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Financial Sector Conduct Authority (FSCA) Brokers 2024

The Financial Sector Conduct Authority (FSCA) is responsible for overseeing all non-banking financial services in South Africa, including online brokers. This guide compares and ranks the top brokers regulated by the FSCA. Our team also uncover the regulator’s history, powers and the rules registered brokers must follow in South Africa.

Best FSCA Brokers

These are the 5 best brokers authorized by the FSCA, with various rules to facilitate a secure trading environment for South African traders:

  1. AvaTrade
  2. XM
  3. Exness
  4. Trade Nation
  5. Vantage

#1 - 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, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

Pros

  • Automated trading is supported through MetaTrader Expert Advisors (EAs), as well as the AvaSocial and DupliTrade tools
  • The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
  • AvaTrade is a heavily regulated and trustworthy broker with licenses from the ASIC, CySEC and more

Cons

  • Traders from the US are not accepted
  • 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
Visit AvaTrade

#2 - 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
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots

Pros

  • Accessible trading accounts with a $5 minimum deposit and fast account opening
  • The broker offers premium research including market sentiment, fundamental insights and strategy builders
  • 1000+ instruments are available, including recently added thematic indices, providing exposure to emerging industries

Cons

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

#3 - Exness

Why We Chose Exness

Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.

"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
  • Platforms: Exness Trade App, MT4, MT5, TradingCentral
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:2000

Pros

  • Unlike many other brands, Exness doesn't charge any account maintenance or inactivity fees
  • Highly competitive spreads are available from 0.1 pips and low commissions from $3.50 per side
  • There's a strong range of account types for all experience levels and requirements, including Cent, Pro and Raw spread solutions

Cons

  • There are no promotional deals or loyalty schemes for high-volume day traders
  • Unlike most competitors, Exness doesn't provide its own education section
  • There are several regional restrictions for retail traders including the USA, Europe and the UK
Visit Exness

#4 - Trade Nation

Why We Chose Trade Nation

Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.

"Trade Nation is a good choice for newer traders looking for a wide range of financial markets on a user-friendly platform. There is no minimum deposit, free funding options and strong education."

- DayTrading Review Team
  • Instruments: Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Cryptos (Bahamas Entity Only)
  • Regulator: FCA, ASIC, FSCA, SCB, FSA
  • Platforms: MT4
  • Minimum Deposit: $0
  • Minimum Trade: 0.1 Lots
  • Leverage: 1:500 (entity dependent)

Pros

  • Multiple account currencies are accepted for global traders
  • A choice of trading platforms and apps, including MT4, make the brand a good fit for savvy traders
  • The trading firm offers tight spreads and a transparent pricing schedule

Cons

  • Fewer legal protections with offshore entity
Visit Trade Nation

#5 - Vantage

Why We Chose Vantage

Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.

"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds
  • Regulator: FCA, ASIC, FSCA, VFSC
  • Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade
  • Minimum Deposit: $50
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:500

Pros

  • Vantage maintains its high trust score thanks to its strong reputation and top-tier regulation from the FCA and ASIC
  • There’s an excellent suite of day trading software, including the award-winning platforms MT4 and MT5
  • The broker has recently made efforts to expand its suite of CFDs providing further trading opportunities

Cons

  • The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
  • A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
  • Unfortunately, cryptos are only available for Australian clients
Visit Vantage

What Is The FSCA?

The Financial Sector Conduct Authority, also known as the FSCA, is a key financial regulator in South Africa (ZA). The agency is headquartered at an address in Pretoria and operates as an independent government body, overseeing the private sector.

The values of the FSCA are:

In 2017, the Financial Sector Regulation (FSR) Act extended the jurisdiction of the FSCA to include oversight of financial products and services not overseen by the FSB, including services related to credit and the buying and selling of foreign exchange (forex).

