The Bahamas: A New Regulatory Option for a Forex Broker License
- Brokers looking for an FX license are increasingly looking to the Securities Commission of The Bahamas

Located just 80 kilometers southeast of the United States, The Bahamas is historically a base for US and European asset managers, and hosts some of the biggest financial services firms with a thriving community managing upwards of $800 billion.
The Bahamas is historically a base for US and European asset managers
Looking for an Alternative?
The Securities Commission of The Bahamas (SCB) is certainly a regulator that should be considered if you are looking for a forex broker licence or seeking an alternative to your current jurisdiction.
- The Bahamas is a former British Crown colony and its stable parliamentary democracy has been built upon English law.
- The country is on everyone’s good list, meaning it doesn’t come with the dubious distinctions of notorious tax-haven countries.
- Opening a bank account is not as difficult as other jurisdictions, even those which are EU equivalent.
- Its government complies with global Money Laundering guidelines and Common Reporting Standards established by the OECD.
- US, UK and European financial institutions view Bahamas-based companies in a positive way; therefore, establishing business relationships is easier.
Although it is not the least expensive jurisdiction in which to operate, it is fast, secure and professional. The Bahamas’ highly regarded regulator, the SCB, deals fairly balancing the needs of its financial services community with international standards. (Financial Services is the second-largest contributor to The Bahamas’ GDP behind tourism).
The quality of SCB Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and stability of government is something that should not be over-looked
The quality of SCB regulation and stability of government is something that should not be over-looked and quite frankly in this regulatory environment should seriously be considered. An SCB Broker-Dealer licence corresponds with a Forex broker licence or binary options dealer. Here are the basic requirements for a Forex and CFD market maker licence:
- A physical presence, meaning a secure office space
- At least one local director of the company
- Staff including a local Chief Executive Officer and Compliance Officer
- A sound business plan and suitable compliance standards
- Minimum capital adequacy of $300,000 is required
Typically, successful applicants are granted a licence within four to six weeks.

The firm that best represents those looking to register a company in The Bahamas and obtain a financial services licence is Offshore Inc (www.offshoreinc.com). If you would like to reach out to this firm please email me at preed@forexdevelopment.com and I will make a personal introduction for you. In addition please take a look at their website which has all the information you need https://offshoreinc.com/
They have extensive experience in this area and can lead you through the entire process bringing it to conclusion.

This article was written by Peg Reed, Chief Operating Officer of Forex Development Corporation. FDC is a firm that specializes in assisting firms set up brokerages, prime to prime, b2b sales division, technology development and assisting firms in finding regulatory locations.
Located just 80 kilometers southeast of the United States, The Bahamas is historically a base for US and European asset managers, and hosts some of the biggest financial services firms with a thriving community managing upwards of $800 billion.
The Bahamas is historically a base for US and European asset managers
Looking for an Alternative?
The Securities Commission of The Bahamas (SCB) is certainly a regulator that should be considered if you are looking for a forex broker licence or seeking an alternative to your current jurisdiction.
- The Bahamas is a former British Crown colony and its stable parliamentary democracy has been built upon English law.
- The country is on everyone’s good list, meaning it doesn’t come with the dubious distinctions of notorious tax-haven countries.
- Opening a bank account is not as difficult as other jurisdictions, even those which are EU equivalent.
- Its government complies with global Money Laundering guidelines and Common Reporting Standards established by the OECD.
- US, UK and European financial institutions view Bahamas-based companies in a positive way; therefore, establishing business relationships is easier.
Although it is not the least expensive jurisdiction in which to operate, it is fast, secure and professional. The Bahamas’ highly regarded regulator, the SCB, deals fairly balancing the needs of its financial services community with international standards. (Financial Services is the second-largest contributor to The Bahamas’ GDP behind tourism).
The quality of SCB Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority (FCA), the US’ Securities and Exchange Commission (SEC), Australian Security and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC) are the most widely dealt with authorities in the FX industry.In its most basic sense, regulators help ensure the filing of reports and transmission of data to help police and monitor activity by brokers. Regulators also serve as a countermeasure against market abuse and malpractice by brokers. Brokers adhering to a list of mandated rules are authorized to provide investment activities in a given jurisdiction. By extension, many unauthorized or unregulated entities will also seek to market their services illegally or function as a clone of a regulated operation.Regulators are essential in snuffing out these scam operations as they prevent significant risks for investors.In terms of reporting, brokers are also required to regularly file reports about their clients’ positions to the relevant regulatory authorities. The most-recent regulatory push in the aftermath of the Great Financial Crisis of 2008 has delivered a material shift in the regulatory reporting landscape.Brokers typically outsource the reporting to other companies which are connecting the trade repositories used by regulators to the broker’s systems and are handling this crucial element of compliance.Beyond FX, regulators help reconcile all matters of oversight and are watchdogs for each industry. With ever-changing information and protocols, regulators are always working to promote fairer and more transparent business practices from brokers or exchanges. Read this Term and stability of government is something that should not be over-looked
The quality of SCB regulation and stability of government is something that should not be over-looked and quite frankly in this regulatory environment should seriously be considered. An SCB Broker-Dealer licence corresponds with a Forex broker licence or binary options dealer. Here are the basic requirements for a Forex and CFD market maker licence:
- A physical presence, meaning a secure office space
- At least one local director of the company
- Staff including a local Chief Executive Officer and Compliance Officer
- A sound business plan and suitable compliance standards
- Minimum capital adequacy of $300,000 is required
Typically, successful applicants are granted a licence within four to six weeks.

The firm that best represents those looking to register a company in The Bahamas and obtain a financial services licence is Offshore Inc (www.offshoreinc.com). If you would like to reach out to this firm please email me at preed@forexdevelopment.com and I will make a personal introduction for you. In addition please take a look at their website which has all the information you need https://offshoreinc.com/
They have extensive experience in this area and can lead you through the entire process bringing it to conclusion.

This article was written by Peg Reed, Chief Operating Officer of Forex Development Corporation. FDC is a firm that specializes in assisting firms set up brokerages, prime to prime, b2b sales division, technology development and assisting firms in finding regulatory locations.