Is Olymp Trade Legal in South Africa?
Olymp Trade(OT) is amongst the most popular online trading app which allows people from many countries to invest and earn. After being set up seven years ago in 2014, it now has a subscriber base of 60 million user accounts and counting. Olymp Trade operates in 194 countries, including India, Britain, Brazil, South Africa, etc.
Due to its vast reach in a multitude of countries and continents, Olymp Trade has launched itself in 13 languages: English, French, Russian, Korean, Hindi, Turkish, Indonesian, Thai, Arabic, Portuguese, Spanish, Vietnamese, and Malay.
Looking at the company's financial side, the monthly transactions on the platform are 30 million. The monthly average payouts on the platform are 16 million US dollars, and the monthly trade turnover is 211 million US dollars.
However, despite the huge number of transactions on Olymp Trade, few queries exist regarding its legality and regulatory framework. This article talks about the popular misconceptions, queries, and facts pertaining to the legal structure of this company. Additionally, there are also other tips, tricks, and strategies regarding Olymp Trade's platform to smoothen your investment journey.
For More Information on Olymp Trade, read our article: What is Olymp Trade and How to Use it from South Africa?
Is Olymp Trade Legal At All?
As of its legality, Olymp Trade (OT) is 100% legal and well regulated in all countries and various parts of continents it runs in. As mentioned above, this online trading platform is open and legal for countries such as South Korea, Russia, France, Indonesia, and others. On the other hand, Olymp Trade may face restrictions in countries such as Iraq, Sweden, Denmark, Germany, Norway, and others.
A few regulatory bodies also ensure the consumer safety and legality of Olymp Trade's business practices. Amongst few such regulatory bodies is the International Financial Commission (FinaCom). Similar to FinaCom, there are additional offshore licensing companies that constantly regulate the actions of OT.
#1. FinaCom - International Financial Commission
It is an independent self-regulatory organization and external dispute resolution body with approximately 75 years of regulation experience in forex experience, working for both brokers and traders. Further on, FinaCom also tackles many other online trading platforms, making its practices reliable and trustworthy.
Olymp Trade listed itself under FinaCom on February 22, 2016, and still abides by its legal terms and conditions. Above this, it has an A-recognition, enabling the platform to cover unfair trade practices up to $20,000. Abiding by the guidelines of FinaCom, Olymp Trade operates in a way where every trader is offered transparency, swiftness, and education. This is another instance of the trustworthiness and legality of the Olymp Trade.
#2. Other Licensing and Regulatory Bodies
Olymp Trade also receives Execution Certificates from VerifyMyTrade, which examines the execution of orders by the regulator.
Considering all the above points and looking at the regulatory bodies which keep a check on this trading platform, one must rest assured that this platform is: legal in all countries, well organized, governed by strict financial rules, and regulated by reputed licensing authorities.
However, many users from different parts of the world still think of this platform as a fake, unauthorized, and illegal platform for trading and investing. So, to clarify all your doubts and queries, keep reading this article.
Is Olymp Trade Legal in South Africa?
When ESMA (European Securities and Markets Authority) unveiled strict rules on forex brokers, it placed more restrictions, hampering their business and profits. This made such traders and brokers turn their focus on big markets.
Therefore, South Africa also tops the list among different countries that have legalized trading on Olymp Trade. So, yes, trading on Olymp Trade is indeed legal as well as safe in South Africa. A significant number of forex traders have comfortably begun and executed profitable trades on this platform.
Apart from VerifyMyTrade and FinaCom, there are also other regulatory bodies for keeping a check on these online trading platforms. Such regulatory bodies that function specifically in South Africa are:
#1. FSCA: Financial Sector Conduct Authority
FSCA is the South African Financial Sector Conduct Authority, previously known as Financial Services Board (FSB). This board puts various regulatory trading rules to minimize forex trading risks in South Africa. It is also responsible for monitoring and controlling various other financial activities in the country. All in all, it is known as one of the most strict forex market regulatory bodies in Africa.
Through the FSCA, forex brokers can trade and communicate without conflicts, with proper transparency, and on the correct terms and conditions. For extra security, one can also complain to FSCA authorities if users get unfair treatments or feel scammed. In such situations, they also provide compensation to the users.
Is It Legal To Use Olymp Trade As A South African Trader?
Yes, because it's legal in the country, any citizen can use Olymp Trade. There are no laws for it, and one can use it without any restrictions. On a more positive note, if someone faces any problem signing up or trading through their account, Olymp Trade expert customer care services cater to resolving legal issues or complaints.
What's best, they are available round-the-clock, which is basically 24 hours a day and 7 days a week.
Note: The customer care number for Cape Town, South Africa, is 27 (21) 1003880.
These regulatory bodies and licensing authorities assure anyone using Olymp Trade will partake in online trading safely, legally, and not via a scam.
#1. Strategy Offerings Ensuring Its Legality
As mentioned earlier, only knowing the legal terms and different governing bodies won't help you become a trading master on online trading platforms. Therefore, let's speak about strategies on this platform that have been tried and tested to maximize profits. Remember, with so much information and well-formulated strategies, there is no doubt of their legality.
