Financial Service Board (FSB) Brokers 2024

FSB South Africa

Brokers regulated by the Financial Service Board (FSB) in South Africa must comply with certain registration procedures and insurance requirements, to ensure fair practices in the non-banking financial market. This guide evaluates the FSB’s structure, responsibilities and how these affect traders.

 

The Financial Service Board (FSB) is now the Financial Sector Conduct Authority (FSCA).

This independent regulatory body oversees brokers in South Africa, ensuring certain operating requirements are met to protect local traders.

See our list of the best FSCA-authorized brokers.

What is the FSB?

Firstly, FSB stands for the Financial Services Board. The regulatory agency is an independent body. From its headquarters in Pretoria, South Africa, the FSB regulates the largest stock exchange in Africa, the Johannesburg Stock Exchange. However, they also launch investigations into a whole host of other general markets, from insurance services and brokers to the latest cryptocurrency, such as Bitcoin.

You may have noticed when you search for a prospective broker, the FSB logo often appears. This is because the agency issues broker licenses for those that meet compliance requirements. Details of that process and its importance can be found below.

Purpose

The primary aim of the FSB group is “To promote and maintain a sound financial investment environment in South Africa”. This entails enforcing regulations to prevent market manipulation, among other functions. This objective is also why the body must conduct checks on licensed brokers and registered companies.

On top of the supervision of their regulated brokers’ list, the board also has other strategic objectives, including:

FSB Brokers

#1 - Forex.com

Why We Chose Forex.com

Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.

"Forex.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • Instruments: Forex, Spot Metals
  • Regulator: NFA, CFTC
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • You can enjoy industry-leading forex pricing starting from 0.0 pips, plus fast execution speeds of less than 1 second
  • The proprietary Webtrader is an excellent option for day traders, offering over 80 technical indicators for detailed analysis
  • Competitive cashback rebates up to 15% are available for active traders

Cons

  • It's a shame that there's no copy trading platform for beginners or signal providers
  • The $15 monthly inactivity fee is higher than some competitors, including XM which only charges $5
  • The investment offering varies between countries

#2 - Interactive Brokers

Why We Chose Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
  • Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
  • Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: $100
  • Leverage: 1:50

Pros

  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders.; plus, you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.

#3 - NinjaTrader

Why We Chose NinjaTrader

NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

- DayTrading Review Team
  • Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
  • Regulator: NFA, CFTC
  • Platforms: NinjaTrader Desktop, Web & Mobile, eSignal
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

Cons

  • The premium platform tools come with an extra charge
  • There is a withdrawal fee on some funding methods
  • Non forex and futures trading requires signing up with partner brokers

#4 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FRSA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • Day traders can access stable spreads and zero commissions with no hidden fees
  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders

Cons

  • There’s an above-average $50 inactivity fee after three months, though this won't impact active day traders
  • There is no ECN account with raw spreads
  • A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners

#5 - eToro USA

Why We Chose eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Instruments: Stocks, Options, ETFs, Crypto
  • Regulator: SEC, FINRA
  • Platforms: eToro Trading Platform & CopyTrader
  • Min. Deposit: $10
  • Min. Trade: $10

Pros

  • The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
  • A free demo account means new users and prospective day traders can try the broker risk-free
  • The broker's Academy offers comprehensive learning materials for beginners to advanced-level investors

Cons

  • Average fees may cut into the profit margins of day traders
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools

#6 - Woxa

Why We Chose Woxa

Woxa is an STP broker established in 2021 and regulated by the Financial Services Commission (FSC) in Mauritius. Over 2000 CFDs are available spanning popular asset classes, including forex, stocks, indices, commodities and crypto. Woxa offers an in-house web platform, alongside a mobile app and copy trading service.

"Woxa is best for beginners looking for a low minimum deposit, easy-to-use platform and social investing features. However, it seriously trails alternatives in several key areas, including safety, trading fees and customer support."

