Here is everything you need to know about FSCA regulated FX brokers

Contents

1 What are the best FX brokers regulated by FSCA?
2 How to know if a broker is authorized by FSCA or not?
3 What are the advantages that the traders have while trading with FSCA Forex brokers?
4 How do FSCA regulated brokers ensure their clients’ safety?
5 Is it safe to trade with FSCA regulated FX brokers?

The Financial Sector Conduct Authority of South Africa is a local regulator that oversees all of the non-banking related services in the country. FSCA is also responsible to deal with all of the Forex brokers in the country. The main goal of the company is to make sure that the South African Forex traders can stay safe while trading Forex. Also, it guards the local economy against financial crimes and money laundering. The company has updated and changed its strategy guidelines after it changed its name from FSB to the FSCA.

Although the country has a local regulator, the Forex traders can still trade Forex with brokers that are not authorized locally. However, we would recommend to always go with a broker that owns a license from a local regulator, to make sure that your funds can stay safe.

FSCA was established by the Financial Sector Regulation act 9 of 2017, as a result of which, it has replaced the Financial Services Board, FSB. There are a number of FSCA regulated Forex brokers in South Africa, and today, we are going to talk about everything that you should know about them!

What are the best FX brokers regulated by FSCA?

There are a number of Forex brokers in South Africa that own licenses of FSCA. However, it is very hard to find the best one, especially if you are new to the field of Forex. So, to make your job easier, we did the very hard research for you and came up with a list of the best FX brokers that are authorized by FSCA. You can take a look at the list below!

XM

Min. Depo

Licences

FCA, CySEC, IFSC, ASIC, DFSA

Leverage

1:888

1:200

Platforms

MT4, WebTrader, Copykat

Global GT

Min. Depo

Licences

FSA, FSCA

Leverage

1:1000

Platforms

MT5,

Plus500

Min. Depo

$100

Licences

FCA, ASIC, CySEC, FSCA, FMA, MAS

Leverage

1:30

Platforms

WebTrader, Windows 10 Trader

How to know if a broker is authorized by FSCA or not?

Activities on the Forex trading market in South Africa is very actively supervised by the FSCA to protect local Forex traders from different types of irregularities and dishonest Forex brokers. Also, traders have the ability to check the status of a certain broker with the FSCA. Once the broker is registered with the regulatory body, they are entered into a database. This database includes information about the broker’s application status, representatives, and everything else that might be interesting for traders.

With the help of the list, you can find out if a certain Forex broker is regulated by FSCA or not, and stay safe at any time. In addition, the regulatory company regularly publishes media releases. These releases include different types of information regarding companies and individuals that might be dangerous for FX traders of South Africa.

Also, other than current status, the database also includes information about the broker’s that owned the license of the company before but are not regulated anymore for some reason.

What are the advantages that the traders have while trading with FSCA Forex brokers?

Local regulations have many different advantages in addition to the security that they offer. For example, FSCA authorized FX brokers can open a local company with a physical office in the country, which can be very helpful for the broker itself. By creating local offices, the brokers have the ability to have relations with local banks and with this, they can offer segregated client bank accounts, which is a huge advantage while trading Forex. Also, these offices can be used for different types of educational purposes, meetings, etc.

Other than these, FX brokers regulated by FSCA have the privilege to offer many different types of payment methods by having local offices. Having local bank accounts make bank transfers between South African traders and the broker itself a lot faster and cheaper. elf

Also, in the world of Forex, no one is safe from unforeseen risks. In case a broker goes bankrupt, if it has a local office and keeps funds on segregated bank accounts, you will have the ability to walk into any branch of the broker’s local bank and take all of your money from your segregated account. This process can be very challaneging and hard in case you are trading with a broker that is not authorized locally.

How do FSCA regulated brokers ensure their clients’ safety?

FSCA follows several different principles, one of them is to improve the efficiency and integrity of the SA’s financial markets. The company monitors the whole financial market of the country, which ensures the safety of the entire financial market and not only a certain part of it, which means that retail Forex traders can feel very safe with the brokers authorized by FSCA as well.

Also, the regulatory body works very hard to make sure that all of the Forex traders are treated equally and fairly. In case any Forex trader has some type of feeling that their rights have been violated, the regulatory body has a specific legal process to resolve trader’s issues. Also, one of the biggest principles of the company is that an FX broker regulated by FSCA should present written materials in a way to not confuse or mislead any of their users. Also, brokers are required to provide different types of educational opportunities and promote the importance of financial literacy among Forex traders.

Because of the fact that financial products can be very complicated for many, especially for beginners, the brokers have the obligation to explain products and every type of risk that can be associated with the products.

With all of these and many more, FSCA of South Africa makes sure that the brokers that own local licenses are as safe as possible for South African FX traders. Below are some of the FX brokers that stand out with their safety.

Our Top Rated Broker

Licences

FCA, CySEC, IFSC, ASIC, DFSA

Min. depo

Leverage

1:888

Platform

MT4, MT5, WebTrader

XM

Licences

ASIC, FSA, FSCA, FFAJ, FSRA, FSC

Min. depo

100 USD

Leverage

400:1

Platform

MT4, MT5

AvaTrade

Licences

CySEC, FCA, SFSA

Min. depo

$10

Leverage

1:2000

Platform

MT4, MT5

Exness

How does the FSCA work?

To make sure that everything that the FSCA does is successful, it mandates is divided into different divisions. First of all, the regulatory body has every right to select its own Commissioner, which makes it free of political pressure. The commissioner has to oversee the day-to-day activities of the institution, and in addition, Commissioner also acts as a Registrar of the non-banking institutions in the country.

Commission’s authority is distributed by the Deputy Commissioners, that are appointed by the Minister of Finance of South Africa, and supported by the Chief Risk Officer, General Counsel, and Media Liaison Officer.

How does the website of the FSCA look?

The official website of the broker is very easy to get around and use. One of the biggest advantages that it has is that it has a special page dedicated to the brokers that it has authorized. The website looks very simple and user-friendly, which can be used very easily by anyone, even those who have little to no experience with Forex.

Also, the information on the website is distributed so that both traders and broker representatives can find everything that they need very easily.

Is it safe to trade with FSCA regulated FX brokers?

One of the things that make FSCA so important is the fact that it has been credited many times as a company that created openness and peace on the market. If you are one of the Forex traders in South Korea looking for a safe space, FSCA authorized brokers are the ones that you should trade with.

We believe that by trading a Forex broker that owns local regulations, you can stay a lot safer than in other situations. Also, there are a number of international Forex brokers that have both, local and international Forex brokers which make them the safest.