FSCA warns against ‘easy-money’ during Covid-19 pandemic
People are urged to check with the FSCA before signing up with a financial service provider
The Financial Sector Conduct Authority (FSCA) are warning the public against forex trading platforms that promise an income stream
during the COVID-19 pandemic.
This comes after the FSCA received reports that some forex trading platforms are telling potential clients that risks associated with forex trading are quite low and that people with limited trading experience can earn a steady income despite the uncertainty with the markets.
With numerous people’s financial situations affected by the novel coronavirus, many are looking at other ways to make money.
The trading platforms even offer demo accounts which do not simulate the high volatility the financial markets are currently experiencing, leading people to believe that they would still be able to make the same money with a real account.
The FSCA also added that although some of these Financial Service Providers (FSPs) are licensed under the Financial
Advisory and Intermediary Services Act, 2002 (FAIS Act), it was not enough, as they also needed to be licensed as ODPs (OTC Derivative Providers) in order to trade CFDs.
If you want to check the credentials of a Financial Service Provider, contact the FSCA on either the toll free number (0800 110 443) or on the website www.fsca.co.za.
HAVE YOUR SAY:
Like our Facebook page, follow us on Twitter and Instagram or email us at dundee.courier@caxton.co.za. Add us on WhatsApp 071 277 1394.
