South African Forex Brokers Forex is legal in South Africa as long as it does not violate money laundering laws, and traders must report any benefits to SARS (South African Revenue Service). Currently, the South African government does not impose laws on the retail currency trading market. However, it is strictly regulated by the Financial Sector Conduct Authority (FSCA) and traders are governed by laws established by the Reserve Bank of South Africa (SARB) in terms of the country's cash outflow. Trading CFDs is legal for residents of South Africa; CFD brokers are regulated by the FSCA and allowed to trade with the correct license.
There is no law prohibiting South African residents from operating with foreign-based forex brokers, even brokers that are not regulated by the FSCA. Forex regulations are critical factors that every South African Forex trader should check before dealing with brokers. These regulations include licenses and authorizations from the FSCA and the FCA. You may not be aware that the FSCA is one of the most trusted and reputable regulators.
They provide protection and provision to traders in South Africans. Therefore, when trading forex, South African traders should always check the guidelines and license. In addition, regulators in South Africa always ensure the trading activity of FSCA regulated brokers. And if they meet all monetary requirements.
They should provide a fair trading environment for investors. Benzinga is your source for anything in Forex, and we're detailing the best forex books to read when trading in this profitable market. We explain how to start trading forex in South Africa, the best platforms, the tax implications, where to study and more. At first, Tito Mboweni seemed to directly contradict current Financial Sector Conduct Authority (FSCA) regulations by stating that online currency trading is illegal in South Africa and that residents cannot speculate against the rand.
While the recent liquidation of JP Markets shows that there are problems in the online forex trading industry, I don't think illegal currency exchange is one of them. We compared more than 50 forex brokers based on 12 factors & and then selected the best ones that are regulated with FSCA, FCA, ASIC, so you can trade safely with trusted brokers. As with most sources of income, you must pay taxes on any profits made from foreign exchange trading in South Africa. Trillions are traded on the foreign exchange market every day and large volumes attract illicit entities that will try to scam you.
When you change your money to travel abroad, you (through your bank) are conducting a foreign exchange transaction on the global currency market without even knowing it. It's legal to trade forex in South Africa, as the South African government has no laws governing legality. South Africans can legally trade in the foreign exchange market through any FSCA regulated forex broker authorized to offer derivative instruments to traders in South Africa. The thing is that forex trading is dangerous and retailers can lose a lot of money on it because currency prices keep changing.
There is a lot of information available on the Internet about Forex trading strategies that you can gain good knowledge of. Foreign exchange trading in South Africa produces tight profit margins, so earning large returns can require a large amount of capital. In the Forex market, all currencies are traded against each other, which is why they are referred to as “currency pairs”.