South African Financial Regulatory: Despite the fact that it is recommended, forex brokers are not required to get regulated by the Financial Sector Conduct Authority (FSCA) in order to accept South African people as customers. The Financial Sector Conduct Authority regulates the financial sector in South Africa. Financial institutions that provide financial goods and services, as well as market infrastructures, are regulated by the FSCA.
The FSCA governs financial institutions such as banks, insurers, retirement funds, and administrators that are licensed under a financial sector law. The Financial Sector Behavior Authority is in charge of market conduct regulation and monitoring (FSCA). The Financial Services and Consumer Protection Act (FSCA) aims to strengthen and promote the efficiency and integrity of financial markets, as well as to protect financial customers by encouraging financial businesses to treat them fairly.
10 Best FSCA Regulated Forex Brokers in South Africa
A long-established Broker, Strictly Regulated by Multiple Regulatory Bodies in Various Jurisdictions, Offering Sufficient Reliability.
Over 80 Currency Tradable, Competitive Pricing Structure with Tight Spreads from 0 Pips
A Multi-regulated Broker for you to Start Real Trading with a $1 Initial Deposit.
Incredibly Unlimited Leverage Offering for Asia, Rare Among Brokers.
A Stringently Regulated Broker, Reliable and Safe to Trade With.
Quick & Easy to Start Real Trading by Funding As Low As 5 USD.
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Comparison of the Best FSCA Regulated Forex Brokers in South Africa
Forex Broker
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Best FSCA Regulated Forex Brokers in South Africa Overall
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | INTERNATIONAL CAPITAL MARKETS PTY. LTD. | Market Making(MM) | 335692 |
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CYSEC | IC Markets (EU) Ltd | Market Making(MM) | 362/18 |
IC Markets operates as an online forex and CFD broker, based in Australia. The company was established in 2007 and has its main office in Sydney, Australia. It is renowned for its diverse selection of trading instruments and competitive spreads, serving both individual and institutional traders worldwide. IC Markets is regulated by the Australian Securities and Investments Commission (ASIC) and is well-known for its transparent and high-speed trading environment.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | TRADING POINT OF FINANCIAL INSTRUMENTS PTY LTD | Market Making(MM) | 443670 |
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CYSEC | Trading Point Of Financial Instruments Ltd | Market Making(MM) | 120/10 |
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FSC | XM GLOBAL LIMITED | Retail Forex License | 000261/397 |
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DFSA | Trading Point MENA Limited | Retail Forex License | F003484 |
XM was established in 2009 and is a CFD and forex broker operating online. With its headquarters in Cyprus and under the watchful eye of the Cyprus Securities and Exchange Commission (CySEC), this firm is a respected member of the brokerage community. XM provides trading services to customers all around the world and provides access to a wide variety of trading instruments, such as foreign exchange, commodities, equities, and indices.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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FCA | Exness (UK) Ltd | Market Making(MM) | 730729a |
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CYSEC | Exness (Cy) Ltd | Market Making(MM) | 178/12 |
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FSCA | EXNESS ZA (PTY) LTD | Retail Forex License | 51024 |
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FSA | Exness (SC) Ltd | Retail Forex License | SD025 |
Exness is an online forex and CFD broker that was established in 2008. Registered in Cyprus, this company has expanded its reach to become a well-known brokerage firm, providing trading services to clients around the world. Exness is renowned for its intuitive trading platforms and extensive selection of financial instruments, which have made it a favoured option for traders in the foreign exchange and financial markets.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | EIGHTCAP PTY LTD | Market Making(MM) | 391441 |
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FCA | Eightcap Group Ltd | Straight Through Processing(STP) | 921296 |
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SCB | Eightcap Global Limited | Retail Forex License | SIA-F220 |
Eightcap is an online brokerage firm that was established in 2009. Headquartered in Melbourne, Australia, this company offers access to a wide range of financial markets, such as forex, stocks, indices, commodities, and cryptocurrencies. The company provides trading services to clients globally, with a particular emphasis on retail traders and investors.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | FIRST PRUDENTIAL MARKETS PTY LTD | Market Making(MM) | 286354 |
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CYSEC | First Prudential Markets Ltd | Straight Through Processing(STP) | 371/18 |
