A retail broker that acts as its clients' counterparty in South Africa needs about R68.5 million ($3.8 million) in its first year, FM Intelligence estimates. An agent with the same marketing budget needs R24.6 million ($1.4 million), according to an analysis published today (Wednesday).
The gap starts with the license. In South Africa, a financial services provider (FSP) license lets a firm market CFDs but not take the other side of a client's trade.
That requires authorization from the Financial Sector Conduct Authority (FSCA) as an over-the-counter derivative provider (ODP).
Of about 70 non-bank entries on that register, 26 were withdrawn applications and four were licenses handed back, according to the FM Intelligence Featured Country: South Africa analysis.
London's trading industry is coming home!
Exits Outnumber the Named Entrants
The register shows how the principal route has played out. The count of about 70 entries is cumulative and comes from a FinanceMagnates.com review in June, not from an FSCA list.
Few holders are named: Exness, ATFX, Scope Markets, VALR and Capital.com, which took both permissions in June.
The departures are better documented. IG closed its Sandton office in February, nine months after ending rand accounts, and now supplies its IG Prime platform to Investec under the bank's own brand.
Deal activity sits on the cheaper permission. CXM Group agreed to buy TD Markets, an FSP with more than 50,000 active clients across Africa, and XTB sold a licensed South African unit that never traded for $645,000.
Six Months of Costs Held as Capital
The largest single item between the two routes is money that cannot be spent. FSCA Conduct Standard 1 of 2018 requires an ODP to hold equity capital in South Africa equal to at least six months of operating expenses.
In the FM Intelligence scenario, with both routes spending the same R6 million on marketing, that ties up R17.4 million on top of R51.1 million of setup and running costs.
The standard also asks for a fixed local address and a South African bank account.
Providers "cannot simply operate as a 'letterbox' entity," Shreelin Naicker, departmental head for markets, issuers and intermediaries at the FSCA, told FinanceMagnates.com in June.
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The two builds still differ by design, with the principal route at the high end of the staff, platform and office inputs. With marketing tripled to R18 million, it reaches R90.4 million ($5.1 million), including R24.3 million of capital.
Demand Leads the Continent
The interest behind either route is measurable. South Africa produced 3.9 million organic visits to broker websites in Q3 2026, more than half of Africa's 6.7 million, according to FM Intelligence's heat map.
Scaled to population, South African desktop users visit broker sites at close to the French rate. No regulator counts the active CFD traders behind it.
The full FM Intelligence analysis sets out the cost model line by line, the client numbers needed to break even at four revenue levels and how South Africa's rules compare with Kenya and Nigeria.
