The regulation in the south African Forex market is outstanding the Financial Sector Conduct Authority (FSCA) is responsible for regulating Forex broker in South Africa and it as formerly called Financial Services Board (FSB).
Invests are not mandated to trade CFD and Forex via brokers that are regulated by the FSCA. In fact, you can trade with brokers regulated by offshore regulated agencies.
Be that as it may, it is in your best interest as a South African Forex trader to trade with brokers that are regulated by the FSCA. This will improve your safety as a Forex trader in South Africa. Your fund will be safe and you will be able to avoid malpractices by brokers and be protected against disputes.
Also, your money will not be misused if you register with a regulated broker.
Best FSCA regulated Forex brokers in South Africa in 2020
We have carried out our researches on all these brokers and also made comparisons among them to help you make the right choice among brokers regulated by the FSCA. New made the comparison based on several factors like a response to issues from customers, complaints from customers against the broker, number of years the broker had been registered with FSCA, platforms available, overall trading fees and so on.
The best brokers regulated with FSCA compared
Check below for the result of our research on the brokers based on support, available trading instruments, withdrawal and funding, platforms, spears and so on.
It is the overall best of all the FSCA brokers we have reviewed. Its FSP Number is 46632 and it is named HF Markets SA (PTY) LTD. The minimum deposit is $5 and the spread on EUR/USD is 1.2 pips on average for a premium account. The broker is regulated by the FSCA and had been so since 2016. They offer good support, and their MetaTrader platforms are easy to use. Also, the fees are highly competitive. Beginners can access various accounts here also. Premium account holders can access pip spread of 1.2 on EUR/USD without any extra charge. High volume traders can also access Zero account with average pip spread of 0.4 pips.
The minimum deposit is $5 to start trading here. There is no commission charged on withdrawal or deposit also. You can contact the customer care agents via email and live chat. The customer care agents are available 24/7 and their responses are always very fast aside from being one of the FSB regulated brokers, the platform also supports both MT4 and MT5 trading platforms. The available trading instruments are 49 Forex pairs, 7 Cryptos, 7 Commodities and 56 Shares.
- It has been regulated with the FSCA since 2016. So, trading with this FSB regulated Forex broker is safe.
- The minimum account deposit is $5 for Micro account holders and what obtains on other accounts is also low.
- There are 6 different types of accounts for different traders.
- The support is quick and responsive also.
- South African traders cannot contact them by phone.
It offers a fixed spread. Its FSP Number is 45984 and its trading name is AVA Capital Markets (PTY) Ltd. It also has a minimum deposit of $100. The spread on EUR/USD is 0.9 pips.
The broker is regulated by the FSCA and has been so since 2015. It is well regulated across the globe and offers a fixed competitive spread and it is the best FSB regulated brokers for those looking for fixed spread brokers. EUR/USD has an average pip spread of 0.9 pips and that of GBP/USD is 1.6 pips. The fee is also fair and the trader will not be required to pay any extra commission aside from the spread.
The minimum deposit is $100, the minimum leverage is 30:1, while the maximum is 400:1. The platform also features MT4 and MT5 trading platforms and the instruments available are 14 cryptocurrencies, 5 ETFs, 20 indices, 17 commodities. 624 stocks, and 55 currency pairs.
- It has been regulated with FSCA since 2015.
- It is among the few FSB regulated platforms that offer fixed spread accounts.
- It supports MetaTrader platforms also.
- Traders can access local support phone number during business hours.
- The inactivity fee is high
- The support is not available 24 hours a day.
Guide too regulation by FSCA for Forex brokers
What is FSCA?
FSCA stands for Financial Sector Conduct Authority. It is saddled with the responsibility of regulating South African financial institutions. , like banks, non-banking financial institutions and insurers.
The organization came up in 2018 following the financial sector regulation act of 2017. The Act makes use of Twin Peaks model and divides the responsibilities if the financial market regulator into two, which include Market Conduct Authority and Prudent and Prudent Authority. The system has its bases on other developed markets like the United Kingdom, New Zealand, Netherlands and Australia.
Why up should choose an FSCA regulated broker?
FSB regulated brokers are reliable for South African Forex traders. However, trading with brokers offshore is not restricted. Even at that, you will have a better deal if you register with brokers regulated by the FSCA.
This will reduce the occurrence of fraud and protect you against bankruptcy. Your fund will always be safe thanks to the local authorities. The FSCA regulated these brokers and reduce the risk involved in trading activities by reducing the potential losses consequent of malpractices of the broker and poor trading environment. FSB regulated platforms can be trusted to protect the trader. The FSCA has the sole responsibility to protect the traders and also protect the economy from fraudulent schemes and money laundering.
- The FSCA inspects the financial trading activities of the brokers.
- It also prevents misconduct and deals with any erring broker accordingly.
- The FSCA regulates the brokers and gives financial education to the traders.
Frequently Asked Questions
Which is the best of all the FSB regulated brokers?
Hotforex is the best according to our research because of the following reasons:
- It is regulated by the FSCA. Its business name ii HF Markets SA (PTY) Ltd. The broker also has an office in Johannesburg from where it serves South African traders.
- It offers highly competitive trading fees and spread the average pip spread on EUR/USD is 1.2 pips for a premium account.
- It also supports both MT4 and MT5 platforms.
- Traders will never pay a dime on funding and withdrawals at all on this platform.
How to verify if a Forex broker is FSCA regulated
- Step 1: Check the regulation info from the website of the broker. You can check the footer section of the website for the information.
- Step 2: After you have obtained the FSP number you can verify it from the FSCA website to know if the FSB regulated brokers are reliable or not.
- Step 3: Clicking on the “Details” button will give you information about the regulation of that broker. If it is an authentic broker, you will see it on the “Products Approved” section.
Which FSCA broker charges the lowest fees?
You should consider FSB regulated platforms that do not charge hidden fees and also offer a large number of trading instruments, as well as, fixed spread or variable spread, depending on which is convenient for you. You can opt for ant of Hotforex, Plus500 and Tickmill for variable spread, while Avatrade offers fixed spread.