Vanuatu: Increasingly Popular for Binary Options and Forex

Vanuatu is a beautiful island country located in the South Pacific Ocean. It consists of approximately 80 main islands with many smaller islands that stretch over 1,300 kilometers.

The island’s a good place for scuba diving and many other recreational sports like swimming, fishing, and water skiing. However, the Forex and the Binary options market have also gained momentum in the country in the past few years.

One of the chief reasons behind such growing popularity of Forex and Binary Options in the country is its regulations.

Vanuatu has one of the most favorable tax regimes as the nation has no tax policy. Generally, it is not an easy task to obtain a broker license due to many conditions imposed by the regulatory authorities worldwide. Many regulatory authorities require the broker to maintain a specific operating balance and capital requirements.

These conditions are imposed by the regulatory authorities to ensure the interests of traders. It also helps them to protect against numerous scams that happen every day in the Forex market. The broker also gets many benefits by registering with a regulatory authority.

It becomes much more trusted since it works under the conditions imposed by the regulatory body. When the Forex or Binary options broker is regulated by a reputed regulatory body, the traders can rest assured of not getting scammed.

It also helps to ensure that the trader’s money is safe even if the broker gets bankrupt. Thanks to the fact that many reputable regulations have many conditions like insurance requirements for the broker and minimum operating balance.

It makes it unlikely for the investors to lose their money in case of insolvency of the broker. However, getting a broker license is a completely different story in Vanuatu.

The regulatory body of the country, the Vanuatu Financial Service Commission, has made it far easier to obtain a broker license. Obtaining a broker license in the country is far easier as compared to other regulatory bodies in the world like the Cysec and FCA(UK). Additionally, not only are the conditions easier but obtaining a VFSC license is also very fast. Hence, Vanuatu is becoming an increasingly popular option for brokers to obtain a Forex broker license or Binary options broker license.

Regulations have become very important for Forex and Binary options brokers to get trust from clients in the market. Survival without regulations is difficult has become a general view among the brokers in the financial market. However, getting a regulatory broker license from reputable regulator authorities is very difficult for the brokers. This is one of the main reasons why a large number of brokers are getting themselves registered at Vanuatu’s regulatory authority.

Moreover, the process of obtaining a license from Vanuatu’s VFSC is very fast, which is difficult to find anywhere in the world. However, similar to other regulatory authorities in the world, the VFSC also has some conditions for the brokers to fulfill at the time of application. These requirements are:

Requirements of VFSC Regulatory License

1. Having a minimum capital of $50,000 at the time of registration.
2. The company should be registered in Vanuatu.
3. The company structure should be as follows: Beneficiary owner, directors, and 2 AML officers.
4. The director of the broker should have at least 5 years of experience.
5. The company should have professional indemnity insurance for employees to protect the interest of customers. The cost of an insurance policy is between $10,000 to $15,000.

The requirements for obtaining the VFSC Regulatory license are much more relaxed when compared to some of the best regulatory bodies in the world. For example, the capital requirement of FCA(UK) is much higher when compared to VFSC.

Due to the above requirements and easy processing of licenses, a large number of brokerage companies are getting themselves registered in Vanuatu. The countries financial markets infrastructure itself is growing at a very fast rate. This has led to a boom of Forex and Binary options within the country. For a Forex broker, there are many advantages of getting registered in VFSC.

Advantages of Applying for a VFSC Broker Regulatory License

There are many advantages for the brokers who want to get a broker license from Vanuatu. The first and foremost benefit that a broker gets is there are no income tax and no capital gain tax. There is also no inheritance tax in the country.

The companies that register there are subject to no taxes for as long a 20 years. Moreover, Forex Brokers in Vanuatu are not subject to any Forex control. This makes the country an excellent place for the broker to operate a business. Having close to no taxes is one of the main reasons why the Forex and Binary Options industry is booming in Vanuatu.

Additionally, a broker gets the broker license in very little time in Vanuatu. The time to acquire a broker license in Vanuatu is less than 3 months. The low capital required to get a broker license in Vanuatu is another advantage that VFSC gives over other regulatory authorities.

Hence, the VFSC in Vanuatu remains a great choice to launch a brokerage company. It is evident from that fact that many established broker in the market got their Forex license from Vanuatu. These companies include NordFX, XDirect, Accent Forex, TradeFred, and Binary.com

Conclusion

Vanuatu is getting immensely popular among the Binary options and Forex brokers for its relaxed tax system and ease of getting a broker license. The capital requirement to get a broker license in Vanuatu’s VFSC is very low as compared to some of the best regulatory authorities like Cysec.

Thanks to the lack of regulations and ease of getting broker license, the industry for both Forex and Binary Options is booming in Vanuatu. A large number of brokers are getting themselves registered for the broker license in the country.

It is because the broker license has become very important for the brokers to gain the trust of the client and survive in the industry. Many good and established brokers in the market have also got their broker license from Vanuatu. Hence, Vanuatu is an excellent place for the broker to get a broker license due to the very less requirements by the VFSC.