- DayTrading Review Team
  • Instruments: CFDs on Forex, Commodities, Stocks, Indices, ETFs
  • Regulator: FSC
  • Platforms: Woxa Platform, App
  • Min. Deposit: $25
  • Min. Trade: 0.01
  • Leverage: 1:400

Pros

  • The trading platform is very easy to use thanks to its modern design and intuitive navigation
  • It is really easy to open a Woxa account – taking less than 5 minutes
  • TradingView's charting package is excellent with 100+ indicators and drawing tools

Cons

  • Woxa is still relatively new with weak regulatory credentials and limited safeguards
  • Traders can't use the MetaTrader platforms and algo trading isn't supported
  • The copy trading service doesn’t compete with industry-front runners

#7 - OANDA US

Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • Instruments: Forex, Crypto
  • Regulator: NFA, CFTC
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:50

Pros

  • Beginners can get started easily with $0 minimum initial deposit
  • Seasoned day traders can access industry-leading tools, including an MT4 premium upgrade and advanced charting provided by MotiveWave
  • Day traders can enjoy fast and reliable order execution

Cons

  • There's only a small range of payment methods available, with no e-wallets supported
  • The range of day trading markets is limited to forex and cryptos only
  • It's a shame that customer support is not available on weekends

#8 - Deriv.com

Why We Chose Deriv.com

Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs and multipliers, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.

"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "

- DayTrading Review Team
  • Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
  • Regulator: MFSA, LFSA, VFSC, BFSC
  • Platforms: Deriv Trader, MT5
  • Min. Deposit: $5
  • Min. Trade: 0.01 Lots
  • Leverage: 1:1000

Pros

  • Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
  • There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
  • Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient

Cons

  • There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
  • The range of 100+ assets trails some competitors such as Quotex which offers 400+
  • There's no loyalty program or rebate scheme for high volume traders

#9 - Pepperstone

Why We Chose Pepperstone

Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.

"Pepperstone is a best-in-class broker. Experienced day traders benefit from razor sharp spreads, ultra-fast execution and 1300+ instruments. New traders get user-friendly platforms, rich education materials and 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

Pros

  • Pepperstone is a world-renowned broker with licenses in 7 jurisdictions, including the UK (FCA) and Cyprus (CySEC)
  • The suite of assets continues to grow and includes currency indices like the US Dollar Index
  • Excellent suite of automated trading tools including Capitalise.ai, Smart Trader and APIs

Cons

  • Cryptos are only available for professional clients in some jurisdictions
  • It took us longer to sign up than at many alternatives
  • Unlike some competitors like AvaTrade, there is no proprietary app offering an all-in-one trading service

#10 - XM

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Min. Deposit: $5
  • Min. Trade: 0.01 Lots
  • Leverage: 1:1000

Pros

  • The broker offers premium research including market sentiment, fundamental insights and strategy builders
  • XM provides a no re-quotes and no rejections policy
  • Transparent and low fees with spreads from 0.0 pips that will protect day trading profit margins

Cons

  • There is weak regulatory oversight through the global entity
  • PayPal deposits are not supported
  • There's $5 inactivity fee after only 3 months, though this won't affect active traders

#11 - IC Markets

Why We Chose IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto
  • Regulator: ASIC, CySEC, FSA
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Min. Deposit: $200
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)

Pros

  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
  • IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.

Cons

  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.

#12 - Eightcap

Why We Chose Eightcap

Eightcap is a forex and CFD broker founded in Australia in 2009. The brand is popular with serious day traders for its raw spreads on 1000+ instruments and advanced MetaTrader platforms. With five global offices and ASIC regulation, Eightcap has built a strong reputation. New traders can also sign up for a live account in just a few minutes.

"Eightcap is great for day traders familiar with MT4 and MT5 and looking to trade forex and CFDs in a secure environment. The brand is also a great pick for crypto traders with 100+ derivatives, a sophisticated market scanner, plus Bitcoin and Tether deposits."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FCA, ASIC, CySEC, SCB
  • Platforms: MT4, MT5, TradingView
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • Sophisticated platforms built for short-term strategies, including TradingView which offers 50 drawing tools and 12 chart types
  • Raw spreads from 0.0 pips and a low $3.5 commission will appeal to active traders
  • Flexible and fee-free payment methods including cryptocurrencies

Cons

  • There are only four commodities available, which may disappoint experienced day traders looking to diversify their portfolios
  • There are several frustrating jurisdictional restrictions - for example, the Crypto Crusher tool is not available for UK or Australian clients
  • The demo account can only be extended upon request

#13 - LiteForex Europe

Why We Chose LiteForex Europe

LiteForex Europe is a CFD broker established in 2008 and authorized by the CySEC. The brokerage offers forex, commodities and indices via the MT4 and MT5 platforms. Spreads are ultra tight on ECN accounts and leverage is available up to 1:30 in line with EU regulations. LiteForex also offers a rich education centre for new day traders and social trading capabilities.

