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Financial Sector Conduct Authority (FSCA) Brokers 2025

Written By

Paul Holmes

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.  

» Paul Holmes Profile Page

Edited By

James Barra

Edited By

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.

» James Barra Profile Page

Fact Checked By

Michael MacKenzie

Fact Checked By

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.

» Michael MacKenzie Profile Page

Updated

Nov 28, 2024

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.

Methodology

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

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.

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.

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.

Step 4. Review The Search Results

Once you’ve entered the details:

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.

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.

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:

• Call: +27 (0)12 428 8000
• Email: info@fsca.co.za

Red Flags To Watch For

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.

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:

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.

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:

• The FSCA Commissioner And Deputy Commissioners: The FSCA is led by a Commissioner and a team of Deputy Commissioners, who oversee its operations and ensure compliance with its regulatory duties.
• The Financial Stability Oversight Committee (FSOC): The FSCA collaborates with this committee, which includes representatives from the South African Reserve Bank (SARB) and other regulators, to ensure systemic stability across the financial sector.
• Parliamentary Accountability: The FSCA is ultimately accountable to South Africa’s Parliament. It must submit annual reports and provide updates on its performance and activities to relevant parliamentary committees.

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:

• Regulatory And Supervisory Authority – The FSCA regulates a wide range of financial institutions, including investment firms. It sets and enforces rules on market conduct, ensuring compliance with South Africa’s financial laws and standards.
• Licensing And Registration – The FSCA has the power to issue, renew, suspend, or revoke licences for financial services providers (FSPs), including brokers. It ensures that only qualified and compliant entities operate within the financial sector.
• Investigation And Enforcement – The FSCA can investigate misconduct, fraud, or breaches of financial laws and regulations. It has the authority to impose penalties, fines, or administrative sanctions on entities and individuals who violate the rules and can initiate legal proceedings against offenders when necessary.
• Market Surveillance And Oversight – The FSCA monitors market activity to identify and address unfair practices, insider trading, or market manipulation. It oversees the conduct of trading platforms and other financial infrastructure.
• Consumer Protection And Education – The FSCA develops and enforces policies to ensure that consumers are treated fairly by financial service providers. It conducts awareness campaigns and financial literacy programs.
• Rule-Making Authority – The FSCA can issue directives, guidelines, and regulations to clarify financial legislation and promote best practices across the sector.
• Collaboration With Other Regulators – It works with bodies like the South African Reserve Bank (SARB) and Prudential Authority to ensure financial stability and address cross-sector issues.

Enforcement tools:

The FSCA can take decisive actions, such as:

• Freezing bank accounts or assets linked to misconduct
• Issuing public warnings about unregistered or fraudulent trading providers
• Suspending trading activities in cases of severe breaches

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:

• Licensing And Registration – Before offering services, brokers must obtain a valid Financial Services Provider (FSP) licence. They must display their FSP licence number prominently on their website, communications, and marketing materials.
• Suitability Assessments – Brokers are required to assess whether their financial products and services are suitable for their clients’ needs, experience, and risk tolerance. This is especially important as a day trader, where the risk of incurring losses is high.
• Risk Disclosure – Brokers must disclose all risks associated with financial instruments, such as CFDs or forex trading, to ensure clients fully understand potential losses. Notably for short-term traders, brokers must inform retail investors about potential losses due to leverage trading.
• Segregation Of Client Funds – Client funds must be held in segregated accounts, separate from the broker’s operational funds. This protects your money in case the brokerage faces financial difficulties.
• Anti-Money Laundering (AML) Compliance – Brokers must implement strict Anti Money Laundering (AML) policies, including verifying the identity of clients (Know Your Customer/KYC checks) and reporting suspicious transactions to authorities.
• Transparent Pricing And Fees – All fees, commissions, spreads, and other charges must be disclosed clearly to clients. Traders are protected from undisclosed charges or deceptive pricing practices.
• Advertising And Marketing Standards –  Marketing materials must be accurate, not misleading, and comply with FSCA guidelines. Claims of guaranteed profits or minimized risks are strictly prohibited.
• Regular Reporting And Audits – Brokers must submit regular compliance reports to the FSCA. They are subject to periodic audits to ensure adherence to regulatory requirements.
• Complaint Handling – Brokers must have an accessible and effective complaints resolution process to address client grievances. They must inform clients of their right to escalate unresolved complaints to the Ombud for Financial Services Providers (FAIS Ombud).
• Risk Management Practices – Brokers must maintain sufficient capital reserves to meet their financial obligations and safeguard clients’ funds. They must implement risk management systems to protect the business and their clients.
• Anti-Market Manipulation Oversight: Brokers must not artificially influence asset prices to disadvantage traders. They also oversee conflicts of interest, ensuring brokers do not trade against their clients unfairly.
• Capital and Operational Requirements – Brokerages must maintain adequate capital reserves to cover their financial obligations and protect traders. This reduces the risk of broker default, ensuring the safety of traders’ funds.
• Continuous Supervision and Updates – The FSCA monitors global trends and updates its regulations to protect active traders in South Africa in a fast-evolving market.

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.

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:

• Kabelo Emanuel Mogale (2024): The FSCA imposed a significant penalty of R1,015,315.87 on Mogale, a forex trading signals provider, and debarred him for 10 years. This action was taken because Mogale provided forex trading signals via Telegram without a financial services provider license, which the FSCA considers a financial service requiring proper authorization.
• IFX Brokers Holdings (Pty) Ltd (2023): The FSCA imposed a penalty of R50,000 on IFX Brokers Holdings for contravening over-the-counter derivative provider (ODP) regulations. The company offered clients the means to trade CFDs without proper authorization as an ODP.
• JP Markets SA (Pty) Ltd (2023): The FSCA fined this forex broker R100,000 for contravening regulations governing over-the-counter (OTC) derivatives trading. JP Markets enabled clients to trade CFDs on forex pairs, shares, and indices without being suitably authorized.

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.