In this article we provide you with the list of the best FSCA regulated forex brokers. Financial Sector Conduct Authority (FSCA) is the main government regulation agency on South Africa’s forex market, formerly also known as FSB.
The Best FSCA Regulated Brokers
- XTB Africa – Best FSCA Regulated Forex Broker in 2021
- CM Trading – Best FSCA South African Forex Broker in 2021
- AvaTrade – Award Winning FSCA broker
- HotForex – FSCA Regulated Broker with 1:1000 Leverage
- Plus500 – Best Demo Account & FSCA License
What is Financial Sector Conduct Authority (formerly FSB)
FSCA, formerly FSB stands for Financial Sector Conduct Authority of South Africa. FSCA is the official South African government owned financial watchdog in SA since 2018 when it has been transformed from the former FSB.
As more and more retail investors speculate in this online venture, no wonder that local forex market regulators need to keep an eye on this fast growing retail forex industry to prevent scam from happening.
Although we recommend you to open an account with FSCA regulated forex brokers, you should know that there are also many trusted best forex brokers in South Africa who solicit traders even without the FSCA license. It doesn’t mean that these brokers are bad, but they simply don’t hold a license issued by the local FSCA. Many of these forex brokers have submitted their application to FSCA and are waiting to get accepted.
What is the Best FSCA Regulated Forex Broker
Before you start trading forex with your hard earned cash, you must answer yourself few important questions:
- What is your past experience with currency trading ? If you are a PRO trader you probably already know the best fx strategies that work well for you, and based on that you chose the best platform and most likely you trade with CM Trading or similar FSCA regulated forex broker. But if you are a newbie, you are likely to become a victim of snake oil salesmen. Although the scam is not happening with FSCA regulated forex brokers often, you should never sign up with unknown company without license! There is simply no reason to do such a stupid thing.
- How much money are you going to deposit ? Did you know that you can safely play with forex demo account without any stress and risk involved? Always choose a platform that is offering you a practice demo account without time limit. Some of the FSCA regulated forex brokers featured on this website even allow you to deposit in south african Rand, which is the best option for you since you can avoid a currency risk later, when you withdraw your money back to your bank account.
- Do you want to trade USD/ZAR ? Which currency pairs do you want to trade? If you plan to trade Rand against USD or GBP or EUR then we must tell you NOT all FSCA regulated forex brokers will allow you to do that because Rand belongs to exotic currencies and therefore there is less demand from traders around the world. Luckily, we were able to choose some, that have no problem to trade south african rand and other 45 currency pairs! Read the comparison table with the full list and choose. We suggest that you test few platforms first with virtual money and then based on your experience and overall feeling you decide where you deposit real money.
- Do you want to trade other assets besides forex pairs? – nowadays many want to trade cryptocurrencies or even stocks and choose the best trading platform in South Africa.
- Do you require Metatrader forex broker? – in case your trading strategies require you to use MT4, we have listed some of the best fx platforms that allow you to trade on Metatrader4 (MT4).
Always Choose Forex Brokers Regulated by the FSCA
IMPORTANT UPDATE: Just recently the SA government in Pretoria has decided on creation of FSCA (Financial Sector Conduct Authority) with the chair Mr. Abel Sithole and disestablishment of FSB “Financial Services Board”. The transition has started on 01/04/18.
FSB has been an independent regulatory body of South Africa since 1990. It is known as of the most reliable finance market regulatory institution in the whole African region. Its main role is to oversee country’s financial market, mainly non-banking financial services (e.g. insurance, investments, CFD trading etc.) and protect investors from possible fraud and keep south african finance environment sound. Here is the link to FSCA Financial Services Board – regulated brokers in case you want to lookup any specific FSCA regulated forex broker or other type of financial services provider (also known as “f.s.p.”).
How to file a complaint against the FSCA regulated brokers
Have you had any issue with an FSCA regulated forex broker? You can file a complaint through the office of FAIS OMBUD established by the Financial Advisory and Intermediary Service. Their main mission is to resolve any possible disputes between traders and financial service providers. Please visit www.faisombud.co.za for more info.
How forex traders are protected by Financial Sector Conduct Authority
South African forex trading market situation has become more stabilized and the market is overall more mature than in other large african countries like in Nigeria or Kenya and mainly thanks to the strict anti-fraud rules implemented by the local regulator the amount of forex fraud has been diminishing over the past two years. The local police has accused several infamous South African forex millionaires and the law enforcement is trying hard to crack down on scam schemes across the country. Indeed a good news also for other countries in this region.