The Forex market has been growing with an enormous force, steadily spreading from one country to another. It started out from the major financial centers of New York and London and spread to the rest of Europe and America, eventually reaching Asia and Africa. South Africa is a country with a rich and important history which affected the progress of the country and influenced the economy, politics, and finally, the daily life. After the main historical and political event in the country, dissolution of the Apartheid regime in 1994, South Africa was able to move forward as a modern republic. Nowadays, South Africa is a beautiful country which draws attention of international companies and investors who want to establish their businesses in the far continent. Forex companies are also trying to establish a stable market among the native South Africans.
FSB Battling Corruption and Fraud
Forex trading has still not taken off with full force in South Africa. Nevertheless, many South Africans show great interest in the lucrative and possibly profitable market. Many Forex companies registered offices in South Africa for that reason, and they have established a decent client-base. FSB stands for the Financial Board of South Africa and is the regulatory body for non-banking financial activities and companies. FSB deserves credit for stopping and reducing fraudulent activities in the Forex market. The South African market is more liberal than western markets and gives more space to malversations. Still, the FSB makes an effort to extinguish illegal activities in the market by adopting and implementing consumer protection laws. The FSB keeps a department for handling complaints from clients. Clients can report any illegal activities, manipulation, abuse, and misconduct of broker companies. The FSB has the authority to sanction such companies accordingly. The sanctions usually include administrative penalties or fines. The national currency of South Africa is the South African Rand (ZAR) and is categorized as an exotic currency. The currency is relatively weak against major currencies (e.g. 1USD equals 14.2524 ZAR).
Struggling Economy
Even if South Africa is the second largest economy in Africa, there are some major obstacles for the country to transform to a completely open economy. The World Bank ranks South Africa as an upper-middle income country. The South African economy is still plagued by and struggles with corrupted civil service, illiteracy and low education, as well as crime. International companies wanting to operate in South Africa have to face further obstacles like inefficient red tape procedures, which make it especially hard for companies to register. Companies often have to wait for a very long period until their documentation is approved for business. Also, restrictive labor laws and inadequate work force can be an issue. International companies are often faced with shortage of native employees who lack required qualifications. South Africa has a strong banking system, but it is rumored to be also corrupted. This is also one of the reasons why only a modest number of international Forex brokers can be found in South Africa. Still, interested South African traders are glad that they can trade within the country, given that they face certain problems with offshore investments. Namely, the government limits offshore investments to $500, and it requires a tax clearance document from traders who want to trade internationally. Often, traders do not ever get their profits on offshore investments. This clearly indicates a problem with business flow and international affairs of the country, but yet some of the biggest Forex companies managed to master the hindrances and meanwhile offer their services in South Africa.
Forex Trading as a Solution for Many
South Africa has made a significant step by giving authority to the FSB to regulate the Forex market. They introduced some structure and abiding rules in the poorly regulated country. Still, traders need to be aware that Forex is highly decentralized and many fraudsters will try to abuse the situation, either in Western Europe or South Africa. If you are interested in Forex trading in South Africa, make sure to check on the broker’s activities from the past (if the broker was sanctioned, blacklisted, etc.). You can contact the relevant authorities for information on brokers. The golden rule in the Forex industry is to select the right broker regardless of where you trade. It is more important who your broker is than their location. South African traders seem to be grateful for the development of the Forex market. Many of them hope to secure main profits from the industry. Given the unemployment rate of 26% in South Africa, the Forex companies still maintain a decent number of customers and investors.
FSB Registered Brokers
FSB registered brokers have to comply with the laws and regulations of the country. The FSB is a highly trusted authority among locals, and they appreciate a broker who fulfills the FSB criteria. The FSB maintains a detailed website on their activities and scope of duties. Many international broker companies registered with FSB to expand their services to South Africa and to gain the trust of locals.
Top South African Forex Brokers
When traders have finally found several FSB licensed brokers with a good reputation, they can shift their focus to the other features significant for successful trading. They should carefully study the service packages of brokers before they decide on one. Given that South Africa is not the richest country, probably many traders will be looking for low minimum deposit requirements and fast payouts. Top South African Forex brokers will make sure that they provide the best services to their clients hoping for a long-term collaboration.
Top Forex Brokers
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All Traders Welcome
The South African Forex market welcomes traders form around the world. The number of international broker companies established in South Africa is proof that the business is slowly developing and rising. Thanks to the FSB, the Forex market was significantly stabilized in South Africa. The South Africa’s financial sector is still the most advanced on the continent if compared to other African countries.