Best IBFC (Malaysia) Regulated Forex Brokers 2018

The Labuan International Business and Financial Center (IBFC) is more than just a regulatory authority. It is an entirely special economic zone dedicated to the development and opportunity for new businesses in Malaysia. Created in 1990, it offers a unique and attractive investment opportunity for entrepreneurs and large organizations looking to access the economies of many Asian countries in the region. It’s also considered to be one of the biggest free trade zones in Asia.

Introduction to IBFC Regulation

The IBFC is an independent economic zone which is regulated by the Labuan Financial Services Authority (LFSA). As well, the brokerages set up in this economic zone are regulated and licensed under the LFSA. Within this jurisdiction, the trading of forex is made possible, unlike in other parts of Malaysia. The IBFC and LFSA jointly work together in providing a cost-effective business environment with their own regulatory framework separate from the rest of Malaysia.

IBFC regulated brokers have gained a great deal of recognition and popularity since the Malaysian government started promoting it back in 2008. Since then, many forex brokers have setup brokerages in this lucrative economic zone while being under the regulation of the LFSA.

IBFC Responsibilities

Being the economic zone in which forex companies can operate efficiently and effectively, there are many responsibilities for this to happen. First of all, all the IBFC brokers and financial service providers must be licensed and regulated by the LFSA. The responsibilities this regulation has for the IBFC regulated brokers is as follows.

  • The promotion and further development of the IBFC island as an international financial services and business centre.
  • To work within the parameters established by the national ideals in relation to business and financial services.
  • To provide regulation and supervisory duties of the financial markets.
  • The licensing and regulation of brokerages and financial companies.
  • Protection of investors rights by ensuring transparency, security, and regulation of financial institutions.

How IBFC Regulation protect you

IBFC regulation offers protection to their investors by being a competent and reputable regulatory agency who enforces their policies, and fulfills the monitoring and supervision of companies they regulate. Under IBFC regulation, brokers are able to work with major banks for the segregation of their client’s funds which is an attractive security option for many investors. As well, through the rules, regulations, supervision, and implementation of their procedures and guidelines, the IBFC protects investors by providing secure and transparent financial markets.

Guidelines for IBFC Regulated Brokers

IBFC regulated brokers are bound by law to comply with the professional and ethical rules that have been laid down by the regulator. As well, all brokerages residing in the IBFC must meet all the specifications outline by the IBFC and LFSA in order to be licensed and regulated. The brokerages are required by the IBFC to submit annual audited reports to ensure they are following proper financial procedures and avoiding fraudulent activity.

Top Brokers
// Top Brokers By Promotion Type

List of Brokers

BROKERUSER RATINGREGULATED BYHEADQUARTERSMIN. DEPOSITOFFICIAL SITE
Plus500
ASIC, CySEC, FCAIsrael$100Open Account
  • CFD Service. 80.6% lose money
AvaTrade
ASIC, BVI, FSA(JP), FSB, MiFIDIreland$100Open Account
  • Your capital is at risk
eToro
ASIC, CySEC, FCACyprus$200Open Account
  • 65% of retail investor accounts lose money
Markets.com
CySEC, FSBCyprus$100Open Account
  • CFDs carry risk. 73% of traders lose
FXCM
BaFin, FCAUnited Kingdom$300Open Account
  • Your capital is at risk