South African social trading brokers are required to be licensed by the national financial regulator known as the Financial Sector Conduct Authority (FSCA), previously known as the Financial Services Board (FSB). This is a regulator that allows social trading brokers and other companies in the financial industry to operate much more freely than in Europe and North America. Among other things, this has allowed South African forex brokers to offer high trading leverage of up to 1:500 on the most liquid assets.
Social trading, and forex trading in general, has become incredibly popular in Africa over the past few years. This has led many forex brokers to set up their regional headquarters in South Africa, using the country as a base to serve traders all over the African continent. As Africa continues to develop economically, the number of social trading forex brokers in South Africa is likely to continue to grow.