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The Securities Commission of the Bahamas (SCB) is the regulatory authority responsible for overseeing investment firms, securities dealers, and capital markets activity in the Bahamas. While the SCB does issue licences to forex and CFD brokers, it is generally classified as a Tier-3 regulator due to its relatively light oversight, limited enforcement transparency, and lack of strict trading restrictions for retail clients.

Brokers operating under the SCB typically apply for a Securities Industry Licence, which allows them to engage in trading activities with retail and institutional clients. To qualify, brokers must:

• Incorporate a local entity
• Meet minimum capital requirements
• Appoint local directors and compliance officers
• Maintain operational infrastructure within the Bahamas

Unlike Tier-1 regulators, the SCB does not impose leverage caps, does not prohibit deposit bonuses, and has no formal investor compensation scheme. While it encourages client fund segregation, the level of enforcement remains unclear, and many brokers use the jurisdiction for regulatory flexibility when targeting global clients.

Enforcement actions are rarely public, and while the SCB maintains a register of licensees, it does not routinely publish warnings or audit findings. As a result, traders have limited visibility into broker conduct or regulatory breaches.

SCB-licensed brokers are often part of larger international groups, and retail traders should verify whether the broker holds additional licences from Tier-1 regulators such as the FCA, ASIC, or CySEC. On its own, SCB regulation offers only basic consumer safeguards, making it suitable primarily as a secondary or backup licence.