Is RCG Markets Legit and Regulated in South Africa?

A logo of RCG Markets overlayed on South Africa's business hub and trading chart

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.  

Are you looking for a reliable broker or service provider? Join an online trading community, connect with thousands of traders, and learn from their advice and experiences to ensure your trading with a trusted broker.  

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. 

A screenshot of previous archived terms and conditions of FBK Markets showing its affiliation with RCG Markets
Screenshot from the Wayback Machine

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? 

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.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Articles
Crypto News: Bitcoin Price Hits $100k Today and What You Should Expect After

Crypto News: Bitcoin Price Hits $100k Today and What You Should Expect After

The much $100k Bitcoin price breach finally happened, following Putin’s endorsement and Trump’s plans for cryptocurrency. Read on to learn more.

Forex Trading Strategy: How to Trade CPI News Effectively 

Forex Trading Strategy: How to Trade CPI News Effectively 

Master the art of trading CPI news with effective strategies. Learn how to navigate market volatility and make informed decisions. Read more now! 

HyperFund in 2024: A $1.89 Billion Crypto Ponzi Scheme  

HyperFund in 2024: A $1.89 Billion Crypto Ponzi Scheme  

Hyperfund is a crypto Ponzi scheme that defrauded almost USD 2B from thousands of investors. Explore the development of the HyperFund scandal here.

Yes or No: Is Forex Gambling?  

Yes or No: Is Forex Gambling?  

Have you ever debated with other traders about whether or not forex is gambling? New and expert traders have always discussed this controversial question - and with varying opinions!   In

FSCA addresses key challenges to two pot system withdrawal 

FSCA addresses key challenges to two pot system withdrawal 

The regulator said challenges to the two pot system withdrawal include high transaction fees, system-related issues, and employers and municipalities in arrears The Financial Sector Conduct Authority (FSCA) has outlined

What is the pig butchering scam?

What is the pig butchering scam?

Pig butchering scams have become increasingly widespread across the world. According to this study, an estimated global loss of USD 75 billion has been recorded since the emergence of pig