An FSCA regulated broker should be verified at four levels before you fund an account: the legal entity must exist in the regulator's records, the FSP status must be current, the licence must cover the financial product and service being offered, and the company you are dealing with must actually be the authorised entity rather than an impersonator using somebody else's FSP number. For brokers offering over-the-counter derivatives such as many CFDs, an additional question can arise: whether the firm is acting as an authorised OTC derivative provider under the Financial Markets Act.
The Financial Sector Conduct Authority is South Africa's market conduct regulator for financial institutions. In practical terms, an FSCA licence check is not just a search for a number. The useful question is whether the regulator's record matches the exact business, product and service described in your account agreement.
What FSCA regulation means for a broker
The term "FSCA regulated broker" is widely used in trading and investment marketing, but it can hide several different regulatory relationships. A firm may be an authorised financial services provider under the Financial Advisory and Intermediary Services Act, usually identified by an FSP number. Depending on what the business does, other authorisations can also matter.
Under the FAIS framework, authorisation relates to financial advice and intermediary services. The licence is not an unrestricted permission to offer every financial product in every capacity. An FSP can be authorised for particular product categories and types of service. That distinction matters for forex and CFD users because a company authorised for one product or service cannot safely be assumed to have permission for a different one.
The FSCA itself advises the public to check both whether an entity is authorised and what category of financial service it is authorised to provide. This is why an FSP number lookup should be treated as the start of due diligence rather than the end.
How to run an FSCA license check
Identify the contracting legal entity
Start with the broker's client agreement, terms of business, account opening documents and legal footer. Find the company name that will actually contract with you. A trading brand can be used by several companies in different countries, so searching only the brand name can return the wrong entity or no useful result.
Record the claimed FSP number exactly as shown. Also note the registered company name, physical address, email domain and any statement about the company acting as principal, intermediary or representative. If the website lists several regulated entities, identify which one is assigned to South African clients.
Use the official FSCA FSP number lookup
Use the FSCA FSP Search rather than a broker's own certificate image or a third-party directory. The regulator's search allows a user to search by FSP number, a partial FSP name, postal code or person. The page also explains that for an older formatted FSP number such as 26/10/1234, the search field should use the final digits, in that example 1234.
The page may still contain legacy "FSB" wording because the Financial Services Board was the FSCA's predecessor. That legacy label does not turn the official FSCA-hosted search page into a private database. What matters is that the search is on the regulator's own domain and that the result corresponds to the entity you are checking.
Match the name and current status
A matching number is useful only if the legal name also matches. Compare the regulator's record with the entity named in your contract. Small spelling differences can be harmless, but a completely different company name is a serious warning sign. Do not accept an explanation that a broker is "using" another firm's FSP number unless the relationship and authority can be independently verified.
Also check the current status. A firm that was once authorised may later have its licence suspended, provisionally withdrawn, withdrawn or otherwise cease to be in good standing for the activity you are considering. Historical possession of an FSP number is not the same as current permission to provide the service.
Check the authorised product and service scope
The next step is the part many traders miss. Confirm that the FSP is authorised for the relevant financial product and for the type of service being supplied. For trading businesses, the regulator's materials include product categories such as derivative instruments and forex investment business. The exact category that matters depends on what the firm is doing for the client.
Advice and intermediary services are not interchangeable concepts. A provider that is authorised only to render an intermediary service should not automatically be treated as authorised to give personalised investment recommendations. Likewise, an authorisation relating to one financial product does not automatically extend to CFDs, derivatives or another product outside that permission.
Check whether OTC derivative authorisation is relevant
Many retail CFD products are OTC derivatives. South African rules separately require authorisation for a person that, as a regular feature of business and as principal, originates, issues, sells or makes a market in OTC derivatives. If the South African entity is the principal counterparty issuing or selling the derivative, check the FSCA's regulated people and entities records for the relevant authorisation rather than assuming an FSP number alone answers every regulatory question.
This distinction is important because a broker can perform different functions. One company may provide an intermediary service that routes a client to another counterparty. Another may itself be the principal that enters into the CFD with the client. The regulatory permissions needed can therefore differ even when both businesses use the word "broker."
Verify the business identity behind the licence
After the regulatory scope matches, confirm that the website, emails and payment instructions belong to the authorised company. Fraudsters can copy a legitimate firm's name, staff details, logo and FSP number. A real number displayed on a fake website is still a fake operation.
Compare contact information with reliable official information and contact the authorised firm through independently obtained details if anything looks inconsistent. Be especially careful when a supposed broker contacts you only through WhatsApp, Telegram or social media and then points to a genuine FSP number as proof of legitimacy.
How to read an FSP number lookup result
| Check | What you want to confirm | Why it matters |
|---|---|---|
| Legal entity | The regulator's company name matches the contracting company | A brand name alone can point to several unrelated entities |
| FSP number | The claimed number belongs to that same legal entity | Scammers may copy a valid number from another firm |
| Status | The authorisation is currently usable for the intended service | A past licence does not prove current authorisation |
| Product scope | The licence covers the product being offered | Permission for one category does not cover every investment product |
| Service scope | The firm is authorised for the relevant advice or intermediary activity | The permitted role matters as much as the product category |
| Additional authorisation | Any separate permission required for the firm's actual role is present | Principal OTC derivative activity can raise an additional authorisation question |
The safest way to interpret a result is to read it as a permission map. Ask "who is authorised to do what for which products?" That approach is more reliable than reducing the entire check to "does this number exist?"
Why a real FSP number can still be misused
FSCA warnings repeatedly show a practical weakness in number-only verification: impersonators can use the FSP numbers of genuine authorised firms. They may also copy employee names, create fake certificates or build social media profiles that look connected to a legitimate provider. The underlying FSP can be real while the person asking for your money has no relationship with it.
