Financial Sector Conduct Authority (FSCA) Brokers 2024

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Written By
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Written By
Paul Holmes
Paul has over 14 years experience in the trading industry, both as a full-time trader and working with leading brokers. He’s traded indices and forex, developed proprietary day trading techniques, and built his own MetaTrader algorithms. He excels at delivering simple-to-follow guides for beginners to experienced traders.  
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James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Fact Checked By
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Michael MacKenzie
Michael is a writer and editor with over a decade in journalism and publishing. His niche lies in editing and fact-checking content in the financial services sector, with a focus on online brokers and trading platforms. Michael previously reported on politics and economics in the Middle East and edits books for established publishers.
Updated

Based in South Africa? Use a broker regulated by the Financial Sector Conduct Authority (FSCA) for safety.

After stepping up its oversight of brokers in recent years with tougher penalties for non-compliance resulting in stronger trader protections, FSCA has earned ‘yellow tier’ status in DayTrading.com’s Regulation & Trust Rating.

Check out our pick of the top FSCA-regulated platforms to find the perfect provider for your trading needs.

Best FSCA Brokers

Based on our latest hand-on tests in December 2024, these are the 1 best FSCA-regulated trading platforms:

Click a broker for details
  1. 1
    IG
    Forex trading involves risk. Losses can exceed deposits.

    Ratings
    4.9 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.9 / 5
    4.5 / 5
    4.9 / 5
    5 / 5
    4.6 / 5
    4 / 5

    $0
    0.01 Lots
    1:30 (Retail), 1:250 (Pro)
    FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
    CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
    Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral
    PayPal, Wire Transfer, Mastercard, Credit Card, Visa, Debit Card
    USD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

This is why we think these brokers are the best in this category:

  1. IG - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

FSCA Brokers Comparison

FSCA Brokers Comparison
Broker FSCA Regulated ZAR Account Minimum Deposit Markets Platforms Leverage
IG logo
$0 CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral 1:30 (Retail), 1:250 (Pro)

IG

"IG continues to provide a comprehensive package with an intuitive web platform, best-in-class education for beginners, advanced charting tools bolstered by its recent TradingView integration, real-time data, and fast execution speeds for experienced day traders."

Christian Harris, Reviewer

IG Quick Facts

Demo AccountYes
InstrumentsCFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
RegulatorFCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM
PlatformsWeb, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral
Minimum Deposit$0
Minimum Trade0.01 Lots
Leverage1:30 (Retail), 1:250 (Pro)
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, ZAR, SEK, DKK, CHF, HKD, SGD

Pros

  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met.
  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis.
  • The proprietary web-based platform continues to caters to traders of all levels, with advanced charting tools and real-time market data useful for day trading, while IG has also added TradingView integration.

Cons

  • IG applies an inactivity fee of $12 per month after 2 years, deterring casual investors.
  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges.
  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients.

Methodology

To list the best brokers authorized by the FSCA, we:

  • Took our evolving directory of 216 trading providers to identify those claiming FSCA authorization.
  • Ran their details through the FSCA’s List of Regulated Persons and Entities for verification.
  • Combined the results of our personal tests with 200+ data points to rank the very best FSCA-regulated firms.

How Can I Check If A Broker Is Regulated By The FSCA?

Here’s a step-by-step guide to verifying a broker’s FSCA status, with a practical example using IG, a well-known CFD and forex broker operating in South Africa.

If you’ve traded in our industry, you’ll know of IG. They’re a quoted firm on the UK FTSE and have a solid reputation as a fair, honest, and competitive brokerage that prides itself on compliance and efficacy.

I expect IG to get a clean bill of financial health from any financial authority’s database I search.

However, I’m using IG to highlight the diligence you should engage in before depositing your hard-earned funds into any broker’s account, even if they have a stellar reputation for integrity.

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Paul Holmes
Author

You should absolutely conduct such diligence if you’re considering trading with a smaller, less-known broker. A search only takes a few minutes of research.

Step 1. Visit The FSCA’s Official Website

Go to the official FSCA website.

The FSCA maintains an online database of licensed Financial Services Providers (FSPs).

Step 2. Access The “Search For An FSP” Section

You’ll discover the page you need, “Search for a Financial Service Provider” after you click the “Regulated Entities” tab and press the “List of Regulated Entities and Persons“.

This facility allows you to search for registered brokers by name, licence number, or other details.

Where to find regulated brokers on FSCA website

Step 3. Enter The Broker’s Details

Input the broker’s name or their advertised FSP number in the search facility.

These are often found on their website or promotional materials. For example, the IG website lists its FSCA licence number.

You can see below I typed “IG Markets South Africa”. I also entered the FSP number associated with IG Markets South Africa —FSP No 41393.

Entering IG broker details in South Africa's FSCA regulated entities databse

💡
Double-check the spelling to ensure accurate results.

Step 4. Review The Search Results

Once you’ve entered the details:

  • Confirm that the broker appears in the search results.
  • Check the broker’s FSP status to ensure it is active and valid.
  • Review the services they are licensed to offer (eg CFDs and forex are common at day trading brokers in South Africa).

