The main regulator of South Africa, the FSCA (Financial Services Conduct Authority) has warned customers about possible business with Global Investors Choice. The regulator states that the brand is not regulated and therefore should be dealt with suspicion.
The statement was announced relatively recently. The official website of the FSCA stated that Global Investors Choice uses cryptos, binary options and Forex to attract investors and in such a way offers them automated trading platforms, but once again the company lacks the official license.
According to the FSCA, Global Investors Choice stated that they have an official license from the FSCA, as well as the FCA and CySEC. However, as the FSCA, itself noted, Global Investors Choice is not registered as an FSP and does not comply with the conditions and requirements of the regulator. Therefore any information and claims about the license are false. The FSCA tried to receive a response from the website, but to no avail.
Which Brokers Are Legit In South Africa?
According to the laws and regulations in the country, not every broker has a right to operate within the borders. They are required to comply with FSCA FX regulation requirements, which should be presented with a proof. In this particular case, no such thing was delivered and the FSCA informed customers, who had previous business with the company to present information about transactions, to assess the matter carefully. There is an official phone number that clients can use to contact the regulator.
Forex In South Africa
Obtaining a Forex license in the Republic of South Africa is a procedure that must be passed in order to carry out brokerage activities in this jurisdiction. South Africa is one of the most developed countries on the African continent, so starting a business can be a promising solution.
The Financial Sector Supervision Authority (FSCA) is the primary government agency responsible for regulating non-banking financial services in South Africa. Its scope includes, in particular, investment advisers, investment funds and persons engaged in brokerage activities. In accordance with the FCIAS (Financial Consulting and Intermediary Services Act), a company that intends to start a Forex business in South Africa must obtain a Category II discretionary license.
How To Detect Fraudulent Websites?
Detecting fraudulent and scam websites in the modern world has become extremely difficult because these entities use a lot of methods to deceive their clients. Recently, the number of such scammers has increased significantly. According to the opinions of professionals, 99% of people who have barely come to trade lose their funds. But in part it is a delusion, it all depends on which broker the newbie turns to. By choosing a good intermediary, you can even earn, and a good amount. However there are some indicators that you can use to determine whether Forex brokers are trustworthy or not.
This is the foundation. There is no point in researching other parameters of a broker until its legal status is confirmed – the fact that it legally operates in the country and in the financial sphere. There are several ways to check this. One of the most reliable is to find out about the availability of permits on the official website of the regulator. If the broker you are interested in is on this list, then it is licensed. If not, you definitely shouldn’t mess with it. Also, a list of licensed brokers can be found on the website of the central bank. However, just having a broker on the list is not enough. To be sure of the legal status of an intermediary, you need to look at the type of permit document (is there really a license for brokerage activities or only for the use of a trading platform), and its validity period.
The reliability of the broker determines how long it will exist – whether it will go bankrupt at the most inopportune moment, depriving the trader of his money. Among other things, reliable large brokers care about their reputation, so they often offer more favorable terms and rates. How to check the reliability? Inquire about the broker. Find out how long it has been on the market. The most reliable brokers are considered to be with work experience of 5-8 years and more.
Instead of doing the analysis yourself, you should use a ready-made blacklist. Verified resources update it on a regular basis and allow visitors to search in the most convenient way for them. This approach will save time, money and energy.