The trading account, and the checks to run

The same register checks this site teaches, applied to the broker itself

Before opening an account with FxPro or any broker, a reader should run the licence checks this site describes. The first step is to find the exact legal name and the regulator the broker says it uses for South African clients. FxPro's own site refers to FSCA regulation for South African clients, but this site does not state an FSP number for it. The reader should ask the broker for the FSP number and then search that number on the FSCA's register.

The search should return the legal name, the licence categories, the status and the key individuals. The reader should compare that entry with the client agreement the broker sends. The agreement names the entity that will hold the account and the regulator that supervises it. If the agreement names a different entity or regulator, the reader should ask why before sending money.

How the over-the-counter derivative provider category in the FSCA register relates to a CFD account

FxPro offers contracts for difference, or CFDs, on currencies, metals, indices, shares and crypto. A CFD is an agreement on a price: no asset is delivered and nothing is registered in the client's name. In South Africa, most CFD brokers fall under the FSCA's category of over-the-counter derivative providers. That category appears in the FSCA's register with a status.

A reader who is considering a CFD account should check whether the broker appears in that register and what status the register shows. The status is the register's own word: authorised, application pending, application withdrawn, application refused, exempt, or licence ended. The register does not give reasons for a status, and this site does not interpret why a status is what it is.

What to read in the client agreement and the risk warning before an account is opened from South Africa

The client agreement is the source that matters. It names the legal entity that will hold the account, the regulator that supervises it, and the terms that apply. FxPro operates through several regulated entities: one authorised by the FCA in the United Kingdom, one by CySEC in Cyprus, and one by the Securities Commission of The Bahamas. Which entity serves a client depends on the country of residence and is named in the client agreement.

The risk warning is part of the agreement. CFDs are leveraged and carry a high risk of losing the money deposited. Negative balance protection applies to all clients, and client money is held separately from the company's own funds, but retail leverage limits differ by regulating entity. A reader should read the agreement and the risk warning in full before opening an account, and should ask the broker to point to the clauses that cover these points.

FxPro states on its own site that its South African clients are served under authorisation from the Financial Sector Conduct Authority; a reader should confirm this by searching the FSCA's register for the exact legal name and FSP number FxPro shows in the client agreement. The group is also authorised by the FCA in the United Kingdom and by CySEC in Cyprus. Sending money abroad is subject to South African exchange control and tax-compliance requirements. Nothing on this site is investment advice.