fbpx

75-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website you agree to our Terms of Service.

AuthorAuthor: Jeffrey CammackPublished: Oct 14, 2019
EditorEditor: Alison HeyerdahlUpdated: Jan 12, 2024

Last Updated On Jan 12, 2024

Jeffrey Cammack

The Financial Sector Conduct Authority, formerly the FSB, is the government agency responsible for regulating South African brokers. Although the FSCA isn’t the strictest regulator in the world, it has put in place several rules to protect Forex traders better. One of these measures is that Forex brokers operating in South Africa have to segregate their client funds from their operational funds and are inspected regularly to ensure they are safe. 

We understand that traders have different needs. Beginner traders may want a broker with excellent educational materials, while more experienced traders may look for a broker with fast execution and advanced trading tools. Others want high levels of leverage or low deposit accounts. The FSCA-regulated brokers below cater to these differing needs but are also listed because of their excellent reputations in the Forex trading industry.

These are the best FSCA-regulated Forex brokers for 2024.

  • AvaTrade - Best Mobile Trading App
  • FXTM - Best FSCA-Regulated Broker for Beginners
  • Exness - Best FSCA-Regulated Trading Conditions
  • HFM - Highest Leverage with Market Execution
  • FxPro - Best FSCA Regulated No Dealing Desk (NDD) Broker
  • IG - Best FSCA Regulated MT4 Broker
  • ThinkMarkets - Best Market Execution
  • IronFX - Best Regulated FSCA Broker
  • markets.com - Best Trading Platform with FSCA Regulation
  • FBS - Best FSCA-regulated Cent Account For Beginner Traders

Best FSCA Regulated Forex brokers 2024

Scroll for more detailsPreviousNext
Broker
Broker Score
Official Site
FSCA (SA) Regulated
FSP #
Min. Deposit
Max. Leverage (Forex)
Beginner Friendly
EUR/USD - Standard Spread
Cost of Trading
EUR/USD - Raw Spread
Total CFDs
Currency Pairs
Platforms
Compare
AvaTrade
4.59 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
45984
USD 100
400:1
Excellent
0.90 pips
USD 9
0.90 pips
872
55
Avatrade Social
AvaOptions
FXTM
4.37 /5
Read Review
Visit Broker >
81% of retail CFD accounts lose money
46614
USD 10
2000:1
Excellent
1.50 pips
USD 15
0.00 pips
1803
62
Exness
4.32 /5
Read Review
Visit Broker >
71.67% of retail CFD accounts lose money
51024
USD 3
0:1
Standard
0.70 pips
USD 7
0 pips
221
100
Exness Terminal
HFM (HotForex)
4.53 /5
Read Review
Visit Broker >
72.90% of retail CFD accounts lose money
46632
USD 0
1000:1
Excellent
1.00 pips
USD 10
0.10 pips
1230
53
HFM Trading App
FxPro
4.39 /5
Read Review
Visit Broker >
71.58% of retail CFD accounts lose money
45052
USD 100
200:1
Excellent
1.40 pips
USD 14
0.40 pips
2241
70
FxProEdge
IG
4.69 /5
Read Review
Visit Broker >
71% of retail CFD accounts lose money
41393
USD 0
200:1
Excellent
0.60 pips
USD 6
0.85 pips
19295
80
L2 Dealer
ProRealTime
ThinkMarkets
4.43 /5
Read Review
Visit Broker >
71.89% of retail CFD accounts lose money
49835
USD 0
500:1
Excellent
1.10 pips
USD 11
0.00 pips
4150
46
ThinkTrader
IronFX
3.64 /5
Read Review
Visit Broker >
75.35% of retail CFD accounts lose money
45276
USD 50
1000:1
Standard
2.20 pips
USD 22
0.00 pips
285
83
Markets.com
4.68 /5
Read Review
Visit Broker >
70.3% of retail CFD accounts lose money
46860
USD 100
300:1
Excellent
0.70 pips
USD 7
0.60 pips
1009
56
markets.com
FBS
4.33 /5
Read Review
Visit Broker >
76% of retail CFD accounts lose money
50885
USD 5
3000:1
Excellent
0.80 pips
USD 7
0 pips
254
37

