VFSC (Vanuatu) Regulated Forex Brokers

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: December 2, 2024

The Vanuatu Financial Services Commission (VFSC) is a popular offshore broker jurisdiction due to its lower capital resource requirements and affordable administrative fees compared to other financial regulators. Additionally, brokers licensed by the VFSC can offer high leverage to their clients. The team at BestBrokers has compiled a top list of six regulated and trusted Forex brokers authorized by the VFSC.

1Fusion Markets

Rating: 4.9 ⭐

74-89% of retail CFD accounts lose money

Top Rated

2Global Prime

Rating: 4.5 ⭐

74-89% of retail CFD accounts lose money

3MultiBank Group

Rating: 4.5 ⭐

4Blueberry Markets

Rating: 4.5 ⭐

5FX Primus

Rating: 4.2 ⭐

Trading on margin products involves a high level of risk, which may result in the loss of all invested capital.

6Vantage FX

Rating: 3.5 ⭐

VFSC (Vanuatu) Regulated Forex Brokers Ranked by Trustpilot Score

Comprehensive Comparison of the Top 6 VFSC Regulated Forex Brokers

Top 6 Brokers Licensed by VFSC

1. TRADE NOW READ REVIEW
   1. Fusion Markets

   Gleneagle Securities Pty Limited, trading as Fusion Markets, ranks first on our top list of Forex brokers authorized and regulated by the VFSC. Operating under license number 40256, the entity can be found on the commission’s Register. Furthermore, the company is listed as an active license holder on the VFSC’s Financial Dealers Licensee List.

   The broker is favored due to its industry-leading spreads, no minimum account size, and no fees to deposit. For Fusion VFSC customers, the maximum allowable leverage for Forex stands at 1:500, making it an attractive destination for experienced traders seeking higher leverage options.

   Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
2. TRADE NOW READ REVIEW
   2. Vantage FX

   With a diverse portfolio of 1,000+ trading instruments, 30+ global offices, and an enviable experience of 13+ years in the financial market, Vantage is yet another top choice when it comes to brokers regulated by the VFSC. The brokerage operates as Vantage Global Limited in Vanuatu, under license number 700271.

   Besides its licensing from the VFSC, Vantage has the regulatory approval of the ASIC in Australia and the FSCA in South Africa. The trading leverage for Forex at Vantage is capped at 1:500 for approved accounts, but traders can request higher leverage, based on their unique financial circumstances.

3. TRADE NOW READ REVIEW
   3. Global Prime

   Global Prime is a top-rated Forex broker, catering to customers based in Australia, under license from the ASIC. The brokerage also operates as Gleneagle Securities Pty Limited, a registered Vanuatu company, under license number 40256.

   The broker has a varied range of supported financial instruments including Forex, indices, commodities, crypto CFDs, and bond CFDs. In terms of trading costs, customers of Global Prime will benefit from lower spreads, no minimum account requirements, and no fees on deposits and withdrawals. There are multiple supported deposit methods traders can pick from plus seven different options for account currency, including AUD, CAD, EUR, and USD.

   Global Prime is a trading name of FMGP Trading Group Pty Ltd (ABN 74 146 086 017) and is regulated by ASIC and licensed to carry on a financial services business in Australia under Australian Financial Services License No. 385620. Gleneagle Securities Pty Limited trading as Global Prime FX, is a registered Vanuatu company (Company Number 40256) and is regulated by the VFSC. The website is owned and operated by FMGP Trading Group Pty Ltd, ABN 74 146 086 017.
4. TRADE NOW READ REVIEW
   4. FX Primus

   FX Primus is an online trading and investing platform that has been in operation since 2009. Traders are welcome to navigate the broker’s wide range of 200+ instruments, benefit from industry-leading spreads, and diversify their trading portfolio. They can start trading in three easy steps involving account set-up, verification, and funding.