#2. Best Time to Trade
We all know the saying, "Time is Money." When it comes to the online trading business, this holds true. Why do you think shares of companies fluctuate in a similar pattern during different times of the day? It's because different people like to work at varying times of the day. In easier words, knowing the best time to trade in the market shall increase your success rate.
There are four primary financial centers across the world. Each has different opening hours. Although these four markets are open for 9 hours each, they don't start trading at the same time all over the world. As a result, these markets work 5 days a week, 24 hours a day.
The timing of the European (London) market overlaps with the American (New York) and the Asian (Tokyo) market. Similarly, the Australian (Sydney) market opens after the American market closes. Such varying market open periods produce numerous opportunities to make a profit for both fixed-time trade and currency pair traders.
#3. Currency Pairs as Per Preferred Times
If you're an early bird and would like to trade in the early morning hours (5 am to 12 pm), you might want to have a look at currency pairs like NZD/USD, EUR/JPY, GBP/USD, USD/JPY, USD/CHF, and USD/CAD.
If you would instead prefer trading in the afternoon (12 pm to 7 pm), you should look out for pairs such as EUR/JPY, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, and EUR/GBP.
If night (7 pm to 5 am) is the time of your choice, you must trade in currency pairs like AUD/USD, EUR/JPY, NZD/USD, USD/JPY, USD/CHF, USD/CAD, GBP/USD, GBP/JPY, EUR/USD, and EUR/GBP.
Can Olymp Trade Make You Rich?
Like any legitimate means of earning or trading, Olymp trade is not a "Get-Rich-Quick" scheme. It can not work magic for you and make you wealthy overnight. You must be willing to invest your time in it as much as you're ready to invest your money. At the same time, it needs due diligence on your part to bear some fruit.
Much effort is required to investigate and research trading and to invest, especially on a binary option like Olymp Trade. And above all, you should be well aware from the beginning of the risks involved in this market.
You could consider making the Olymp Trade platform a secondary source of income if you do your homework thoroughly and make the most of the application's functionality and features. However, you start seeing some hefty gains only after gaining enough experience and having a clear idea of the market's functioning. At the same time, remember, the payoffs will be average initially, and you could also end up losing sometimes.
How to Always Win On Olymp Trade?
Although Olymp Trade is an online binary trading market, it cannot guarantee you a win every time. No matter how good of a trader you are, you will have to tackle both the losing and winning part of this trading game. Still, there are a few basic tricks that you can use to increase your success rate.
For example, choosing reasonable trading assets in Olymp Trade will increase your chances of making a profit. For example, if you invest $50, choose a currency pair or assets with a payout rate of more than 80%. Also, don't forget that a higher payout rate has a greater probability of securing your balance.
Best Indicators for Olymp Trade
If you struggle to make profits on the Olymp Trade app, you should consider using trading indicators to pick trading directions and increase your odds of winning. There is a range of reputed indicators on Olymp Trade, used by a handful of successful traders worldwide. Let's look at the renowned indicators which have supported traders in making wiser investment decisions.
#1. Moving Average Convergence/Divergence (MACD)
MACD Indicators are two moving average lines with different settings and dynamic columns. These show the current trend's strength and give signals for opening successful trends.
#2. Relative Strength Index (RSI)
This indicator helps in receiving accurate signals to open trades around the clock. More than that, it works on trend reversal and is ideal for deals in a 5 to 15-minute bracket. Also, it shows excellent results on currency pairs such as EUR/USD, GBP/USD, and EUR/JPY.
#3. Bollinger Bands (BB)
Bollinger Bands have oscillator elements and are a top-rated technical analysis indicator that uses three basic bands: the simple moving average and the lower and upper bands. It works best for currency pairs such as EUR/USD, GBP/USD, USD/CAD, USD/CHF, and EUR/JPY.
The precision factor of this indicator makes it a highly practical choice for denoting moments of a trend reversal. The best feature of this indicator is it gives a signal for trend reversals and is suitable for all currency pairs.
Olymp Trade Tips and Tricks
Here are a few extra tips and tricks to ace this online trading platform:
Fixed Time Strategy in Olymp Trade
Fixed Time Trading in Olymp Trade is one of the three trading modes available. And to break it down, FTT trades have the closing time decided beforehand, and these are also the easiest to understand and navigate. Thus, if you are a beginner, it is advisable to use fixed-time trading and reduce the possibility of monumental losses.
Note: With this mode of trading, you will have to predict the movement of prices after a specific time frame. This varies from a minimum of 60 seconds up to 24 hours.
Considering the accommodation of all the above-mentioned trading features, strategies, and indicators, the legalities of Olymp Trade are undoubtedly well-positioned, and users can in no way face any repercussions.
Success Rate For Olymp Trade Traders
There is no fixed success rate for any trader using this platform. It purely depends on their trading knowledge and skills. Although, one can undoubtedly increase their success rate by keeping all the points discussed above in mind.
Does Olymp Trade Cheat?
As discussed earlier in this article, Olymp Trade is a secure and well-regulated online trading platform. Till now, there have been no cases of a user being scammed or defrauded of their money on this platform. Further, to top it up, it is governed by regulatory bodies such as FinaCom, FSCA, and VerifyMyTrade. So, it is improbable that the users could be cheated through this reputable platform. Although, the users should be vigilant about their trading practices.