Overall Rating: ★★☆☆☆ (2.7/5)

The Financial Services Authority (FSA) of Seychelles regulates non-bank financial services, including forex and CFD brokers, within the island’s offshore jurisdiction. While it issues licences to international brokers under the Seychelles Securities Act 2007, its framework is widely regarded as light-touch and low-cost, placing it in the Tier-3 category of global forex regulators.

FSA regulation is frequently used by brokers as a secondary licence, often for operational flexibility or to serve markets with fewer restrictions. However, it provides limited consumer protection and lacks the enforcement power and transparency of stronger jurisdictions.

Seychelles FSA-licensed brokers must:

• Incorporate a local entity
• Maintain a minimum paid-up capital of $50,000
• Appoint a local representative or agent
  There are no leverage restrictions, bonus bans, or risk control mandates, and the regulator does not enforce client fund segregation to Tier-1 standards. It also offers no investor compensation scheme, leaving retail traders exposed in the event of broker default.

While the FSA maintains a public register and issues occasional warnings, its supervisory capacity is limited, and traders dealing with FSA brokers must rely heavily on the broker’s internal policies. For this reason, Seychelles-regulated brokers are only suitable when part of a larger group that holds Tier-1 licences elsewhere.