FP Markets, an Australian forex and CFD broker, was established in 2005. Based in Sydney, FP Markets is regulated by the Australian Securities and Investments Commision (ASIC) and holds an Australian Financial Services Licence. Throughout its extensive history of more than 15 years, FP Markets has established itself as a trusted name in the industry, known for its highly competitive pricing, lightning-fast execution speeds, and top-notch trading platforms such as MetaTrader 4, MetaTrader 5, and Iress. FP Markets provides a wide range of trading options, including forex trading on over 60 currency pairs and CFDs across various assets such as indices, commodities, shares, and cryptocurrencies. Traders have the option to select between raw spread accounts that offer access to deep liquidity or ECN accounts that provide tight variable spreads. FP Markets welcomes clients from around the world and is renowned for its round-the-clock customer support in multiple languages.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | TRADEMAX AUSTRALIA LIMITED | Market Making(MM) | 436416 |
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FMA | TRADEMAX GLOBAL MARKETS (NZ) LIMITED | Market Making(MM) | 569807 |
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VFSC | Trademax Global Limited | Retail Forex License | 40356 |
TMGM (TradeMax Group) is a renowned global online forex and CFD broker established in 2017. The company is based in the Republic of Vanuatu, a small island nation in the South Pacific, and it provides trading services to clients all around the globe. TMGM offers a diverse selection of financial instruments, such as forex, commodities, indices, and cryptocurrencies, accessible through its user-friendly online trading platform. TMGM strives to provide a contemporary and intuitive trading experience for investors in the financial markets.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | STONEX FINANCIAL PTY LTD | Market Making(MM) | 345646 |
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FCA | Gain Capital UK Limited | Market Making(MM) | 113942 |
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FSA | GAIN Capital Japan Co., Ltd | Retail Forex License | 関東財務局長（金商）第291号 |
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NFA | GAIN CAPITAL GROUP LLC | Market Making(MM) | 0339826 |
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IIROC | GAIN Capital - FOREX.com Canada Ltd. | Market Making(MM) | Unreleased |
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CIMA | GAIN Global Markets, Inc | Market Making(MM) | 25033 |
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MAS | STONEX FINANCIAL PTE. LTD. | Retail Forex License | Unreleased |
FOREX.com is a reputable online forex and CFD broker based in the United States. Established in 2001, it has built a strong reputation in the industry. This broker offers a diverse selection of trading instruments, such as forex, commodities, and indices, to meet the needs of both individual and institutional traders. One of the standout features of this platform is its user-friendly and versatile trading interface. Traders can choose between the popular MetaTrader 4 (MT4) platform or the proprietary web-based platform. Both options offer a robust and intuitive experience for executing trades and managing portfolios.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | PEPPERSTONE GROUP LIMITED | Market Making(MM) | 414530 |
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CYSEC | Pepperstone EU Limited | Market Making(MM) | 388/20 |
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FCA | Pepperstone Limited | Straight Through Processing(STP) | 684312 |
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SCB | Pepperstone Markets Limited | Retail Forex License | SIA-F217 |
Pepperstone, an online forex and CFD broker, was established in 2010 in Australia. The company is based in Melbourne, Australia, and has become a favoured option for traders around the globe. It provides access to a wide range of financial markets and trading instruments through its easy-to-use trading platforms. Pepperstone is renowned for its competitive pricing, tight spreads, and unwavering dedication to delivering a dependable trading environment for its clients.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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ASIC | AVA CAPITAL MARKETS AUSTRALIA PTY LTD | Market Making(MM) | 406684 |
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FSA | Ava Trade Japan K.K | Retail Forex License | 関東財務局長（金商）第1662号 |
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FFAJ | AVA TRADE JAPAN K.K. | Retail Forex License | 1574 |
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CBI | AVA Trade EU Limited | Retail Forex License | C53877 |
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FSCA | AVA CAPITAL MARKETS (PTY) LTD | Retail Forex License | 45984 |
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FCA | AVA Trade EU Limited | European Authorized Representative (EEA) | 504072 |
AvaTrade is an international forex and CFD brokerage that was founded in 2006 in Dublin, Ireland. Regulated by the Central Bank of Ireland and licensed by financial regulators across Europe, Japan, South Africa, and Australia, AvaTrade provides retail traders, institutions, and fund managers access to trading instruments spanning forex, cryptocurrencies, bonds, commodities, indices, stocks, and ETFs. AvaTrade stands out for its comprehensive educational resources, multilingual customer support, and array of trading platforms including the popular MetaTrader 4 and AvaTradeGO. Traders can choose between floating or fixed spreads and leverage up to 1:400. AvaTrade also offers automated trading through Expert Advisors on the MetaTrader 4 platform. With its focus on trust, innovation, and empowering traders, AvaTrade has grown rapidly over the past 15+ years to serve over 200,000 accounts globally.
