Best IFSC (Belize) Regulated Forex Brokers 2018
If you are a Belize based trader or trade from somewhere that allows you to use a Belize based broker, then there some very good options for you. Inside we look at the best of these options. Our list is created from our own research into the key factors to look out for, these include Offering, Platforms, Service and Trading Conditions.
Introduction to IFSC Regulation
IFSC is an acronym that stands for The International Financial Service Commission. Belize has for a long time been known to be an offshore haven that didn’t offer ‘too much restriction’ to foreign brokerage firms who wanted to make a killing. However, this changed recently when IFSC increased licensing fees and minimum capital requirements, therefore, making it hard for rogue brokers to enter the markets. Some are of the opinion that the new requirements were too harsh but this was a necessary move to make sure that the authority of the IFSC is respected.
IFSC is responsible for creating, amending and implementing policies that are meant to regulate the activities and operations of financial service providers. By doing this, it creates a reliable and transparent market for all participants both from Belize and also from the international market. It also issues licenses based on applications that are presented to it by firms that are interested in carrying out financial business in Belize. This means that they also collect all fees related to acquisition and renewal of licenses. One of the most important goals for it to achieve is to ensure that growth of financial services is promoted and this, in turn, stimulates overall growth of the Belize economy.
IFSC is also responsible for collecting information about the market (including its participants) and creating periodic reports to submit to the government. This not only ensures that the financial service providers are regulated but also makes sure that the operations of IFSC are kept in check.
How IFSC Regulation Protects You
Through the Financial Services Commission Act, the regulator aims to create a business environment where the rights of the customers are protected.
As we had mentioned earlier, IFSC collects information from the local and international financial markets. Records of this sort of information are updated regularly and availed to interested parties. This means that as an investor, you have an abundant knowledgebase that you can use to your advantage such that you are able to reap maximum benefits from the markets.
IFSC has the power to enact regulations that protect investors such as one that happened recently when it demanded that all firms that are licensed to facilitate financial and commodity based derivative instruments must avail proof of a minimum capital requirement of $500,000
Guidelines for IFSC Regulated Brokers
All IFSC regulated brokers are required to pay an annual fee for the renewal of their licenses. Owing to the fact that Belize is a member of the Caribbean Financial Action Task Force (CFATF) it means that all licensees are required to abide by the necessary regulations. This means collecting enough information about the customers such that they are not inadvertently involved in money laundering schemes or funding of criminal activities. Brokers are also meant to comply with the minimum capital requirements and provide proof that customer’s funds are segregated from the firm’s operating capital.
- New Zealand
- South Africa
- South Korea
- Hong Kong
- United Arab Emirates
- Russian Federation
List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|