75-90% of retail traders lose money trading Forex and CFDs. You should consider whether you understand how CFDs and leveraged trading work and if you can afford the high risk of losing your money. We may receive compensation when you click on links to products we review. Please read our advertising disclosure. By using this website you agree to our Terms of Service.
The FSCA (formerly FSB) is the South African financial regulator responsible for monitoring South African Forex brokers. FSCA-regulated brokers are required to keep client’s money separated from company operating funds and are audited on a regular basis to ensure that client funds are not misused. All FSCA-regulated brokers must also apply for an ODP licence, which further protects traders.
To test these brokers, we opened live trading accounts to evaluate the trading conditions, trading platforms and educational material for new traders. As part of the test, we took notes on the onboarding process to gauge the transparency of all communication to assure it is in line with FSCA rules on the promotion of derivate products. These are the best FSCA-regulated Forex brokers for 2024, according to our testing and our research.
Accepts Filipino Clients. Spreads start at 0.70 pips on the EUR/USD on the trading account with lowest minimum deposit. Max leverage 3000:1. Islamic account available. MT4 & MT5 platforms supported. FBS is regulated by ASIC, CySEC, and the FSC.
Accepts Filipino Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.
Accepts Filipino Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
Accepts Filipino Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA
Accepts Filipino Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
Accepts Filipino Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. BKFX is regulated the FSCA.
The FSCA, formerly the FSB, is the government agency responsible for regulating South African brokers. While international brokers can attain FSCA licenses, it is more common for local brokers to have this licensing. If you are choosing between FSCA regulated broker, here is what to consider:
Regulation: We list the FSCA license number for each FSCA regulated broker to make it easy to verify each broker’s regulatory status. Traders can use this number to confirm the licensing and verify that the license number belongs to the broker in question and is not being loaned by another regulated company. While the FSCA is a respected organization in South Africa, there is additional security in a broker being regulated by international tier 1 regulators like the FCA (United Kingdom) and ASIC (Australia).
Segregated accounts: FSCA regulated brokers must keep all client funds in segregated accounts, which keeps client money and company operation money separate and makes client funds more protected from abuse.
Trading costs: As with comparing brokers of any regulation, it is important to look at what it would cost to trade with any specific broker. When we compare trading costs, we consider what trading one lot of EUR/USD on the entry-level account would cost a trader.
Winner of the Award for Best Broker of 2020, AvaTrade offers the best overall trading environment of all FSCA regulated brokers on a mobile app. AvaTrade features low spreads on a single account, award-winning customer service, an excellent mobile trading platform, AvaTradeGo and great trading tools like AvaProtect, allowing traders to purchase loss protection for a time directly from the AvaTradeGo app.
Maximum leverage at AvaTrade is 1:400, and spreads are some of the tightest we have seen for an account with only 100 USD minimum deposit and no commission – as low as 0.9 pips on the EUR/USD. AvaTrade has no fees for either deposits or withdrawals and a commitment to processing your funding request as fast as possible. The customer service team is available 24/5 via telephone, live chat, and email.
Pros
Top-tier regulation and security with licenses from ASIC and CBI among others
Accessible trading with a low minimum deposit of 100 USD
Award-winning mobile trading with the AvaTradeGO app with social trading features
Wide range of assets including unique instruments like vanilla options
Educational material to support trader development and strategy enhancement
Cons
Market analysis could be more extensive
Avatrade is a Market Maker and operate a dealing desk which might not align with all trading preferences
Exness is an FSCA and internationally regulated CFD broker offering trading in Forex, cryptocurrencies and metals. Trading conditions at Exness are some of the best in the business. All trades are executed on the market with no intervention, with one exception. With a low-cost cent account for new traders, unlimited leverage on some of the professional accounts, and a wide range of assets to trade, Exness has made sure that its product offering will appeal to all types of trader.
MT4 and MT5 are available across a wide range of accounts, and ZAR accounts are available for South African traders. With 1 USD minimum deposit, micro-lots unlocked and spreads as low as 0.3 pips, the Exness Standard Cent Account is a live account for new Forex traders who want to learn while depositing the absolute minimum. However, there are limitations on this account as traders will only be able to trade currency and metals with this account, and MT5 is not supported.
Pros
Highly competitive spreads and low trading costs (7 USD per lot).
Extensive selection of trading instruments and over 100 Forex pairs
User-friendly trading platforms: MT4 MT5 and Exness Terminal.
Accepts Filipino Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage Unlimited:1. Islamic account available. MT4 & MT5 platforms supported. Exness is regulated by CySEC, FCA, and the FSC.
HFM (Formerly known as HotForex) – Highest Leverage with Market Execution
An STP broker regulated by the FSCA in South Africa, CySEC and the FSA, HFM has built a reputation for tight spreads with STP execution, high leverage 5 USD Mirco Accounts, detailed market analysis, and 24/5 customer support. With accounts that suit both beginners and professionals and detailed market analysis, HFM is a good choice for new and experienced traders.
HFM devotes an entire section of its website to market analysis and trading tools; these include daily market news, trade analysis, and outlooks. Trading calculators and economic calendars are also available for reference outside of a trading platform.