How to choose the best FSCA Regulated Forex Brokers

The FSCA, formerly the FSB, is the government agency responsible for regulating South African brokers. While international brokers can attain FSCA licenses, it is more common for local brokers to have this licensing. If you are choosing between FSCA regulated broker, here is what to consider:

Regulation: We list the FSCA license number for each SA regulated broker to make it easy to verify each broker’s regulatory status. Traders can use this number to confirm the licensing and verify that the license number belongs to the broker in question and is not being loaned by another regulated company. While the FSCA is a respected organization in South Africa, there is additional security in a broker being regulated by international tier 1 regulators like the FCA (United Kingdom) and ASIC (Australia).

ZAR accounts: South African and International brokers can offer ZAR accounts. In this case, when a client deposits with the broker, the funds are kept in Rands and not converted to USD, EUR, or GBP. ZAR accounts have both advantages and disadvantages, but should you wish to keep your funds, you will need a broker with ZAR base currency support.

Segregated accounts: FSCA regulated brokers must keep all client funds in segregated accounts, which keeps client money and company operation money separate and makes client funds more protected from abuse. However, just because the broker must have segregated accounts does not mean they are using South African banks, so if you would rather your money be kept in South Africa, it is wise to register a ZAR trading account with a local broker. 

Trading costs: As with comparing brokers of any regulation, it is important to look at what it would cost to trade with any specific broker. When we compare trading costs, we consider what trading one lot of EUR/USD on the entry-level account would cost a trader. 


Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit
Exness
4.32 /5
Read Review
Visit
FXTM
4.37 /5
Read Review
Visit
HFM (HotForex)
4.53 /5
Read Review
Visit

AvaTrade – Best Mobile Trading App

Broker Score
4.594.59 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 9
⚖️  Max. Leverage400:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Winner of the Award for Best Broker of 2020, AvaTrade (FSP: 45984) offers the best overall trading environment of all FSCA-regulated brokers on a mobile app. AvaTrade features low spreads on a single account, award-winning customer service, an excellent mobile trading platform, AvaTradeGo and great trading tools like AvaProtect, allowing traders to purchase loss protection for a time directly from the AvaTradeGo app.

Maximum leverage at AvaTrade is 400:1, and spreads are some of the tightest we have seen for an account with only a 100 USD minimum deposit and no commission – as low as 0.9 pips on the EUR/USD. AvaTrade has no fees for either deposits or withdrawals and a commitment to processing your funding request as fast as possible. The customer service team is available 24/5 via telephone, live chat, and email.

Pros
  • Top-tier regulation and security with licenses from ASIC and CBI among others
  • Accessible trading with a low minimum deposit of 100 USD
  • Award-winning mobile trading with the AvaTradeGO app with social trading features
  • Wide range of assets including unique instruments like vanilla options
  • Educational material to support trader development and strategy enhancement
Cons
  • Market analysis could be more extensive
  • Poor regulatory oversight outside of the UK and EU
  • Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.

FXTM – Best FSCA-Regulated Broker for Beginners

Broker Score
4.374.37 / 5
🏦  Min. DepositUSD 10
🛡️  Regulated By
💵  Trading Cost 
USD 15
⚖️  Max. Leverage2000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FXTM (FSP: 46614) is the best FSCA-regulated broker for beginner traders. FSCA regulation guarantees local protection, and low minimum deposits and tight spreads reduce risk. Weekend customer support allows part-time traders to get set up when they’re not working, and FXTM’s education section is ideal for those who want to get up to speed quickly. 

