There is nothing I cannot afford. I can afford anything … this is often the simplest lifestyle-dream I could ever consider ,” boasts Kgopotso Mmutlane — or DJ Coach Tsekeleke as he’s better known — on his reality show FBK Millionaires.
I am a proud millionaire, but you can’t see it until I tell you,” the exchange (forex) trader is quick to means , however.
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The show, which aired on YouTube before getting a platform on DStv’s Moja Love channel, features the lives of a gaggle of seven forex traders who call themselves the Forex Broker Killers (FBK).
Members of FBK, the brainchild of Mmutlane, are quite happy to share their envy-inducing lifestyles — complete with fancy cars, luxury homes and stacks of money .
Viewers can live the high life vicariously as they watch the seven young men boast their girlfriends, parties and flashy rides — cars like an Audi S3, VW Golf GTi and Mercedes-Benz AMG which carry price tags starting from R600 000 to R1-million.
fbk millionaires in South Africa
The show, which is currently suspended due to “technical issues” after airing just four episodes, does beg the question: just how does FBK make money?
Mmutlane says the group has accrued its wealth through trading in foreign currencies. He says they operate as a legal entity under Mmutlane Traders, which offers trading “strategies” through FBK Online Services.
When the Mail & Guardian asked the Financial Sector Conduct Authority (FSCA) if Mmutlane Traders and FBK Online Services are registered, a spokesperson said: “No, there’s currently no record of the entities mentioned as authorised financial service providers (FSPs) nor a representative of an authorised FSP.”
Any entity or individual rendering financial advice and intermediary services as contemplated and defined within the Financial Advisory and Intermediary Services Act, 2002 — which regulates and provides a code of conduct for FSPs and their customers — has got to receive authorisation from the FSCA.
Once authorisation is granted, the body, which governs market conduct, issues a licence under the Act.
When asked if he’s registered, Mmutlane said people that got to register are those that are offering financial advice or investing people’s money and he doesn’t do this .
“Remember, what I do. I don’t teach people the way to trade. If you come to me and you would like to find out , i will be able to point you at the fabric you’ll use,” he said.
Mmutlane says, what they provide are strategies, and it [Mmutlane Traders] isn’t a financial organization .
“What I offer is that the strategies which I founded,” he adds.
fbk online services , says the group doesn’t offer investments, account management and physical classes. Punters who attend their website to undertake and switch their fortunes around will find a free PDF that gives public knowledge about forex trading.
Those who want quite just general information, can buy Mmutlane’s strategies, which comprise a PDF and videos and may sell for the maximum amount as R21 000.
“You buy the strategy, do your own research and appearance for a broker — who is that the middleman and can allow you to meet the market,” said Bethuel Mofetekoa, a member and manager at FBK.
FBK recommends MetaTrader 4 as its preferred platform.
Investopedia, an internet site that specialize in investing and finance education, says traders need to undergo an intermediary like a forex broker to execute trades.
Mofetekoa says after a trader has established which broker they need to use, they will then choose the currency they need to trade , after which they choose the quantity they need to place in and begin trading.
Asked by the M&G if he participates in scamming, Mmutlane said “obviously no”, adding that he only provides guidelines to those that need them and doesn’t trade on behalf of anyone.
The M&G asked the FSCA if the packages and methods the FBK provide are legal.
It responded by saying that the Financial Advisory and Intermediary Services Act required authorisation. To conduct unregistered business would therefore “contravene South African financial sector laws”.
The FSCA says anybody may trade “foreign currency for themselves as long as they need the relevant skill and knowledge”.
As long as an individual doesn’t provide financial advice they will independently trade using licenced platforms like Standard Bank’s Webtrader, Sanlam iTrade or PSG online.
FBK’s website states it’s monitored by Sihle Investment Consulting, but provides no details who this could be and the way it are often contacted.
A Google search shows that the corporate is predicated in Soshanguve, Pretoria, and specialises in financial planning, accounting and taxation services for private and business needs.
The M&G contacted Sihle’s founder and chief executive, Sanele Msibi, who said he has been working with FBK for 2 weeks and his job is to form sure the group suits the law when handling customers and money-related matters.
He said that thus far he has found loopholes when it involves disclosures (what they tell the client before they really sign), which may “come back to bite them”.
Mbisi said the way during which FBK offers its one-minute strategy isn’t fully compliant with the law.
“That is additionally one other thing [where] we’d like to form a transparent distinction,” he said.
He said FBK doesn’t fully comply because it still must indicate that what it offers is “just a forecast on what the market goes to try to to and other people should consult their financial adviser before working on such information [which is] not intended to be used as financial advice”.
The M&G has been informed FBK Millionaires is probably going to be back on air at the top of October — perhaps it’ll be fully compliant by then.