Global Forex Market in South Africa: Peculiarities and Perks

In South Africa’s vibrant and miscellaneous state of economy, Forex trading is a storehouse of ideas for gold diggers. There are so many trading platforms around, that the eyes diverge. A great deal of venturers use trading services, from newbies being introduced to the sphere of currency exchange to top-notch dealers making a fortune from all possible sources. Under such favorable conditions, determining the best choices for foreign exchange trading around South Africa seems a wise decision.

The purpose of this article is to get to know the South African currency exchange market, casting a light upon platforms that stand out from the crowd with their credibility, user-friendly interface, pricing policy, and compliance with the regulatory requirements typical for South Africa. It should be noted that to operate in trade around South Africa, your enterprise requires a broker who is not just a trustworthy platform, but a like-minded person taking personal growth close to his heart. 

Investigating the offers of these brokers, you can find an impressive number of features and services. Most of them are particularly developed for the goals prevailing among South African businesses. Regardless of whether you are trading on the busy streets of Johannesburg or the picturesque views of Cape Town, these policies are created to meet the multifarious requisites of the South African Forex market community.

What should I bear in mind to obtain a Forex license in South Africa without obstacles? 

Let’s say you are an individual or an enterprise dealing with trading services. In this case, the following steps on how to start forex trading in south africa are a helping hand for you.

• Register your company in South Africa

• Give detailed information about all individuals and legal entities that manage the company 
• Provide a written confirmation for your business activities  
• Appoint a local representative and a compliance specialist (this requirement is an absolute must) 
• All representatives and officials are obliged to pass an examination to ensure compliance with qualifications and experience
• Confirm the presence of a registered address
• Open and set up an account in any bank in the territory of South Africa.

It is worth taking into consideration that after being licensed, the Forex company is obliged to regularly submit a financial report. In South Africa, professional liability insurance is by any means necessary (in some cases, its sum can reach 350 thousand USD). As an extra requirement, all documentation should be carefully and scrupulously translated into English including the slightest details of your Forex activity.

If you are planning to become a broker in the future, you should keep in mind that the staff of your enterprise should include at least one company director, one shareholder, a couple of key persons, a compliance specialist, and an auditor.  The process of company licensing can take a lot of time, in some cases up to a year.

The tax system becomes even more peculiar when it comes to the South African forex market. If you made up your mind to become a licensed Forex enterprise, you would need to pay two types of taxes: corporate (28%) and capital gains tax (18,6%). 

What are the perks of opening up a Forex account within a South African financial market? 

The Forex trader living in South Africa can boast of the following perks that become a tempting offer for the corporate sector:

• The location for jurisdiction has a strategic position. Thus, it can provide access to broader Africa-based markets providing better financial results.
• Corporation registration in South Africa is stunning providing crystal clear rules and regulations as well as asset protection. It makes South Aftical Forex trustworthy since it reflects the basic principles of trading within prosperous European countries. 
• A reliable legal framework protects the trading services. Moreover, in South Africa international banking institutions are widely represented, nationwide networks of ATMs are available, and the Internet banking sector is superb.
• A powerful, diversified production base that has demonstrated its stability and potential for powerful competition in the international economy.
• Information and communication technology provides reliable access to Forex trading and also promotes the fast-paced spread of high-tech throughout the country. 

What kind of regulation is used when it comes to Forex activity in South Africa? 

The local regulator called FSCA is quite strict since it controls the whole spectrum of activities of Forex brokers, as well as relevant licenses. It is quite clear that to become the holder of a permit for legal Forex activity in South Africa, applicants must demonstrate to FSCA their impeccable level of professionalism and absence of financial risks. Only in full compliance with the suggested criteria, local regulators approve the application and issue a long-awaited license.

As we can see, South Africa offers great perks for those who made up their minds to start a currency exchange within the country. Strict regulations and a well-shaped policy of licensing make the trading process around this country clear even for those who plan to break into the world of mind-boggling Forex deals.