifestyle, describing himself as an economic freedom fighter.
Mr Malema was thrown out of the ANC in April, accused of sowing divisions in the party.
He is a fierce critic of his former ally, Jacob Zuma, recently attacking the president over his handling of the Marikana miners' strikes.
Some in South Africa believe he is being rushed to trial - less than a week after a warrant for his arrest was issued - in order to strengthen Mr Zuma's political position, according to the BBC.
It is likely to be a long court battle that may offer insights into the corruption that many people believe blights South Africa.