Financial Sector Conduct Authority (FSCA) logo

Financial Sector Conduct Authority (FSCA)

FSCA • South Africa, Africa

Established in 2018

Trust Score: 92%
Official Website

The Financial Sector Conduct Authority (FSCA) is South Africa's market conduct regulator of financial institutions, established in 2018 as a successor to the Financial Services Board (FSB). It oversees Africa's largest forex trading hub with comprehensive regulatory oversight.

Broker Requirements

  • Minimum capital of ZAR 5 million (~$270K) operational liquidity
  • Local office with at least one South African resident director
  • Professional indemnity insurance for directors
  • Directors must pass regulatory examinations
  • Daily position reporting and liquidity audits
  • Quarterly external audits

Investor Protection

  • Client funds segregated in Tier-1 banks with daily reconciliation
  • Compensation coverage up to ZAR 500,000 (~$27,000)
  • Free Ombudsman dispute resolution service
  • Retail leverage capped at 1:30 (1:500 for professionals)
  • Surprise inspections and strict compliance monitoring

Regulated Brokers

  • FP Markets (FSP No. 45984)
  • AvaTrade
  • Pepperstone
  • HF Markets
  • Exness
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Why Your Broker’s Regulator Isn’t Just Fine Print (And Could Save Your Capital)

As Kenyan forex traders pile into the $7.5 trillion/day global currency market, a silent protector—or its absence—determines whether your broker is a fortress or a house of cards.

South Africa’s Financial Sector Conduct Authority (FSCA) and Kenya’s Capital Markets Authority (CMA) stand as Africa’s foremost financial watchdogs. But here’s what’s rarely said: FSCA oversees Africa’s largest forex hub, while CMA’s 10 licensed forex brokers face over 4 million Kenyan retail traders. That gap isn’t just regulatory—it’s about where your money “sleeps” at night.

The FSCA Deep Dive: South Africa’s Financial Sentinel

Little-Known Fact:

The FSCA emerged from the ashes of the 2015 “Financial scandal,” where unregulated brokers wiped out R1.2 billion in SA trader funds. Its mandate? Ruthless oversight. However, it was not until April 1 2018 when the FSCA became fully operational in South Africa.

The FSCA’s Mission:

The FSCA’s Key Strengths:

How the FSCA Operates:

FSCA Broker RequirementsDetails
Minimum CapitalZAR 5 million (~$270K) operational liquidity
Client Fund HandlingSegregation in Tier-1 banks; daily reconciliation
Leverage Limits1:30 retail / 1:500 professionals
Audit FrequencyQuarterly external audits + surprise inspections
Dispute ResolutionOmbudsman for Financial Services (free)

FSCA vs CMA Regulated Forex Brokers

Little-Known Fact:

CMA brokers must funnel client funds through Kenyan custodial banks (KCB, Equity Bank). Withdrawals guaranteed in 48 hours—even during broker collapse.

CMA’s Framework:

Protection FeatureCMA (Kenya)FSCA (South Africa)
Fund SegregationKenyan banks onlyInternational Tier-1 banks
Compensation CoverageKES 50,000 per claim (~$340)ZAR 500,000 (~$27,000)
Retail Leverage Cap1:4001:30
Dispute Resolution Time90-day arbitration180-day process
Mobile Money SupportMandatory M-PesaOptional

FSCA vs. CMA: The Kenyan Trader’s Dilemma

When CMA Reigns Supreme:

🛡️ Where FSCA Dominates:

The Verdict: Should Kenyans Choose FSCA Brokers?

Choose FSCA if you:

Stick with CMA if you:

💡 Pro Tip: Brokers like Exness and HFM hold dual licenses (FSP 51024 + CMA 155). Get global protection + local convenience.

The Naked Truth

The FSCA offers a bulletproof vest for global markets while the CMA provides a custom-fit shield for Nairobi’s trading trenches. Your capital size and trading style decide which guardian angel you need.

👉 Verify your broker at FSCA Registry or CMA Portal

Why Choose Regulated Forex Brokers in Kenya?

Trading with forex brokers regulated by established authorities like Financial Sector Conduct Authority (FSCA) provides significant protection for your funds and ensures fair trading practices. Always verify a broker's regulatory status before opening an account.

View all regulatory bodies