Last Updated on Mar 11, 2021 by James W

Vanuatu has probably emerged as the best place to obtain a broker license in the world. It has become a favorite place for brokers. There are many reasons why Vanuatu is getting increasingly popular for Forex and Binary options. Vanuatu’s regulatory authority Vanuatu Financial Service Commission (VFSC), has made it far easier for the brokers to obtain a broker license. VFSC, which was established in 1993, is responsible for overseeing financial providers, credit services, and investment within the country.

A large number of brokers are getting themselves registered in the country. A lot of brokerage companies also start their brokerage firm by obtaining a license from Vanuatu’s VFSC. Obtaining a broker license has become very important for brokers due to the highly competitive nature of the present market. It is a general view among the brokers that the broker license is crucial for the company to operate. On the client’s side, it helps them to protect themselves from many kinds of frauds that happen in the market.

It also ensures that the client will get compensation if in case the brokers go bankrupt. Hence, regulated brokers have become very popular in the market due to the security it provides. Additionally, there are no income tax and inheritance tax in the country. There are no capital gain taxes in the country as well. Hence, the Forex and Binary options sector in Vanuatu has witnessed tremendous growth in the past few years. It has also helped in employment generation within the country.

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A company needs to fulfill certain requirements to get a broker license in Vanuatu. Recently, the company has made the requirements even more strict. However, the requirement is still far easier when compared to other popular regulatory authorities like Cysec.

Here are some of the requirements a broker need to fulfill to get a broker license in Vanuatu:

  1. The company must be registered in Vanuatu.
  2. The company should also have a specified structure that is; a beneficiary owner, director, and 2 AML officers.
  3. The appointed director should have 5 years of experience.
  4. There should be personal indemnity insurance for employees to protect the interest of customers. The cost of insurance ranges between $1000-$15000.

Additionally, the authorized capital of $50,000 is also required at the time of applying for the broker license. These small capital requirements and easy registration processes have made Vanuatu a paradise for Forex and Binary options brokers. Companies can get registered and get a VFSC broker license in a very short amount of time.

However, these requirements are far lesser than what many of the top regulatory authorities require. However, the VFSC has made its regulations more strict in the past few years. It may not be enough to protect a customer from fraud and scams. There are many benefits of getting a broker license in Vanuatu. Due to the lack of taxation, the country is one of the best places to conduct business in the world. Some of the major benefits for a company registering in Vanuatu are:

  1. Speedy registration (Within 3 months)
  2. A high level of confidentiality is practised for shareholders, officials, and owners.
  3. There is also a wide range of processing and acquiring solutions that a company can get.
  4. The companies are exempted from tax for 20 years is one of the biggest advantages. Additionally, the companies are not subject to any foreign exchange controls.
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What is the Licence for Forex in Vanuatu Worth?

The above features make Vanuatu one of the best places for brokerage firms to get registered. The cost of getting a license for a broker license is $25,950. It also includes the charges of company formation. To get a broker license, the company must produce the following documents at the time of registration. These documents are; notarized passport copy, curriculum vitae, proof of address, Original police clearance report, and Bank reference letter. The company will also need to present two reference letters that can act as proof of at least 3 years of experience in fund management, investments, and securities.

A license can be very helpful for a broker company in the present competitive environment. In fact, many established brokers that are present in the market were broker regulated by VFSC in Vanuatu. Some of these brokers are NordFX, XDirect, Gerchik&Co, and Forex chief.

Any firm that registers itself in Vanuatu would not have to pay taxes for 20 years to the country. This is one of the main reasons why Vanuatu is gaining a lot of attention from many startup brokers around the world.


Apart from being one of the hottest places for the tourist, Vanuatu has also become a hot region for Forex and Binary options brokers. It is far easier to get a broker license from Vanuatu’s VFSC as compared to other popular onshore regulatory authorities like Cysec and FCA. Cysec and FCA have some of the strictest regulations in the world for the Forex broker license. The cost of obtaining a broker license from the VFSC is 25,950 that also includes the cost of company formations. The registration cost for a broker license in Vanuatu is one of the lowest in the world.

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Getting a broker license from one of these authorities has also taken a lot of time. Obtaining a license from authorities lie Cysec can take anywhere from 12-16 months. On the other hand, you can easily get a VFSC broker license in just 2-3 months. Moreover, the capital requirements for obtaining a broker license from the VFSC are very less as compared to onshore authorities. Apart from that, there are many tax benefits that a company gets in Vanuatu that are difficult to find anywhere else in the world. It is because there are no Income tax, Inheritance tax, and capital gain tax in Vanuatu.


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