Forex and binary options brokers are flocking to South Africa. One of the reasons is that the country’s economy is rapidly growing, and the demand for financial services is high among the population. Another reason is probably the rising regulatory pressure upon forex (and especially binary options) brokers in Europe, urging them to seek new markets to expand.
Indeed, there is huge market potential for forex and related services in South Africa. It is the most economically developed country in Africa and is the only country from the continent that is part of the G20. Its financial, legal, and communications sectors are well-developed. What is more, the south African JSE Limited is the largest stock exchange in Africa and among the top 20 in the world.
The Financial Services Board (FSB) oversees the non-banking financial services industry, which includes collective investment schemes (unit trusts and stock market) and financial advisors and brokers, among others. It is in charge of the licensing process of financial service providers, it is responsible for ensuring that the regulated entities comply with the relevant legislation as well as the capital adequacy requirements to promote financial soundness of these entities and thereby protecting the investing community.
Moreover, the FSB has enforcement powers to deal with breaches through the enforcement committee, and also runs a customer complaints service, the Office of the Ombud for Financial Services Providers.
With both forex and binary options trading allowed and well-regulated by the FSB and with relatively few limitations, such as the investment limit of R5 million, South Africa is truly an attractive and promising destination for financial services providers.
Below is a list of forex brokers regulated in South Africa. XM is in process of obtaining a regulatory approval.
|CFTC/NFA, FCA, ASIC||$50||1:400||0.2||Review Website|
|FCA, CySEC||$100||1:500||0.8||Review Website|
|ASIC, Central Bank of Ireland||$100||1:400||3||Review|
|FSA, FCA, ASIC||$10 000||1:100||2||Review|