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The FSCA (formerly FSB) is the South African financial regulator responsible for monitoring South African Forex brokers. FSCA-regulated brokers are required to keep client’s money separated from company operating funds and are audited on a regular basis to ensure that client funds are not misused. All FSCA-regulated brokers must also apply for an ODP licence, which further protects South African traders.

To test these brokers, we opened live trading accounts to evaluate the trading conditions, trading platforms and educational material for new traders. As part of the test, we took notes on the onboarding process to gauge the transparency of all communication to assure it is in line with FSCA rules on the promotion of derivate products. While South African traders are not required to trade with FSCA regulated brokers, local regulation can provide an extra layer of protection.  These are the best FSCA-regulated Forex brokers for 2021, according to our testing and our research.

English

Best FSCA Regulated Forex brokers 2021

Last updated on 15 Jun 2021
Updated 15 Jun 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
FXTM
Min. Deposit
USD 10
4.334.33
FSCA Licence
46614
Trading Cost
USD 15
Platforms
Overall Rating
11110.54.33/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage Flexible. 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.
2
AvaTrade
Min. Deposit
USD 100
4.484.48
FSCA Licence
45984
Trading Cost
USD 9
Platforms
Overall Rating
11110.54.48/ 5
AlertAccepts South African 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.
3
Exness
Min. Deposit
USD 1
4.124.12
FSCA Licence
51024
Trading Cost
USD 7
Platforms
Overall Rating
11110.54.12/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.
4
HotForex
Min. Deposit
ZAR 70
4.494.49
FSCA Licence
46632
Trading Cost
USD 10
Platforms
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 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.
5
CM Trading
Min. Deposit
USD 250
3.243.24
FSCA Licence
38782
Trading Cost
USD 15
Platforms
Overall Rating
1110.503.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.
6
Blackstone Futures
Min. Deposit
ZAR 1000
4.484.48
FSCA Licence
49846
Trading Cost
USD 6
Platforms
Overall Rating
11110.54.48/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 and CloudTrade platforms supported. Blackstone Futures is regulated by the FSCA - FSP:49846
7
Khwezi Trade
Min. Deposit
ZAR 2000
3.473.47
FSCA Licence
44816
Trading Cost
USD 6
Platforms
Overall Rating
1110.503.47/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 200:1. Only MT4 platform supported. Khewzi Trade is regulated by the FSCA - FSP:44816
8
markets.com
Min. Deposit
ZAR 2500
4.494.49
FSCA Licence
43906
Trading Cost
USD 7
Platforms
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & Marketsx platforms supported. MarketsX is regulated by the FCA, CySEC, ASIC, and the BVI FSC.
9
FxPro
Min. Deposit
USD 100
4.244.24
FSCA Licence
45052
Trading Cost
USD 14
Platforms
Overall Rating
11110.54.24/ 5
AlertAccepts South African 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.
10
BKFX
Min. Deposit
USD 5
3.693.69
FSCA Licence
49288
Trading Cost
USD 18
Platforms
Overall Rating
1110.503.69/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. BKFX is regulated the FSCA.

How to compare 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. 


These are best FSCA regulated brokers for 2021

  • FXTM - Best FSCA-Regulated Broker for Beginners
  • AvaTrade - Best FSCA Mobile Trading App
  • Exness - Best FSCA-Regulated Trading Conditions
  • HotForex - Highest Leverage with Market Execution
  • CM Trading - Largest FSCA Regulated Local Broker
  • Blackstone Futures - Best FSCA Regulated Forex Broker
  • Khwezi Trade - Best Local FSCA Regulated Broker
  • markets.com - Best Trading Platform with FSCA Regulation
  • FxPro - Best FSCA Regulated No Dealing Desk (NDD) Broker

FXTM – Best FSCA-Regulated Broker for Beginners

FXTM 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
Cons
  • Expensive withdrawals
AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage Flexible. 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.

AvaTrade – Best FSCA Mobile Trading App

Winner of the Award for Best Broker of 2020, AvaTrade 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 1:400, and spreads are some of the tightest we have seen for an account with only 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
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited market analysis
AlertAccepts South African 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.

Exness – Best FSCA-Regulated Trading Conditions

Exness 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, and ZAR accounts are available for South African traders. With 1 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
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • 24/7 customer service
Cons
  • Limited education
  • Limited market analysis
  • Unavailable in Europe
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.

