South Africa · FSCA · Tier-1 onshore
South Africa forex licence (FSCA FSP and ODP)
A credible onshore regulator at moderate cost and a common “second licence” for Africa, off the FATF grey list since October 2025. Available on request.
Updated
South Africa licenses forex brokers through the FSCA: an FSP licence (Category I or II) under FAIS for intermediary services, and an Over-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act for firms acting as principal in CFDs. South Africa left the FATF grey list on 24 October 2025.
Key facts
| Regulator | Financial Sector Conduct Authority (FSCA) |
|---|---|
| Licence | FSP Category I/II; ODP authorisation for principal CFD providers |
| Legal basis | FAIS Act 37 of 2002; Financial Markets Act 19 of 2012 |
| Entity | South African private company (Pty) Ltd |
| Typical timeline | FSP typically 4–9 months; ODP typically 9–18 months or more |
| Capital | Yes: financial soundness requirements (FSP) and capital and liquidity requirements (ODP) |
| Tax | 27% corporate income tax |
| Recognition | Strong: IOSCO-member conduct regulator |
| Client markets | South African clients; often used as a group licence for Africa; no EU/UK passport |
| EU passport | No |
| Our service | On request via partners |
Indicative information for comparison only, reviewed on the date shown. Requirements change and depend on your structure; confirm with the regulator and local counsel before deciding.
Overview
The FSCA licenses financial services providers under FAIS. Brokers that act as principal to OTC derivatives such as CFDs also need ODP authorisation under the Financial Markets Act.
Many international CFD groups hold an FSCA licence as their African entity.
Substance and people
- Approved key individual with qualifications and regulatory exams
- FSCA-approved compliance officer
- Registered representatives
- FIC registration and AML officer
- Local office in practice
Ongoing obligations
- Annual audited financial statements to the FSCA
- Compliance reports
- FIC (AML) reporting
- ODP trade reporting to a trade repository
Advantages
- Credible onshore regulator at moderate cost
- Access to the South African market
- Clear split between agency (FSP) and principal (ODP) models
Drawbacks
- ODP approval is slow and demanding
- 27% corporate tax
- Local key individual and exam requirements
Recent changes
South Africa was removed from the FATF grey list on 24 October 2025 and from the EU AML high-risk list in the December 2025 update. The FSCA is actively pursuing unlicensed OTC and crypto derivative providers.
Frequently asked questions
Do I need an ODP licence?
If you issue or act as principal to CFDs (market maker), yes. Intermediaries may operate under an FSP licence alone.
Is South Africa still grey-listed?
No. It was removed from the FATF grey list on 24 October 2025.
Official sources
Primary sources we rely on. Rules change; always confirm current requirements with the authority.
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