FSCA · South Africa
Financial Sector Conduct Authority
A substantive onshore regulator that requires a real local presence. It is lighter on product rules than the UK or Australia, but increasingly active.
- Retail leverage
- No regulatory leverage cap.
- Compensation
- No investor compensation scheme for CFD clients.
- Capital
- No fixed capital minimum. Firms must hold resources adequate to their business.
- Supervision & substance
- CFD brokers need Category I authorisation with over-the-counter derivative provider (ODP) approval, a physical office, and a locally based key individual and compliance officer. These cannot be outsourced.
- Stocks, futures & crypto
- Stocks and exchange-traded futures run through JSE-authorised brokers. South Africa declared crypto assets financial products in 2022, so crypto providers now need FSCA authorisation.
- Trade-off
- Without leverage caps, client protection depends more on the broker's own risk policies.
What it means for you: Real local oversight, especially relevant for South African traders.
Common questions about FSCA
Is FSCA a good regulator for forex brokers?
In our view, FSCA is a strong international regulator (Tier 2 · Strong international). A substantive onshore regulator that requires a real local presence. It is lighter on product rules than the UK or Australia, but increasingly active. Real local oversight, especially relevant for South African traders.
What leverage can brokers regulated by FSCA offer retail clients?
No regulatory leverage cap.
Is there a compensation scheme if a broker regulated by FSCA fails?
No investor compensation scheme for CFD clients.
Does FSCA regulate stocks, futures, or crypto?
Stocks and exchange-traded futures run through JSE-authorised brokers. South Africa declared crypto assets financial products in 2022, so crypto providers now need FSCA authorisation.
A licence only protects you if your account is with the entity that holds it. Many broker groups hold several licences and onboard clients through an offshore entity. Check your client agreement, and verify the licence on the regulator's own register.
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Tiers and ratings are M1 Strategic's own assessment, based on public sources listed in our regulator guide. Rules change: always verify with the regulator directly. Not financial advice.