There are various ways to earn money online, such as selling, tutoring, and many more. One effective way to do it passively is by online trading.
But for you to access and profit from the financial markets, you must find a reliable broker – easier said than done.
One broker that has been facing various criticism from the public and regulators is RCG Markets.
At first glance, this brokerage company seems to provide great profitable opportunities to its clients. But closely looking at it would make you question its credibility in providing financial services that protect the investors’ interests.
RCG Markets Regulation in South Africa
| Entity Name | RCG MARKETS (PTY) LTD |
| License Number | 49769 |
| Authorization Date | May 05, 2021 |
| Products | Derivative Instrument Long-term Deposits Short-term Deposits |
| Contact Number | +2711 7943818 |
| Address | Block C, Eagle Canyon Office Park, Randpark Ridge, Johannesburg |
| Compliance Office | Ms Et Ramahotsoa |
RCG Markets is an authorized financial service provider in South Africa, contrary to the claims of other independent regulatory bodies on the internet.
However, being regulated by the Financial Sector Conduct Authority (FSCA) should never be your single truth when discerning the legitimacy of the broker’s services.
While being registered reduces the likelihood of unethical or fraudulent brokerage activities, you should still be proactive in evaluating the broker you plan to choose.
Is RCG Markets Legit in South Africa?
Considering its registration and FSP license from the FSCA, RCG Markets is indeed an existing business entity in South Africa.
However, the reliability of its service remains a question to South African traders, especially since the company has been constantly criticized for publishing inconsistent information.
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Inconsistent Information
When a financial service provider like RCG Markets publishes information, it should always be factual. This is because such information is used by the public, investors, analysts, and regulators as an essential reference.
However, RCG has been criticized for publicizing inconsistent data and information that confuses its stakeholders and the public.
First, RCG claimed on its website and several campaign materials that it has been in the market for 25 years now. However, its Terms and Conditions disclosed that RCG Markets (Pty) Ltd was only established in 2018. Additionally, the entity only received authorization from the FSCA in 2021.
Advertising such disinformation poses threats to its existing, new, and interested clients. Since the years of being in service theoretically testify to the sustainability of the business, it’s one of the seal dealers for investors.
Additionally, the address and contact information disclosed on the website don’t align with its FSCA-regulatory details.
| RCG Website | FSCA Details | |
| Contact Number | +2710 0075974 | +2711 7943818 |
| Address | 13F, Green Park Corner, 3 Lower Road, Sandown, Gauteng | Block C, Eagle Canyon Office Park, Randpark Ridge, Johannesburg |
Affiliation with FBK Markets
Various independent and governmental regulatory bodies have warned the public about the company FBK Markets (FBK MARKETS SA PTY.), which is said to be a clone service of the RCG Markets.
However, in its archived Terms and Conditions document, FBK Markets has disclosed its direct affiliation with RCG Markets, the former being the latter’s Legal Representative.
This means that FBK Markets offers financial services in South Africa under RCG Markets’ FSP license. RCG Markets is partially accountable for FBK Markets’ operational and overall brokerage activities.
Offering Too High Leverage with Lack of Low-Leveraged Options
High leverage can entice new traders, who think it will allow them to maximize their trades’ potential profits.
This seems like what RCG Markets tries to achieve: attract potential clients with leverage ranging from 500:1 to 2000:1.
What more? A trader can access that for as low as a ZAR 50 deposit. That would really look like a nice deal for traders.
However, experienced traders know that’s never the case. For them, a broker that offers high leverage is against the interest of its clients.
Why? Simple—high leverage increases the losing probability of the broker’s clients, which means more profit for them!
Read more: TradersUnited – What Makes Leverage Dangerous?
Is RCG Markets Related to RCGMarkets.us?
In February 2024, the FSCA warned the public about RCGMarkets.us’s fraudulent operation on its website and Instagram page, @RCGmarkets_1.
However, RCGMarkets disavowed its affiliation with the entity, website, and account purporting to be from the company.
Read FSCA’s full press release about the matter here:
What Does RCG Markets Do?
RCG Markets is a South African forex and CFD broker that offers access to over 200 financial assets. Specifically, RCG Markets clients can access the 100 major and exotic pairs (EUR/USD, USD/JPY), major indices (NASDAQ100), company stocks, and commodities.
According to RCG Markets’ Order Execution Policy, its brokerage service is Direct Market Access (DMA).
A DMA broker provides clients with direct access to liquidity providers (electronic facilities and order books). In other words, a DMA broker doesn’t take the opposite position of your trade; rather, it connects you to the market itself.
RCG Account Types
RCG Markets offers four account types to cater to the diverse preferences and needs of its clients. All four account types have a small minimum deposit of ZAR 50, with leverage ranging from 500:1 to 2000:1.
Indeed, these account types attract aspiring millionaire traders.
| Account Name | Minimum Deposit | Trading Fees | Bonus | Leverage |
| Classic | ZAR 50 | 1.5 pips spread | 0% | 2000 |
| Raw | ZAR 50 | USD 0 commission | 0% | 500 |
| ECN | ZAR 50 | USD 7 commission | 0% | 1000 |
| Royal 100 | ZAR 50 | 1.5 pips spread | 100% | 500 |
How to withdraw from RCG Markets?
Follow these steps to get your hard-earned profits from your RCG Markets trading account:
- Login to RCG Markets account.
- Click the “Withdraw Funds” option on the menu to access the withdrawal window.
- Fill in the necessary information in the withdrawal form request.
- Select the desired withdrawal method.
- Review and submit a withdrawal request.
However, RCG Markets’ clients have complained about the withdrawal process in their trading accounts. Cunningly enough, this influx of withdrawal complaints contradicts the company’s promise of an instant and hassle-free withdrawal process.
Is RCG Markets Worth to Consider?
RCG Markets is indeed authorized by the FSCA to provide financial services to South African investors (FSP 49769). However, this regulatory oversight doesn’t prevent them from performing operational practices that go against the interests of their clients.
Notably, the broker had been proven to publicize inconsistent information on its website and marketing campaigns. Moreover, its potential affiliation with FBK Markets raises serious concerns from the public, considering FBK’s numerous regulatory warnings and sanctions.