"LiteForex is a good option for active day traders with variable spreads from 0.0 pips, daily analysis and high-quality training guides. The forex copy system also lets you duplicate the positions of experienced traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities
  • Regulator: CySEC
  • Platforms: MT4, MT5
  • Min. Deposit: $50
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30

Pros

  • Fast ECN execution model with low spreads from 0.0 pips
  • LiteForex has been established for 15+ years and is regulated by a trusted regulator, CySEC
  • LiteForex offers a range of proprietary mobile app tools which are ideal for traders who want to analyze the markets on the go

Cons

  • Cryptocurrency trading is not offered
  • There is no swap-free trading account for Muslim day traders
  • There are limited funding methods compared to other brands

#14 - CityIndex

Why We Chose CityIndex

City Index is an established and award-winning forex, CFD and spread betting broker with top-tier global regulation, including in the UK (FCA) and Australia (ASIC). With 30+ years in the industry, 13,500+ instruments and 24/5 customer support, City Index is a solid pick for aspiring traders.

"City Index is best for new and intermediate traders looking for a wide selection of assets on user-friendly platforms."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Cryptos, Options, Commodities, Bonds
  • Regulator: ASIC, FCA, MAS
  • Platforms: MT4, TradingView, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:50 (Accredited Investor), 1:200 (Sophisticated Investor), 1:300 (Wholesale Investor), 1:400 (Professional Trader). Varies with jurisdiction.

Pros

  • Tight spreads from 0.5 pips on EUR/USD and competitive commissions on CFD shares
  • A free demo account with unrestricted access to all markets and trading tools
  • Thousands of instruments including thematic indices and interest rates that are not available at many alternatives

Cons

  • US traders not accepted
  • $15 monthly inactivity fee
  • No Islamic account for Muslim traders

#15 - DNA Markets

Why We Chose DNA Markets

DNA Markets is a forex and CFD broker established in 2020. The broker operates two entities in Australia and the offshore jurisdiction, St Vincent and the Grenadines. Traders can access 250+ markets, with a Standard account for beginners and a Raw account for experienced traders. The reliable MetaTrader 4 and MetaTrader 5 platforms are available, alongside Signal Start.

"DNA Markets is an excellent choice for short-term traders familiar with the MetaTrader platforms. The smooth sign-up process also makes it easy to get started while the $100 minimum deposit is accessible. That said, DNA Markets trails the top brokers in education, research and mobile trading. "

- DayTrading Review Team
  • Instruments: CFDs, Forex, Indices, Commodities, Stocks, Crypto
  • Regulator: ASIC
  • Platforms: MT4, MT5
  • Min. Deposit: $100
  • Min. Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • Convenient account funding with 7 base currencies, a $100 deposit and a wide range of payment methods
  • Short-term trading strategies are permitted including scalping and automated trading using Expert Advisors (EAs)
  • 24/5 customer support with response times of <2 minutes during testing

Cons

  • The investment offering trails alternatives, especially in terms of stocks, cryptos and commodities
  • There are limited educational and research tools, reducing its appeal to beginners
  • Despite access to MT4 and MT5, there is no proprietary trading app

History

The FSB came to life in 1991, following the recommendations of the Van Der Host Committee. Their findings called for an independent agency capable of regulating the non-banking financial services industry.

FSB offices and departments have since expanded along with their mandate. For example, in September of 2004, the Financial Advisory and Intermediary Services Act (FAIS) gave the FSB extra powers to monitor market conduct in the banking industry.

The Financial Intelligence Centre Act in 2001 then gave the FSB head office the additional responsibility of tackling money laundering. Other expansions have led to an increase in the numbers of compliance officers and reporting requirements.

