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IFSC (Belize) Regulated Forex Brokers

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Written by Naylyan Nazifova
Naylyan Nazifova
Naylyan Nazifova is a recognised expert in the online trading field. She has many publications and analysis covering forex trading, stock investing and personal finance. 
, | Updated: November 29, 2024

International brokers often look for the best conditions to conduct their businesses, which explains why many companies prefer to be regulated in Belize. This Central American country is known to have pretty relaxed financial regulations and a tax system that can be rather generous toward companies providing financial services. If you want to learn more about brokers regulated in Belize, you can take a look at the brands we have covered below. The brokers on our list have been licensed by the International Financial Services Commission of Belize (IFSC), which is a reputable regulatory body that ensures a safe and fair trading environment for investors.

1FBS
Rating: 4.3 ⭐
72.12% of retail investor accounts lose money
Top Rated
2XTB
Rating: 3.7 ⭐
80% of retail investor accounts lose money
3XM Group
Rating: 2.9 ⭐
72.82% of retail investor accounts lose money

Top 3 Belize-Regulated Forex Brokers Ranked by Trustpilot Score

Forex BrokerTrustpilot Reviews
1. FBS2,9264.3 ⭐
2. XTB1,3113.7 ⭐
3. XM Group9562.9 ⭐

Comprehensive Comparison of the Top 3 IFSC Regulated Forex Brokers

IFSC Forex BrokerTrading PlatformsMax LeverageTrust Pilot RatingLicense №
1. FBSMT5 Desktop, MT5 WebTrader, MT41:30004.3 ⭐000102/6
2. XTBxStation 5, xStation Mobile1:5003.7 ⭐000302/438
3. XM GroupMetaTrader 4 and 5, MetaTrader 4 and 5 on mobile, MT4 WebTrader, MT5 WebTrader, MT4 Multiterminal1:10002.9 ⭐000261/4

Brokers Licensed by IFSC

  1. TRADE NOW READ REVIEW
    1. FBS

    Starting its operations in 2009, FBS is a reputable forex broker that has grown exponentially, welcoming traders from over 150 countries. FBS customers will be able to trade more than 550 instruments, with popular markets including currency pairs, metals, energies, indices, and shares. To offer smooth order placement, the broker supports popular trading platforms like MT4 and MT5, both of which are available on desktop and mobile devices. Tight spreads and high leverage of up to 1:3000 are among the perks FBS offers to some of its clients, making their forex trading sessions even more exciting.

    FBS has been authorized by several regulators and can welcome investors from numerous countries across the world. To be able to offer its financial services to traders located across North and South America, the broker has also been authorized by the IFSC, operating under license no. 000102/6. The broker’s parent company Tradestone Limited is also authorized by CySEC (Cyprus), KNF (Poland), and CNMV (Spain).

    Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider. You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.
  2. TRADE NOW READ REVIEW
    2. XM Group

    XM is one of the top performers in the forex industry, catering to traders from more than 190 countries. The company launched its business in 2009, making sure that any trading newbie and expert trader will enjoy the best conditions and the safest possible experience. This broker is a reputable actor in the trading sector, with licenses from several top-tier regulators. The brand has also been authorized to operate by the IFSC, conducting its business under license no. 000261/4.

    Among the various markets covered by XM, traders will be allowed to trade 50 currency pairs. Those include popular major tickers as well as non-major and exotic pairs. Under the Belizean financial regulations, traders can enjoy leverage of up to 1:1000 on a number of popular currency pairs.

    Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
  3. TRADE NOW READ REVIEW
    3. XTB

    Traders looking for a reputable broker for their forex trading can always head to XTB’s official website. The brand started offering its financial services in 2002, and it is currently one of the best online brokers that cater to a vast variety of investors. Through its highly intuitive trading platform, the brand allows its clients to trade stocks, EFTs, and CFDs on forex, crypto, commodities, and indices.

    To ensure secure and fair trading conditions, XTB follows regulatory guidelines imposed by top-tier regulators. The brand has also been licensed by the IFSC, operating under license no. 000302/438. Being regulated in Belize allows the broker to offer clients higher leverage maximums, with major currency pairs allowing traders to make use of leverage of up to 1:500.

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

About the Regulator

Due to its favorable geographic location, Belize is a forex regulator that is mostly preferred by international brokers looking for ways to cater to traders located in North and South America. In order to be eligible to operate in Belize, brokers are required to obtain a license issued by the local regulator – the IFSC. Luckily for business owners, the licensing process in Belize is rather simple, cost-effective, and less demanding.

The regulatory body in Belize is responsible for both licensing the operations of brokers and monitoring their activities once they get an IFSC permit. If entities providing financial services are found to be breaching regulatory conditions, the IFSC can inflict administrative sanctions and even revoke the license of a financial company. That said, it is well-known that Belize is rather generous toward financial service providers, which is the reason why many international brokers choose to be licensed and regulated by the IFSC.

The IFSC was established under the International Financial Services Commission Act of 1999, which establishes the regulatory framework for businesses offering financial services, including forex trading, in the territory of Belize. Meanwhile, the Securities Industry Act of 2021 promotes fair and efficient capital markets in Belize, providing licensing requirements as well as customer protection guidelines that will ensure the integrity of capital markets operating in or from within Belize.

Requirements to Get IFSC License Approval

As already mentioned, the licensing process in Belize is much simpler and cost-effective compared to the license issuing in other jurisdictions. That said, companies who wish to offer financial services under an IFSC license need to meet several conditions to be eligible to receive operational authorization from the Belizean authorities.