While FXTM’s Advantage Plus Account is good with a minimum deposit of 500 USD and spreads starting at 1.5 pips, FXTM also offers a Micro Account with a minimum deposit of only 50 USD but with the same spreads, starting at 1.5 pips. Clients can use FXTM’s best in class copy trading system with all account types, meaning that new traders can follow professional strategies and learn from the best traders in the business.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
  • Copy trading accounts
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

Exness – Best FSCA-Regulated Trading Conditions

Broker Score
4.324.32 / 5
🏦  Min. DepositUSD 3
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. LeverageUnlimited:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Exness (FSP: 51024) is an FSCA and internationally regulated CFD broker offering trading in Forex, cryptocurrencies and metals. Trading conditions at Exness are some of the best in the business. All trades are executed on the market with no intervention, with one exception. With a low-cost cent account for new traders, unlimited leverage on some of the professional accounts, and a wide range of assets to trade, Exness has made sure that its product offering will appeal to all types of trader. 

MT4 and MT5 are available across a wide range of accounts, with 3 USD minimum deposit, micro-lots unlocked and spreads as low as 0.3 pips, the Exness Standard Cent Account is a live account for new Forex traders who want to learn while depositing the absolute minimum. However, there are limitations on this account as traders will only be able to trade currency and metals with this account, and MT5 is not supported.

Pros
  • Highly competitive spreads and low trading costs (7 USD per lot).
  • Extensive selection of trading instruments and over 100 Forex pairs
  • User-friendly trading platforms: MT4 MT5 and Exness Terminal.
  • Minimum deposit requirement of only 3 USD
  • Offers copy trading options
Cons
  • Extreme leverage
  • Limited range of share CFDs
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA and the FSA Seychelles.

HFM (formerly known as HotForex) – Highest Leverage with Market Execution

Broker Score
4.534.53 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 10
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Regulated by the FSCA (FSP: 46632), CySEC and the FSA, HFM has built a reputation for tight spreads with STP execution, high leverage 5 USD Mirco Accounts, detailed market analysis, and 24/5 customer support. With accounts that suit both beginners and professionals and detailed market analysis, HFM is a good choice for new and experienced traders.

HFM devotes an entire section of its website to market analysis and trading tools; these include daily market news, trade analysis, and outlooks. Trading calculators and economic calendars are also available for reference outside of a trading platform.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

FxPro – Best FSCA Regulated No Dealing Desk (NDD) Broker

Broker Score
4.394.39 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 14
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

FSCA-regulated since 2015, FxPro (FSP: 45052) offers an NDD execution model on MT4, MT5, cTrader and a browser-based platform. A 100 USD opening deposit and notable customer service are combined with competitive spreads – often as low as 0.6 pips. FxPro’s NDD execution model has won awards over the years for its speed and reliability. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for scalpers and traders who like to take advantage of volatile markets.

FxPro has three accounts, one for each of the major platforms: MT4, MT5 and cTrader. Both the MT4 and MT5 accounts offer commission-free trading while the cTrader account has a 4.50 USD commission per trade but raw spreads – down to 0.3 pips on the EUR/USD. In addition, FxPro has its own FxPro (EDGE) web platform for those that want to keep this simpler. All deposits and withdrawals from the FxPro Wallet are free of charge via all methods.

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB.

IG Markets – Best FSCA Regulated MT4 Broker

Broker Score
4.694.69 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 6
⚖️  Max. Leverage200:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

IG Markets, the world’s largest broker by revenue, has been regulated by the FSCA since 2010. IG Markets offers clients automated trading, micro lots, customisable charts, and reliability. IG Market’s version of MT4 takes MT4 to another level with its package of free add-ons and indicators. Highlights include a Trade Terminal, Stealth Orders, a Correlation Matrix as well as a dozen indicators. All IG clients get access to Autochartist for free. These features are available with tight spreads, with the EUR/USD averaging 0.86 pips but sometimes as low as 0.6 pips, and commission-free trading.

