Setting up a forex brokerage offers great potential for entrepreneurs entering the financial services sector. One of the important decisions you’ll confront in the early going is where to incorporate your company. While some choose to regulate heavily, others intentionally select for the most “non-regulated” directions. They are places in which you can legally set up without needing to get a special certification for foreign exchange (as long as you are not targeting countries with highly sophisticated financial laws, such as the US or UK). Below, we’ll explore some of the most common directions for unregulated forex brokers, what each has to offer, and what to be mindful of.
Overview Of The Submission Workflow
Basic setup workflow and structure for Forex brokers in Saint Lucia.
Saint Lucia has now become the direction of choice for those looking to enter the forex marketplace that is both swift and cost-efficient. It’s notably broker-friendly who do not want to spend months navigating the regulatory routine.
- It only requires 2-6 weeks to submit a firm here.
- You don’t need an individual forex license to operate.
- The taxation is very favorable (many times 0% for international commercial activity companies).
“There are no equity demands; no ongoing audits.” However, remember that being “non-regulated” may restrict your access to certain banks or payment processors. But if you are primarily marketing to clients in Africa, Asia, or Latin America — where they tend to be a bit more relaxed about licensing brokers — Saint Lucia may be exactly what you need.
Marshall Islands: Initially a Low Profile Offshore Monetary Centres
This direction is a favorite for such activity seeking to sidestep heavy regulatory scrutiny.
- It is cheap and easy to incorporate.
- You do not need to have a forex license.
- You can still be 100 percent foreign-owned.
- There is a lot of corporate privacy, and not much public disclosure.
This place is not a region where we’d refer brokers seeking to onboard EU or US clients. However, for global operators looking for markets with looser forex rules, it’s a good place to start.
Anguilla: Offshore Structure for a Bit More Dough.
Another option for brokers looking for a registration hub that operates license-free a license is Anguilla. Like other directions with similar licensing exemptions, it doesn’t require a licence for forex unless targeting local citizens. It will probably be a little more expensive to establish a company here, but Anguilla has a more mature legal and corporate infrastructure, political stability and efficient banking services.
When operating from this direction — or from a similar direction like Saint Lucia and the Marshall Islands — one crucial requirement is to secure a lawful opinion. This is an variant issued by a licensed local attorney, who opined on pertinet national law as no forex license required pursuant to the current statutes. It is an important document for compliance, required by banks, PSPs and liquidity providers. It’s the cornerstone that allows non-licensed, companies in non-licensed jurisdiction to act as forex brokers internationally.
Things to Think About When Charting Your Strategy
While opting for a non-regulated jurisdiction might save time and money, it is not without its risks. Here are a few factors to weigh before you sign up:
- Read up on local financial promotion laws — because some countries do ban advertising unlicensed forex services.
- Be AML & KYC compliant even if you’re not licensed. Banks and payment companies will demand it.
- Narrow down your market. Don’t accept clients from the USA, UK, or EU unless you’re licensed to do so.
- Shop for banking options early. Some offshore banks won’t do business with non-regulated entities, while others will — if your service documentation is strong.
Key Advantages – Tax benefits, fast incorporation, and no local licensing
- Favourable tax systems – Many jurisdictions have 0% corporation tax for offshore companies.
- Effortless and speedy formation — establish your firm in 7-14 days with mostly online mechanisms.
- No obligation to acquire a local forex license – No forex license is required if you do not target local residents.
- Low compliance pressure – You do not have to follow heavy capital controls and reporting as in the EU or US.
- Economical to operate – Less expensive to set up and service, great for start-ups and boutique brokerages.
- Access to legal opinions – Annuals are available in jurisdictions such as Saint Lucia, Marshall Islands or Anguilla to service international business in the absence of formal legislation.
In other words, these jurisdictions provide the sweet spot for brokers who simply want to remain nimble, lean and mean operationally speaking, particularly in markets where clients have their own pricing priority as opposed to regulatory prestige.
Regulatory Environment – Operates under IBC Law with Minor Limitations
Legislative Pattern: Doing Business under IBC with Limited Hurdles
The foreign exchange brokers in Saint Lucia operate mainly under the International Business Companies Act, which is a lenient set of laws aimed to promote offshore business while minimizing government intervention. Unlike EU territories like Cyprus, which have heavy capital requirements, intense AML checks, and long waiting times for licenses, Saint Lucia hosts a light-touch regulatory environment:
- Low Trade Deposits: Brokers do not have to attain high volumes of capital or pass rigid regulatory requirements/costs. It also promotes a wider range of business models and freedom to operate.
- AML and KYC Standards: Although unregulated in the strict sense, brokers cannot afford to neglect internationally recognized standards to stay clear of money laundering and financial fraud. This way, the broker is safe, and so is everyone who does business with them.
- Banking Issues: The IBC has been through many countries and banks. The IBC structure is flexible, but some brokers can face resistance from banks and payment processors that consider an offshore license as risky. However, some brokers maintain their bank relationships by staying on the grid and compliant.
Final Thoughts
Unregulated jurisdictions such as Saint Lucia, the Marshall Islands, and Anguilla provide an appealing means of entering the forex market without the heavy burden of regulation. If your business plan does not include Europe or North America, these options could help you go to market more quickly and operate more freely.
Just figure out: “non-regulated” doesn’t imply “no rules.” Even in the most friendly offshore jurisdictions, you are going to have to operate a transparent and legal corporate structure — especially if you are going to work with banks, PSPs, or platform providers such as MetaQuotes.
Working with Established Companies
From our experience, such big companies as MetaQuotes work even with companies registered in Seychelles, Saint Lucia, the Marshall Islands, or Anguilla, as long as corporate documents of the company are in order and there is an appropriate legal opinion.
Comprehensive Campaign Management
We are managing your full support campaign for the workflow from the beginning to the end:
- Company Registration: From submission to running up the platform
- Setting up Bank Account: From opening a company bank account to meeting MetaQuotes compliance requirements
Payment Solutions Integration
We also help with the integration of online payment gateways and merchant solutions so you can accept deposits and process withdrawals from anywhere in the world.
Benefits of Starting with a Non-Regulated Forex Firm
Strategic Advantages
The smartest thing for startups to do is run up such a firm in a lightly or non-regulated direction:
- Low Barriers to Entry: Proponents of such OTAs cite low capital requirements and no licensing costs, plus potential synergies.
- Quick Go-to-Market Time: You can be up and running in 2–4 weeks.
- Model Testing: Test the model, learn the business, generate cash flow, and validate demand.
- Future Upgrades: When you’re ready, we can assist you in moving to a fully regulated setup in Europe or beyond.
Our Expertise
Specializing in supporting forex establishments worldwide, we are a full-service provider. We support you from the start of incorporating your company straight through to payment solutions, platform licensing, and fully prepared programs and packages (licensed and unlicensed).