Overall Rating: ★★☆☆☆ (2.6/5)

The Vanuatu Financial Services Commission (VFSC) oversees the licensing of offshore financial service providers, including forex and CFD brokers. Known for its minimal capital requirements, fast licensing, and flexible business environment, the VFSC is widely used by brokers seeking cost-effective offshore registration with fewer compliance burdens.

To obtain a Securities Dealer Licence, brokers must:

• Register a local Vanuatu company
• Maintain minimum paid-up capital of 50,000,000 VUV (approx. $400,000 USD)
• Appoint a local agent and submit basic documentation

However, the VFSC:

• Does not cap leverage
• Allows bonuses and promotions
• Does not require investor compensation schemes
• Lacks strong enforcement mechanisms

There is no mandatory client fund segregation beyond what the broker voluntarily enforces, and the regulator’s oversight is largely limited to checking paperwork. While some VFSC-regulated brokers operate fairly, the lack of regulatory accountability means retail traders assume higher risk.

The VFSC has issued occasional warnings, but with no formal dispute resolution process or protection fund, recourse for clients is severely limited. It is essential to ensure a VFSC-licensed broker is part of a broader group that holds licences from Tier-1 regulators.