Millions of traders have started their trading careers at IG Markets, and its easy to see why from the excellent material available at the IG Academy and the constantly updated News and Trade Ideas page. IG Markets also offers a free Trade Analytics tool that evaluates trading performance over time and offers diagnoses and suggestions to improve your trading.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

?ThinkMarkets – Best Market Execution

Broker Score
4.434.43 / 5
🏦  Min. DepositUSD 0
🛡️  Regulated By
💵  Trading Cost 
USD 11
⚖️  Max. Leverage500:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Regulated by the FSCA since 2019, ThinkMarkets is an international broker with support for MT4, MT5 and its own ThinkTrader platform on two account types: One with a very low minimum deposit and the other a commission-based ECN account for more experienced traders. Traders can take advantage of:

  • Split-second Execution and 99.99% uptime
  • Wide choice of platform
  • Low Minimum Deposits
  • ThinkZero Account with Raw Spreads

✔️UltraFast Execution and Full MT4/MT5 Support

ThinkMarkets operates twin Equinix trading servers located in Hong Kong and London allowing for trade execution within milliseconds. This state-of-the-art technology allows ThinkMarkets to deliver uptime of 99.99% and provides traders with the fastest execution speeds available. With both the MT4 and MT5 platforms supported, ThinkMarkets is the perfect venue for automated trading and scalping.

ThinkMarkets Equinix

 

✔️Low Minimum Deposit or ECN

ThinkMarkets offers two general accounts, a Standard Account with a tiny minimum deposit of 5 USD and wider spreads and the ThinkZero Account – a raw account with tight spreads and a 7 USD commission per trade. The ThinkZero requires a 500 USD minimum deposit but spreads are down to 0 pips on the EUR/USD, while spreads on the Standard Account average about 1.2 pips on the EUR/USD.

ThinkMarkets Spreads

?Why Should Traders Use ThinkMarkets?

For South African traders who prefer automated trading and scalping, then ThinkMarkets should definitely be on their list. MT4 and MT5 support allow for all trading algos which, when combined with the raw spreads on the ThinkZero Account provides the best conditions for profitable trading. Beginner traders can also take advantage of the low minimum deposit on the Standard Account with the same ultrafast execution speed.


Pros
  • Low minimum deposit
  • Well regulated
  • Great platform choice
Cons
  • Limited market analysis
  • Non-transparent spreads
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.10 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Islamic account available. MT4 & MT5 platforms supported. ThinkMarkets is regulated by the FSCA, FCA, and ASIC.

IronFX – Best Regulated FSCA Broker

Broker Score
3.643.64 / 5
🏦  Min. DepositUSD 50
🛡️  Regulated By
💵  Trading Cost 
USD 22
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

IronFX (FSP: 45276) is regulated better than most brokerages with licences from ASIC, the FCA, CySEC and the FSCA in South Africa; it has offices in over 50 countries around the world and its customer service is available in 30 languages.

IronFX offers seven account types with an array of options. Standard Accounts come in four types, the most notable being the Zero Fixed Account which offers 0 pip spreads on the EUR/USD but 18 USD commission per lot. All Standard Accounts have relatively tight spreads and maximum leverage of 1:1000 and require a 100 USD minimum deposit. For traders looking for the best conditions, the ECN/STP accounts require a 500 USD minimum deposit but spreads can start at 0 pips on the Zero Spread Account with a commission of 7.50 USD.

IronFX offers over 300 instruments from 6 asset classes. Included are 85 Forex pairs to choose from. Other asset classes include precious metals, indices, shares, commodities and futures. All assets are available on the MT4 platform and IronFX also offers access to AutoTrade, a comprehensive copy-trading platform that allows clients to follow successful traders without any additional software needed.

 

Broker Score
3.643.64 / 5
🏦  Min. DepositUSD 50
🛡️  Regulated By
💵  Trading Cost 
USD USD 22
⚖️  Max. Leverage1000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 
Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. Only MT4 platform supported. IronFX is regulated by CySEC, FCA, ASIC, and the FSCA - FSP:45276.

Markets.com – Best Trading Platform with FSCA Regulation

Broker Score
4.684.68 / 5
🏦  Min. DepositUSD 100
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage300:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

Markets.com (FSP: 43906) has been regulated by the FSCA since 2012. The Markets.com platform has built-in advanced charting – trendlines, channels, pitchforks, Fibonacci Retracements, and much more can be drawn on the charts. The trading tools menu features a range of tools that crunch big data from leading analysts, hedge funds, and commentators to give traders better insight into the market. Each tool has integrated buy and sell buttons, so traders can quickly act upon the information presented.