Accepts Filipino Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 2000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
FxPro – Best FSCA Regulated No Dealing Desk (NDD) Broker
FSCA-regulated since 2015, FxPro offers an NDD execution model on MT4, MT5, cTrader and a browser-based platform. A 100 USD opening deposit and notable customer service are combined with competitive spreads – often as low as 0.6 pips. FxPro’s NDD execution model has won awards over the years for its speed and reliability. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for scalpers and traders who like to take advantage of volatile markets.
FxPro has three accounts, one for each of the major platforms: MT4, MT5 and cTrader. Both the MT4 and MT5 accounts offer commission-free trading while the cTrader account has a 4.50 USD commission per trade but raw spreads – down to 0.3 pips on the EUR/USD. In addition, FxPro has its own FxPro (EDGE) web platform for those that want to keep this simpler.
FxPro offers ZAR Accounts and ZAR FxPro Wallets, so South African traders can avoid paying any conversion fees. All deposits and withdrawals from the FxPro Wallet are free of charge via all methods.
Accepts Filipino Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the DFSA
IG Markets, the world’s largest broker by revenue, has been regulated by the FSCA since 2010. IG Markets offers clients automated trading, micro lots, customisable charts, and reliability. IG Market’s version of MT4 takes MT4 to another level with its package of free add-ons and indicators. Highlights include a Trade Terminal, Stealth Orders, a Correlation Matrix as well as a dozen indicators. All IG clients get access to Autochartist for free. These features are available with tight spreads, with the EUR/USD averaging 0.86 pips but sometimes as low as 0.6 pips, and commission-free trading.
Millions of traders have started their trading careers at IG Markets, and its easy to see why from the excellent material available at the IG Academy and the constantly updated News and Trade Ideas page. IG Markets also offers a free Trade Analytics tool that evaluates trading performance over time and offers diagnosis and suggestions to improve your trading.
Accepts Filipino Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
What is the FSCA?
The Financial Sector Conduct Authority or FSCA is the local regulator of all non-banking related activities and has oversight over all regulated brokers in South Africa.
Previously known as the Financial Services Board (FSB), the FSCA was founded in 1991 following the recommendations of Van der Horst committee. The committee recommended the creation of an independent body to supervise and regulate the non-banking financial services sector in South Africa.
In 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority. It is responsible for the market conduct regulation and supervision of financial service providers like Forex brokers, investment funds, and investment managers.
The Financial Sector Conduct Authority has the following four goals:
Protect customers of financial services.
Improve efficiency and integrity of financial markets.
Promote financial stability.
Increase financial inclusion.
To achieve these goals, it also creates regulations in the interest of the public and publishes warnings of illegal schemes.
Why should I trade with an FSCA-regulated Forex broker?
All FSCA regulated brokers must keep client funds segregated from operational funds. This ensures that in the case of broker bankruptcy, all client funds can be returned.
FSCA-regulated brokers must also have a physical office in South Africa and submit regular audits to the FSCA. This ensures that any disputes are governed by South African laws and that client funds are not being misused.
Since 2019, the FSCA has required all Forex brokers in South Africa to apply for an Over-the-counter Derivative Provider (ODP) licence. This has created a new set of requirements for South African Forex brokers to follow:
Due Diligence: Brokers now need to conduct due diligence on new traders before they can be allowed to trade. Clients will need to prove their capital adequacy before starting to trade. New traders must also show that they understand the risks involved.
Reporting: Every broker that has been authorised must also report the details of every transaction to an authorised trade repository. These transaction details include the names of the parties, the valuation of the transaction, the underlying asset of the trade, details of the instrument traded, and the margin that has been maintained.
Forex brokers who do not hold an ODP licence are in contravention of the regulations and can be liquidated at the request of the FSCA, as happened to JP Markets in September 2020 (see image above).
These new requirements have put the FSCA firmly in charge of the Forex industry in South Africa and will provide a much safer and more secure environment for traders.
How to check if your Forex broker is regulated by the FSCA
All Forex brokers that are regulated by the FSCA are required to publish their Financial Service Provider (FSP) number on their website. KhweziTrade is a popular South African Forex broker, and we can see from the bottom of their website that their FSP number is 44816:
Once you have the FSP number of a broker you can go use the FSCA’s search page to enter the FSP and verify that the broker is indeed licenced. You can see below that we have entered KhweziTrade’s FSP as listed on their website.
Once we submit the FSP number via the FSCA’s search page, we can see that there is a company called Khwezi Financial Services (Pty) Ltd with that FSP number.
A broker having a legal name different to their trading name is quite common, so it is sometimes difficult to search for a broker by trading name alone using this service. When you can, use the FSP number, or legal name if you know it.
If we click on the Details button, we then have a full overview of Khwezi Financial Services regulatory status:
The important part of this section for our purposes is the Products Approved section. Let us have a look at it in closer detail:
Here we can see that Khwezi Financial Services, as a large financial services company, holds a wide range of licences. We have highlighted the two product licences that matter for our purposes. We can see that they hold a Category I and a Category II licence for Derivative instruments.