| Regulated Country | Regulated Authority | Regulated Entity | License Type | License Number |
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CYSEC | Forextime Ltd | Market Making(MM) | 185/12 |
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FCA | Exinity UK Ltd | Straight Through Processing(STP) | 777911 |
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FSC | EXINITY LIMITED | Retail Forex License | C113012295 |
FXTM is a reputable global online brokerage that operates under the regulation of multiple jurisdictions worldwide, such as the UK, Cyprus, South Africa, and Mauritius. Established in 2011 in Limassol, Cyprus, FXTM has experienced significant growth and currently caters to over 2 million accounts in over 180 countries. FXTM offers a wide range of tradable instruments, giving retail traders, institutions, and introducers access to over 250 options. These include forex, stocks, indices, commodities, cryptocurrencies, and ETFs. Take advantage of leverage up to 1:1000, enjoy competitive spreads, and experience fast execution on the popular MetaTrader 4 and MetaTrader 5 platforms. FXTM is known for its dedication to educating traders, providing customer support in multiple languages, and offering a wide range of trading resources to empower traders with the confidence to trade. FXTM has established itself as a reputable global broker in just ten years of operation, thanks to its transparent pricing, tight spreads, and advanced trading tools.
Forex Trading Knowledge Questions and Answers
What Are Financial Regulatory Authorities in South Africa?
South Africa has several financial regulatory authorities that oversee different aspects of the financial sector to ensure transparency, stability, and consumer protection. The key regulatory authorities in South Africa include:
Financial Sector Conduct Authority (FSCA)
The FSCA is the primary regulatory authority for non-banking financial services in South Africa. It supervises and regulates various financial products and services, including insurance, collective investment schemes, retirement funds, and market conduct. The FSCA's main focus is to protect the interests of consumers and maintain the integrity of the financial markets.
South African Reserve Bank (SARB)
The South African Reserve Bank is the central bank of South Africa. While it primarily focuses on monetary policy and currency issuance, it also plays a role in regulating certain aspects of the financial industry to ensure the stability and soundness of the financial system.
Prudential Authority (PA)
The Prudential Authority operates as a division of the South African Reserve Bank and is responsible for the prudential regulation and supervision of banks, insurance companies, and other financial institutions to maintain their financial soundness.
National Credit Regulator (NCR)
The NCR is responsible for regulating and overseeing the credit industry in South Africa. Its main role is to promote responsible lending practices and protect consumers from unscrupulous lending and credit-related activities.
Johannesburg Stock Exchange (JSE)
While not a regulatory authority per se, the JSE is South Africa's primary stock exchange. It establishes and enforces listing requirements and trading rules for companies listed on its exchange, ensuring fair and transparent capital markets.
How Is the Forex Market in South Africa?
In South Africa,the Foreign Exchange market is not new, however Forex has become a booming sensation all around the country. This new lucrative market has become a source of income to many people in the country, in more ways than one. Many people make money, trading, staring brokers and selling education. The FSCA is the market conduct regulator for financial institutions that provide financial products and services, as well as market infrastructures.
The FSCA regulates financial institutions that are licensed under a financial sector law, such as banks, insurers, retirement funds, and administrators. Market conduct regulation and oversight are the responsibility of the Financial Sector Conduct Authority (FSCA). FSCA strives to improve and promote the efficiency and integrity of financial markets, as well as to safeguard financial customers by encouraging financial firms to treat them fairly and offering financial education. The FSCA will help preserve financial stability even more.