The new Markets.com platform offers traders fast, low-cost trading on over 900 financial instruments. These include 50+ currency pairs with spreads starting at 0.6 pips and leverage of 1:300. Other CFDs include leading stocks such as Apple, Amazon, Facebook, and Tesla, six of the world’s biggest cryptocurrencies, over 25 major market indices, commodities including precious metals and energies, dozens of regional and sectoral ETFs and US, UK and German government bonds.

Pros
  • Regulation by top-tier authorities
  • Hassle-free withdrawal process without any fees
  • Its proprietary trading platform is praised for its user-friendly interface catering to both beginners and experienced traders
  • Competitive spreads starting from 0.6 pips
Cons
  • The maximum leverage of 300:1 could pose a risk for uninformed traders warranting cautious utilization
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5, and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC

FBS – Best FSCA-regulated Cent Account For Beginner Traders

Broker Score
4.334.33 / 5
🏦  Min. DepositUSD 5
🛡️  Regulated By
💵  Trading Cost 
USD 7
⚖️  Max. Leverage3000:1
💹  Copy Trading
🖥️  Platforms
💱  Instruments 

A well-regulated broker with an FSCA licence, FBS offers two low-risk accounts for beginners, including its Cent Account, with a minimum deposit of only 1 USD. The Cent Account features low-risk trading and allows trading in USD cents, micro-lots, or smaller trading sizes.  The Cent Account is also available as a demo account and will only expire after 90 days of inactivity.

FBS is also one of the better brokers in terms of education and market analysis. The education section is comprehensive and well-structured, and the market analysis is up-to-date and well-explained. Beginners will also appreciate that FBS’ customer service is available 24/7 – a welcome development, where the norm is 24/5.  This is especially helpful for beginner traders who want to set up trading accounts on weekends.  

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
  • Excellent market analysis
Cons
  • Limited range of assets
  • Extreme leverage
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.80 pips on trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, the FSCA, and the IFSC.

FSCA Building

The Financial Sector Conduct Authority or FSCA is the local regulator of all non-banking related activities and has oversight over all regulated brokers in South Africa.

The FSCA regulates all Forex brokers with an office in South Africa

Previously known as the Financial Services Board (FSB), the FSCA was founded in 1991 following the recommendations of Van der Horst committee. The committee recommended the creation of an independent body to supervise and regulate the non-banking financial services sector in South Africa.

In 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority. It is responsible for the market conduct regulation and supervision of financial service providers like Forex brokers, investment funds, and investment managers.

The Financial Sector Conduct Authority has the following four goals:

  • Protect customers of financial services.
  • Improve efficiency and integrity of financial markets.
  • Promote financial stability.
  • Increase financial inclusion.

To achieve these goals, it also creates regulations in the interest of the public and publishes warnings of illegal schemes.

Internationally, the Financial Sector Conduct Authority is a recognised member of the International Organization of Securities Commissions (IOSCO) and takes a leading role in regulation in the SADC block.

Why should I trade with an FSCA-regulated Forex broker?

Boy thinking

All FSCA regulated brokers must keep client funds segregated from operational funds. This ensures that in the case of broker bankruptcy, all client funds can be returned.

FSCA-regulated brokers must also have a physical office in South Africa and submit regular audits to the FSCA. This ensures that any disputes are governed by South African laws and that client funds are not being misused.

FSCA regulated brokers must keep client funds in segregated accounts

Having a physical office in South Africa allows brokers to partner with local banks, which are governed by South African laws. 

Over-the-counter Derivative Provider (ODP) licence

Since 2019, the FSCA has required all Forex brokers in South Africa to apply for an Over-the-counter Derivative Provider (ODP) licence. This has created a new set of requirements for South African Forex brokers to follow:

Due Diligence: Brokers now need to conduct due diligence on new traders before they can be allowed to trade. Clients will need to prove their capital adequacy before starting to trade. New traders must also show that they understand the risks involved.

Reporting: Every broker that has been authorised must also report the details of every transaction to an authorised trade repository. These transaction details include the names of the parties, the valuation of the transaction, the underlying asset of the trade, details of the instrument traded, and the margin that has been maintained.

