19/10/ · The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse. Until a framework for regulation of online retail forex trading is developed by the SEC, any person participating or engaged in such investment activity does so at his or her own risk. SIGNED MANAGEMENT 05/10/ · At first, Tito Mboweni seemed to directly contradict current Financial Sector Conduct Authority (FSCA) regulations by stating that online forex trading is illegal in South Africa and that Estimated Reading Time: 4 mins 10/05/ · Thus, the South African government has no regulations regarding the legality or illegality of Forex Trading platforms, but only a system of exchange control that oversees the cash outflow from the country. This system is overseen by the South African Reserve Bank (SARB) and is conducted through the banks and financial blogger.comted Reading Time: 9 mins
All you need to know about the FSCA Forex regulations in South Africa
JSE all share has gained 1. Province set to officially exit third wave of Covid and is in desperate need of an economic boost, Alan Winde says. The ANC has finally submitted its list of candidates who will contest the local government elections on November 1 after being granted an extension by the IEC. Opponents have eight days to appeal the decision, failing which the ruling becomes law in the Netherlands.
The decision was unanimous and in line with market expectations predicting the bank would keep rates steady. Decision, which holds that the charter is a policy document, underscores the principle of once empowered always empowered, online forex regulagtions is sa. Finance minister Tito Mboweni triggered a minor storm, and no small measure of confusion, when responding to a parliamentary question on online foreign exchange trading this week.
At first, online forex regulagtions is sa, Mboweni seemed to directly contradict current Financial Sector Conduct Authority FSCA regulations by stating that online forex trading is illegal in SA and that residents are not allowed to speculate against the rand. While the minister did clarify his statements by saying that illegal forex trading platforms should not be confused with brokers who offer derivative trading, there still seems to be some confusion over how online forex trading works and what is legal and illegal in SA.
While the minister is correct in noting that derivative forex speculation is legal in SA, some of his earlier comments seem to show some misunderstanding of how the industry operates.
I want to credit the FSCA though: it immediately published its own clarification of the remarks, stating online forex regulagtions is sa online forex trading is legal in SA as long as it is speculation on forex derivatives through a licensed broker. The regulator also pointed out that it is illegal to purchase forex from firms or people without the proper authorisation, and that it is illegal to speculate against the rand.
The misunderstanding seems to stem from what exactly online forex trading is, online forex regulagtions is sa. It is a form of contract for difference CFD trading. CFDs are financial instruments that derive their value from an underlying physical asset, such as the exchange rate of a currency pair, or the price of a precious metal or equity. Because CFDs only derive their value from the price of an asset, they are known as derivatives. When trading CFDs neither the trader nor the provider of the CFD take ownership of any physical asset.
Trading CFDs is legal for SA residents, and CFD brokers are regulated by the FSCA and allowed to operate with the correct licence. No law prohibits SA residents from trading with overseas-based forex brokers, even brokers that are not regulated by the FSCA. As far as we are aware no illegal brokers are operating in SA that offer forex trading with real currency — true forex online forex regulagtions is sa requires many millions of dollars and is the preserve of banks and hedge funds.
All online forex trading in SA is derivative trading. The FSCA has recently introduced a new licensing scheme for all online derivative providers in SA called the ODP licence. The more the forex industry is discussed in the public domain the better.
Honest and regulated forex brokers should be freed from the reputational damage inflicted by their dishonest peers and SA residents should be fully educated on the risks of forex trading. But online forex regulagtions is sa would serve the public to have as little confusion as possible over the rights and wrongs of these issues.
Would you like to comment on this article or view other readers' comments? Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January, online forex regulagtions is sa. Subscribe Sign In. Markets Data. MARKET WRAP: Rates decision buoys JSE and rand JSE all share has gained 1. Featured Rand firms after Reserve Bank leaves rates unchanged. B L Premium. Taper promise pushes global markets higher.
Oil prices extend gains as US draws heavily on stocks, online forex regulagtions is sa. Columnists Editorials Letters. Featured LETTER: Will the state dissolve private firms to ensure achievement of empowerment?
EDITORIAL: Tourism sector needs fewer word salads and more meaty action. CARTOON: Nersa gold for Karpowership. Western Cape premier urges easing to lockdown level 1 Province set to officially exit third wave of Covid and is in desperate need of an economic boost, Alan Winde says.
Jacob Zuma back home in Nkandla after being discharged from hospital, online forex regulagtions is sa. Slump in jab rates threatens state target. ANC finally submits list of local election candidates The ANC has finally submitted its list of candidates who will contest the local government elections on November 1 after being granted an extension by the IEC.
Featured Cosatu president urges members to support ANC at the polls. Reopening candidate nomination process by IEC was lawful, top court says. EFF defends campaign funding after questions raised about spending.
Featured RocoMamas turns in a star performance for Spur. How VW culture contributed to emissions scandal. Reserve Bank holds interest rates at record lows The decision was unanimous and in line with market expectations predicting the bank would keep rates steady.
PODCAST Keep the taxman in mind when liquidating. Ruling on BEE status in charter hailed as a victory for miners Decision, which holds that the charter is a policy document, underscores the principle of once empowered always empowered. Featured PODCAST Study shows only one-in-five business owners in SA are women. FREE TO READ Plastics recycling gets renewed focus.
WATCH LIVE Cybersecurity and resilience in an unpredictable world. Africa Americas Asia Europe Middle East, online forex regulagtions is sa. Hamas loses a key foreign base after Sudan takes control of assets. Melbourne quiet after days of violent anti-lockdown protests.
Cricket Other Sport Rugby Soccer. Featured Sundowns not looking too far ahead, says Rulani Mokwena. Faf de Klerk taken aback by decisions against Boks. The week in pictures Civilians head to online forex regulagtions is sa and Germans online forex regulagtions is sa up to head to the polls.
Featured Cross Turismo steals the limelight in Porsche Taycan range. The 90 is a Defender of ruggedness and urban cool. Volkswagen SA celebrates its 70th birthday. Mboweni warns about illegal forex trading by individuals The government will come for people participating in online forex trading emanating from foreign jurisdictions, which is still illegal in SA. Banks prepare for market risks due to potential US election chaos Market participants must ensure they have funds set aside to take advantage of the volatility and not be overexposed to any single asset.
AYABONGA CAWE: Some BEE deals are nothing short of rackets Transparency and true value creation is needed, instead of corruption and payoffs linked to sentiment. It seems destined Next Online forex regulagtions is sa. SIGN IN.
Please read our Comment Policy before commenting. Most read. NICOLE FRITZ: Remember al-Bashir, Mr Zuma, when KHAYA SITHOLE: Not even Covid could help fulfil
95% Forex Winning Strategy - Big Banks Secrets - Step By Step (Part 1)
, time: 55:13South Africa Exchange Control Regulations – Incompass Forex
19/10/ · The public is hereby advised that online retail forex trading is currently unregulated and consequently may be subject to abuse. Until a framework for regulation of online retail forex trading is developed by the SEC, any person participating or engaged in such investment activity does so at his or her own risk. SIGNED MANAGEMENT 24/03/ · South Africa has had a forex regulation under FSB (Financial Services Board) since under FAIS Act which allowed brokers to operate as Forex Investment Providers 16/02/ · Pepperstone is a large online trading broker that has strict regulation through several regulatory entities. South African traders are offered with some of the best trading conditions and trading solutions and services when trading with Pepperstone. Pros and Cons
No comments:
Post a Comment