OnEquity, a relatively lesser-known offshore FX broker, has expanded its service offering to target the growing opportunities in South Africa, one of the fastest growing and most vibrant regions in the world.
OnEquity has secured a derivatives license issued by the Financial Sector Conduct Authority (FSCA). The approval allows the firm to act as an OTC derivative provider and therefore is permitted, under regular features of its business, to ‘originate, issue, sell or make a market in OTC derivatives’.
OnEquity said it finds several motivations to operate in South Africa which include the favourable business climate and the progressive nature of the country’s legal system in regard to international brokerage companies.
According to the local laws, OnEquity is required to appoint registered representatives in the country, at least one key individual and a compliance officer in order to effectively take part in company management. As such, it onboarded Enver Snyders, a former account manager at IronFX as its country manager. Enver, who has nearly 10 years of experience in South Africa and a particular focus on business development and client management, joined OnEquity in October 2023.
Forex brokers in South Africa are overseen by the financial sector conduct authority, which approves the firms that can operate within the jurisdiction. The FSCA handles the issuance of licenses and can sanction companies that violate guidelines of the nation’s dual regulation system.
Meanwhile, the regulator had a big influx of applications from cryptocurrency companies seeking operational licenses. According to reports from local media, the FSCA has received 138 proposals from firms looking to be licensed as crypto asset service providers (CASP). However, 19 applications were withdrawn, largely due to issues such as lack of experience and inadequate operational frameworks.
South Africa enjoys a strong and well-organized financial market and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors. The country itself is a diverse market that is largely devoid of the market saturation seen in other jurisdictions such as Europe.
