The Malaysian territory is welcoming retail FX brokers with 1:100 leverage
The offshore migration trend which started in the aftermath of the new EU regulations is one of the major changes to the industry over the past year. Brokers have been creative in finding new destinations. The latest jurisdiction to officially offer a broker license is Malaysia’s offshore island of Labuan.
The news comes amid tightening conditions in some other remote jurisdictions. Most recently the island of Vanuatu became a much more strict regulatory destination, requiring company directors to reside on the island for six months every year.
Labuan License Details
The island is located in East Malaysia and is home to the country’s International Business and Financial Centre (IBFC), where the Labuan Financial Services Authority (Labuan FSA) is located.
With a Money Broking License on offer, the regulator is delivering a permit specifically suited to the FX industry.
Elaborating to Finance Magnates, David Woliner who is Head of Financial Regulation at Nir Porat & Co. shared that a company needs one shareholder and two directors to get started. The minimum experience required from directors stands at three years, and at least a diploma level education.
“In comparison to many jurisdictions requiring a minimum of 5 years, this is a more lenient requirement. The capital requirement, to be deposited in a local bank in Labuan, stands at 500,000 MYR, which are roughly $130,000 USD. The capital is freely usable, not blocked like in Belize or Vanuatu, as long as you do not fall below the threshold,” Woliner explained.
According to the industry expert, the licensing process is rather straightforward and short. Companies can expect the process to take as little as three months after a conditional license is issued within one month.
Operational Requirements
A local office in Labuan alongside two employees will need to be established, which is something that has become a traditional requirement for offshore jurisdictions lately. None of the directors or the CEO of the company are required to be based on the island, however.
The costs for the company to maintain its presence on the island is also required to reach a minimum of 100,000 MYR ($25,000 approx.) per year. As to taxation, the company will be required to pay three percent of its profits.
A notable prerequisite in many offshore jurisdictions is insurance. Labuan’s financial regulator does not require professional indemnity insurance as many other jurisdictions.
Brokers will have a 1:100 Leverage limitation on all instruments that are traded via the subsidiary. Access to banking is also considered to be one of the strong points of this license, Woliner elaborated.
“Altogether, Labuan offers a welcoming and business-oriented jurisdiction with a fairly good reputation and should be highly considered by all market players,” the Head of Financial Regulation at Nir Porat said.
The offshore migration trend which started in the aftermath of the new EU regulations is one of the major changes to the industry over the past year. Brokers have been creative in finding new destinations. The latest jurisdiction to officially offer a broker license is Malaysia’s offshore island of Labuan.
The news comes amid tightening conditions in some other remote jurisdictions. Most recently the island of Vanuatu became a much more strict regulatory destination, requiring company directors to reside on the island for six months every year.
Labuan License Details
The island is located in East Malaysia and is home to the country’s International Business and Financial Centre (IBFC), where the Labuan Financial Services Authority (Labuan FSA) is located.
With a Money Broking License on offer, the regulator is delivering a permit specifically suited to the FX industry.
Elaborating to Finance Magnates, David Woliner who is Head of Financial Regulation at Nir Porat & Co. shared that a company needs one shareholder and two directors to get started. The minimum experience required from directors stands at three years, and at least a diploma level education.
“In comparison to many jurisdictions requiring a minimum of 5 years, this is a more lenient requirement. The capital requirement, to be deposited in a local bank in Labuan, stands at 500,000 MYR, which are roughly $130,000 USD. The capital is freely usable, not blocked like in Belize or Vanuatu, as long as you do not fall below the threshold,” Woliner explained.
According to the industry expert, the licensing process is rather straightforward and short. Companies can expect the process to take as little as three months after a conditional license is issued within one month.
Operational Requirements
A local office in Labuan alongside two employees will need to be established, which is something that has become a traditional requirement for offshore jurisdictions lately. None of the directors or the CEO of the company are required to be based on the island, however.
The costs for the company to maintain its presence on the island is also required to reach a minimum of 100,000 MYR ($25,000 approx.) per year. As to taxation, the company will be required to pay three percent of its profits.
A notable prerequisite in many offshore jurisdictions is insurance. Labuan’s financial regulator does not require professional indemnity insurance as many other jurisdictions.
Brokers will have a 1:100 Leverage limitation on all instruments that are traded via the subsidiary. Access to banking is also considered to be one of the strong points of this license, Woliner elaborated.
“Altogether, Labuan offers a welcoming and business-oriented jurisdiction with a fairly good reputation and should be highly considered by all market players,” the Head of Financial Regulation at Nir Porat said.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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