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TrustFinance
Okt 09, 2026
13 min read
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Many brokers' information pages list regulatory bodies such as FCA, CySEC, followed by "FSA (Seychelles)" or "Registered in St. Vincent and the Grenadines." Most readers only see "licensed" but don't understand the legal implications of those latter statements.
This article explains what an Offshore license is, what the regulatory bodies in Seychelles, Mauritius, Vanuatu, and St. Vincent and the Grenadines (SVG) stipulate in their laws, and how to verify registrations yourself. All information is directly referenced from those authorities' documents, without naming specific brokers or ranking any regulatory body.
An Offshore license is a financial business license issued by a regulatory body in a small country or jurisdiction that serves as an international business hub, such as Seychelles, Mauritius, or Vanuatu. License holders typically serve clients outside that country. Therefore, the scope of protection depends on the laws of the issuing authority, not the laws of the country where the trader resides.
The term "offshore" is an industry term, not a legal license type. Two things need to be distinguished from the outset:
The FSA of Seychelles performs both functions: issuing licenses and supervising non-bank financial businesses, and registering International Business Companies (IBCs) (FSA Seychelles). For this reason, the FSA issued an advisory clarifying that "being an IBC does not mean that the entity is licensed or regulated by any authority," but only that the company is incorporated in Seychelles. The same advisory states that in cases of unauthorized service providers, the FSA finds it difficult to assist with fund recovery (FSA Seychelles advisory).
The SVG side provides an even clearer example. According to the FSA SVG's information page, Business Companies can be registered through an authorized agent within 24 hours, can have a single director and shareholder, and have no residency requirements for directors (FSA SVG, Business Companies). Therefore, a company registration number only indicates the company's legal existence.
The figures below are from the documents specified in parentheses. These requirements are subject to change; always consult the latest version of the authority's documents before referencing.
The relevant license is the Securities Dealer Licence under the Securities Act 2007. The application guidelines, version March 5, 2026, stipulate key conditions: applicants must have at least 2 natural person directors, at least 1 licensed representative, a minimum paid-up capital of USD 100,000, insurance as per Section 73, and a physical place of business in Seychelles (FSA Seychelles, Securities Dealer Guidelines).
Regarding client funds, the law requires licensees to protect client assets "by segregation and identification," and funds held on behalf of clients must not be used to settle company debts (Securities Act 2007, consolidated to December 18, 2024, Sections 64 and 72).
In late 2024, Seychelles added retail client protection rules for leveraged CFDs and rolling spot forex. Brokers must assess client suitability before allowing trading, collateral must be in cash, and retail client liability is "limited to the funds in that trading account." Additionally, licensees must inform the FSA of the countries they serve, with written evidence of authorization to accept clients in those countries (S.I. 119 of 2024).
The FSC of Mauritius issues Investment Dealer licenses under the Securities Act 2005, categorized into several types with varying minimum stated capital requirements. For example, a Full Service Dealer (excluding underwriting) requires MUR 1,000,000, a Broker MUR 700,000, and an Investment Dealer (Derivatives) MUR 1,000,000. The capital must be fully paid up (Securities (Licensing) Rules 2007, consolidated as at September 8, 2020, Fourth Schedule).
The FSC's licensing criteria require applicants to detail client money segregation measures, and for domestic companies, to have at least 2 full-time officers who understand the work of an Investment Dealer (FSC Mauritius, Licensing Criteria).
The VFSC issues Financial Dealers Licenses under the Financial Dealers Licensing Act [CAP 70], divided into 4 categories. Category A covers items the law refers to as "proceeds of Foreign Exchange," and Category C covers futures and derivatives. Licensees must deposit VUV 5,000,000 with the Commissioner, have professional indemnity insurance of at least VUV 5 million per claim, with an aggregate limit of not less than VUV 50 million, and submit audited financial statements within 3 months after the anniversary date (FDLA CAP 70, consolidated edition 2026, Sections 2, 5, 10A, 10B).
The same law requires companies to have an office in Vanuatu with a manager or director residing in the country for 6 months a year, or to use a licensed manager who must also have an office in Vanuatu and reside in the country for 6 months a year. VFSC guidelines further explain that they must have their own premises, records, administrative staff, and operational systems in Vanuatu, not shared with other companies (VFSC, Physical Presence). Regarding client funds, VFSC's code of conduct stipulates protection through segregation and identification (VFSC, Market Practice and Code of Conduct).
No, it does not. The FSA SVG stated in its notice on February 2, 2026, that it "does not issue any licenses for forex trading or brokerage" and "does not regulate or license Business Companies or LLCs engaged in forex business." Companies registered in SVG and conducting such business must obtain licenses from the countries where their clients reside (FSA SVG, February 2, 2026 Notice).
Therefore, the statement "registered in SVG" indicates the company's status, not that any authority regulates that company's Forex business.
