Financial watchdog fines SA forex broker R100 000 | Business

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SA's financial services watchdog has fined forex broker JP Markets R100 000 for breaking regulations governing trade in over-the-counter derivatives. | News24_Business

OCT derivatives are privately traded financial contracts that are generally held to be fairly high risk.

The Financial Sector Conduct Authority said this week that an investigation found the company let clients trade in contracts for differences relating to forex pairs, shares and indices without being properly registered. According to its website, JP Markets allows users to open a live forex trading account with a recommended initial investment of R3 000. The company was founded in 2016 and named after its founder, Justin Paulsen.

Three years ago, the FSCA successfully applied for the broker's liquidation, arguing it needed to be wound up to protect the interests of the public.

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