FSCA logo

The FSCA’s strategic focus areas over the next few years include:

History

Before the Financial Sector Conduct Authority was formed in 2018, South Africa’s primary regulator was the Financial Services Board (FSB). The FSB was established in 1991 on the recommendation of the Van der Horst Committee. The plan was to create an independent body to supervise and regulate non-banking financial services, including retail trading brokers. During its time, multiple acts expanded the role of the FSB, including:

But 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.

Among several changes, the act dissolved the FSB and led to the creation of two new bodies in 2018:

  1. The Prudential Authority (PA) – Responsible for regulating banks, insurers, cooperative financial institutions, financial conglomerates and certain market infrastructure.
  2. The Financial Services Conduct Authority (FSCA) – Responsible for regulating all non-banking financial services, including forex, stock and CFD trading.

Structure

The Commissioner of the Financial Sector Conduct Authority sits at the top of the organisation. Currently, that position is occupied by Mr Unathi Kamlana. Beneath him, there are three Deputy Commissioners and a team of executives tasked with the management of different aspects of the regulator’s remit. These include financial aspects such as annual reports, managing BEE certificates and licensing, regulatory policy, pension fund supervision, plus media releases.

Financial sector conduct authority

Responsibilities & Powers

The Financial Sector Conduct Authority (FSCA) has a broad range of responsibilities and powers to ensure the smooth running and safety of local financial markets. As stated on its website, the aims of the body are to:

The Financial Sector Conduct Authority of South Africa also provides a regulated entity search via an online database. This is essentially a register where traders can check if a broker or platform is licensed to provide retail trading services.

The FSCA has the power to exclude companies and brokers if they do not comply with rules and regulations. For offences that do not require immediate expulsion, the FSCA can issue fines and reprimands. The agency also has the power to ban individuals from participating in certain financial activities, such as forex trading.

Broker Requirements

Brokers looking to obtain a license from the FSCA must provide documents to support their application. Documents will need to give details on operational capital requirements, compliance functions, human resources, and more. Additional information may also be requested:

Criticisms

The Financial Sector Conduct Authority is relatively new, and as such, has not yet faced significant criticism. However, its predecessor the Financial Services Board (FSB), was the centre of many failures. During its time, the FSB was unable to prevent significant scandals in the pension fund industry. Also, it was accused of favouritism and overcharging for legal and administrative services. Many of its interactions with financial service providers were described as harsh, leading to negative news stories and press coverage.

A report by the Public Protector reprimanded the FSB for a range of failures spanning a decade. Ultimately, these failures led to the FSR Act and the subsequent creation of the Prudential Authority and Financial Sector Conduct Authority.

Final Thoughts On The FSCA

The FSCA has worked hard to rebuild the reputation of South Africa’s financial regulators following the failures of the FSB. And whilst there is still progress to be made, the FSCA has established itself as a reputable regulator that both brokers and traders can trust.

Before opening an account with a broker, check the firm is approved by the Financial Sector Conduct Authority using the regulated company search on the official FSCA website.

FAQ

What Was The Financial Sector Conduct Authority Previously Called?

The regulatory body was previously known as the FSB, meaning the Financial Services Board. This was disbanded in 2018 and replaced by the Financial Sector Conduct Authority (FSCA).

Who Appoints The Financial Sector Conduct Authority Commissioner?

The process of appointing the FSCA Commissioner is mandated by the National Treasury. The National Treasury also processes the appointments of two or three Deputy Commissioners.

On Which Date Did The Financial Sector Conduct Authority Become Operational?

The FSCA started official operations on the 1st of April 2018. Before this, South Africa’s financial markets were overseen by the Financial Services Board (FSB).

Does The Financial Sector Conduct Authority Regulate Forex Brokers?

Yes, the FSCA regulates forex brokers, as well as companies offering trading in stocks, commodities, cryptos and CFDs. The agency oversees all non-banking financial services in the country.

Is The FSCA The Same As The UK’s FCA?

The two bodies essentially have the same role – regulating providers of financial services. However, the FCA is concerned with the UK markets while the FSCA’s jurisdiction covers South Africa.