Bahamas becomes the jurisdiction of wealthy Forex brokers – Forex News Now

Having studied the regulatory documents, it was found out that now suppliers of trading services in the segment of contracts for difference, CFD, Bahamian license will cost a pretty penny.

In particular, Parliament passed a law proposed by the Bahamas Securities Commission on March 27, 2020, which amended the current rules on fees and commissions.

Now, individuals who wish to register as a dealer of contracts for difference will have to pay a registration fee of $2,500, a registration fee of $15,000 and an annual license renewal fee of $30,000.

In addition, a registered CFD broker must, in addition to paying an annual renewal fee, pay a quarterly activity fee of US $ 45,000, except in cases where the commission is exempted or reduced.

In addition, the CFD Supervisory Officer will be a subject to an application fee of $1,000, a registration fee of $3,000, and an annual renewal fee of $5,000.

Thus, the annual cost of a license will increase 15 times, from $16,500 to $230,000.

The Bahamas are one of the most legitimate offshore jurisdictions. However, a sharp increase in fees is a very strange step on the part of the regulator. Of course, the high cost of a license will scare away scammers, but decent brokers who need offshore jurisdiction will leave with them. Fortunately, they have a choice, for example, Seychelles or Vanuatu.

Tal Itzhak Ron, who is Chairman and CEO of Tal Ron, Drihem & Co. explained that the Bahamas has ceased to be cost-effective, and he did not recommend this jurisdiction, as well as other jurisdictions of Plan B (Belize, Bermuda, Barbados). A Vanuatu license costs 41,000 plus capital of 48,000. In recent years, this jurisdiction has become one of the best for forex and CFD brokers outside the EU. If you are new to this industry, you may not have to consider jurisdictions such as the Bahamas or the British Virgin Islands.

Today, despite the high cost, some large companies in the industry, continue to maintain their licenses in Belize. Bahamian licenses are held by FxPro, IC Markets, Infinox and XM. Starting with a capital of 180 thousand dollars for a broker, or 300 thousand dollars for a market maker is an expensive pleasure, not to mention the expensive costs of maintaining the local infrastructure. Large GCs that already have this license will probably not refuse it. However, other companies will also consider the jurisdiction of the Bahamas, despite its high cost.

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Bahamas becomes the jurisdiction of wealthy Forex brokers - Forex News Now