The Forex trading industry in South Africa has been deteriorating over the past few years and it has now gotten so bad that international players are actually warning others not to do any business with South African Forex trading companies because of all the scams that are everywhere to be seen. Many of our Forex trading companies rely on international companies and foreigners for part or all of their income. The situation has gotten to a point where something has to be done or we will not have a Forex trading industry left in SA much longer. From brokers and education companies to traders and robot or strategy vendors, they are almost all run by people who haven’t mastered the art of trading yet. Many of these so called gurus are not even interested in learning how to trade because they are making huge amounts of money by selling Forex trading products and services of sub par standard.
The FSB are supposed to regulate the brokerages but they are spread out to thin and also lack an understanding of the more complex entities and the educational boards are not interested in setting any standards for Forex trading courses in the foreseeable future.
Something had to be done and that something was the formation of the Forex board or FXB, A board of 12 of the leading players was formed with the function of evaluating and reviewing Forex companies that do business with South Africans. The board is also responsible for dishing out penalties to companies when they miss behave. They also have to decide whether a company has in fact miss behaved or not.
The board works with the public and rely on the public for information and ratings that can be used when deciding whether a company justifies the approval of the board.
Since FXB is not a government sanctioned Regulatory board with a government mandate, it is not compulsory for any company to register and fines or punishments ordered by FXB are not enforceable. If however a company misbehaves they will be given the option to make retribution to the party/parties who suffered and if they refuse then they will lose the FXB approved status.
FXB as a solution will only work if the public share it on social and support it by commenting and giving feedback. If the nation has had enough then FXB will end it.