IG Markets South Africa showing on FSCA database search

For IG, I clicked on “details” on the right of the search result rows to confirm that the licence is active and covers the services offered (including CFD and FX trading).

As you’d expect with a company such as IG with an excellent compliance record, the search confirms that IG Markets South Africa is licensed and operating legally within the South African jurisdiction.

IG company details on FSCA regulated brokers directory

Step 5. Verify Contact Details

While all above board for IG, if you’re using a lesser-known trading provider, compare the contact details listed on the FSCA website with those on the company’s official site.

Discrepancies could indicate a fraudulent entity impersonating a regulated brokerage.

IG South Africa website showing FSP number

Step 6. Look For Public Warnings

The FSCA occasionally issues warnings about unregulated or suspicious brokers. In fact, we’ve seen the volume of these increase in recent years as it’s improved its oversight of online brokers.

So check the Warnings and Alerts section of their website to ensure the provider isn’t flagged.

Step 7. Contact The FSCA (If Needed)

If you’re unsure about the search results or need further assistance, you can:

💡
Alternatively, watch our video to see how to carry out this check yourself:

Red Flags To Watch For

  • The broker claims to be FSCA-regulated but isn’t listed in the database.
  • The broker’s FSP licence is inactive, suspended, or does not cover the services they are offering.
  • They avoid sharing their FSP number or providing proof of regulation.
By verifying a broker’s FSCA registration, you can ensure you’re dealing with a legitimate provider and help protect yourself from potential fraud or scams targeting South African traders.
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Paul Holmes
Author

What Is The FSCA?

The Financial Sector Conduct Authority (FSCA) exists to oversee and regulate South Africa’s financial services sector to ensure it operates fairly, transparently, and in the best interest of consumers like us active traders.

Before the Financial Sector Conduct Authority was formed in 2018, South Africa’s primary regulator was the Financial Services Board (FSB).

Unfortunately, the FSB was unable to prevent a number of scandals, especially in the pension funds industry. These issues led to investigations and the subsequent signing of the FSR Act, which among several changes, dissolved the FSB and led to the creation of the FSCA.

The FSCA’s core focus is on market conduct – how financial institutions and service providers interact with their customers and the integrity of the financial markets overall.

Key Objectives:

  • Protect Consumers: The FSCA ensures that financial services providers treat customers like day traders fairly, provide transparent information, and adhere to ethical practices.
  • Promote Market Integrity: It works to maintain trust and confidence in South Africa’s financial markets by enforcing compliance with laws and addressing misconduct.
  • Ensure Financial Stability: By regulating the conduct of financial institutions, the FSCA helps maintain stability in the financial system, reducing the risk of systemic crises caused by misconduct or mismanagement.
  • Educate And Empower Consumers: The FSCA actively promotes financial literacy to help consumers, such as the growing class of online traders in South Africa, make informed decisions, understand their rights, and recognize potential risks.
  • Monitor And Regulate Service Providers: The FSCA oversees entities such as banks, insurance companies, retirement funds, trading firms, and financial advisors, ensuring they meet required standards.
In short, the FSCA exists to foster a healthy financial ecosystem where businesses can thrive, consumers and traders like us are protected, and trust in the system remains strong.
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Paul Holmes
Author

Who Does The FSCA Answer To?

The FSCA is answerable to the South African government, specifically through its alignment with the National Treasury.

It operates under the oversight of the Minister of Finance, who is responsible for ensuring that the FSCA fulfils its mandate following national financial legislation and policy objectives.

Governance Structure:

What Powers Does The FSCA Have?

The Financial Sector Conduct Authority has extensive powers to regulate and oversee South Africa’s financial markets and online trading providers.

Key Powers:

Enforcement tools:

The FSCA can take decisive actions, such as:

What Rules Must An FSCA Broker Follow?

Brokers regulated by the Financial Sector Conduct Authority (FSCA) must adhere to a comprehensive set of rules designed to ensure transparency, fairness, and consumer protection.

These rules cover how brokers operate, interact with clients like you and me, and manage risk.

Key rules:

By regulating brokers, enforcing transparency, and monitoring market conduct, the FSCA provides us traders with a safer trading environment, reducing risks and empowering us to trade confidently.
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Paul Holmes
Author

Does The FSCA Have Teeth?

While it may not have the direct enforcement powers of a law enforcement agency, the FSCA is equipped with significant authority to maintain order, impose penalties, and take legal action against entities that break the rules.

And although it’s relatively young with limited enforcement actions under its belt compared to many leading regulators in our industry (the SEC in the US dates back to 1934), the FSCA’s “teeth” are increasingly coming into play.

Here are some notable examples:

Bottom Line

Verifying that the FSCA regulates a CFD or forex broker is crucial for South African traders to ensure they are dealing with a legitimate and compliant financial services provider.

By utilizing the FSCA’s FSP search function, you can confirm whether a broker, such as IG Markets South Africa, is authorized to operate and provide specific financial services.

For us traders, staying informed about a broker’s regulatory status is not just about compliance – it’s about safeguarding your investments.

To get started, see our pick of the best FSCA-regulated brokers for day traders.

Article Sources

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