This table summarizes only what was found in the referenced documents and is not a ranking. A cell stating "Not found in reviewed documents" means it was not found in this set of documents and does not confirm the absence of such a rule.
| Authority | License related to Forex/CFD | Minimum Capital or Deposit | Client Funds | Local Presence | Retail Client Protection |
|---|---|---|---|---|---|
| FSA Seychelles | Securities Dealer Licence | Paid-up capital USD 100,000 | Segregated and identified; cannot be used to settle company debts | Physical place of business in Seychelles | Suitability assessment and liability limited to funds in the account (2024) |
| FSC Mauritius | Investment Dealer (various types) | Stated capital according to type, e.g., Full Service (excluding underwriting) and Derivatives, MUR 1,000,000 each | Must demonstrate client money segregation measures upon application | 2 full-time officers (domestic companies) | Not found in reviewed documents |
| VFSC Vanuatu | Financial Dealers Licence Category A (FX) and C (Derivatives) | Deposit with Commissioner VUV 5,000,000 | Segregated and identified (code of conduct) | Local office and executive or licensed manager residing in the country for 6 months a year | Not found in reviewed documents |
| FSA SVG | Does not issue Forex licenses | None (company registration) | Does not regulate Forex business | No residency requirements for directors | Does not regulate Forex business |
Licenses from Seychelles, Mauritius, or Vanuatu are genuine licenses with capital requirements, client money segregation, and audited financial statements. However, their scope has boundaries that should be understood.
License is geographically bound. The FSA Seychelles explicitly states that the Securities Dealer license "covers only securities business conducted in Seychelles." If services are to be offered in other countries, authorization from the regulatory body of that country is required, and "the onus is on the client" to verify whether the platform is authorized in their country of residence (FSA Seychelles, Communiqué No. 1 of 2021).
Enforcement power does not equate to fund recovery. The same communiqué states that the FSA can penalize licensees who violate conditions, but this power does not extend to recovering funds or compensating clients. Traders with monetary disputes must therefore seek other avenues beyond the FSA.
No leverage caps found in reviewed documents. In the documents of all four authorities referenced in this article, no specific leverage caps for retail clients were found. This differs from the UK's FCA, which limits CFD leverage for retail clients to between 30:1 and 2:1 (FCA, 2019). The impact of leverage on risk is explained in What is Forex Leverage? How Risky Is It?
Regarding compensation funds in case of broker insolvency, this article does not confirm their existence or absence in each country, as no primary documents explicitly stating this for Forex/CFD clients were found. Compensation funds from authorities like FCA, ASIC, and CySEC are summarized in FCA, ASIC, CySEC, FSCA: What's the Difference? Which Offers Real Protection?, and how client segregated accounts work is in What is a Segregated Account? Does it Really Make Client Funds Safer?
A common point of confusion is the corporate group structure. A single broker brand may have multiple legal entities, and clients in different countries might be assigned to different companies under different authorities. Details on this are in What a License Protects and Does Not Protect.
The principle is similar to checking general regulatory bodies, as explained in How to Check a Forex Broker License? Verify Yourself in 5 Minutes, but with specific details for each authority.
Other steps applicable to all types of brokers, such as checking company history and withdrawal conditions, are compiled in Is Your Forex Broker Trustworthy? 7 Steps Before Depositing Funds.
Note: Forex trading is not yet licensed or regulated by any authority in Thailand. The Bank of Thailand has no policy to issue Forex business licenses to retail individuals (Reference: Thai PBS), and the SEC itself confirms that Forex business is not under its supervision but rather under the foreign exchange control law (Reference: The Standard).
This article is provided for general knowledge only and is not personal investment advice. No returns are guaranteed. Traders should conduct further research and assess risks independently before making decisions.
Is the FSA Seychelles license trustworthy?
It is a genuine license with legal requirements for capital, directors, office, and client money segregation. Since 2024, there are rules limiting retail client liability to the funds in their account. It's important to know that the license covers business conducted in Seychelles, and the FSA does not have the authority to recover funds for clients. Therefore, decisions should consider both the license itself and other company information.
Does "Registered in SVG" mean it has a license?
No, it does not. The FSA SVG states that it does not issue licenses or regulate companies engaged in Forex business. Registration in SVG only confirms the existence of that company.
For brokers with both FCA or ASIC licenses and Offshore licenses, which license covers Thai clients?
It depends on the legal entity specified in the client agreement, not on the brand's entire list of licenses. The differences between using brokers in Thailand and offshore brokers are explained in Thai vs. Offshore Brokers: What's the Difference?
Is trading Forex in Thailand with an Offshore broker legal?
An offshore license does not change the legal status in Thailand. Forex business is not licensed in Thailand as per the note above. Any protection traders might receive comes solely from the laws of the country that issued the license. Details are in Is Forex Trading Illegal? Latest Legal Status in Thailand.
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