   The broker operates in compliance with the regulatory requirements of the VFSC under license number 14595. FX Primus’ Vanuatu-registered entity is Primus Markets INTL LTD. The company has also gained the regulatory approval of the CySEC regulator, further demonstrating its commitment to safety and transparency.

   Risk Warning: Please note that forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors. Trading in financial instruments may result in loss of your invested capital. Before undertaking any such transactions, you should ensure that you fully understand the risks involved and seek independent advice if necessary.
5. TRADE NOW READ REVIEW
   5. MultiBank Group

   The MultiBank Group is composed of multiple entities operating across 5 continents and regulated by 11 different financial regulators. In Vanuatu, MultiBank Group has been operating as MEX Pacific (V) Ltd under license number 700443 issued in 2020. Beyond its VFSC license, the brokerage is authorized to operate in multiple other jurisdictions governed by the ASIC, the CySEC, and the FSC, to name a few.

   Customers of the broker can pick from a variety of payment options to top up their trading accounts including VISA, MasterCard, Skrill, Neteller, bank transfers, and a range of cryptocurrencies. In terms of supported trading platforms, MultiBank Group offers the widely popular MT4 and MT5.

   High Risk Investment Warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds. Please refer to specific risk warning for each regulated entity during the account opening process.
6. TRADE NOW READ REVIEW
   6. Blueberry Markets

   Established in 2016, Blueberry Markets has been committed to offering low spreads and a high level of customer service. Blueberry Markets (V) Ltd is the entity operating in compliance with the regulations of the VFSC under company number 700697.

   Customers can pick between Blueberry Standard Accounts and Blueberry Direct Accounts, based on their trading preferences for costs built into the spread or raw spreads with a commission fee charged over every trade. Both feature minimum deposit requirements of $100 and a maximum allowable leverage of 1:500. The trading platform supports 300+ instruments and the widely popular MetaTrader 4, MetaTrader 5, and Web Trader.

   Margin trading involves a high level of risk and is not suitable for everyone. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Blueberry Markets, and seek independent advice if necessary. Margin Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses.

About the VFSC

The Vanuatu Financial Services Commission (VFSC) is the regulatory body of non-banking financial services in Vanuatu. It was formally established under the Vanuatu Financial Services Commission Act of 1993 when it took on the responsibilities of the Ministry of Finance and Economic Management. Previously, it operated as the Registrar of Companies and the Official Receivership Department of the Treasury.

Along with administering the register of companies, the VFSC is tasked with regulating and monitoring the financial services industry in the country. The official website of the commission is https://www.vfsc.vu/, where traders can find further information on the companies operating in compliance with its regulations. Traders can check the latest list of active license holders available on the commission’s website. Alternatively, they can search regulated brokers by entity name or identifier.

Requirements for Obtaining a Vanuatu Forex Broker License

Vanuatu is an attractive regulatory destination for forex brokers as licensees enjoy various tax benefits and must comply with low minimum capital requirements, especially compared to other jurisdictions like Cyprus and Australia. Here is the full list of fees and requirements license applicants must meet to gain the VFSC’s approval.