All Forex trading is derivative trading, as traders never actually hold any currency – they are just speculating on a price derived from a real-world asset (such as the USD or the ZAR). So Khwezi Financial Services’ two Derivative instruments licences allow them to provide derivatives (such as Forex derivatives) to traders.
If you are ever unsure whether a broker is FSCA regulated, the FSCA search page is the best place to find out. Be aware that some bad brokers will use names similar to licenced financial services companies so as to confuse people.
All FSCA Regulated Forex Brokers
Here is the full list of FSCA regulated Forex brokers we have reviewed, ordered by their overall score.
The FSCA’s supervises activity in the Forex currency market to protect Forex traders from irregularities and rogue brokers. If you want local protection when trading Forex, you want your broker to be regulated locally. Regulation is the primary way to establish trust in a Forex broker.
The FSCA issues public warnings about fraudulent brokers in the regularly-updated Media Releases section of their website. These warnings include guidance on individuals or companies misrepresenting themselves, or organisations falsely representing their services.
This register of FSPs will also show if an entity has submitted an application to the FSCA, or if it has been stripped of regulation in the past.
Financial regulation is a crucial metric in our review process, as regulation is the primary way we establish the trust of the brokerage. We believe that there is value in being locally regulated as it gives clients more straightforward access to solve any disputes that could arise.
FSCA Strategy 2018-2022
Central to the mission of the FSCA are four core statements, which together, form the reason why residents want to trade with an FSCA regulated Forex broker.
The FSCA improves the efficiency and integrity of the South African financial markets. By monitoring the whole financial market and not just any particular entity, it ensures the safety of the entire market, and in doing so, can protect all market participants including retail Forex traders.
In addition, the FSCA ensures that regulated brokers treat all clients fairly. A client of a regulated brokerage who feels they have been cheated has a legally defined process to resolve their issue. All regulated brokers must have this process available to potential clients.
FSCA-regulated brokers must present written material in a way that does not confuse or mislead the reader. They are required to provide financial education and promote the financial literacy of potential clients. As financial products can be complicated, it is the obligation of all regulated members to explain all products and their associated risks.
Finally, the FSCA assist in maintaining financial stability in South Africa by supervising the registered entities.
A client trading with an FSCA regulated broker should expect to be treated fairly, expect to be educated on financial products whenever needed, and can rest assured that the government is monitoring their broker’s activities to ensure they are safe and secure.
History of the FSCA
Previously known as the Financial Services Board (FSB), the FSCA opened in 1991 following the recommendations of Van der Horst led committee. The committee had recommended the creation of an independent body to oversee or supervise and regulate the non-banking financial services sector in South Africa.
After the Van der Horst committee, various acts have increased and expanded the mandate of the Financial Services Board. In 2001, the Financial Intelligence Centre Act and the subsequent amendments that followed later increased the FSB mandate to include issues of combating money laundering.
Later in 2004, the Financial Advisory and Intermediary Services, also known as FAIS, expanded the role of FSB to include, among other things, the conduct of market in the banking sector.
As of April 1st, 2018, the FSB changed their name to the FSCA or the Financial Sector Conduct Authority which is responsible for market conduct regulation and supervision.
The FSCA Structure
A board oversees the Financial Sector Conduct Authority which executes its mandate through divisions. The FSCA has the sole mandate to select its own Commissioner, making the organisation less of a target of the financial politics and pressures. Apart from overseeing the day-to-day running of the institution, the Commissioner acts as the Registrar of the Non-banking Financial Institutions in South Africa.
The authority of the Commission is distributed to Deputy Commissioners appointed by the Minister of Finance, and are supported by the Chief Risk Officer, General Counsel, Media Liaison Officer.
As part of its mission of ensuring that the investment environment in South Africa is sound and conducive, the Financial Sector Conduct Authority has built a strong reputation for its regulatory framework in the following sectors:
Capital Markets
Insurers
Financial Services Providers
Collective Financial Schemes
Nominee Companies
Friendly Societies
Retirement Funds
The FSCA ensures the cooperation of regulated entities and has the power to impose compensation orders, unlimited penalties and cost orders for those who do not comply. These orders are adhered to as though they are a judgment from South Africa’s Supreme Court, and are a matter of public record.
A customer complaints service is effective in fielding complaints, plus a separate self-policing appeals board which any aggrieved entity can approach should they feel like they might have been aggrieved by either the regulator or any of its executive officers.
Summary
The FSCA is credited for bringing stability and transparency to South Africa’s investment industries. Forex traders who want to have protection can find brokers that are FSCA regulated, and who comply with South African law.
FAQs
How do I know if a Forex broker is regulated by the FSCA?
Every broker regulated by the FSCA is required to post their FSP licence number on their website. If you know the broker’s FSP number or legal name, you can also use the FSCA’s search facility to check on their regulatory status.
Forex Risk Disclaimer
Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products.
Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.
Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)
Our Methodology
Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.
With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal.
In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.
All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers.
4.59
Accepts Filipino Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
4.59
