Eternity Law International News Forex License in South Africa

Forex License in South Africa

Published:
September 15, 2022

The Forex market continues to develop and expand rapidly. Many jurisdictions have already appreciated the potential and prospects of this area, and are trying in every possible way to attract foreign investors to cooperate, establishing reliable and loyal regulation. South Africa has become one such jurisdiction. It is also one of the first countries to allow forex trading in its commercial space.

Our company provides comprehensive professional support in matters of licensing and establishment of commercial structures around the world. We provide comprehensive advice on any issues, in particular, why it is worth opening a brokerage company in Serbia, how to obtain a license for cryptocurrency activities in a particular jurisdiction, and so on.

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South African Forex Broker for sale

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New business proposal: South African Forex Broker for sale. Please check out the primary details regarding this opportunity below. Forex Broker in South Africa for sale: details of the transaction The company is a Category 2 (Discretionary FSP) broker. Deals with shares, long-term and short-term deposits, bonds, money market instruments, pension funds benefits, retail pension…

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Here is South African broker for sale. Category 1 FSP forex broker company in South Africa for sale: Granted Date Authorized 2021. Operational bank accounts are in First National bank and Standard Bank Of South Africa. Possibility of opening TPFA account for clients fund. No website, no software, no client base, no assets. No legal…

South Africa (FSP) Forex license requirements

In order to join the niche of Forex trading in South Africa and become an official and licensed FSP – a company that is a financial type service provider – a firm must necessarily fulfill and comply with certain regulatory requirements. These parameters and norms are put forward by the FSCA – the local regulatory body that controls the activities and supports the efficient functioning of the financial sector in the jurisdiction.

General minimum requirements are established in the following form and list.

  1. Establishment of a company within the jurisdiction.
  2. The presence of one director, to the position of which only natural persons are allowed. He must be a resident.
  3. The presence of one shareholder, which can be both commercial organizations and individuals.
  4. Availability of a qualified employee responsible for compliance.
  5. An active account in one of the local banking institutions.
  6. Availability and provision of professional liability insurance for employees.
  7. Mandatory passing of standard examinations. This item is mandatory for key persons and representatives of the company.
  8. The presence of an officially registered office.
  9. In relation to the size of the initial capital, no mandatory regulatory parameters have been established. The broker must maintain sufficient capital in his corporate account to cover all of his obligations and incur operating expenses. Given R5 million rand (about US$350,000).
  10. The presence of employees in the company is a must.

In addition, companies are required to submit financial statements audited by an independent auditor once a year.

Types of forex licenses in South Africa

There are several categories for licensing Forex trading in South Africa.

  1. Category I. Organizations included in this category are formally eligible to act as an intermediary and advisor in relation to the relevant financial products.
  2. Category II – discretionary intermediary.
  3. Category IIA. This permission is in addition to the previous category of permissions. It gives the right to carry out transactions and operations with investment funds that trade in liquid assets, using complex and multi-stage mechanisms. As a rule, such mechanisms are not available to retail investors.

Advantages of forex licenses in South Africa

The following privileges, attractive for the commercial sector, are available to the Forex investor.

  1. The jurisdiction has a strategic location. It is an entry point to larger African markets.
  2. Incorporation of corporations in South Africa is attractive because the laws, regulations and framework, as well as the general practice of licensing in this region in the field of asset protection, are in line with the laws of more developed and prosperous countries.
  3. The niche of financial service range in the jurisdiction is quite developed, which is strongly supported by a reliable regulatory framework. Many local and foreign corporations provide a full range of their services here. Foreign banking institutions are widely represented, nationwide ATM networks are available, and the Internet banking sector is well developed.
  4. A strong, diversified manufacturing base that has shown its resilience and potential to compete in the global economy.
  5. Highly developed mechanisms and systems based on information and communication technologies. This provides and guarantees free access to advanced technologies, skills and equipment, and also has the rapid spread of telecommunications and IT across the continent.

