Is Forex Trading Legal in South Africa?
Hello readers, it’s been a while since I published a blog post. It’s towards the end of the year and it’s been a bit hectic on my side. I thought I should pop in today and answer this frequently asked question about whether Forex trading is legal in South Africa or not.
Forex trading can provide a great opportunity to increase one’s income streams. People are trading for different reasons. Some people are trading just because it seems to be popular. The people who trade for that reason are usually very clueless about what is expected from them in order to succeed in trading and they make up a huge percentage of people who are failing dismally. “Side note” to this group “Forex trading is not the screenshots that are circulating on social media”. Before investing money in Forex, one must acquire a proper skill. There a people who are trading for a monthly income. But before you think about firing your current boss just because you just found out that Forex trading is legal in South Africa, make sure you read this post HERE.
Forex trading is legal in South Africa as long as it is done within a regulated environment and participants are legal citizens with a South African Identity Document or Passport . There are Forex Brokers who are providing traders with trading platforms where the buying and selling of currencies or any other financial instruments that they may offer takes place.
Because Forex trading is legal in South Africa, Forex Brokers are compelled to be registered with the Financial Sector Conduct Authority (FSCA) formerly known as the Financial Services Board (FSB). When a trader funds his/her Forex account using his/her local credit/debit bank card, the same method should be used to withdraw money from the Forex account until all the money that was deposited from the card is returned. To withdraw profits, Bank wire is the preferred method used by most brokers especially those that are international brokers but also regulated locally.
Withdrawing money from the Forex account via bank wire involves the South African Reserve Bank (SARB) as the banks do require the reasons why there’s money coming in to your bank account. This should be proof enough that Forex Trading is indeed legal in South Africa. Plus a Forex Trader/s should declare the income with SARS (please do speak to a tax practitioner for more on this subject if you have been trading profitably). Should you want to open an account with one of the regulated Forex Brokers, you can find them on this post HERE. Thank you for stopping by, please kindly share this post with your peers and friends.