Most people have the misconception that Forex trading is illegal in South Africa. However, that is not the case. Yes, we cannot use any data providers like Yahoo, Google or Google Images from South Africa. But trading on Forex with different brokers is completely legal. It is an unregulated business. You are allowed to trade using a foreign account, but you are limited in terms of the amount that you can invest and trade.
There is also the disadvantage of not being able to trade with real money. If you are someone that prefers to trade in South Africa with real money, then we recommend that you make a move to a bigger broker. One of the biggest brokers in the country is Trade245. This broker is known to have a wide reach and good customer service. If you make use of the Trade245’s plans, then you can trade from home or using real-time trading platforms. Minimum deposit Trade245 offers are 100$.
Strict Regulations and Restrictions
Forex trading is legal in South Africa with a lot of rules and strict instructions. Investing or trading forex (foreign currency) in South Africa can be quite complicated, due to the high number of regulations and restrictions when it comes to the different forex trading markets.
In South Africa, you need to learn about the different forex trading markets available in the country and how to trade them so that you can profit handsomely and keep your reputation, along with your interests intact.
What South African Laws Say?
There are no specific laws prohibiting Forex trading in South Africa. The laws and regulations of South Africa have put in place a set of laws which regulate Forex trading in South Africa. For instance, Forex trading is allowed in some states of South Africa but it is illegal in other parts of South Africa.
In addition, it is prohibited for anyone to trade Forex in South Africa in a certain time period. People who are trading Forex in South Africa could be arrested if there are any violations in their actions.
How to Be Safe While Trading Forex in South Africa?
What is the Forex broker doing about the legal issues? The brokers have taken various steps in order to ensure the safety of their clients while trading Forex. Here are the steps that the brokers follow:
- When new people come in contact with Forex brokers they generally ask for training. As a matter of fact, there are Forex brokers who provide free training to their clients.
- The brokers follow strict standards to conduct training sessions. Apart from the training, the brokers also provide the tools that are necessary to allow the clients to trade.
- The brokers are required to have valid licenses in order to offer their services. The brokers are required to register with the Financial Services Board (FSB).
The brokers have to comply with a lot of rules and regulations. The brokers also have to adhere to the rules that are specified by the government. The brokers are doing a lot in order to ensure that their clients are safe while trading in Forex. As a matter of fact, Forex brokers are offering their services across the country. People who are interested in Forex trading in South Africa should choose the right broker.
