Since the boom of forex trading in South Africa there has been a number of broker mushrooming out of nowhere and all of a sudden they make claims to be the number one and preferred brokers in South Africa. A lot of retailer trader have fallen victim these overnight brokers and have lost their hard-earned money.
If you are a retail trader in South Africa there is an organisation that regulates all financial institutions that provide financial services and products in South Africa called the Financial Service Conduct Authority (FSCA).
The aim of the FSCA is to establish, monitor and enforce rules and guidelines on how financial services providers should conduct themselves. This is done to protect consumers and investors and ensure that clients are treated fairly with efficiency and in a transparent manner
The FSCA allows all members of the community to freely be able to check if the financial institution they intending on working with like a forex broker, to check whether they are registered and regulated by the FSCA. To be able to know if your broker is regulated follow these 6 simple instructions:
Visit the FSCA website www.fsca.co.za
Click on the tab “Regulatory Entities”
Click on the tab “List of Regulated Entities and Persons”
Click on the tab “FAIS”
Click on the tab “Financial Services Provider”
Enter the FSP number or broker name and click submit
The list of things that need to pop up are:
- The FSP number;
- The full FSP name;
- Company registration number; and
- Date authorised.