Reason for this visit

The South African financial market is said to be the most developed and organized financial market in Africa. It is composed of major institutions such as Standard Bank, Barclays Africa Group (ABSA), First National Bank (FNB), FirstRand, Nedbank and Johannesburg Stock Exchange (JSE). It is the largest stock market in Africa, with transaction volume amounting to R23.7 billion. The potential for retail foreign exchange in South Africa is emerging. The local financial ecosystem in South Africa is often compared to developed economies such as the US, UK, Australia, etc. On the Johannesburg Stock Exchange, investors can trade shares and commodities and invest in futures and options.The South African Rand is the most traded currency in Africa in terms of daily trading volume and is one of the 20 most traded currencies in the world. The rand (ZAR) is traded outside of South Africa more than the local foreign exchange market – in 2017 it was about $60 billion overseas, compared to about $21.4 billion domestically over the same period. An estimated 190,000 foreign exchange investors in South Africa regularly trade or invest in foreign exchange and related instruments. According to data from trading analytics firm CPattern in 2019, South African traders have the most average monthly deposits in Africa at $740 per trader. In order to give investors a real understanding of the current situation of the South African foreign exchange dealers, the survey team is going to South Africa for field surveys.

On-site visit

This time the survey team went to South Africa to visit the foreign exchange dealer NexaMarkets as planned. The survey address is 17 MIDAS AVENUE, OLYMPUS PRETORIA 0081.

The survey personnel came to the location of the dealer's office according to the address on the regulatory information. This is a residential community, and there are no office buildings. There are many vehicles and the environment is dirty.

The investigators found nothing here. It was just a clearing overgrown with weeds. The investigators confirmed that the broker NexaMarkets does not have an office here.

Conclusion

The investigators went to South Africa to visit the foreign exchange dealer NexaMarkets as planned, but did not find the dealer's office at its publicly displayed business address. The dealer may have just registered a company at this address without real business premises. Investors are advised to choose this dealer carefully.

Disclaimer

The content is for informational purpose only, and shall not be taken as final order for making choice.