FSCA JP Markets Liquidation

Forex brokers who do not hold an ODP licence are in contravention of the regulations and can be liquidated at the request of the FSCA, as happened to JP Markets in September 2020 (see image above).

All FSCA regulated brokers must apply for an ODP licence

These new requirements have put the FSCA firmly in charge of the Forex industry in South Africa and will provide a much safer and more secure environment for traders.

How to check if your Forex broker is regulated by the FSCA

All Forex brokers that are regulated by the FSCA are required to publish their Financial Service Provider (FSP) number on their website. KhweziTrade is a popular South African Forex broker, and we can see from the bottom of their website that their FSP number is 44816:

KhweziTrade FSP

Once you have the FSP number of a broker you can go use the FSCA’s search page to enter the FSP and verify that the broker is indeed licenced. You can see below that we have entered KhweziTrade’s FSP as listed on their website.

Once we submit the FSP number via the FSCA’s search page, we can see that there is a company called Khwezi Financial Services (Pty) Ltd with that FSP number.

A broker having a legal name different to their trading name is quite common, so it is sometimes difficult to search for a broker by trading name alone using this service. When you can, use the FSP number, or legal name if you know it.

If we click on the Details button, we then have a full overview of Khwezi Financial Services regulatory status:

Khwezi Financial Services Details

The important part of this section for our purposes is the Products Approved section. Let us have a look at it in closer detail:

Khwezi Financial Services Products

Here we can see that Khwezi Financial Services, as a large financial services company, holds a wide range of licences. We have highlighted the two product licences that matter for our purposes. We can see that they hold a Category I and a Category II licence for Derivative instruments.

All Forex trading is over-the-counter derivative trading

All Forex trading is derivative trading, as traders never actually hold any currency – they are just speculating on a price derived from a real-world asset (such as the USD or the ZAR). So Khwezi Financial Services’ two Derivative instruments licences allow them to provide derivatives (such as Forex derivatives) to traders.

If you are ever unsure whether a broker is FSCA regulated, the FSCA search page is the best place to find out. Be aware that some bad brokers will use names similar to licenced financial services companies so as to confuse people.

Other FSCA Protections for Forex Traders

The FSCA’s supervises activity in the Forex currency market to protect Forex traders from irregularities and rogue brokers. If you want local protection when trading Forex, you want your broker to be regulated locally.

The FSCA issues public warnings about fraudulent brokers in the regularly-updated Media Releases section of their website.  These warnings include guidance on individuals or companies misrepresenting themselves, or organisations falsely representing their services.

This register of FSPs will also show if an entity has submitted an application to the FSCA, or if it has been stripped of regulation in the past.

Financial regulation is a crucial metric in our review process, as regulation is the primary way we establish the trust of the brokerage. We believe that there is value in being locally regulated as it gives clients more straightforward access to solve any disputes that could arise.

Regulation is the primary way to establish trust in a Forex broker

FSCA Strategy 2018-2022

Central to the mission of the FSCA are four core statements, which together, form the reason why residents want to trade with an FSCA regulated Forex broker.

The FSCA improves the efficiency and integrity of the South African financial markets. By monitoring the whole financial market and not just any particular entity, it ensures the safety of the entire market, and in doing so, can protect all market participants including retail Forex traders.

In addition, the FSCA ensures that regulated brokers treat all clients fairly. A client of a regulated brokerage who feels they have been cheated has a legally defined process to resolve their issue.  All regulated brokers must have this process available to potential clients.

FSCA-regulated brokers must present written material in a way that does not confuse or mislead the reader. They are required to provide financial education and promote the financial literacy of potential clients. As financial products can be complicated, it is the obligation of all regulated members to explain all products and their associated risks.

Finally, the FSCA assist in maintaining financial stability in South Africa by supervising the registered entities.

A client trading with an FSCA regulated broker should expect to be treated fairly, expect to be educated on financial products whenever needed, and can rest assured that the government is monitoring their broker’s activities to ensure they are safe and secure.

