Financial Sector Conduct Authority (FSCA)
The Financial Sector Conduct Authority (FSCA) is South Africa’s primary regulatory authority for financial services firms, including forex brokers. Established to promote fair market conduct, the FSCA supervises the behavior of authorized forex brokers to ensure investor protection, financial transparency, and proper conduct.
The Financial Sector Conduct Authority (FSCA) plays a crucial role in ensuring South Africa’s forex market remains fair, secure, and transparent. Choosing an FSCA-regulated broker provides local legal protections, better fund security, and credible oversight.
- No fixed national leverage cap
- Regulated brokers typically offer leverage ranging from 50:1 to 500:1
- FSCA encourages responsible risk disclosures rather than limiting leverage
- Licensing of financial services providers (FSPs), including forex brokers
- Monitoring advertising practices, conduct, and transparency
- Enforcing KYC, AML, and client fund protection policies
- Promoting financial literacy and investor awareness
- Visit the FSCA FSP Search Portal
- Enter the broker’s name or FSP license number
- Confirm authorization, approved categories, and any conditions or warnings
- FSP License: Required to offer forex and CFD trading
- Capital Adequacy: Must meet capital reserve requirements per product type
- Client Fund Segregation: Mandatory to protect retail funds from broker liabilities
- AML/KYC Controls: Enforced through risk-based compliance frameworks
- Risk Warnings & Disclosures: Brokers must provide transparent trading risks
- Annual Audits: Required for all FSPs
Advantages
- Recognized regulatory framework for forex brokers in Africa
Transparent licensing and public register
Flexible leverage within regulated risk frameworks
Enforces disclosure and investor protection practices
Limitations
- No compensation scheme for broker insolvency
Variation in compliance enforcement between firms
Some offshore brokers misuse FSCA license claims (verify carefully)
Country
South Africa
Established
2018
Contact
+27 12 428 8000
Complaint bodies
Financial Sector Conduct Authority (FSCA) Ombud for Financial Services Providers (FAIS Ombud) – for consumer disputes
Hotline
+27 12 428 8000
Complaint email
Last updated on: March 27, 2025
High Risk Warning : Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.