Important Forex regulations in South Africa today

By Chime Amara

Introduction

Forex trading is a legal business in South Africa, just as we find in every country today. However, there are important regulations guiding forex trading in each country today. These regulations define the standards to be observed by both traders and forex brokers rendering financial services within the country today.

Meaning of Forex regulations

Forex regulations are codes of conduct guiding forex trading within the country. These codes of conduct define the standards for carrying out forex transactions within the country.

Important Forex regulations guiding forex trading in South Africa today

Taxation: All forex traders residing in South Africa today are expected to pay tax on all profits made from forex trading. This trading applies to whether the trader made the gains using a foreign account or using a local account. All gains made from forex trading are considered capital gains and taxable in South Africa today.

License: Forex trading is a legitimate business in South Africa today. However, all forex brokers operating in South Africa are expected to obtain approvals and license from the country's financial services regulators known as the Financial Sector Conduct Authority (FSCA). This body scrutinizes the activities of all the brokers in South Africa to ensure they comply with the regulatory standards.

Age limit: Forex trading is a very risky business and as such open to only traders who have crossed the age of reason above 18 years to enable them take decisions.