1. Application fees: Brokers interested in obtaining VFSC licenses must pay a fee of $2,000 upon submitting their applications to cover the regulator’s application processing expenses. Application processing costs in Vanuatu are considerably lower compared to jurisdictions like Cyprus where applicants must pay between €7,500 and €12,000 to have their documents evaluated.
2. Minimum capital requirements: Prospective VFSC licensees must additionally deposit $50,000 (around 5.9 million VUV at current exchange rates) into a local bank account. By contrast, first-tier regulators like CySEC have significantly higher thresholds for initial capital, requiring applicants to deposit up to €750,000 for market-maker licenses.
3. Application assessment timeframe: Evaluation timeframes largely depend on the VFSC workload, although the regulator typically assesses applications within two to three months. The timeframe can extend to seven months in the event of submitting incomplete applications.
4. Physical presence: Brokers seeking VFSC licenses must add their companies to the local registry and establish a physical presence by setting up offices in the island country. The local government mandated this requirement in October 2020 after its laxer regulatory stance attracted a tidal wave of fraudulent brokerages, prompting the Financial Action Task Force to add Vanuatu to its gray list.
5. Key employees: Each broking firm applying for a permit must have at least one local manager and director permanently residing in the island country. Compliance officers hired by the companies may be foreign nationals, however. Key employees must have spotless criminal records and immaculate reputation for a broker to gain the VFSC’s approval.
6. Corporate income tax rates: The absence of corporate income taxes is one of the biggest advantages of obtaining a broker license from Vanuatu. Licensees are also not liable for capital gains and value-added (VAT) taxes. This enables locally authorized brokerages to reinvest some of their revenue into improving and expanding their services.
7. Client funds segregation: License applicants must prove they have the necessary mechanisms in place to protect the money and assets of their customers. This includes keeping their customers’ funds segregated from the companies’ operating capital in separate accounts.
8. Investor protection scheme: VFSC regulations do not contain specific provisions requiring licensees to deposit into designated investor protection funds. The absence of this requirement is a demerit from traders’ perspective as it results in lower levels of investor protection.
9. Other requirements: When applying for VFSC licenses, brokers must submit business plans detailing their operations, business strategies, and target markets. They must also provide further information on their cybersecurity and trading infrastructures.

Located in the South Pacific Ocean, the Y-shaped archipelago composed of more than 80 islands, is a favored offshore jurisdiction for multiple business activities, including trading. Vanuatu is well-known for its lower capital requirements, relatively cheap administrative and registration fees, and high flexibility.

A VFSC license requires the establishment of a company in Vanuatu that will function as the legal entity through which forex trading services are provided. Obtaining a license from the VFSC is cost-effective, with minimum capital requirements of $50,000. For the sake of comparison, the minimum capital requirement for CySEC-regulated brokers ranges from €125,000 to €750,000 based on the type of license brokers are looking to obtain.

The process of issuing a business license is also relatively streamlined and efficient, taking between two to three months. The successful applicants must provide a business and financial plan, and AML/CFT Policies and Procedures Manual, as well as specify their target markets.

Additionally, individuals involved in the business enterprise are required to submit further documentation, including a CV, valid passport, proof of address, and bank reference letter, among others.

Once brokers obtain their licenses, they are required to undergo regular annual audits to ensure compliance with the requirements of the regulatory authority. Licenses are granted for a year. They can be extended by complying with regulatory and financial obligations and payment of a renewal fee.

The VFSC require licensees to set up a physical presence in the country since 2020. Yet another thing specific to Vanuatu’s legal environment is that there is no income tax, capital gains tax, or inheritance tax.

The loose regulatory standards enable brokers to provide competitive spreads and commissions, higher leverage, and bonus promotions, making their offerings quite appealing to traders.

Are Your Money Protected?

The VFSC is known for its flexible regulatory model, which entails both advantages and disadvantages. Since obtaining a license from the regulator is relatively easy, customers’ safety is not as strong as the one offered by well-established financial authorities such as the Financial Conduct Authority in the UK or the Cyprus Securities and Exchange Commission.

The VFSC does not perform checks on the company’s background or the implementation of secure fund management. Therefore, traders are advised to double-check some additional aspects of VFSC-regulated brokers to make sure they trade in a secure environment.

To minimize the risks associated with their funds, traders are advised to look for additional licenses, such as ones issued by the above-mentioned regulators. We also recommend searching the web for customer reviews. Last but not least, forex brokers must have an experience of at least five years to establish their trustworthiness.

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

• CySEC (Cyprus) Regulated Forex Brokers
  
• FCA (United Kingdom) Regulated Forex Brokers
• IFSC (Belize) Regulated Forex Brokers
• FSA (Seychelles) Regulated Forex Brokers
• ASIC (Australia) Regulated Forex Brokers

Written by N. Nazifova