Warning from the Financial Services Board: stay away from Financika
The forex trading platform is not authorised to offer its services in SA
The Financial Services Board (FSB) has issued a warning to the public to beware of Financika, an outfit that offers a forex trading platform and related advisory services.
The regulator says Financika is offering financial services without being authorised to do so or without being a representative of an authorised financial services provider in SA, as required by law.
According to its website, Financika has its head office in the Republic of Vanuatu in the South Pacific, and "is a world leading foreign exchange broker" and "an internationally recognised investment company that maintains the highest financial security standards".
For the past few months, it has been advertising its offering on South African news portals and websites, and like many of its kind, offers an app, online tutorials and to teach you "everything you need to become a successful online trader".
But trading via an entity that is not an authorised to offer such services is risky.
In an article in the first quarter 2017 issue of JSE Magazine, investors are warned against falling for forex trading websites that are nothing but "bucket shops".
Even if you do manage to make a profit on one of these sites, you would probably be unable to withdraw it, the writer warns.
If exposure to foreign currency – either as a hedge or speculative trade – is what you’re after, there are many JSE-listed options that work without the risk of suspect brokers or insane gearing. And a stock broker can assist you.