South Africa’s independent regulator, the Financial Services Board (FSB), today issued a warning against TD Markets, a binary options and FX broker domiciled in Saint Vincent but not authorised to offer financial services in South Africa, according to a recent FSB statement.
According to the broker website, TD Markets is owned by TDM Holdings Inc. which is registered by the FSA of St Vincent and the Grenadines. TD Markets operates as an offshore forex and binary options broker. Although the company behind the brand is only registered in Saint Vincent, the broker gives indirect hints over its registration in the United Kingdom, which may lead some inexperienced investors to think it’s an FCA authorized firm, which is not true.
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The South African watchdog said TD Markets solicits investments from the general public in order to trade on its platform while the company is not authorised to render financial services in the country. Furthermore, TD Markets is not a representative of an authorised financial services provider, as required by the Financial Advisory and Intermediary Services (FAIS) Act, 37 of 2002.
South Africa enjoys a strong and well-organized financial market, and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors.
The FSB again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSB on the toll free number and/or at the website www.fsb.co.za. The FSB is an independent institution, established by statute to oversee the South African non-banking financial services industry in the public interest. It is fully funded by fees and levies imposed on this industry.