As we can note, South Africa is quite a profitable and attractive space for Forex trading and cryptocurrency firms. This is the reason for the increased interest in this jurisdiction of foreign capital holders.

forex trading in south africa

Procedure for obtaining a Forex license in South Africa

In order to obtain permission for Forex activities within this commercial space, it is necessary to go through some of the following steps. The procedure itself is clear and not complicated, however, in order to avoid possible difficulties and tricky nuances, we recommend that you contact our company.

  1. Preparation and collection of necessary documents related to brokerage activities, in particular, personal information about directors and shareholders for KYC verification.
  2. Well-written and detailed business plan.
  3. Registration of key persons of the company and its representatives.
  4. Establishment of a local company.
  5. Making and receiving insurance.
  6. Opening an account with a local bank and depositing capital, the amount of which is not subject to separate requirements.
  7. Submission of a package of documents to FSCA.
  8. Immediate approval.

Our experts will provide you with comprehensive support at every stage of business-establishment. In addition, we can offer you an extensive list of ready-made companies for sale in Spain, Germany, Estonia, Poland, Cyprus and other countries.

Taxation of forex companies in South Africa

Speaking of taxation in the jurisdiction, it should be noted that the corporate tax rate is 28% and capital gains tax is 18.6%.

What is included in our services

Our company has the highest specialists and professionals in their field, working all over the world. We are ready to offer you the following.

  1. Registration of firms in jurisdictions around the world.
  2. Obtaining licenses and other special permits.
  3. Collection and preparation of the appropriate package of documents.
  4. An extensive corporate service list, in particular, the search and selection of an office for rent, assistance in hiring employees, preparing financial statements, and more.
  5. Opening bank accounts and merchant accounts.
  6. Shelf companies and licenses for sale.

Our lawyers are experts with many years of experience and strive to achieve only the best results for our clients.

How much does a forex license in South Africa cost?

The cost of obtaining a license permit is calculated individually in each case. We will help you not only correctly calculate the cost, but also optimize your costs as much as possible. The principle of our work is honesty and transparency in relations with clients, so we will not hide any nuances from you.

Our advantages

We are specialists of the highest profile and qualifications, working all over the world. Our clients always get the best and fastest results.

  1. High professional qualification. All our experts are only professional lawyers with extensive professional knowledge.
  2. Many years of experience in cooperation and presence in this niche.
  3. Hundreds of satisfied customers who have personally seen our professionalism.
  4. Honesty and transparency in dealing with clients.
  5. The desire to keep up with the latest innovative solutions and technologies. We also carefully monitor changes that occur in the laws and regulations of jurisdictions.
  6. An extensive list of corporate services.

Turning to us, you will make the beginning of your commercial path simple and fast. We will provide you with comprehensive support and become your reliable allies at every stage.

Do Forex traders need a license in South Africa?

Forex trading in South Africa provides entrepreneurs with the official right to act as a participant in the Forex market. In addition, this permission is required in order to be legally able to offer relevant Forex services to clients. Traders who do not have such a license cannot operate in the Forex market. In addition, activities uncontrolled by the regulator are punishable by claims and fines.

How is Forex regulated in South Africa?

The local regulator – FSCA – strictly controls the activities of Forex brokers and also issues appropriate licenses. To become a holder of Forex trading in South Africa to legally engage in Forex trading in this jurisdiction, applicants must demonstrate to the FSCA that they meet established requirements and parameters. Only if the put forward criteria are fully met, the regulator approves the application and issues a license.

Is Forex Trading Legal in South Africa?

To conduct legal activities and carry out transactions as a Forex broker in South Africa, you need to obtain a license. Forex trading in South Africa gives its owners official access to the Forex market and the ability to offer their services at a legal level. Successfully obtaining a license requires meeting the criteria set by the local regulator.

How much is a Forex license in South Africa?

The total cost of obtaining Forex trading in South Africa is calculated individually in each case. Our specialists will make a correct calculation for you and try to optimize your budget as much as possible. Contact our managers for a preliminary consultation.

forex trading in south africa

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