Reason for this visit

South Africa is an emerging market economy that implements a free floating exchange rate system, and exchange rate is susceptible to fluctuations due to external factors. The South African forex market was under strict regulation in the early stage of its establishment. However, with the gradual relaxation of forex control, the participants in the real economy can utilize forex characterized by high flexibility in a larger scope, and the linkage between domestic and foreign financial markets has become closer. In 2017, the total trading volume of forex derivatives on the Johannesburg Stock Exchange in South Africa hit 67.3 million lots, with a turnover of 900 billion South African rand. At present, the Johannesburg Stock Exchange offers a total of 25 forex futures and 15 forex options products.

In addition to conventional futures and options contracts, South Africa has also made many innovations in the design of forex derivatives, such as the development of futures contracts that track a basket of exchange rates, customized futures contracts with optional expiry dates, and dual currency forex futures and options contracts on cross currency pairs. Forex traders in South Africa are among the wealthiest people on the continent, and their rich lifestyle influences aspiring traders. Many people in the country are fascinated by the stories of successful people, which makes forex trading even more popular. In order to help investors or practitioners gain a more comprehensive understanding of forex brokers in South Africa, WikiFX survey team decides to go to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to South Africa to visit forex broker BT Markets as planned according to its regulatory address that 2nd Floor, Nelson Mandela Square West Tower, Maude St, Johannesburg 2146.

The investigators came to the West Tower of Neslon Mandela Square at Maude Street in Sandton of Johannesburg, the largest city of South Africa, for a visit to the brokers office. Neslon Mandela Square and the adjacent Sondton City form one of the largest retail complexes in Africa. With an area of approximately 1,000 sqm, the square is home to a large array of stores, restaurants, and a library situated in the far end of the area.

Upon arrival at the tower for further investigation, the survey personnel spotted a directory in the lobby, which did not display the company name or logo of BT Markets. Additionally, the 2nd floor was utilized by “Regus Business Center.” Since the broker did not provide a specific floor or unit number, the inspection team had to search each floor one by one. Ultimately, they were unable to discover any information regarding the company.

Through an on-site investigation, it is confirmed that the broker does not have a physical presence at the place.

Conclusion

The survey team went to South Africa to visit forex broker BT Markets as scheduled, but did not find the company at its regulatory address. It indicates that the broker does not have a physical business office at the location. Accordingly, investors are advised to make a judicious decision following much deliberation.

Disclaimer

The content is for informational purpose only, and shall not be taken as a final order for making a choice.