Unfortunately, for retail traders, there is only one regulatory system in the country. The FSCA is the only organisation regulating Forex activities in the country. This is because it is still a new concept in the country, meaning there are not many laws or regulatory bodies governing this industry. This leaves rooms for many scams and corruption throughout the industry. It is important that the traders understand the level scams in this industry before entering into it. There are many scams and techniques that are legal, however unfair or unethical.
How do I choose a reputable forex broker in South Africa?
Selecting a reliable forex broker in South Africa is a critical decision that can significantly impact your trading journey. To make an informed choice, consider the following key factors:
Regulatory Compliance:Your first step is to ensure the broker is fully regulated by the Financial Sector Conduct Authority (FSCA). Regulatory oversight offers vital protections and promotes ethical conduct in the financial markets.
Trading Platforms:Evaluate the trading platforms offered. Look for user-friendly interfaces, advanced charting tools, and mobile compatibility. A reputable broker should provide you with a powerful and dependable trading environment.
Costs and Spreads:Scrutinize the broker's fee structure and spreads. Transparent information on costs, and competitive spreads, can significantly impact your trading expenses.
Customer Support: Test the broker's customer support by reaching out with questions. A reputable broker should offer accessible and responsive customer service to assist you promptly and effectively.
Educational Resources: The availability of educational resources is crucial. Reliable brokers often provide webinars, articles, and courses to support your trading skills and knowledge.
Asset Variety:Consider the variety of assets available for trading. A reputable broker should offer access to a diverse range of financial instruments beyond just major currency pairs.
Deposit and Withdrawal Options:Examine the broker's deposit and withdrawal methods. A trustworthy broker will offer secure and convenient options with reasonable processing times.
Trading Tools and Analysis:Look for brokers that provide comprehensive trading tools and analysis resources, including technical and fundamental analysis, economic calendars, and real-time market news.
Transparency and Reputation: Research the broker's reputation through reviews and regulatory compliance history. Transparent pricing and a solid track record are key indicators of a broker's reliability.
By thoughtfully considering these factors, you can confidently choose a reputable forex broker in South Africa that aligns with your trading goals and safeguards your interests.
Candid Advantages of Forex Trading in Contrast to Stock Market Trading
In financial trading, forex and stocks are distinct markets, each with its unique qualities. Here, we'll explore why forex trading often holds an edge over stock trading. From flexibility to lower costs, these advantages shape traders' preferences.
24-Hour Market:Forex trading operates around the clock, providing traders with the flexibility to choose their preferred trading hours. For instance, you can engage in forex trading at 2 AM in South Africa while the New York stock market is closed. This flexibility is particularly valuable for traders with varying schedules.
High Liquidity: The forex market is exceptionally liquid, with a daily trading volume exceeding $6 trillion. This high liquidity ensures you can buy and sell currencies swiftly without significantly impacting exchange rates. Imagine you want to exchange a substantial amount of ZAR (South African Rand) for USD; the forex market can accommodate such transactions without causing substantial price fluctuations.
Lower Trading Costs:Forex brokers commonly offer commission-free trading and narrower spreads. For example, if you trade the EUR/USD currency pair, the spread might be as low as 1 pip. This means you pay a minimal cost for executing trades. In contrast, stock trading often involves brokerage commissions, which can add up with frequent trading.
Leverage:Forex trading allows for leverage, enabling traders to control more significant positions with less capital. Suppose you have $1,000, and your broker offers a leverage of 50:1. This means you can control trades worth $50,000. However, remember that leverage amplifies both gains and losses, so prudent use is essential.
Diverse Opportunities: The forex market offers a multitude of currency pairs to trade, from major pairs like EUR/USD to exotic pairs such as ZAR/JPY. This diversity enables traders to take advantage of global economic events. For instance, if you anticipate an economic downturn in Europe, you can short the Euro (EUR) against the US Dollar (USD).
Lower Barriers to Entry:Forex trading typically requires a lower initial investment compared to stock trading. For example, some brokers allow you to open a forex trading account with as little as $100. This reduced financial barrier makes forex accessible to a wider range of traders, including those with limited capital.
Short Selling: In forex, short selling is straightforward. If you anticipate a currency will depreciate, you can sell it without owning it first. For instance, if you predict that the British Pound (GBP) will weaken due to economic uncertainties, you can sell GBP/USD without holding British Pounds.