HotForex – Highest Leverage with Market Execution

An STP broker regulated by the FSCA in South Africa, CySEC and the FSA, HotForex 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, HotForex is a good choice for new and experienced traders.

HotForex 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 South African Clients. Average spread EUR/USD 1 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.

CM Trading – Largest FSCA Regulated Local Broker

With over 1 million clients worldwide, CM Trading is the largest FSCA regulated broker. CM Trading has been regulated by the FSCA since 2009, winning innovation awards for developing its CopyKat copy trading system and Guardian Angel automated feedback tool.

Traders appreciate the personal account management, negative balance protection and simple account types coupled with optional ECN execution. CM Trading offers a range of tools for traders, but the most popular is the Guardian Angel system. This system provides traders with market trends and provides automated feedback on a trader’s behaviour, helping optimise trading strategies and preventing errors.

Pros
  • Good for beginners
  • Great customer support
  • Copy trading accounts
Cons
  • Expensive withdrawals
  • Local regulation only
AlertAccepts South African Clients. Average spread EUR/USD 1.5 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4 & Sirix platforms supported. CM Trading is regulated by the FSCA.

BlackStone Futures – Best FSCA Regulated Forex Broker

Blackstone Futures is a proudly South African, established FSCA-regulated broker based in Johannesburg providing ZAR accounts on both the MT4 and CloudTrade platforms, SA’s tightest spreads, responsible client care and negative balance protection and fast and free withdrawals. All clients have negative balance protection, EUR/USD as tight as 0.6 pips at times, and as an STP broker, the broker will never be the counterparty to your trades.

Blackstone Futures also has a responsible approach to leverage. On the MT4 platform, leverage is also initially limited to 100:1 but can be increased to 400:1 once clients have a steady track record. Blackstone Futures also processes all withdrawals on the same day, with no charges attached, and aims to have client funds back in their accounts within 24 hours.

Pros
  • South African broker; FSCA regulated (FSP 49846) since 2009
  • Fast STP trade execution and negative balance protection for all traders
  • Tight spreads starting at 0.6 pips and no commission
  • ZAR accounts available; trade in Rand with fast deposits and withdrawals
Cons
  • Limited trading platform choice: MT4 and CloudTrade only.
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 and CloudTrade platforms supported. Blackstone Futures is regulated by the FSCA - FSP:49846

KhweziTrade – Best Local FSCA Regulated Broker

Winner of the Award for Best Forex Broker in Africa, Khwezi Trade is a South African FSCA regulated broker headquartered in Cape Town. ZAR Accounts, MT4 support and STP execution are combined with tight spreads and a local focus. Not just local regulation, but local offices, local staff, and local banks. With KhweziTrade, all your funds are kept in segregated accounts at Standard Bank.

Khwezi Trade offers four account types depending on minimum deposit, but all accounts come with a personal account manager. Support is offered via live chat, email, and phone from 7 am to 6 pm, but clients can call after-hours for emergency assistance. Help is available in English, Afrikaans, Zulu, Sotho, and Xhosa. Also, there are no deposit or withdrawal fees, and withdrawals are processed daily. There are also no inactivity fees applied to accounts.

Pros
  • ZAR Accounts
  • Fast and free withdrawals
Cons
  • Local regulation only
  • No swap-free account option
AlertAccepts South African Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 200:1. Only MT4 platform supported. Khewzi Trade is regulated by the FSCA - FSP:44816

Marketsx – Best Trading Platform with FSCA Regulation

Marketsx is a premium trading platform operated by Markets.com regulated by the FSCA since 2012. The Marketsx 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 Marketsx platform offers traders fast, low-cost trading on over 2,200 financial instruments. These include 50+ currency pairs with spreads starting at 0.9 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
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & Marketsx platforms supported. MarketsX is regulated by the FCA, CySEC, ASIC, and the BVI FSC.

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

FSCA-regulated since 2015, FxPro 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.

FxPro offers ZAR Accounts and ZAR FxPro Wallets, so South African traders can avoid paying any conversion fees. 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 South African 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.

What is the FSCA?

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. 

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.

Having a physical office in South Africa allows brokers to partner with local banks, which are governed by South African laws. Local bank accounts also mean that bank transfers between South African clients and brokers are faster and cheaper.

If your FSCA regulated broker does go bankrupt, you will also be able to walk into any branch of your broker’s local bank and remove all your funds from your segregated account. Gaining access to your funds will not be so easy in the event of a foreign broker’s bankruptcy. 

