Global Broker Regulation Inquiry App
WikiFX
English
简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Is forex trading a safe investment for South African Traders?
Abstract：There is a major concern today regarding the security of the capital invested into the forex market by the majority of South African traders. Many tend to ask if the funds are safe with the brokers while others seek some guarantee for profits over invested capital. However, there are two major considerations that determine the degree of security offered to investors' funds. These two factors which border on regulations and the type of broker involved have been discussed fully in this work.
By: Chime Amara
What are the factors that determine the security of investors' funds in the forex market？
Forex trading is classified as a high-risk investment. This is because there is no guarantee for profits. Investment in forex is quite different from other forms of investment involving lower risks such as investing in real estate, buying government bonds, and purchase of physical assets, etc. Hence, investors are advised to carefully study the risks involved in forex trading before venturing into investing.
On the other hand, when it comes to claiming back one's capital and profits after deposits, there are two factors that determine the security of the invested funds. These factors are explained below:
« Regulation: To ensure that brokers can pay back all invested in the forex market, various countries have created their financial market regulators to foresee the activities of all brokers operating in the country. Various regulatory bodies such as FCA, FSA, ASIC, FSCA, SEC, etc probe the activities of all the brokers operating in their regions and hold them accountable to pay all profits and available capital when requested by the trader. Similarly, WIKIFX renders independent regulatory services as a backup to the various country regulators. The onus, therefore, lies on traders to select the brokers registered with their country's regulators and approved by Wikifx too. This offers them more confidence in the security of the invested funds.
« Type of broker: Very often,ECN brokers are preferable over any other type of broker. This is because this category of brokers is known to place the traders' orders directly at the market and are therefore able to deliver all the returns without hindrance. Other brokers do not have this advantage. Hence, ECN brokers remain the best type of broker for investors today.
Nevertheless, all South African traders should ensure that their chosen broker is registered with FSCA which is the body regulating brokers in South Africa today.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Related broker
Read more
Charles Schwab Review: Traders Claim Illegitimate Profit Cancellation, Trade Manipulation & More
Have you been lured into the Charles Schwab app for trading on the back of outrageous profit claims by the broker? Did you fail to receive any of these? Does the broker deny withdrawals every time you request and cancel your forex trading account? Have you been victimized financially by its trade manipulation? Act before you are left with a NIL balance in your account. Many traders have questioned Charles Schwab customer service and many other operational executives for the aforementioned illegitimate trading activities. In this Charles Schwab review article, we have shared some of their comments. Read on!
Original Three days ago
AMP Futures Exposed: Traders Raise Alarms Over Illegitimate Account Blocks & Bad Customer Service
Has AMP Futures blocked your forex trading account? Does it fail to provide any explanation for this act? Do you face issues concerning deposits to your AMP Futures account? Is the customer service non-existent for any trading query you raise with it? You are not alone! Many traders have been facing these issues upon AMP Futures login. Some of them have commented on AMP Futures review platforms. In this article, we have shared some reviews that you can look at. Read on!
Original Three days ago
FXGlory Review: Vanishing Profits, Capital Scams & Withdrawal Charges Keep Annoying Traders
Does FXGlory remove all your forex trading account balances upon fund withdrawal requests? Or do you witness incorrect trading account balances after fund withdrawals? Does the Saint Lucia-based forex broker charge you for fund withdrawals? All these and many more scam-related complaints have been filed against the forex broker. In this FXGlory review article, we will discuss several complaints. Read on!
Original Three days ago
PINAKINE Broker Review: A Complete Look at Its Services and Risks
Finding a trustworthy broker from the huge and often confusing world of online trading options is one of the biggest challenges a trader faces. In this competitive market, PINAKINE Liquidity Limited has appeared, getting attention with promises of high leverage and zero-commission trading. However, a closer look shows important factors that every potential client must think about before investing. The most important thing to consider with PINAKINE is that it has no regulation. This fact completely changes how risky the broker is and has major effects on how safe your investments will be. This review gives a complete and fair examination based on information available to the public. We will break down its services, trading conditions, platform technology, and the possible risks involved, helping you make a fully informed decision.
Original Three days ago
WikiFX Broker
Latest News
Stonefort Securities Review: A Fair Look at Safety, Rules, and What Traders Say
WikiFXTrump asks for meat packer probe over beef prices
WikiFXVoices of the Golden Insight Award Jury | Tim Waterer, Chief Market Analyst of KCM Trade
WikiFXBASF CEO: EU CO₂ Trading Is A "Destruction Mechanism" For European Industry
WikiFXProp Firm Scams: When ‘Getting Funded’ Costs You Everything
WikiFXPINAKINE Broker Review: A Complete Look at Its Services and Risks
WikiFXOne-Click Access to Broker Official Group Chats & Exclusive VPS Benefits
WikiFXConsumer sentiment nears lowest level ever as worries build over shutdown
WikiFXUniglobe Markets MT4 Review: A Complete Look at Features, Costs, and Important Safety Issues
WikiFXIs PINAKINE Broker Safe or a Scam? A 2025 Complete Review
WikiFXCurrency Calculator
USD
CNY
Current Rate: 0
Amount
USD
Available
CNY
Calculate