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 forex market was under strict regulation in the early stage of its establishment. However, with the gradual relaxation of forex control, the participants in the real economy can utilize forex 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 forex 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 forex futures and 15 forex options products.

In addition to conventional futures and options contracts, South Africa has also made many innovations in the design of forex 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 gain a more comprehensive understanding of forex brokers in South Africa, WikiFX survey team decides to go 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 ToplTrade as planned according to its regulatory address that 155 West Street, Sandton, Johannesburg, GP 2031, South Africa.

The investigators came to 155 West Street in Sandton, Gauteng for an on-site visit to the brokers office. As one of the most affluent districts of South Africa, Sandton is renowned for its prosperous business environment and is home to numerous well-known enterprises, shopping malls, eateries, and entertainment options. As part of the district, West Street is filled with abundant commercial opportunities and cultural factors.

Upon arrival at the modern and well-maintained 18-story commercial building for further investigation, the survey personnel spotted some company names on the façade, excluding the name ToplTrade.

The inspection team then discovered a directory in the lobby, which did not display the company name or logo of ToplTrade. Subsequently, they searched each floor one by one but were unable to find any signs of the company.

Through the on-site investigation, it is confirmed that the broker does not have a physical presence at the place.

Conclusion

The survey team went to South Africa to visit forex broker ToplTrade as scheduled, but did not find the company at its regulatory address. It indicates that the broker does not have a physical business office at the location. Accordingly, investors are advised to make a judicious decision following much deliberation.

Disclaimer

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