Below, we will cover all of the licensing requirements companies are required to fulfill whenever they apply for an IFSC license:

  1. Minimum Capital: To be eligible to offer financial services under an IFSC license, Belizean brokers must have a minimum authorized capital of $500,000. This type of condition requires financial companies to prove they have the means to fulfill their customers’ orders.
  2. Competent Company Staff: The personnel of the company that is applying for a financial services license must be knowledgeable and well-experienced in the respective field. That ensures the company’s staff will be competent enough to manage the activities offered by the broker.
  3. Detailed Business Plan: When submitting their license application, companies are required to provide the licensor with a detailed business plan that will reveal the development strategy of the broker, the services that will be provided, and the risk assessment and risk management tools and measures to be implemented by the business.

The IFSC license application process can be bifurcated into several stages. The first step a company should take is to prepare the required documents for the application process. Brokers should prepare proof of share capital, a business plan, the entity’s incorporation documents, and CVs of key company personnel. The next step is filling in the license application form and submitting it to the Belizean regulator. The last stage of the licensing process is the application review. Usually, the IFSC takes between three and six months to evaluate the eligibility of a company and issue the license if the broker is approved for providing financial services.

Below, you can find a concise form of the license application requirements forex brokers must meet to receive an operational license from the authorities in Belize:

  1. Application fees: While preparing documents for the application process, forex brokers must pay a state fee of 1,000 BZD (about $500). Entities licensed by IFSC are required to pay an annual license fee of 10,000 BZD (about $5,000).
  2. Minimum capital requirements: To be eligible to apply for an IFSC license, forex brokers must meet the requirement for a minimum share capital of between 50,600 BZD (about $25,000) and 1 million BZD (approx. $500,000). The minimum required capital depends on the license type.
  3. Application assessment timeframe: One of the great advantages of applying for a forex license issued by IFSC is the short consideration period, with properly submitted documents usually requiring between five and six months to be assessed.
  4. Physical presence required: One key condition that must be met is for broker companies to have a physical office located in Belize to be eligible to apply for an IFSC license.
  5. Key employees: The company must employ at least one shareholder, at least two directors who are residents of Belize, and a locally registered agent who will act as a mediator between the entity and the regulator
  6. Corporate tax rates: Forex brokers licensed by the IFSC are not obligated to pay any corporate tax, making Belize a preferred licensing destination for many brokerages.
  7. Client funds segregation: Forex brokers operating under an IFSC license are required to keep their customers’ money in segregated bank accounts, ensuring the company will not resort to investors’ funds in case of insolvency.
  8. Investor protection scheme: You may encounter some IFSC-regulated brokers that will offer their clients additional protection in the form of a compensation scheme. If, for any reason, the entity is not capable of fulfilling its financial duties on time, investors might be eligible to receive compensation of a certain amount.
  9. Other requirements: Before they submit their application, companies must open an account with a Belizean bank. This step is required so forex brokers can deposit their initial capital and continue their operations through the local bank once they receive their permits.

Is Your Money Properly Protected by IFSC Brokers?

Since Belize is known to be rather relaxed with its financial market’s regulations, some traders might be worried about the safety of their funds while trading with an IFSC-regulated broker. However, we can assure traders that the Belizean regulator has taken proper measures to supervise the financial sector in the country and requires licensed brokers to follow IFSC conditions that require a safe and fair trading environment for investors.

Like many top-tier financial regulators, the IFSC requires brokers to keep their clients’ funds in segregated accounts. That guarantees that even when the company is facing unexpected losses, it will use its own operational capital to handle such issues. What is more, the minimum capital requirement has been recently amended, requesting brands to have an operational capital of at least $500,000. That way, licensed service providers ensure they are financially stable and can handle their operations.

After they have been licensed, brokers are required to submit monthly reports to the IFSC, notifying the regulator about any unimpaired capital as well as the volume that has been traded during the previous month. What is more, IFSC-licensed brokers are asked to adopt their in-house customer complaints system that should help clients resolve any issue they might be facing while trading with brokers regulated in Belize.

FAQ

  • Do forex brokers licensed in Belize have to impose mandatory leverage maximums?

    Yes. Like other regulators in the trading sector, the IFSC has also introduced a leverage limit that licensed brokers must adopt. However, the maximum allowed by brokers regulated in Belize is significantly higher, permitting investors to trade major currency pairs with leverage of up to 1:1000. That said, some brokers may impose lower leverage caps to reduce the risk levels.

  • Do Belizean brokers offer negative balance protection?

    While some brokers might incorporate the safety feature in their operations, negative balance protection is not that common for trading accounts at IFSC brokers. This is mainly due to the higher allowed leverage that traders can make use of while they trade with brokers regulated by the Belizean authority.

  • How can I be sure that my funds are protected while I trade with IFSC brokers?

    Any broker that has been licensed by the Belizean regulator follows industry-standard requirements for combating money-laundering schemes and other fraudulent activities. What is more, IFSC-licensed brokers must keep their customers’ funds in separate bank accounts, making sure that their money will not be used for the purpose of handling the company’s operations.

  • Do I need to be based in Belize to join an IFSC-licensed broker?

    No. While residents of certain countries can join brokers only if they have been authorized by the regulatory bodies in their respective jurisdictions, brokers licensed by the IFSC can welcome traders outside Belize. That said, such companies tend to target traders located in North and South America.

  • Do IFSC-regulated brokers support popular trading platforms?

    Yes. Since brokers regulated in Belize strive to cater to a wide range of traders, they tend to support all popular trading platforms. That allows forex traders to choose from options like MT4, MT5, cTrader, and more for their trading sessions with IFSC-regulated brokers.

You might also be interested in exploring forex brokers regulated by other institutions

Written by N. Nazifova