South Africans can trade with brokers which are not regulated by the FSCA, but these organisations are not governed by South African institutions, and funds are not handled by local banks.

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).

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 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.

All FSCA Regulated Forex Brokers

Here is the full list of FSCA regulated Forex brokers we have reviewed, ordered by their overall score.

Scroll for more detailsPreviousNext
Overall Rating
FSP #
Regulators
Min. Deposit
Cost of Trading
Office Locations
Compare
Official Site
4.49 /5
Read Review
46632
ZAR 70
USD 10
Mauritius
Visit Broker >
Your capital is at risk
4.49 /5
Read Review
43906
ZAR 2500
USD 7
Australia, United Kingdom, Cyprus, South Africa
Visit Broker >
Your capital is at risk
4.48 /5
Read Review
45984
USD 100
USD 9
Australia, Ireland, South Africa, Japan, British Virgin Islands, UAE
Visit Broker >
Your capital is at risk
4.48 /5
Read Review
49846
ZAR 1000
USD 6
South Africa
Visit Broker >
Your capital is at risk
4.33 /5
Read Review
46614
USD 10
USD 15
United Kingdom, Cyprus, Belize
Visit Broker >
Your capital is at risk
4.24 /5
Read Review
45052
USD 100
USD 14
United Kingdom, Cyprus, Bahamas
Visit Broker >
Your capital is at risk
4.19 /5
Read Review
45276
USD 50
USD 11
Cyprus, United Kingdom, South Africa, Australia
Visit Broker >
Your capital is at risk
4.18 /5
Read Review
49835
USD 5
USD 12
South Africa, United Kingdom, Australia
Visit Broker >
Your capital is at risk
4.13 /5
Read Review
46534
USD 50
USD 13
South Africa, Australia, United Kingdom
Visit Broker >
Your capital is at risk
4.12 /5
Read Review
51024
USD 1
USD 7
South Africa, Cyprus, United Kingdom, Seychelles
Visit Broker >
Your capital is at risk
4.12 /5
Read Review
49464
USD 100
USD 6
Eden Island, Mahe
Visit Broker >
Your capital is at risk
4.03 /5
Read Review
50885
USD 1
USD 40
Malaysia, Laos, Thailand, Dubai, Brazil, Turkey
Visit Broker >
Your capital is at risk
3.69 /5
Read Review
49288
USD 5
USD 18
South Africa
Visit Broker >
Your capital is at risk
3.64 /5
Read Review
48896
USD 5
USD 14
South Africa, Seychelles
Visit Broker >
Your capital is at risk
3.49 /5
Read Review
46675
USD 100
USD 15
Cyprus, South Africa
Visit Broker >
Your capital is at risk
3.47 /5
Read Review
44816
ZAR 2000
USD 6
South Africa
Visit Broker >
Your capital is at risk
3.42 /5
Read Review
47857
USD 100
USD 40
Cyprus
Visit Broker >
Your capital is at risk
3.24 /5
Read Review
38782
USD 250
USD 15
South Africa, Mauritius, Israel
Visit Broker >
Your capital is at risk
2.72 /5
Read Review
50130
USD 100
USD 32
South Africa
Visit Broker >
Your capital is at risk

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

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.

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 locally regulated, and who comply with South African law.  In some cases, South African clients can keep their funds locally, further increasing trust with the brokerages.

FAQs

Do South Africans have to trade with FSCA regulated brokers?

No, South Africans can legally trade with any broker in the world. We do recommend that you always trade with a well-regulated broker, regardless of the jurisdiction in which they operate.

Should I trade with an FSCA Regulated Broker?

While it is not essential for South Africans to trade with an FSCA regulated broker, local regulation ensures that in the case of broker bankruptcy your funds will be protected by local laws. FSCA regulation also ensures segregation of client and broker funds. Many FSCA regulated brokers also keep their accounts in local banks, resulting in faster deposits and withdrawals.

But there are many well-regulated international brokers who can offer better trading conditions, platform options and market analysis than most FSCA-regulated brokers.

If local protection is important to you, then you should trade with an FSCA regulated broker.

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.

Do FSCA regulated brokers offer ZAR trading accounts?

Not necessarily. While some FSCA regulated brokers offer ZAR trading accounts, most do not. If you are looking for a ZAR trading account, check out our page on the best ZAR trading accounts in South Africa.

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: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. 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 from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal.

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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