Hello.
Dunno how come I missed this thread when it was started i.e. “slacking on the job” here. Then again: we (Deltastock AD) were not registered with the South African Financial Services Board at the time that this thread was started.
Anyway: for those “SAFFAS” here there is indeed a reputable and regulated broker here in South Africa (well: there’s a few now only one of which I’d personally trust as I’ve heard some “not so good stories” about most of the others and their reviews and ratings on the likes of Forex Peace Army as dismal and not encouraging to say the least). OBVIOUSLY it’s Deltastock AD. See the “Broker Aid Station” forums for contact details etc. Free on-line training and support is provided and free on-site training is offered too (subject to certain terms and conditions of course e.g. a minimum account funding of $2 000 USD).
One thing though: be VERY careful when looking at South African Brokers that “purport” to be registered with the South African Financial Services Board. Unfortunately: when the South African Financial Services Board was formed every existing financial advisory service etc. was able to be registered as a licensed Financial Services Provider with the proviso that at some point in the future they would fulfill certain regulatory requirements or lose their license. Unfortunately: this has resulted in one or two licenses being granted to what WAS a simple investment advisory service but after receiving their Financial Services Provider Registration Number they then decided to offer on-line trading as an “extra option”. In other words: it’s quite possible to find a “broker” that WAS a licensed Financial Services Provider but NOT licensed to offer on-line trading. These are being “weeded out” slowly but surely (and I stand under correction here but I THINK the compliance deadline was extended to 31 December 2012 but somewhere, I think I heard, that it’s been extended to 30 June 2013 i.e. I’m not sure so don’t quote me on this).
Bottom line: find a broker that has a local presence and has been in business for a GOOD number of years and has generally good reviews and ratings given by other traders.
For the sake of interest: the first South African Forex Expo was held in Cape Town at the beginning of this month (December 2012). We didn’t attend for the simple reason (and this is what is so amusing) that most of the brokers exhibiting were a) NOT registered with our Financial Services Board and b) one or two of them are KNOWN “bucketshops”. I’m not sure why this is legal but apparently it is i.e. to advertise on-line broking services but NOT be registered with our Financial Services Board. But, as I noted, and because I checked, it’s not illegal. Strange.
One other thing to be on the lookout for is these Cyprus “bucketshops” that have the South African flag on their website with a South African toll free number as their contact details. Those calls are automatically routed by Telkom to wherever the “bucketshop” in question is located. I can tell you also that there are brokers here that ARE registered with our Financial Services Board BUT ALL Customer Service and Dealing Desk calls are routed overseas. This situation came about because the South African Financial Services Board was getting a bit “picky” when it came to granting licenses to brokers who had no intention of having a physical presence here and was merely trying to “use” the South African market for their own gain without actually “putting something back” e.g. provide employment (unemployment being a HUGE issue here).
I guess as with anything: you need to do your due diligence before choosing a broker. In stark contrast to what I’ve just noted above: registration with the South African Financial Services Board is no “guarantee” that your funds are safe. There’s been at least two HUGE investment “schemes” here, that were indeed registered with the South African Financial Services Board, and that went under. Yes: in all probability it’s because the required Compliance Officer was either not doing their job properly, or was being misled by the firms, or simply “turned a blind eye”. Alright and fortunately: these were investment “schemes” and not on-line brokers.
I suppose IN SHORT what I’m saying (never possible for me let’s face it i.e. saying something “in SHORT”): there are MANY other factors to consider when choosing a broker (whether it be in South Africa or internationally). Regulation is but ONE factor to look at.
I’ll say this though (and this based on personal experience from completing our application to the South Africa Financial Services Board): OUR South African Financial Services Board doesn’t just hand our registrations because they’re “in a good mood” or “like your face”. They really are thorough and I would say as stringent, if not more so, than the Financial Services Authority in the UK (with which Deltastock AD is registered too this in addition to be being registered with and regulated by just about every other regulatory body on the planet). Unfortunately though: I guess you’ll always find people that will try to “circumvent” the regulations for their own crooked gain. Usually: they eventually get caught. Problem: they leave a lot of pain and suffering behind.
I hope to hear from some “SAFFAS”. But if not: “be careful out there”. There are a mere handful of brokers, not regulated by US regulators, that are “worth their salt” (and, well, let’s be honest and say that even US regulators are no “safety guarantee” i.e. every heard of MF Global or Bernie Madoff???)!!! LOL!!!
Be well and trade well.
There is no excuse to lose money in this business. Always remember that. The market is not out there to get you (contrary to popular belief). It simply “does what it does” day in and day out. The trick is to “go with the flow”. And as I always “bang on” about in most posts: RISK MANAGEMENT / SOUND MONEY MANAGEMENT is “key”. There are other “rules” to be followed that, if NOT followed, may or may not mean “the end”. NO RISK MANAGEMENT / NO SOUND MONEY MANAGEMENT: it’s an absolute GUARANTEE that your trading will “lead to tears” (this being inextricably linked to being under capitalized).
Regards,
Dale.
