Regulatory pressure on South Africa’s online trading
sector has intensified, with Afrimarkets Capital now permanently stripped of
its financial services provider licence after a misconduct probe by the
Financial Sector Conduct Authority.
The move follows months of scrutiny into Afrimarkets’
business practices and marks a significant step in the regulator’s campaign to
address misconduct in the retail trading
Retail Trading
In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade
In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade
Read this Term sector.
The FSCA first moved against Afrimarkets Capital (Pty)
Ltd (FSP 52813) on 4 July 2025, when it provisionally withdrew the firm’s
licence after preliminary investigation findings raised concerns about harm to
clients and the broader public.
FSCA Turns Provisional Step into Final Sanction
At that stage, the regulator stressed that the
withdrawal was temporary and linked to initial evidence, while Afrimarkets
received an opportunity to make representations before any final decision.
Following that process, the FSCA has now confirmed
that the provisional measure has been made final, effectively barring
Afrimarkets from operating as a licensed financial services provider.
According to the FSCA, Afrimarkets misappropriated
client funds, offered advice to customers without the necessary authorisation,
and supplied false or misleading information both to clients and to the
authority itself.
The FSCA also flagged concerns that Afrimarkets
promised unrealistic investment returns and failed to act in the best interests
of its customers.
You may also like: Mitrade Adds South Africa License Through Acquisition
In a statement on its website at the time, the firm
told clients that the FSCA had “abruptly” provisionally withdrawn its licence
and that several of its bank accounts had been suspended without prior notice,
resulting in immediate transactional disruption.
The platform informed customers that they could not
make deposits or withdrawals and could not perform other transactional
activities, including opening new trades.
It added that it was not in a position to close open
positions on behalf of clients, who would instead have to manage and close
those positions themselves, highlighting the practical challenges when
regulatory action intersects with live trading accounts.
Afrimarkets Pushes Back on Misconduct Allegations
Despite the regulator’s escalating measures,
Afrimarkets has publicly rejected the core accusations. In its communication to
clients, the company insisted that the withdrawal and banking restrictions
formed part of an ongoing regulatory process and did not amount to final or
adverse findings at that stage.
Afrimarkets further stated that it remained committed
to regulatory compliance and cooperation with authorities while working with
banks and regulators to resolve the matter.
The FSCA has previously highlighted links between
Afrimarkets and another trading firm, Banxso (Pty) Ltd, pointing to common
directorships and similar business models across the two entities.
Banxso’s licence has already been finally withdrawn
after findings that it misappropriated client money
Client Money
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Read this Term, misled clients and the
regulator, and failed to act in customers’ best interests.
Regulatory pressure on South Africa’s online trading
sector has intensified, with Afrimarkets Capital now permanently stripped of
its financial services provider licence after a misconduct probe by the
Financial Sector Conduct Authority.
The move follows months of scrutiny into Afrimarkets’
business practices and marks a significant step in the regulator’s campaign to
address misconduct in the retail trading
Retail Trading
In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade
In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade
Read this Term sector.
The FSCA first moved against Afrimarkets Capital (Pty)
Ltd (FSP 52813) on 4 July 2025, when it provisionally withdrew the firm’s
licence after preliminary investigation findings raised concerns about harm to
clients and the broader public.
FSCA Turns Provisional Step into Final Sanction
At that stage, the regulator stressed that the
withdrawal was temporary and linked to initial evidence, while Afrimarkets
received an opportunity to make representations before any final decision.
Following that process, the FSCA has now confirmed
that the provisional measure has been made final, effectively barring
Afrimarkets from operating as a licensed financial services provider.
According to the FSCA, Afrimarkets misappropriated
client funds, offered advice to customers without the necessary authorisation,
and supplied false or misleading information both to clients and to the
authority itself.
The FSCA also flagged concerns that Afrimarkets
promised unrealistic investment returns and failed to act in the best interests
of its customers.
You may also like: Mitrade Adds South Africa License Through Acquisition
In a statement on its website at the time, the firm
told clients that the FSCA had “abruptly” provisionally withdrawn its licence
and that several of its bank accounts had been suspended without prior notice,
resulting in immediate transactional disruption.
The platform informed customers that they could not
make deposits or withdrawals and could not perform other transactional
activities, including opening new trades.
It added that it was not in a position to close open
positions on behalf of clients, who would instead have to manage and close
those positions themselves, highlighting the practical challenges when
regulatory action intersects with live trading accounts.
Afrimarkets Pushes Back on Misconduct Allegations
Despite the regulator’s escalating measures,
Afrimarkets has publicly rejected the core accusations. In its communication to
clients, the company insisted that the withdrawal and banking restrictions
formed part of an ongoing regulatory process and did not amount to final or
adverse findings at that stage.
Afrimarkets further stated that it remained committed
to regulatory compliance and cooperation with authorities while working with
banks and regulators to resolve the matter.
The FSCA has previously highlighted links between
Afrimarkets and another trading firm, Banxso (Pty) Ltd, pointing to common
directorships and similar business models across the two entities.
Banxso’s licence has already been finally withdrawn
after findings that it misappropriated client money
Client Money
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Client money refers to the money or margin – which may be any currency in the form of cash, check, draft, or electronic transfer – that a firm receives or holds for a client. Money held by a firm in the form of a stakeholder, which is are not payable on demand or immediately due, also refers to client money. The definition of client money does not apply to money held by businesses that operate in its own name on behalf of a client. Although the client does have to be in agreement before this arr
Read this Term, misled clients and the
regulator, and failed to act in customers’ best interests.
