VFSC Regulated Forex Brokers
Vanuatu Financial Services Commission (VFSC) is an offshore financial regulatory authority located in the Republic of Vanuatu. It was founded in 1993 and regulates banking and financial services in Vanuatu. VFSC is responsible for administering legislation like dealers in securities (licensing), anti-money laundering, counter-terrorism financing, business names act, electronic transactions, offshore limited partnerships, personal property securities, etc.
Vanuatu island a great location for forex brokers with limited amount of resources because capital (or bond) requirements are relatively small. The companies are exempted from capital gains, tax on profits, and stamp duty after incorporation for 20 years.
The process of obtaining a VFSC license is also comparatively fast. Here is the list of VFSC regulated forex brokers.
|Broker||Regulation||Max Leverage||Min Deposit||General Rating|
| Juno Markets |
| Vanuatu Financial Services Commission 40099 ||1:500||$100||Review|
| FXPRIMUS |
| CySEC 261/14 |
FSCA (South Africa), 46675
Vanuatu Financial Services Commission, 14595
| FXPIG |
| Ministry of Finance and Economic Management (Vanuatu) 165 |
Vanuatu Financial Services Commission, 014578
| Eightcap |
| ASIC 391441 |
Vanuatu Financial Services Commission, 40377
| NordFX |
|Vanuatu Financial Services Commission, 15008 ||1:1000||$10||Review|
| Deriv |
| FSA (Labuan) MB/18/0024 |
FSC (BVI), SIBA/L/18/1114
The Financial Commission, 08.06.2020
Vanuatu Financial Services Commission, 14556
| Titan FX |
|Vanuatu Financial Services Commission, 40313 ||1:500||$200||Review|
| Gerchik & Co |
| The Financial Commission 31.01.2017 |
Vanuatu Financial Services Commission, 40512
| Milton Markets |
|Vanuatu Financial Services Commission, 40370 ||1:1000||$300||Review|
| Global Prime |
|ASIC, 385620 |
FSA (Seychelles), SD057
Vanuatu Financial Services Commission, 40256
| World Forex |
| FSC (BVI) 1420912 |
Vanuatu Financial Services Commission, 300236
| LegacyFx |
| BaFin 348194 |
FCA (UK), 797343
NBRB (Belarus), 193180778
Vanuatu Financial Services Commission, 14579
| CMS Prime |
United Arab Emirates
|FSA (St. Vincent & the Grenadines), 24495 IBC 2018 |
FSC (Mauritius), GB19024331
Vanuatu Financial Services Commission, 40437
| SmartFX |
United Arab Emirates
|Vanuatu Financial Services Commission, 40491 ||1:400||$200||Review|
| UFX |
|CySEC, 127/10 |
Vanuatu Financial Services Commission, 14581
| Vantage FX |
|ASIC, #ACN 140 903 886 |
Cayman Islands Monetary Authority 1383491
FCA (UK), 501057
Vanuatu Financial Services Commission, 700271
| FinmaxFX |
| FMRRC (Russia) TSRF RU 0395 AA V0150 |
Vanuatu Financial Services Commission, 41072
| Moneta Markets |
|Vanuatu Financial Services Commission, 700271 ||1:500||$50||Review|
| BMFN |
|Vanuatu Financial Services Commission, 40202 ||1:400||$50||Review|
| Fusion Markets |
|ASIC, 226199 |
Vanuatu Financial Services Commission, 40256
| TOP1Markets |
|ASIC, 488340/001276870 |
Vanuatu Financial Services Commission, 40436
| TMGM |
|ASIC, 436416 |
FSP (New Zealand) 569807
Vanuatu Financial Services Commission, 40356
| AETOS |
|ASIC, 313016 |
FCA (UK) 592778
Vanuatu Financial Services Commission, 700450
Vanuatu, ranked fourth in the list of happiest countries, is a small country with many pleasant sights and activities to offer for everyone. The Republic of Vanuatu is a beautiful archipelago made by a volcanic eruption located about 1,750 km east of northern Australia. This island country is mostly inhabited by Melanesian people which rely on agriculture, offshore financial services, and raising cattle as their main sources of income.
Vanuatu has many interesting tourism sites that attract people from all over the world. They have coral reefs of the South Pacific region and shipwrecks of US ocean liner and SS President Coolidge that impress many scuba divers.
Aside from beautiful beaches for the tourists, they also have something that might be of interest to forex brokers. The Vanuatu Financial Services Commission is in fact available for brokerage companies to apply for an FX/CFD brokerage license from this country.
Vanuatu Financial Services Commission, 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, regulate and supervise the non-deposit taking financial services industry of Vanuatu, promoting the industry outside of this country, as well as protecting its reputation from undesirable business persons.
What Makes VFSC So Appealing to Many 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. In this case, VFSC has a lot to offer such as speed, flexibility, freedom from income tax, capital gains tax, and inheritance tax. Here is a list of what Vanuatu might offer in that regard:
One of the biggest reasons why people set up a business is to earn money, not to lose money. Therefore, if there is a way to make them spend less on setting up a business, they would certainly do it. That is one of the few things that VFSC offers. They allow you to set up a forex brokerage 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.
VFSC can have your business license ready relatively fast because after you submit all the necessary documents, they can give the license in just about 3 months. In comparison, the Cyprus Securities and Exchange Commission (CySEC) takes about a year to give a brokerage license.
The license given by VFSC allows you to run your business in a flexible manner. They pose no limit on leverage, options to operate as an STP or marketing making firm, PAMM/MAM account, and money management service.
No physical presence required
Some other regulatory bodies require brokerage companies to set up a physical presence in their country. VFSC only needs the incorporation and administration of a Vanuatu international company.
What It Takes to be a VSFC Regulated Broker
For a company who is interested in applying for a brokerage license by VFSC, they only need to make sure that the people that will be involved in the business such as directors, officers, shareholders, and ultimate beneficiary owners will need 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.
Aside from the documents above, the company also needs to provide a business and financial plan, supervisory and AML/CTF Manuals, as well as a confirmation of their geographic and target markets.
Is It Safe to Trade in a VFSC Forex Broker?
Since a VFSC brokerage license is relatively easy to obtain, a broker should apply for licenses from another regulatory body to earn more trust from their clients. Therefore, it is important for traders to pay attention should they come across a VFSC-regulated entity. If the company is not regulated anywhere else, might as well considering another VFSC broker with extra licenses.
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.