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 profits to SARS (South African Revenue Service). Forex trading is legal in South Africa. The Financial Sector Conduct Authority (FSCA) regulates the forex and CFD market and online retail brokers can operate in South Africa as members of the regulatory authority. South Africans can also trade forex through online platforms based abroad, even if brokers are not regulated by the FSCA.
Trading CFDs is legal for residents of South Africa; CFD brokers are regulated by the FSCA and are allowed to trade under the correct license. There is no law prohibiting South African residents from trading with foreign-based forex brokers, even with brokers that are not regulated by the FSCA. A set minimum amount is not required to start trading Forex in South Africa, it varies by provider. When it comes to currency trading, South Africa is an increasingly popular location for forex brokers due to its rapidly growing economy as one of the most developed countries in Africa, as well as strong demand for financial services and less stringent regulation.
Forex refers to currency exchange, or simply FX, sometimes even called spot FX, where global currencies trade with each other. At first, Tito Mboweni seemed to directly contradict the current regulations of the Financial Sector Conduct Authority (FSCA) by stating that online currency trading is illegal in South Africa and that residents cannot speculate against the rand. Benzinga is your source for anything Forex, and we're detailing the best forex books to read when trading in this profitable market. Controlling your risk level is vital to protecting your capital and profits when trading forex in South Africa.
As with most sources of income, you must pay taxes on any profits made from trading foreign exchange in South Africa. Every day trillions are traded in the foreign exchange market and large volumes attract illicit entities that will try to scam you. When looking for a decent online forex broker to trade from South Africa, the list of well-regulated brokers below provides a good place to start. If you play your cards right and forex trading in South Africa starts to pay for you, be sure to declare all your profits.
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. It is legal to trade Forex in South Africa, as the South African government does not have any laws regulating legality. When forex trading in South Africa began 16 years ago, there were no regulations, leading to millions of rands in losses due to scams and the arrest of many traders and suppliers. Retail Forex trading involves speculating on the rise and fall of currencies in order to make a profit.