FSB, or Financial Services Board, was the main financial regulatory body of South Africa.
It was disbanded in 2018 and replaced by FSCA (Financial Services Conduct Authority).
In this guide, we’ll talk about an overview of FSB broker and some of the best FSB brokers you can try.
What is an FSB broker?
The Financial Services Board (FSB), currently known as the Financial Services Commission of South Africa (FSCA), is the market regulator in South Africa that monitors and regulates financial institutions that provide derivatives trading in international financial markets.
The FSCA is in charge of improving and supporting the efficiency and integrity of financial markets and protecting investors by advocating and ensuring that financial institutions treat them fairly.
The FSB brokers need to follow certain rules to get a license. These include:
The FSB/FSCA requires FSB brokers to satisfy specific requirements.
In addition, the agency oversees service providers to ensure that they follow all applicable laws.
If laws are not followed properly, the authority takes the necessary regulatory actions against FSB brokers and other entities.
The effective implementation of the functions is overseen by the FAIS division and the FSCA Enforcement Committee.
Choosing the right FSB broker
When talking about the FSB broker, there are a few things you need to consider before opening an account.
Here are a few of them:
This is the most important step. While deciding your forex broker, you need to check if it is FSB regulated.
Even though brokers might have other regulations, try to see if your chosen broker has FSB regulations.
Be wary of smaller, perhaps unregulated forex brokers. These brokers can re-quote rates and trade against their clients, and they have done so in the past.
First and foremost, the FSB regulation safeguards banks that engage in currency trading. As banks trade throughout the globe, they take on sovereign and credit risk, and there are procedures in place to safeguard them as much as possible.
Rather than relying on a flashy website, you should check the broker’s regulatory compliance and license.
Commissions and fee
Brokers often make money by charging commissions, which will take a portion of the total spread.
The majority of FSB brokers will not charge commissions and will instead profit from wider spreads. Check out the broker’s website to learn more about how they make money.
Make sure you know what you’re doing before putting your money on the line; trading is usually less risky and more rewarding that way.
Don’t worry if you’re a beginner; nearly every respectable FSB broker offers extensive lectures and courses on how to trade currencies efficiently and without prior knowledge.
Trading forex can be a lonely journey to the top. You’re unlikely to have a support system or superiors to advise you. When it comes down to it, you may profit much from a broker’s customer service, and many provide excellent help and instruction to both novice and experienced traders.
However, some companies provide greater customer service than others. If you’re a newcomer or believe you’d benefit from having staff on hand to advise you or answer queries, do some quick research beforehand.
As a forex trader, you must ensure that the new platform and trading platform you use include the technical and central analysis tools you need. You should also check if transactions can be entered and exited with ease.
Deposits and withdrawals
Funding and withdrawal policies differ according to FSB brokers. They might permit account holders to deposit into accounts online through bank transfers, credit/debit cards, MTN, Skrill, Neteller, or Paypal.
On the other hand, withdrawals are generally made through wire transfers or a third-party service.
List of best FSB brokers
Now that you know what an FSB broker is and how to select one, let’s move on to the top FSB brokers list. Here are the top 5 among them:
AvaTrade started in 2006, has grown to become one of the top trading firms in the world.
AvaTrade is regulated in six nations with regulatory licenses spanning five continents, including South Africa, Europe, and Australia.
AvaTrade offers a diverse choice of trading instruments to traders of all skill levels. Traders can access over 1250 instruments via several trading platforms for PC, tablet, and mobile. This features MetaTrader 4, the world’s most popular platform.
IG was formed in 1974 as one of the original trading brokerages and has since evolved to become a global leader with over 239,000 clients. They have offices in 15 countries, spanning five continents, and service clients all over the world.
They are licensed and authorized to provide online trading services in a number of jurisdictions, including South Africa, and they are committed to their clients’ security and prosperity.
With access to almost 17,000 markets, including forex, equities, indices, commodities, cryptocurrencies, and more, IG helps to empower knowledgeable and decisive traders.
Markets.com is a well-known and licensed broker that caters to traders all around the world. The company has locations in South Africa, Europe, the United Kingdom, and Australia. The relevant authority in each jurisdiction regulates each office.
Forex, commodities, cryptocurrencies, stocks, indices, metals, energy, bonds, CFDs, and ETFs are just a few of the trading instruments available at Marketsx.
Clients also benefit from individualized training, multilingual customer service, and a wide range of advanced analysis tools.
CM Trading, South Africa’s largest broker, was created in 2012 by experienced traders and is regulated by the FSB.
They also keep client assets in segregated accounts to guarantee that they are only utilized for client trading and not for any other reason. Clients must have access to their funds at all times so that they can withdraw as needed.
Forex, commodities, cryptocurrencies, stocks, shares, indices, metals, energy, and CFDs are just some of the trading instruments available at CM Trading.
Blackstone Futures is a South African broker linked with Trade Nation, an international brokerage business registered in numerous countries, including the Financial Services Commission of South Africa (FSCA).
The broker offers various tradable products across different asset classes, such as futures, spot forex, and CFDs in indices, equities, and commodities.
It offers its clients the famous MT4 platform and their CloudTrade platform and a variety of trading tools and educational resources.
While selecting the best FSB broker, take note of all the points mentioned above. In addition, make sure the broker has FSB or FSCA regulations and complies with the trading laws of South Africa.
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Heinrich is a forex and CFD enthusiast with a passion for writing good informative quality content. He strives to showcase the best forex brokers in Africa. Join him on his Journey!
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