Demo Account Guide
Demo Account Guide
R

List of Brokers with VFSC Regulation

HOME / REGULATION / VFSC

The Vanuatu Financial Services Commission (VFSC) is the main regulatory body in Vanuatu responsible for the regulation and oversight of financial businesses there. Founded in 1993, the VFSC registration fee is relatively cheap thus allowing forex brokers to offer low trading costs.


Established : 1993
Country : Vanuatu
Website : https://www.vfsc.vu
Total Brokers : 42

Scroll for more details

Score Broker Regulation Payment Min Deposit Max Leverage

If you are interested to try the brokers in the list above, make sure to use the forex demo account so you could experience trading firsthand with virtual money. You don't even have to deposit any funds since the demo account is 100% free. It is also available in most brokers.

 

Vanuatu Financial Services Commission (VFSC), previously known as Registrar of Companies and the Official Receivership Department of the Treasury, was established in December 1993 after Vanuatu Parliament enacted the Vanuatu Financial Services Commission Act No. 35 of 1993. Their job is to operate an effective and efficient Registry, and regulate and supervise the financial services industry of Vanuatu. They also have the responsibility to promote the industry outside of the country, as well as protect its reputation from undesirable business persons.

 

Since the license given by VFSC allows brokers to run their business in a flexible manner, trading in a VSFC-regulated broker means no limit on leverage. Traders could choose to trade with 1:1000 leverage or more. There are also no restrictions on bonuses or rebates.

VFSC brokers are also known for affordable trading fees. Traders could enjoy small deposits, low spreads and commissions, as well as 0% fees on deposits and withdrawals.

On the downside, the regulator does not require negative balance protection or operate an investor compensation scheme. VFSC does not require its brokers to report their financial activities and company performances, so there is no strict supervision from the regulator to ensure the compliance of its members.

 

  1. Go to the official website of VFSC.
  2. On the Registry Services, choose Companies then click on Register Search.
    Checking VFSC Broker 1

  3. Type the broker's name in the available field, then click Search.
    Checking VFSC Broker 2

  4. If the broker is registered in VFSC, the result should appear like this. You can click on the broker's name to see more detail.
    Checking VFSC Broker 3

  5. The following is an example of how a broker's information is displayed in more detail.
    Checking VFSC Broker 4

Since the VFSC brokerage license is relatively easy to obtain and the regulator doesn't do much in applying restrictions for clients' protection, the trading safety of VFSC forex brokers is not as strong as other brokers regulated by top financial authorities. To minimize the risk, traders could look for these aspects in a VFSC-regulated broker:

  1. Additional licenses from other financial regulators, preferably from more credible institutions such as MFSA, CySEC, ASIC, or even FCA.
  2. Established in no less than 5 years.
  3. Good reputation among traders with minimum negative testimonials.

 

Despite its reputation for providing lenient regulations, VFSC is still one of the most favored offshore regulations among forex brokers. Setting up a business is a quite difficult task to perform, so anything that might ease that task will surely draw the attention of business owners.

Here is a list of what Vanuatu might offer in that regard:

  • Cost-effective
    VFSC allows brokers to set up their business with a minimum capital of $2,000. To put that into perspective, the FCA (UK) requires two types of capital to be paid depending on the granted permission: €125,000 and €750,000. So, quite a huge difference there.

  • Quick and Simple Set-up
    VFSC can issue a business license in just about 3 months. In comparison, the Cyprus Securities and Exchange Commission (CySEC) takes about a year to give a brokerage license. To apply for a brokerage license by VFSC, brokers only need to provide a business and financial plan, supervisory and AML/CTF Manuals, as well as a confirmation of their geographic and marketing targets. Also, the people involved in the business are required to submit these:
    • Resume or CV regarding experience in forex brokerage activities.
    • Notarized copies of passport.
    • Proof of residential address.
    • Original bank reference.
    • A clean criminal record.
    • Non-bankruptcy certificate.

  • High Flexibility
    The regulatory standards and reputation of the VFSC might not be as stringent as those of more established financial regulatory bodies in other countries. As such, brokers are free to offer high leverage, utilize bonus promotions as a marketing scheme, and provide act as a money management service.

  • No Physical Presence Required
    Some other regulatory bodies require brokerage companies to set up a physical presence in their country. Even an offshore regulatory body like IFSC Belize requires its brokers to do so. On the other hand, VFSC only needs the incorporation and administration of a Vanuatu international company.

Additional FAQ

Along with the Reserve Bank of Vanuatu, VFSC is responsible to enact legislation and supervisory activities on the following subjects:

  • Anti-Money Laundering and Counter-Terrorism Financing
  • Business Names Act
  • Company and Trust Services Providers
  • Charitable Associations (Incorporation)
  • Credit Unions
  • Dealers In Securities (Licensing)
  • Electronic Transactions
  • E-Business
  • Financial Institutions
  • International Banking
  • International Companies
  • Mutual Funds
  • Offshore Limited Partnerships
  • and many others.

Continue Reading at What Does VFSC Regulation Mean for Forex Brokers?

Registering a license in VFSC is a truly simple process, implemented with low requirements for setup, where investor only needs to submit a register online, prove an initial capital fund of mere $2,000, pay some fees, and within a 2-3 month, the firm is licensed and registered as a legal forex brokerage.

The VFSC regulator does not demand any proof of company backgrounds, nor check the implementation of secure fund management or basic operation guidelines. They do not demand any regular reporting and never impose fines in case of fraud.

Continue Reading at 3 FSC Forex Regulations That You Should Know

The Monetary Authority of Singapore (MAS) is the regulatory authority overseeing forex trading in Singapore. Singapore's regulatory framework allows leverage up to 1:500 and covers a wide range of forex pairs and cryptocurrencies.

Continue Reading at Forex Trading in Singapore: 5 Facts You Need to Know

Russians could legally trade forex in Russia. However, it might be difficult to choose the best forex brokers in Russia based on CBR policy as they would have very limited choices. They also have to come personally to one of the broker's offices to sign a framework agreement and risk disclosure.

As of 2019, there were only four forex brokers known to still own licenses from CBR. They are Finam Group, PSB Forex, VTB Forex (owned by state Promsvyazbank and VTB), and Alfa-Forex (owned by Alfa-Bank). To make matters worse, CBR doesn't provide a list of authorized forex brokers although Russian residents could contact the CBR directly to verify authorization.

Continue Reading at Best Forex Brokers in Russia