Best FSB (South Africa) Regulated Forex Brokers 2018
The Financial Services Board (FSB) is the official regulatory and supervisory authority that is in charge of overseeing the non-banking financial service providers in South Africa. These include investment schemes, retirement benefits, insurance providers, financial advisors among other businesses such as these. The FSB is an independent oversight authority that has well over 20 years of experience in regulation and whose decisions carry a lot of weight in the financial sector.
Introduction to FSB Regulation
When forex trading was brought closer to investors through online platforms this sector basically grew exponentially. The complexity of this investment vehicle alongside the rapid growth that was somewhat unregulated gave fraudsters the opportunity to lure unsuspecting customers using unrealistic promises of creating instant wealth. This brought about the need for regulation in this sector and it is for this reason that investor protection is now taken very seriously in South Africa and around the world.
The main purpose of the FSB is to create a safe, transparent and reputable environment for financial service providers interact with each other and investors to do business. The FSB did this by creating a legal regulatory framework that is meant to guide service providers such that they all carry out business in a competitive and transparent fashion. FSB is in charge of making sure that companies that operate within this industry are licensed. It is part of FSB’s functions to release a periodic report on foreign exchange benchmarks to ensure that industry players are operating within the legal boundaries. This function came into being in 2013 after it was reported that some brokers were providing unrealistic quotes and engaging in other related malpractices to increase their profitability.
Their duty also involves maintaining international standards and setting the bar high such that financial service providers are constantly working to improve the quality of their services and increase healthy competition.
How FSB Regulation Protects You
The FSB maintains an updated list of brokers that are licensed to carry out business in South Africa. Their duty also involves maintaining international standards and setting the bar high such that financial service providers can constantly work to improve the quality of their services. FSB collects information from the local and international markets so that it is in a position to advise industry players of any impending risks. This allows both brokers and investors to protect their investments and mitigate risk.
Guidelines for FSB Regulated Brokers
FSB regulated brokers are required to comply with the legislations as specified in the regulatory framework. Some of these regulations include carrying out KYC (Know Your Customer) to ensure that clients do not abuse the platform provided by brokers. These brokers are further required to maintain certain levels of liquidity such that investors’ capital is protected in case of any risk of loss. These brokers are also required to maintain certain standards as well as pay a pre-specified fee annually which will allow them to obtain a license to operate until the license expires.
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List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|