The vast world of foreign exchange is truly an exciting market that attracts tons of traders worldwide. Although the market has proven to be an instrumental part of the global economy, without the right rules to govern it, the forex market can also be a gateway for money laundering and other financial crimes. This is why all financial markets, including the foreign exchange market, have to be overseen by a neutral regulatory authority. For this reason, governments around the world have passed laws through parliament which describe the function and jurisdiction of official financial regulators. Even so, since the forex market is extremely widespread and decentralized, finding a way of making neutral regulations can be a rather tough task.
All countries have a particular regulatory body that oversees the activities in the forex market and make rules that govern how people trade within their borders. Thus, all brokers, investment banks, signal sellers, and other parties that participate in trading activities have to abide by the laws set by these regulatory bodies. For instance, if a trader would like to participate in forex trading in South Africa, he or she will have to seek the services of any FSCA regulated brokers in the country. Still, given how South Africa is one of the largest capital trading markets in the world, this picking a suitable regulated broker can be a tough decision. To help you have an easier time choosing a broker, here are some of the best FSCA regulated brokers in South Africa.
AvaTrade
This is one of the most decorated forex brokers in South Africa. AvaTrade South Africa has soared very highly since its inception in 2006, amassing a customer base that grows rapidly every month. What’s more, the broker has some of the best rates with no additional commission fees. What’s more, Avatrade offers Metatrader 4 and Metatrader 5 platforms, which allows customers a variety of trading options. Even so, traders may face a considerable penalty for account inactivity.
Plus500
This is yet another great FSCA regulated forex broker based in South Africa. Plus500 offers amazing trading rates and charges no commission on trades made on the platform. Also, traders who use Plus500 aren’t charged any deposit or withdrawal fees, which ensures that traders maximize their profits. What’s more, this forex broker is among the few that allow traders to open ZAR accounts; this broadens the options that traders have when it comes to currency combinations. Plus500 also provides negative balance protection and guarantees stop-loss failure, which helps its clients avoid losing their hard-earned money. Still, this may not be the best option for traders who prefer Metatrader platforms.
Tickmill
Tickmill is one of the best forex brokers that’s regulated in a multitude of countries. Although the platform offers a multitude of payment options including Skrill, credit cards, debit cards, and bank wire, they have limited trading instruments which can be quite limiting for traders who participate in multiple markets. In addition, Tickmill provides its services on multiple platforms including web support and mobile apps. What’s more, the platform has several types of accounts with clearly laid out fees.
CM Trading
CM Trading is another highly trusted forex broker in South Africa. The platform allows customers to open ZAR accounts enabling traders to participate in a multitude of currency combinations; this enables traders to maximize their profits. On top of that, CM trading has several bonuses that users can take advantage of to make the most out of their trading. What’s more, this broker offers its services on a multitude of platforms including web support and mobile apps.
Final Thoughts
The FSCA is the official financial market regulator for all institutions that provide financial services in South Africa. This includes all investment banks, insurers, and forex brokers. This regulatory body protects all traders who participate in capital trading, promoting a suitable market for everyone. Thus, the FSCA ensures that all funds that are handed over to brokers are handled with care. In addition, the FSCA not only regulates the trading market but also instills financial education to aspiring traders and other interested parties. For this reason, all traders are advised to go for brokers who are regulated by the respective financial authority.