Overall, from their home address in Pretoria, the FSB has become a reputable body, bringing stability to the industry. It is unsurprising then that their scope has extended, allowing it to better protect consumers of financial products through regulations.

Structure

As the official website details, the FSB is made up of various committees. However, it is the board, made up of key individuals, that supervises operations. It is also the board members that appoint the Executive Officer, who leads the FSB on a day-to-day basis. The Executive Officer is also the Registrar of Non-banking Financial Institutions.

The four Deputy Executive Officers oversee the:

The regulatory agency receives all funding from license fees and other costs levied on the industry. Those funds are used to pay for everything from staff training to annual reports. In addition, the body funds both the ‘Office of the FAIS Ombud’ and the ‘Office of the PFA’. However, both offices are independent of the FSB and tackle the complaints of financial consumers.

Powers & Responsibilities

FSB responsibilities include:

Within those responsibilities is ensuring compliance with current legislation and regulations. This can include requirements around:

The FSB also has an enforcement committee. That committee has enforcement powers to tackle breaches of regulations through unlimited penalties and compensation orders.

The database of registered forex brokers and other financial providers is extensive. As a result, all orders carry significant weight. In fact, an FSB order has the same enforcement validity as a judgement from the Supreme Court of South Africa.

Additional powers include the verification of license categories for financial institutions. Other responsibilities include analysing the markets for potential risks. Hence the FSB will release short-term insurance and risk reports.

It’s also worth noting the body has some discretion around regulations. It can hand out exemptions and has actually come under fire in the past for showing leniency towards certain companies.

Customer Complaints

With so many documents and guidance notes for companies to comply with, financial providers often fall short. As a result, there is often a large number of disgruntled firms. So on top of a customer complaints service, there is an appeals board for those who disagree with FSB regulations and decisions.

The board is independent of the FSB and approved nominees come directly from the Minister of Finance. You also cannot join the board if you are an active member of the financial industry.

The aim is that all of the above powers and responsibilities help ensure the functionality of financial entities, thereby protecting investors.

Criticisms of the FSB

Despite the benefits of the FSB, the agency also faces criticism. In particular, the body frequently features in the news following questions about corruption. For example, the Office of the Public Prosecutor is looking into claims of extortion, fraud, bullying, intimidation and mismanagement by the head of the FSB, Dude Tshidi.

In 2017, Julius Malema, president of the Economic Freedom Fighters (EFF), accused Tshidi of “gross misconduct, abuse of power and perjury”. Malema then went further to say, “We have seen substantial documented evidence indicating that for years he has been responsible for gross misconduct, material abuse of the powers of the FSB, perjury, withholding information and ongoing efforts to cover up wrongdoing, intimidation of members and corporate institutions, and breaches of his fiduciary duties”.

These complaints originate from a relationship between lawyer Anthony Mostert and Tshidi regarding 10 pension funds. It has been said Tshidi made Mostert curator of all 10 funds, who then brought in his law firm to advise in a blatant conflict of interest. Furthermore, it is claimed Mostert then charged inflated curatorship contingency fees.

Despite press releases from the FSB to refute these claims, these enquiries remain a serious test for the regulatory agency. It also highlights that the FSB still has a long way to go to cement its position as a reputable, impartial body, such as the UK’s FCA.

Recent Performance

Quarterly reports show the FSB are active in carrying out enforcement actions. Within the first three months of 2018, the agency handed out R350,000 in administrative penalties. In the last quarter of 2017, the body gave out nearly R1.5 million in fines.

Large fines have helped ensure brokers and other institutions rigorously stick to application processes and regulations. If the FSB continues to hold institutions to account, consumer confidence and protection will only increase.

Note you can view recent regulatory actions by heading to their official website. You can also find their email address and telephone number in their Contact Us section. Representatives should be able to help you with licence checks, give information on application progress, plus a whole load more.

Final Thoughts on the FSB

Despite a relatively short lifespan, the FSB has grown into an effective, active regulatory agency. Having said that, the company still has some way to go to overcome accusations of corruption and mismanagement.

Before you sign up and login to your trading account, you must check for regulatory oversight. Conducting an online broker search and browsing reviews are easier now than ever before. In fact, this is one of the most important steps you can take to keep your investments relatively secure.