FSA Regulated Forex Brokers

The Republic of Seychelles is a small archipelagic country located 1500 kilometers east of mainland Africa, in the Indian Ocean. This country consists of 115 islands and has the highest nominal per capita GDP when compared to any other African country. They are also the first country to surpass the Human Development Index score of 0.800. The World Bank put Seychelles on the list of countries with high-income economies.

The financial service sector is one of the fastest-growing sectors in Seychelles. All the more reason to apply for a brokerage license here. One of the more specific advantages of applying for a brokerage license in Seychelles is no blocked capital. USD50,000 that is required to apply for a brokerage license can be withdrawn later on for the company's expense.

There are several reasons why choosing an offshore jurisdiction for a brokerage license is preferred when compared to onshore brokerage licenses. One of those reasons is the cost, because applying for an onshore brokerage license usually requires a large sum of capital in addition to many other requirements. Several brokerage licenses in offshore jurisdiction also offer a very low tax on profits, about 1.5% p.a. that can be reduced to almost zero, allowing a forex broker to spend less compared to when they are licensed by an onshore regulation.

See also: The Story Behind Tax Haven Countries for Forex Trading

In that case, the Financial Services Authority of Seychelles has become a reputable and respected international financial services jurisdiction over the last 10 years, started by the establishment of the International Business Companies Act in 1994, the International Trust Act in 1994, the International Trade Zone Act in 1995, and recently, Seychelles Securities Act in 2007.

Seychelles Securities Act of 2007 gives a legal framework for the provision of Securities Dealer Services. In order to trade in securities on its own account or on behalf of its clients. For further information, you can visit "Discovering Seychelles Regulation for Forex Brokers".

Usually, the Seychelles Offshore Securities Dealers License will be settled in 3 months after the applicants set up a domestic company in 24 hours and prepare the paperwork in 2 weeks. Keep in mind that the broker does not need to personally visit Seychelles to take care of the document because all forms of application including bank account forms are included in the mailing charges as a part of the pricing modules.

Here are the requirements to apply for Securities Dealers License in Seychelles:

• Domestic company in Seychelles with a share capital of USD50,000. The funds do not need to stay there after the licensing process is done, as the company is free to use it at their disposal later on.
• Two people who act as the directors. Their CVs will be screened according to the FSA's standard.
• A fully furnished office in Seychelles. The FSA will visit the office and see if it has paid its rent, electricity, water, active phone number, cleaning services, and an internet connection.
• A qualified compliance officer in Seychelles and a Securities Dealers Representative who can be the company director themselves.

After fulfilling the requirements above, the head of the company will need to submit the following paperwork:

• Certified copy of passport
• Certified utility bills from last month
• Curriculum Vitae
• Academic and professional certificate
• Professional reference letters - two of them
• Bank reference letter
• Employment letter from current employer if there is one
• Police Criminal Certificate, issued within the last three months
• The most recent Tax Compliance Certificate
• Two passport photos
• A bank statement showing at least USD50,000. This fund needs to be in a Seychelles bank account later on.

After the license is issued and sent, the company can conduct several activities such as offering forex and CFD-related products, accepting their clients’ deposits, as well as providing other forex-related services to anyone through its official website. There is also no limit on how many clients it can attract.