A copied licence number is especially persuasive because a basic search appears to validate the claim. The user sees a live FSP record and stops checking. A stronger process compares at least three identity points: the legal entity name, the communication channel and the destination of client funds.
- Legal entity: The company in the FSCA record should match the company in the client agreement.
- Communication channel: Email domains and contact details should be consistent with the authorised business.
- Payment destination: Deposits should not be redirected to an unrelated person or unexplained third-party account.
If one of these points conflicts with the regulatory record, do not treat the FSP number as sufficient reassurance.
FSP licence and OTC derivative authorisation are different
| Regulatory check | Main question it answers | Typical relevance to a trader |
|---|---|---|
| FAIS FSP authorisation | May this entity render the authorised advice or intermediary services for specified financial products? | Relevant when a firm provides financial services to a client |
| OTC derivative provider authorisation | May this entity conduct regulated OTC derivative provider activity as principal? | Relevant when the entity itself originates, issues, sells or makes a market in OTC derivatives |
These permissions should not be collapsed into one generic "FSCA licence." For a straightforward FSP license check, the FAIS search is central. For a CFD business that says the South African company is your counterparty, the OTC derivative question may also be material. The firm's legal documents should make its role clear enough for you to know which authorisation to verify.
What an FSCA licence does not prove
Regulatory authorisation is a meaningful screening factor, but it is not a quality score and it does not eliminate trading risk. A valid licence does not by itself prove that a broker has the lowest spreads, the fastest execution or the best platform. It also does not guarantee that every trade will be profitable or that every dispute will be resolved in the client's favour.
Do not infer the following from an FSP number alone:
- that every product on the website is covered by the licence;
- that every employee or representative is authorised for every service;
- that a foreign affiliate is covered by the South African entity's permission;
- that the South African entity is the counterparty to your trades;
- that a copied certificate or logo is genuine;
- that the regulator guarantees the broker's commercial performance or your investment outcome.
This is why regulation should be combined with ordinary broker due diligence. Read the client agreement, identify the entity holding the account, understand withdrawal procedures and fees, and check how complaints are handled before depositing substantial funds.
Red flags after a successful licence check
A clean FSCA lookup does not override contradictory behaviour. Stop and re-check the relationship if the broker or representative does any of the following:
- uses a different legal entity name when asking for a deposit;
- claims the FSP number covers all products without showing the relevant scope;
- promises guaranteed or implausibly high returns;
- pressures you to deposit immediately or add more money to unlock a withdrawal;
- asks for payment to an individual or unrelated company;
- refuses to provide a client agreement naming the regulated entity;
- uses only messaging apps while avoiding verifiable corporate contact channels;
- sends an FSCA certificate but discourages you from checking the regulator's database yourself.
Any one of these points can justify delaying a deposit until the identity and authorisation are confirmed. Several appearing together should be treated as a high-risk pattern.
What to do when the licence details do not match
Do not try to explain away a mismatch on the broker's behalf. First save the relevant screenshots, messages, account documents and payment instructions. Then repeat the lookup using both the FSP number and the legal name in case the initial search used the wrong entity or brand.
If the number belongs to a different company, contact the legitimate company using independently sourced contact details and ask whether the website or representative is connected to it. If the licence status or product scope is unclear, contact the FSCA directly before sending funds. The regulator's site also publishes warnings and enforcement notices that can help determine whether a name, website or social media operation has already raised concern.
If money has already been sent, stop further payments while you verify the situation. A request for an additional "tax," "release fee," "verification payment" or "insurance payment" before a withdrawal should not be treated as proof that the account is genuine.
Common questions about FSCA regulated brokers
What is an FSP number?
An FSP number is an identifying number associated with an authorised financial services provider under the FAIS framework. It helps users locate the provider in the official search. The number should be checked together with the legal entity name, current status and authorised scope.
How do I do an FSCA FSP number lookup?
Open the official FSCA FSP Search, enter the FSP number or a partial company name and review the matching provider. If the number uses an older slash-separated format, the official page instructs users to enter the final digits for the number search. Then compare the result with the legal entity in the broker's client agreement.
Does an FSP number mean a broker can offer CFDs?
Not automatically. You need to inspect the authorised product and service scope. If the entity itself acts as principal in OTC derivatives, separate OTC derivative provider authorisation may also be relevant. A generic statement that the company is "FSCA regulated" is not precise enough to answer this question.
Can a scam broker display a genuine FSP number?
Yes. Impersonators can copy a real FSP number from an authorised business. That is why the correct FSCA license check matches the number to the legal entity and then verifies that the website, representative and payment instructions genuinely belong to that entity.
Is an FSCA regulated broker automatically safe?
No regulator can remove market risk, operational risk or the possibility of misconduct. Authorisation is an important filter because it places the relevant regulated activity within a supervisory framework, but it should be combined with checks on identity, permissions, contractual terms and the broker's actual role in the transaction.
A practical standard for checking a South African broker
The most useful standard is simple: do not ask only whether the broker has an FSCA number. Ask whether the exact company taking your account is currently authorised for the exact service and product it is offering, and whether any additional authorisation required by its role is present.
- Identify the legal entity in the account agreement.
- Run an official FSCA FSP number lookup.
- Match the FSP number to the exact legal name.
- Confirm current status.
- Confirm the relevant financial product category.
- Confirm whether advice or intermediary permission matches the service.
- For principal OTC derivative activity, verify the relevant OTC authorisation.
- Check that contact details and payment instructions belong to the authorised entity.
- Review FSCA warnings if anything looks inconsistent.
That process turns a superficial licence search into a genuine regulatory check. It is also the best defence against the most common verification error: finding a valid FSP number and assuming that everything attached to it must therefore be legitimate.
