Binary Options Brokers in South Africa
South Africa may not be your first thought when considering potential financial markets. Indeed, there are many people who still see South Africa as undeveloped; these people would not even associate this type of trading with binary options South Africa.
In fact, there is a great deal of opportunity in South Africa; it is a rich and diverse country which has embraced the idea of binary trading.
Regulations & South Africa Binary Options Brokers
Binary options regulations have only come into force in South Africa over the last few years. Prior to this there was nothing to protect traders or supervise the conduct of South Africa’s binary options brokers. This led to a variety of accusations and the usual assumption that every broker operating from this country was corrupt. However, as with any industry, there are good players and bad ones. In fact, many of the brokers offering binary options in South Africa have been registered with the authorities for years and have the appropriate licenses; they were simply missing a set of guidelines.
It is this lack of understanding which meant that the majority of South African traders used off shore brokers; this does not mean that these brokers were regulated; merely that they were registered in a different country. However, thanks to a raft of regulations and a government approved regulatory body there are no an increasing number of binary options brokers based in South Africa. Even more importantly the number of traders using their services is rising rapidly.
There are two main bodies which have been created in South Africa to oversee the binary options, South Africa, industry; they both have important roles to play in ensuring the industry remains legitimate and safe for traders.
FSB is short for Financial Services Board; it is the South African body which controls and supervises all financial services. Binary options South Africa have now been recognized as a financial instrument and are covered by the responsibilities of this board. This board supervises all financial instruments, including Africa’s largest stock market; the Johannesburg Stock Exchange. Monitoring the stock exchange is also an effective way to keep tabs on the binary options industry. In fact, many traders will base their trades on the movements of this stock market.
The FSB does not just monitor stock markets and binary options; it must also oversee insurance collections, investment schemes and a multitude of other financial activities. In order to provide adequate regulation for the binary industry, a secondary body has been created and supervised by the FSB.
The FAIS is the Financial Advisory and Intermediary Services agency. Its main focus is security within the financial markets and this means it pays particular attention to the behavior of binary options brokers in South Africa. His scope of responsibility includes monitoring brokers and traders to ensure they comply with the regulations in place and offer a fair service. This agency is an essential stopping point when looking for a binary options in South Africa. They will be able to confirm if they are reputable and properly registered. Of course, you should review the features each broker offers as well!