Seychelles Forex License

Forex brokerage platform with a Forex license in the Seychelles

The Seychelles are home to multiple Forex brokerages, which pick the country for its political and economic stability. In addition, high leverage brokers Seychelles offer increased leverage ratios to their clients compared to the brokerages registered in other countries, both onshore and offshore.  The most suitable permit for running a Forex company in the Seychelles is the Seychelles Securities Dealer License. With such, it is possible to buy, sell, and trade securities on the foreign exchange market.

Portfolio management with a Forex license in the Seychelles

Portfolio Management is included in two main types of the Seychelles investment license: the Seychelles Securities Dealer License and the Investment Advisor License. By obtaining one of these permits, a company or an individual gets the right to manage a portfolio of securities for another person — albeit with a slight difference between the two. Unlike the SDL, the Investment Advisor License does not allow the portfolio manager to hold the property of the other person.

Securities issuance with a Forex license in the Seychelles

It is possible to issue securities under the Securities Dealer License from the FSA. With the SDL license, one can make agreements with third parties to acquire, dispose of, subscribe for, underwrite, or perform any other activity that causes a securities transaction. Such a person also obtains the right to buy or sell securities that are executed upon order. All the activities which concern securities are performed by the licensee on behalf of their client.

Financial advising with a Forex license in the Seychelles

The official name of a financial advising permit issued in the Seychelles is the Investment Advisor License.

The capabilities under this license include issuing professional advice concerning trading and exchanging securities, investing in securities, and all Forex-related recommendations. In addition, it might include advice on investment strategies and opportunities overlooked by the client, as well as managing clients’ securities portfolios.

Issuance of derivatives with a Forex license in the Seychelles

Derivatives are an indispensable part of the Securities Dealer License or Securities Exchange License issued by the FSA of the Seychelles. In fact, “securities” is an umbrella term that encompasses, among other things, derivatives such as futures, swaps, options, forwards, and contracts for differences (aka CFDs). In short, it is allowed to deal with various types of derivatives under the Seychelles SDL.

Operating a trading bot with a Forex license in the Seychelles

Launching and maintaining Forex trading bots or crypto trading bots is one of the activities permitted by the Seychelles investment license. In the era of rapid digitalization and automatization of all financial processes, using a trading bot eliminates the ordeal of managing one’s capital manually, which sometimes can be time-consuming and straight-up confusing, especially for new traders. LegalBison provides professional advice and guidelines to every individual or company interested in launching a trading bot in the Seychelles.

Offering CFDs and Futures contracts with a Forex license in the Seychelles

CFDs and trading of futures are included in the scope of activities allowed by the Seychelles investment license. In addition, the Securities Dealer License also involves options and forwards. For the companies or individuals providing financial advice, it is also possible to obtain an Investment Advisor License, allowing licensees to give recommendations on trading futures and dealing with the CFDs as integral components of the term “securities”.

Offering leveraged trading with a Forex license in the Seychelles

The Seychelles investment license creates a stable and favorable environment for different trading conditions. As experience shows, multiple high-leverage Forex brokerages that are currently active on the market are licensed by the FSA of the Seychelles. The relative flexibility of the Seychelles license allows the existence of brokerages with leverage ratios of 1:500, 1:1000, and sometimes even higher.

Cryptocurrency trading platform with a Forex license in the Seychelles

A Forex company registered and licensed in the Seychelles can provide digital asset-related services if it has sufficient legal documentation to do so. With the help of the experts from LegalBison, you can define whether Seychelles is the right jurisdiction for your particular project. For more information, read about the crypto license in the Seychelles.

Different types of Forex licenses in the Seychelles

There are 3 main types of licenses a future Forex broker can get in the Seychelles: the Securities Dealer License, the Securities Exchange License, and the Investment Advisor License. Even though these licenses have multiple adjacent activities, they are not completely identical.  The Securities Dealer License covers such activities as dealing in securities (including derivatives, futures, options, forwards, and CFDs), dealing with any types of transactions involving securities, any types of sale or disposition of securities, whether the terms of payment be on the margin, installment or otherwise, or managing the securities portfolio of another person with the right of holding their property.  The Securities Exchange License includes the same scope of services as the SDL while being primarily concentrated on marketplaces for trading securities, commodities, derivatives, and other financial instruments.  The Investment Advisor License is issued by the FSA to persons who intend to advise others on investment in securities, issue, analyse, or report specific securities, and manage a portfolio of securities of their client without holding the client’s property.

Process to get a Forex license in the Seychelles

The licensing process in the Seychelles starts with drafting all the required documents and forming the economic substance for the future company. Another essential part of the procedure is paying the licensing fee: even though the Seychelles Forex license cost differs for each license type, Seychelles remains one of the most pocket-friendly jurisdictions for Forex licensing.  Once the applicant forms a company and pays the corresponding fee, the process of filling out the application form and attaching all the necessary documents to it. We have listed all the main document requirements above; however, the FSA secures the right to demand additional information from the applicant should it decide that the application package is incomplete.  In cases where LegalBison assisted clients with forming the company and drafting the paperwork according to the law of Seychelles, there have never been any objections to the provided information. Henceforth, we encourage you to contact us for a free preliminary consultation where you can get all the essential assistance for your specific project.

Company formation in the Seychelles for a Forex license

Building up a company is not the only thing that falls under the notion of company registration in the Seychelles. One of the jurisdiction’s main benefits is that it does not currently require applicants to have a local office in the country; instead, there is a requirement to have a “registered address”, as well as the address of the principal place of business, added to the SDL application form. However, a certain degree of domestic presence still exists. For instance, according to the Consolidated Securities Act of 2007, the jurisdiction requires any securities dealing company registered in the Seychelles to have at least one local representative with a Representative License. In addition, the document package requires audited Financial Statements of the applicant for the past 2 years except in cases where the applicant was incorporated within the last 12 months.

Taxation of Seychelles Forex companies

The Seychelles is known for its stable and favorable taxation policy. Multiple Securities Dealers and Forex brokers resort to this license type mainly due to the moderate tax rate of 1.5% applicable to the gross income. Besides, there are no further taxes on dividends or interest included under the Seychelles SDL as long as all the substantial activity requirements are met by the Dealer. The same business tax of 1.5% is applied to the Investment Advisor License, under identical conditions.

Obligations to fulfill with a Seychelles Forex license

As soon as the company is active, there are certain obligations to keep track of and fulfill as the Forex business develops. First and foremost, every Securities Dealer under the license must run their business in compliance with the Securities Act of 2007. According to the Act, a license holder must have sufficient and properly equipped premises for the conduct of business, competent employees to do so, and adequate automated systems to meet emergencies and security arrangements. More to that, every license holder is required to fill out a Quarterly Returns Form, which can be found on the official website of the SFSA. The form includes, among other things, informing of any changes in the corporate or material form of the licensee, information on active clients, a geographical breakdown of clients, and a breakdown of transactions and trading statistics.