FSA Regulated Forex Brokers
The Seychelles Financial Services Authority is the autonomous regulatory body headquartered in the Republic of Seychelles. The Authority is responsible to license, regulate, enforce regulatory and compliance requirements, monitor, and supervise the conduct of business in the non-bank financial services sector like Capital Market & Collective Investment Schemes, Insurance, Gambling, etc.
The Authority is also responsible for the registration of International Business Companies, Foundations, Limited Partnership and International Trust in Seychelles. The Seychelles Securities Dealer License will allows a company to trade in securities either as a principal (on its own account) or as an agent (on behalf of its clients).
FCA Seychelles is one of the most sought-after licenses for offshore forex brokers. To get the license, the broker does not need restrictions in the number of clients to be accepted and low required capital or no blocked capital.
| Broker | Regulation | Max Leverage | Min Deposit | General Rating | |
|---|---|---|---|---|---|
| Tickmill Seychelles 2014 | BaFin 146511 CySEC, 278/15 FCA (UK), 717270 FSA (Seychelles), SD008 FSCA (South Africa), 49464 | 1:500 | $100 | Review | |
| Finq Seychelles 2005 | FSA (Seychelles) SD007 | 1:300 | $100 | Review | |
| Fondex Cyprus 2010 | CySEC 138/11 FSA (Seychelles), 8424819-1 | 1:30 | $250 | Review | |
| easyMarkets Australia 2001 | ASIC 246566 CySEC, 079/07 FSA (Seychelles), 19.09.2020 | 1:400 | $100 | Review | |
| Exness Cyprus 2008 | CySEC, 178/12 FCA (UK) 730729 FSA (Seychelles), SD025 FSCA (South Africa), 51024 | 1:2000 | $1 | Review | |
| HotForex Cyprus 2010 | CySEC, 183/12 DFSA (Dubai) F004885 FCA (UK), 801701 FSA (Seychelles), 8419176-1 FSA (St. Vincent & the Grenadines), 22747 FSC (Mauritius), 094286 FSCA (South Africa), 46632 | 1:1000 | $5 | Review | |
| Alvexo Cyprus 2014 | AFM (Netherlands) 02-04-2015 BaFin, 142529 CNMV (Spain), 3917 CONSOB (Italy), 4789 CySEC, 236/14 FCA (UK), 683301 FSA (Seychelles), SD030 ESMA | 1:400 | $500 | Review | |
| CM Trading Cyprus 2011 | FSA (Seychelles), SD070 FSCA (South Africa) 38782 | 1:200 | $250 | Review | |
| BDSwiss Cyprus 2012 | BaFin, HRB 160749B CFTC/NFA 0486419 CySEC, 199/13 FSA (Seychelles), SD047 FSC (Mauritius), C116016172 | 1:400 | $100 | Review | |
| Valutrades Seychelles 2013 | FCA (UK), 586541 FSA (Seychelles), SD028 | 1:400 | $100 | Review | |
| Global Prime Australia 2010 | ASIC, 385620 FSA (Seychelles), SD057 Vanuatu Financial Services Commission 40256 | 1:200 | $200 | Review | |
| FXLinked Seychelles 2018 | FSA (Seychelles), SD011 | 1:400 | $10 | Review | |
| M4Markets Seychelles 2019 | FSA (Seychelles), SD035 | 1:1000 | $5 | Review | |
| Skilling Cyprus 2016 | CySEC, 357/18 FCA (UK), 810951 FSA (Seychelles), SD042 | 1:500 | $100 | Review | |
| Yadix Seychelles 2010 | FSA (Seychelles), SD021 | 1:500 | $100 | Review | |
| BlackBull Markets New Zealand 2014 | FCA (UK), 9556804 FMA (New Zealand) FSP403326 FSA (Seychelles), BBG Limited | 1:500 | $200 | Review | |
| SquaredFinancial Cyprus 2017 | CySEC, 329/17 FSA (Seychelles), SD024 | 1:30 | $1 | Review | |
| FXGT Seychelles 2019 | FSA (Seychelles), SD019 | 1:500 | $10 | Review | |
| Admirals Argentina 2001 | ASIC, 28381 CySEC, 201/13 FCA (UK), 595450 FSA (Estonia), 10932555 FSA (Seychelles), 8426894-1 | 1:500 | $100 | Review | |
| ForexVox United Kingdom 2019 | FCA (UK), 586541 FSA (Seychelles), Securities Dealer License No SD028 | 1:500 | $1 | Review |
Every country creates a different set of rules regarding brokerage licenses. Some are easier than others. Seychelles is one of the countries with a less restrictive regulation when it comes to a brokerage.
A Brief Intro to Seychelles
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.
Is It Safe to Trade in a Seychelles Regulated Broker?
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 ".
How to Apply for an FSA License?
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.
In short, the Financial Services Authority of Seychelles can offer a lot when it comes to brokerage licenses. Low taxation and no capital blocking can help brokers' businesses grow faster when compared to being regulated in onshore jurisdictions.
FAQ
What does FSA regulated mean?
Being regulated by FSA (Financial Services Authority) of Seychelles means operating under the standards of a Seychelles financial regulator. Previously known as SIBA, the agency has changed its name since 2013 to take care of regulating all non-banking financial companies operating in the country.
What are FSA rules?
To be licensed as an operating forex brokerage by the FSA, here are the rules and requirements:
- A minimum capital of $50,000
- A minimum of 2 local directors
- A physical office
Being regulated by Seychelles financial agency means no restrictions on offering deposit bonuses, contests, and other promotions. Furthermore, low operational costs and corporate taxes in Seychelles give many opportunities for forex brokers to provide competitive trading conditions for clients, ranging from super low minimum trading deposits to higher leverage.
However, the Seychelles authorities are known to be highly proactive when it comes to anti-money laundering rules. They want to get rid of the common perception of being like most tax havens, wherein most are known for their indulgence in money laundering activities and financial frauds.
What is the main purpose of FSA?
To uphold the regulatory framework of financial companies in Seychelles. Under the new regulatory protocols of the reformed Financial Services Act of 2013, the Seychelles authorities hopes to concentrate more on protecting the consumer rather than the company.
What are the powers of FSA?
The FSA has the power over financial institutions and forex brokerages in Seychelles. The institution has adopted the global standards of broker regulation when it comes to supervising financial firms in Seychelles. It requires its members to regularly submit audit reports, financial statements, statement of accounts, and other documents to help them monitor brokers' activities.
If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.
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