Reason for this visit

South Africa is an emerging market economy that implements a free floating exchange rate system, and exchange rate is susceptible to fluctuations due to external factors. The South African foreign exchange market was under strict control in the early stage of its establishment. However, with the gradual relaxation of foreign exchange control, the participants in the real economy can utilize foreign exchange characterized by high flexibility in a larger scope, and the linkage between domestic and foreign financial markets has become closer. In 2017, the total trading volume of foreign exchange derivatives on the Johannesburg Stock Exchange in South Africa hit 67.3 million lots, with a turnover of 900 billion South African rand. At present, the Johannesburg Stock Exchange offers a total of 25 foreign exchange futures and 15 foreign exchange options products. In addition to conventional futures and options contracts, South Africa has also made many innovations in the design of foreign exchange derivatives, such as the development of futures contracts that track a basket of exchange rates, customized futures contracts with optional expiry dates, and dual currency forex futures and options contracts on cross currency pairs. Forex traders in South Africa are among the wealthiest people on the continent, and their rich lifestyle influences aspiring traders. Many people in the country are fascinated by the stories of successful people, which makes forex trading even more popular. In order to help investors or practitioners have a more comprehensive understanding of foreign exchange brokers in South Africa, WikiFX survey team is going to the country for on-site visits to local companies.

On-site visit

In this issue, the survey team went to South Africa to visit forex broker XPro Markets as planned according to its regulatory address that Office 1-14, 1st Floor, Workshop 17, 138 West Street, Sandown, Gauteng, 2196.

The investigators came to the destination at 138 West Street, far away from Sandton CBD, on August 28. Situated close to a residential neighborhood, the modern office building is decorated with a simple and fashionable façade characterized by a combination of stone and French window. And 17 Workshop is a co-working space occupying two floors in the building, the ground floor and the underground floor. From the company directory outside the building, the company name of XPro Markets couldnt be seen.

However, office 1-14 in the co-working space on the 1st floor was actually occupied by a company called “UKUCHUMA FINANCIAL SERVICES LTD”, instead of broker XPro Markets.

Through an on-site investigation, it is confirmed that the broker doesnt have a physical presence at the location.

Conclusion

The investigators went to South Africa to visit forex broker XPro Markets as scheduled, and didn‘t spot the company at its regulatory address. It indicates that the broker doesn’t have a physical business office at the place. Hence, investors are advised to make a good decision following a comprehensive consideration.

Disclaimer

The content is used for informational purpose only, and shall not be taken as a final order for making a choice.