Brokers looking for an FX license are increasingly looking to the Securities Commission of The Bahamas.
There is a new option gaining status for forex broker licenses and binary options dealers. It is not actually new, but the financial services regulator in The Bahamas is getting quite a lot of attention from forex brokers and binary options dealers seeking a business-friendly jurisdiction.
" The Bahamas is historically a base for US and European asset managers."
Located just 80 kilometers southeast of the United States, The Bahamas is historically a base for US and European asset managers, and hosts some of the biggest financial services firms with a thriving community managing upwards of $800 billion.
The Securities Commission of The Bahamas (SCB) is certainly a regulator that should be considered if you are looking for a forex broker license or seeking an alternative to your current jurisdiction.
1. English Law
The Bahamas is a former British Crown colony and its stable parliamentary democracy has been built upon English law.
2. Not a Tax Haven
The country is on everyone’s good list, meaning it doesn’t come with the dubious distinctions of notorious tax-haven countries.
3. Reasonable Banking Requirements
Opening a bank account is not as difficult as other jurisdictions, even those which are EU equivalent.
4. Global AML Policy
Its government complies with global Money Laundering guidelines and Common Reporting Standards established by the OECD.
5. Internationally Recognized Jurisdiction
US, UK and European financial institutions view Bahamas-based companies in a positive way; therefore, establishing business relationships is easier.
Although it is not the least expensive jurisdiction in which to operate, it is fast, secure and professional. The Bahamas’ highly regarded regulator, the SCB, deals fairly balancing the needs of its financial services community with international standards. (Financial Services is the second-largest contributor to The Bahamas’ GDP behind tourism).
"The quality of SCB regulation and stability of government is something that should not be over-looked."
The quality of SCB regulation and stability of government is something that should not be over-looked and quite frankly in this regulatory environment should seriously be considered. An SCB Broker-Dealer license corresponds with a Forex broker license or binary options dealer. Here are the basic requirements for a Forex and CFD market maker license:
- A physical presence, meaning a secure office space;
- At least one local director of the company staff including a local CEO and Compliance Officer; and
- A sound business plan and suitable compliance standards minimum capital adequacy of $300,000 is required.