Binary Options Regulations and Regulated Brokers in South Africa
Is Binary Options Trading in South Africa Legal?
Up until several years ago, there was no financial agency or regulatory body overseeing binary options trading in South Africa. But luckily, things have changed, and while most binary options brokers accept South African traders, South African companies are not allowed to become binary options brokers.
However, brokers based outside of South Africa are not prohibited from offering their products to South African investors, so both regulated and unregulated brokers can offer their services without problems.
But with all this said, is trading binary options in South Africa legal? The answer is a loud, resounding yes.
How Legal is Binary Options Trading?
There is currently no law that states binary options trading in South Africa is illegal. In fact, there’s no legal text that even refers to online investing in South Africa.
South African traders can register with brokers who accept traders from their country, they can deposit their money, and make withdrawals – all of which is 100% legal.
Unfortunately there are no South African based binary options brokers, but again, brokers outside the country can offer their services and there are reputable brokers that are licensed and regulated by the FSB.
Regulation Agencies of South Africa
Today there are two financial regulators who cover both financial trading services and binary options in South Africa.
The first is the Financial Services Board (FSB) which oversees the entire financial service industry in South Africa. They also examine binary options brokers offering their services to its citizens, and are also tasked with keeping an eye on the Johannesburg Stock Exchange, Africa’s largest stock exchange.
Apart from the FSB, South Africa is also regulated by the Financial Advisory and Intermediary Services Agency (FAIS). FAIS works under the FSB and is tasked with supervising the binary options industry, which includes helping binary option brokers and websites offer their services to South African traders, and in ensuring compliance with binary options traders.
South African Regulated Binary Options Brokers