History of the FSCA

Previously known as the Financial Services Board (FSB), the FSCA opened in 1991 following the recommendations of Van der Horst led committee. The committee had recommended the creation of an independent body to oversee or supervise and regulate the non-banking financial services sector in South Africa.

After the Van der Horst committee, various acts have increased and expanded the mandate of the Financial Services Board. In 2001, the Financial Intelligence Centre Act and the subsequent amendments that followed later increased the FSB mandate to include issues of combating money laundering.

Later in 2004, the Financial Advisory and Intermediary Services, also known as FAIS, expanded the role of FSB to include, among other things, the conduct of market in the banking sector.

As of April 1st, 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority which is responsible for market conduct regulation and supervision.

The FSCA Structure

A board oversees the Financial Sector Conduct Authority which executes its mandate through divisions. The FSCA has the sole mandate to select its own Commissioner, making the organisation less of a target of the financial politics and pressures. Apart from overseeing the day-to-day running of the institution, the Commissioner acts as the Registrar of the Non-banking Financial Institutions in South Africa.

The authority of the Commission is distributed to Deputy Commissioners appointed by the Minister of Finance, and are supported by the Chief Risk Officer, General Counsel, Media Liaison Officer.

Key Financial Sector Conduct Authority Responsibilities

As part of its mission of ensuring that the investment environment in South Africa is sound and conducive, the Financial Sector Conduct Authority has built a strong reputation for its regulatory framework in the following sectors:

  • Capital Markets
  • Insurers
  • Financial Services Providers
  • Collective Financial Schemes
  • Nominee Companies
  • Friendly Societies
  • Retirement Funds

The FSCA ensures the cooperation of regulated entities and has the power to impose compensation orders, unlimited penalties and cost orders for those who do not comply.  These orders are adhered to as though they are a judgment from South Africa’s Supreme Court, and are a matter of public record.

A customer complaints service is effective in fielding complaints, plus a separate self-policing appeals board which any aggrieved entity can approach should they feel like they might have been aggrieved by either the regulator or any of its executive officers.

Summary

The FSCA is credited for bringing stability and transparency to South Africa’s investment industries.  Forex traders who want to have protection can find brokers that are regulated, and who comply with South African law.  

FAQs

How do I know if a Forex broker is regulated by the FSCA?

Every broker regulated by the FSCA is required to post their FSP licence number on their website. If you know the broker’s FSP number or legal name, you can also use the FSCA’s search facility to check on their regulatory status.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. Forex and CFD transactions involve high risk due to the following factors: Leverage, market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection. Traders should not deposit any money that is not considered disposable income. Regardless of how much research you have done or how confident you are in your trade, there is always a substantial risk of loss. (Learn more about these risks from the UK’s regulator, the FCA, or the Australian regulator, ASIC).

Our Rating & Review Methodology

Our State of the Market Report and Directory of CFD Brokers to Avoid are the result of extensive research on over 180 Forex brokers. These resources help traders find the best Forex brokers – and steer them away from the worst ones. These resources have been compiled using over 200 data points on each broker and over 3000 hours of research. Our team conducts all research independently: Testing brokers, gathering information from broker representatives and sifting through legal documents. Learn more about how we rank brokers.

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.

 

Vanessa Marcos
Financial Writer

Vanessa joined the team in 2023. Born and raised in southern Portugal, she has a BA in Journalism and a Master’s in Literary Theory, both from Lisbon University. Since 2011, she has worked in social media, copywriting, content management, ghost-writing, and SEO. Vanessa loves to write, and although she is a generalist in digital marketing, she always draws on her creativity in her work. She is constantly researching new subjects and finds the analytical depth of Forex trading fascinating.

 

Others Also Visit

Scroll for more detailsPreviousNext
Visit
AvaTrade
4.59 /5
Read Review
Visit
Pepperstone
4.61 /5
Read Review
Visit
Exness
4.32 /5
Read Review
Visit
FXTM
4.37 /5
Read Review
Visit
HFM (HotForex)
4.53 /5
Read Review
Visit

Close
>