South Africa Forex License: FSCA Broker Registration & FSP Licensing Guide
Applying For a South Africa FSCA Forex License – Key Takeaways
- South Africa has the longest history of FX regulation in Africa
- Forex trading is regulated in South Africa by the FSCA
- License classified as an FSP (Financial Service Provider)
- Forex trading falls under license Category 1 with Derivatives permissions
- ODP license permissions are required to perform market making in South Africa
- Flexible capital requirements based on operating expenses
- One of the fastest ways to obtain MT5
How To Get A Forex Trading License In South Africa
FSP Registration in South Africa – Steps to Apply for a South Africa Forex License:
- Gather required documents for the brokerage, directors, and shareholders.
- Outline your business plan and objectives for FSCA review.
- Incorporate a Financial Services Provider (FSP) entity in South Africa.
- Submit the license application to the FSCA.
- Receive updates throughout the application process.
- Upon approval, apply for a corporate bank account.
- Appoint local director, compliance and KI.
Requirements to Obtain a Forex License in South Africa
How to Get Your Broker License in South Africa?
- Incorporation of a South African company.
- Appointment of at least one local director.
- Designation of a compliance officer familiar with FSCA regulations.
- Selection of a Key Individual (KI).
- Implementation of Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
- Proof of adequate financial resources and operational infrastructure.
- Registering the local office address.
- Completion of FSCA application forms and submission of all required documentation.
Important Facts Related to a South Africa Forex License Issued by the FSCA
- In South Africa, capital requirements are not set at a fixed level
- Our own forex broker / prop trading platform, MT4, and MT5 are all forex trading platforms approved by the FSCA for use in South Africa
- Not all directors must reside in South Africa, but at least one must be a local resident
- All licensed South Africa brokers are listed on the FSCA register
- Employing a local director, KI, and compliance officer are part of FSP license requirements
Check Out Our YouTube Channel: South Africa FSCA Forex License
What Does a Licensed South Africa Forex Broker Look Like?
Why Consider Applying For a FSCA License in South Africa?
Atomiq Consulting – Your Forex Broker Licensing Partner
If you would like to apply for an FX license in South Africa, don’t hesitate to contact Atomiq Consulting. Once we learn some basic details about your business and operational plans, we are happy to provide a quote and complete overview of the license application process.
In addition to consultation related to forex broker license applications, we also have a several active forex brokers for sale, including South Africa. Whether you are looking to buy an existing South Africa forex broker license or apply from scratch, Atomiq Consulting is the best choice for consultation related to all aspects of forex regulation in South Africa. Finally, if you are looking to obtain cryptocurrency licensing permissions in South Africa, we can also provide guidance with a license upgrade or new application.
Contact Us Today to Explore Obtaining a Forex Broker License in South Africa!
To learn more about applying for a forex broker license in South Africa, discuss the fees, regulatory requirements and address any other questions, don’t hesitate to contact our team of license specialists today!
South Africa Forex License FAQ
Are there any FSP licenses currently for sale in South Africa?
In addition to forex broker license consultation services, we can also assist your business with the acquisition of an existing licensed forex broker in South Africa. Because our offers vary based on availability in the market, it is best to contact us directly to discuss the licenses we currently have available for sale.
How is forex trading regulated in South Africa?
Forex regulation in South Africa is overseen by the Financial Sector Conduct Authority Board of South Africa (FSCA), which is a relatively new government body. Established in April of 2018, the current South Africa FSCA replaced the previous financial regulator in South Africa, known as the FSB. Due its long history as a regulator in South Africa, it is still common to refer to regulated forex brokers in South Africa as FSB licensed entities.
How many directors are required to obtain a forex broker license in South Africa?
At a minimum, at least 1 director is required by the FSCA. Furthermore, in order to receive license approval, a minimum of 1 director must be a physical resident of South Africa.
Is Atomiq Consulting able to assist with an ODP license application in South Africa?
Yes, our team has the necessary knowledge and experience to guide forex brokers through the process of receiving ODP license classification in South Africa.
What is a KI in South Africa?
KI stands for Key Individual. In order to legally operate an FSCA licensed forex broker, a KI must be employed and part of the overall corporate structure. As part of our consultation services, Atomiq Consulting can assist your broker in appointing a KI.
Is forex trading legal in South Africa?
Yes. Forex trading in South Africa is regulated by the The Financial Sector Conduct Authority (FSCA). The FSCA register provides a list of all regulated brokers in South Africa.
What type of forex license is issued by the South Africa FSCA?
Upon successful registration, the broker will carry FSP (Financial Services Provider) status. It’s important to note that FSPs in South Africa are classified under different categories. Forex trading happens to fall under the following classification: Category 1.13 – Intermediary in Derivative Instruments.
What law or rule specifically regulates forex trading in South Africa?
There are several acts that stipulate the rules and regulations for forex trading in South Africa:
- Financial Advisory and Intermediaries Services Act (FAIS Act)
- Financial Institutions (Protection of Funds) Act
- Financial Markets Act (Act 19 of 2012)
- Financial Sector Regulation Act (Act 9 of 2017)
- Financial Services Board Act (Act 97 of 1990)
Are there any other countries in Africa which regulate forex and CFD trading?
Yes. As far as continental Africa goes, Kenya has recently drafted a complete regulatory framework for the regulation of forex trading. Another consideration would be to apply for a forex broker license in Mauritius. Note that there is still debate as to the classification of Mauritius: on the one hand, it’s an African country, however, it often carries the status as an offshore destination as well.
What is a South African FSP?
An FSP, or Financial Services Provider, is a business entity formed in South Africa and regulated by the South African FSCA. Only businesses that specialize in the financial services sector receive FSP status. It’s important to note that all licensed forex brokers in South Africa are FSPs.
Is it possible to view a list of all forex brokers licensed in South Africa?
Yes, a complete list of regulated brokers / forex trading companies can be found on the FSCA website. By visiting the South Africa FSCA register, one can see a full list of licensed FX brokers in South Africa.
What type of taxes are regulated forex brokers subject to in South Africa?
Licensed forex brokers in South Africa must pay 28% taxes on net profits.
How to get a stock broker license in South Africa?
1. Collect foundational documentation for the brokerage, including personal details of directors and shareholders.
2. Develop and refine a comprehensive business plan aligned with FSCA regulatory expectations.
3. Formally establish a South African Financial Services Provider (FSP) company entity.
4. Prepare and submit the complete license application package to the FSCA for review.
5. Stay informed with real-time updates from our team during each stage of the application process.
6. Once the license is approved, initiate the setup of a dedicated corporate banking solution.
What capital is required to apply for a forex broker license in South Africa?
Capital requirements in South Africa are based on business operating expenses and therefore not set at a fixed level.
How to get an FSB certificate in South Africa?
The FSB was the name for the previous regulatory body in South Africa which has been replaced by the FSCA. In order to get an FSCA license in South Africa, one must first form a company, then submit the application. More details can be found on our site.
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