No Market Bias:Forex trading is neutral, as you can profit from both rising and falling markets. For instance, if you expect the Japanese Yen (JPY) to strengthen, you can buy USD/JPY (going long). Conversely, if you predict a decline in the JPY, you can sell USD/JPY (going short). This flexibility allows traders to adapt to changing market conditions.
While forex trading offers these advantages, it's vital to remember that it also involves risk. Understanding market dynamics, trading strategies, and effective risk management is essential to navigate the forex market successfully. Your choice between forex and stock trading should align with your financial objectives and risk tolerance.
Why is Forex Education Important, Especially for South African Traders?
Forex trading is an extremely risky career, even more so in South Africa, as it is still a new industry. This means there are not many laws governing this industry. Thus, leaving room for many scams and corruption, without proper education, it will be difficult to navigate this industry.
Forex training not only teaches you how to comprehend the fundamental concepts and terms, but it also teaches you how to put together your own framework for trading training and balance. There are various classes and educational courses where you may learn your talents while being supervised by an expert tutor. Finding reliable Forex information is extremely difficult. This is because many people are selling courses to make money and not provide reliable course. Besides the education brokers is another large scam in South Africa. Scam education could be more important than the actually Forex industry itself.
Overall, Forex education is so paramount in South Africa for several crurial reasons:
Mitigating Risks: Forex education equips traders with the knowledge and tools to manage risk effectively. Understanding factors like leverage and position sizing can help protect capital.
Enhancing Skills: Education enhances trading skills, from technical analysis to risk management. Proficiency in these areas empowers traders to make informed decisions.
Navigating Economic Events: South African traders need to comprehend the impact of global and local economic events on currency values. Education enables them to anticipate and react to these shifts.
Choosing Reputable Brokers: Education guides traders in selecting well-regulated brokers and avoiding scams, a critical consideration for financial security.
Market Understanding:Forex education provides insights into market mechanics, helping traders adapt to changing conditions and seize opportunities.
Empowering Independence: With education, traders can confidently navigate the forex market, reducing reliance on others for trading decisions.
What Sorts of Accounts do Most Regulated Brokers Offer?
Let's say you have $200 to invest in a currency, but you're not sure if that's enough. Many brokers provide multiple account levels based on the quantity of your capital, and $ 200 is insufficient to get started.
Micro-financeMost brokers will be able to begin trading for as low as R100, while others will be able to begin trading for as little as R1000.
Miniature AccountsA micro account is usually your best bet if you have an investment of R1000 or more.
In South Africa trading Forex is considered high risk due to all the scams and fake information out there. Because it is still new the FSCA is still creating new laws to protect retail traders, leaving room for many scams to take place. In order to navigate this industry new traders should understand scams most of all. Finding a good source of education, a good broker and an honest mentor is the fundamentals of trading Forex in South Africa.
How Does the Rand's Exchange Rate Affect Forex Trading in South Africa?
The South African Rand (ZAR) exchange rate plays a big role in forex trading in South Africa. Here are the main ways it affects trading:
Volatility:The Rand is known for its adrenaline-pumping volatility. Sudden, heart-pounding fluctuations in the Rand's exchange rate can lead to wild price swings in currency pairs involving ZAR. Traders need to fasten their seatbelts for the thrilling ride of heightened volatility.
Currency Pairs: South African traders often focus on currency pairs that involve the Rand, such as USD/ZAR, EUR/ZAR, GBP/ZAR, and AUD/ZAR. The Rand's movements in these pairs can have a direct impact on trading strategies and decisions.
Investor Sentiment: The Rand's exchange rate can be influenced by global investor sentiment, geopolitical events, and economic data. Traders in South Africa and abroad pay attention to these factors, leading to shifts in trading strategies.
Economic Stability: The Rand's exchange rate is a reflection of South Africa's economic health and political stability. Factors such as government policies, corruption, and social unrest can impact the Rand's value, which traders must consider.
Inflation and Interest Rates: A weaker Rand can contribute to higher inflation due to increased import costs, which may influence the South African Reserve Bank's monetary policy decisions. Forex traders closely watch interest rate changes and inflation data, as they can affect the value of the Rand.
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