List of Brokers with IFSC (Belize) Regulation
The International Financial Services Commission or IFSC is the agency authorized by the government of Belize to regulate financial activities in the country. The IFSC is responsible for establishing and enforcing financial regulations and overseeing all market participants in Belize. Many online forex brokers have obtained international licenses from the IFSC after registering in the offshore jurisdiction of Belize. IFSC is under the control of the Belize Ministry of Securities and the International Financial Services Commission Act enacted in 1990.
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What does IFSC regulated mean?
Being regulated by IFSC (International Financial Services Commission) means operating under the standards of a Belize financial regulator. As an investor-friendly region, Belize has a strict privacy laws and a zero tax structure for overseas income that makes it a great destination for companies to enjoy a good business environment. The IFSC was then established as an agency to supervise financial services providers in line with the frameworks by the Belize Government.
What are IFSC rules?
- Forex brokers under the IFSC Belize are required to hold a minimum operating capital of $100,000 (recently increased to $500,000). It is tremendously low compared to other modern regulatory standards.
- The IFSC expects its members to seperate all client funds in segregated accounts to help protect traders and investors against brokers misuse.
- Regulated IFSC brokers are expected to to provide audit reports and financial statements. Still, it hasn't been considered as comprehensive as those required by more trusted agencies like FCA, ASIC, or even CySEC yet.
- All brokers are encouraged to cater to clients' demands and should be capable of resolving disputes through dialogues and mutual collaborations.
What is the main purpose of IFSC?
To oversee the operations of forex brokers based in Belize. Their areas of work include:
- Promoting, protecting, and enhancing Belize as a centre for international financial services.
- Regulating the arrangements for international financial services.
- Be responsible for the supervision and control of Licensed Investment Services Companies, investment consultants, and mutual fund management companies.
- Issuing licences to all participants in the financial market including brokers, brokerage firms, and other financial services providers.
- Imposing administrative sanctions or disciplinary penalties to any financial providers found to be breaking the regulations.
What are the powers of IFSC?
Although its general effectiveness as an offshore regulatory body is considered dubious, the IFSC Belize has the power to weed out broker scams and suspicious financial entities operating under false claims. To ensure the effort, the agency can release notices, press releases, public warnings, and other information through its official platform to alert traders against companies that falsely claim to be regulated under the IFSC.
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.