Veracity Markets is a relatively new broker in South Africa’s online trading industry. Based in Cape Town, the broker has quickly gained attention from traders and has over 400,000 clients because of its competitive spreads and wide range of financial instruments.
In this Veracity Markets broker review, we’ll examine the broker’s key features, pros and cons, and safety.
What is Veracity Markets?
Veracity Markets is an online broker established in 2020 and based in South Africa.
According to the website, Veracity Market aims to provide a comprehensive trading experience for novice and experienced traders.
Regulation and Safety of Veracity Markets
One of the most crucial aspects of any broker is its regulatory status. Veracity Markets is one of the largest online brokers in South Africa. It is regulated by the Financial Services Conduct Authority (FSCA).
According to the broker’s legal documentation, it operates as a juristic representative of Nirvesh Financial Services, a licensed Category 1 Financial Services Provider (FSP).
The Veracity Markets registration is Category 1 FSP License, which authorizes Veracity Markets to offer financial advice to clients and facilitate transactions between clients and investments.
However, the FSCA stated that Veracity Markets does not have a license to offer trading in products such as contracts for differences (CFDs).
What are CFDs?
A Contracts For Difference (CFDs) is a type of derivative that allows traders to profit from price movements in an asset, such as a stock or commodity, without owning the asset.
Prior to 2018, CFDs were unregulated. Only when the Financial Markets Act was introduced did online brokers offering CFDs have to apply for applications.
At present, the cost of acquiring a license to trade CFDs and meeting its standards can total millions of rands. Most institutions that own a CFD license are banks and other big-name online brokers.
FSCA orders closure of Veracity Markets
In July 2022, the FSCA ordered the closure of Veracity Markets because of unauthorized over-the-counter (OTC) derivatives and potential breaches of other financial laws.
In a statement, the FSCA ordered Veracity Markets to stop trading CFDs and suspend all advertisements and pending CFD trades with clients.
Furthermore, the FSCA also ordered the online broker to cease any new CFD business, close all open derivative trading positions, and pay out clients, upon request, within seven working days.
FSCA Divisional Head of Enforcement Brandon Topham said that Veracity is cooperating with the ongoing investigation.
Read more: What happened to the My Forex Funds Investigation?
Since 2022, the FSCA has intensified its crackdown on financial violators and increased enforcement on financial service providers in South Africa. Most recently, in 2024, the FSCA imposed a record number of penalties totaling over R943 million on various individuals and entities.
The FSCA’s heightened stringency is part of its efforts to improve its standing with international bodies such as the Financial Action Task Force (FATF).
In February 2023, the FATF greylisted South Africa after identifying deficiencies in its strategy and enforcement of anti-money laundering and counter-terrorist financing measures.
Veracity Markets Features
Veracity Markets is a South Africa-based broker that operates in most African countries and Asia.
The broker offers a wide range of instruments, such as currency pairs, commodities, indices, futures, stocks, and cryptocurrencies.
The Veracity broker does not offer a demo account and does not operate in the following countries: the United Kingdom, Australia, Belgium, France, Iran, Japan, North Korea, and the USA.
Below are some of the key features of Veracity Markets.
Trading Platforms
Veracity Markets offers two of the most popular trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
Related: How to Choose Between MT4 and MT5
Many traders are familiar with the user-friendly interface, advanced charting tools, and multiple technical indicators.
The MT4 and MT5 platforms are ideal for beginner to expert traders because of their customizability and fast response.
Veracity Markets Minimum Deposit ZAR and Account Types
The Veracity Markets minimum deposit (ZAR) is 4,000, or approximately USD 250.
Compared to other broker minimum deposits in South Africa, Veracity Markets is in the middle to upper tier.
The broker offers several account types for different trading needs. They are classified as Standard, ECN, and Islamic Accounts. Each account type has different features and varied spreads and commission structures.
Standard Account
The Veracity Markets Standard Account requires a minimum deposit of ZAR 4,000 with floating spreads starting at 1.6 pips.
Meanwhile, traders can access leverage up to 1:500, a minimum order volume of 0.01 lots, and a maximum of 250 lots.
A favorite among Veracity Markets clients is that trades with a Standard Account are free of commissions; instead, the broker earns from floating spreads.
ECN Account
An ECN or Electronic Communications Network account allows traders to interact directly with the market, such as banks, hedge funds, and other traders.
It is also known as direct market access, where traders can see real-time prices and execute trades independently.
With this account, Veracity Markets does not have to act as an intermediary for market orders. The broker earns profit through commissions for each trade instead of earning money from a spread.
Islamic Account
The Islamic Account functions very similarly to the Standard Account that caters to Muslim traders. However, this account is designed to comply with Sharia Law, which prohibits earning interest.
However, before opening an Islamic Account, a trader must provide documentation from their Imam or local mosque indicating that they are of the Islamic faith.
This account offers a swap-free option where overnight positions do not roll over interest.
The minimum requirements are the same as those for the Standard Account, such as a ZAR 4,000 minimum deposit, a minimum order volume of 0.01 lots, and a maximum of 250 lots.
Traders can choose between a Standard Islamic Account with floating spreads starting with 1.6 pips or a Fixed Islamic Account with spreads starting from 2 pips.
The Islamic account can only access the MetaTrader 4 (MT4) platform.
Leverage and Spreads
Veracity offers 1:100 to 1:500 leverage in over 55 currencies, precious metals, individual stocks, equity indices, and energies. This leverage is available to all account types.
The broker also offers spreads starting from 0.0 pips on ECN accounts, with a $7 commission per lot for trades on currency pairs and precious metals. Additionally, they offer minimum spreads of 1.6 pips on Standard and Islamic accounts with no extra trading fees.
Spreads, however, vary based on market conditions and instruments traded.
Veracity Markets Withdrawal Options
Veracity Markets supports multiple deposit and withdrawal methods, including local bank transfers, debit cards, credit cards, and e-wallets such as Neteller and Skrill.
While the broker is compatible with a variety of options, clients have often complained about delays in withdrawal dates.
While online trading is inherently risky, many clients have long complained about the delays in Veracity Markets withdrawals. Some have complained that they were not able to withdraw money from their accounts for five days to over a month.
Tradable Instruments
Veracity Markets offers access to over 250 financial instruments, including foreign exchange, commodities, indices, metals, and stocks.
Customer Support
According to the broker’s website, customer support is available 24/7 and in multiple languages.
However, multiple clients have complained about the slow or non-responsive customer service on all social media, including email and phone numbers.
Should you trade with Veracity Markets?
Veracity Markets can be a good choice for a regulated broker with competitive offers.
However, the FSCA’s stern warning and investigation of Veracity Markets are not positive indicators.
When conducting with online brokers, it’s always best to ensure that they are fully regulated for all instruments that they offer.
All traders are encouraged to verify all legal and regulatory documentation that a broker has in order to protect and safeguard their investments.
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