FSA Regulated Forex Brokers

Written by Miro Nikolov

Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: September 16, 2025

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• Jump to:
• Main Features of the Best FSA Forex Brokers
• Financial Services Authority of the Seychelles
• FSA’s Responsibilities
• Guidelines FSA Brokers Need to Comply With
• Customer Protection
›

Because forex is a global market, it is crucial to have various regulators monitoring the integrity of financial markets worldwide. While authorities such as ASIC, FCA and CySEC are known for their stricter approach to forex regulation, organisations like the Financial Services Authority of Seychelles (FSA) offer more freedom while still overseeing the sector.

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   Plus500 US

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   This content applies only to Plus500 US and clients from the United States. Trading futures involves the risk of loss.

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   eToro

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   Fusion Markets

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   FP Markets

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   Eightcap

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   BlackBull Markets

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   IC Markets

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Our team has thoroughly evaluated all brokers listed below using TradingPedia’s exclusive methodology.

Main features of the best FSA forex brokers

Financial Services Authority of the Seychelles

The Financial Services Authority (FSA) is an independent organisation that began operations after it was established under the Financial Services Authority Act 2013. The body is responsible for regulating non-bank financial service providers, including forex brokers.

Forex brokers who wish to gain access to the financial market in the Seychelles need to obtain an FSA licence. Depending on the type of business they intend to provide, companies can apply for four different types of FSA operational licences:

1. Dealer licence – this form of licence authorises the buying and selling of financial instruments on behalf of the provider’s clients. This licence covers activities such as trading, brokerage and market-making services.
2. Investment advisor licence – this licence allows the provision of investment advice, which also includes forex strategies and trading insights.
3. Specially licensed company licence (CSL) – this licence enables the provision of a variety of operations, including forex trading.
4. Commercial company licence (IBC) – this licence is suitable for forex companies that provide a more flexible model of operation for different international activities.

The requirements that licence applicants must meet are described in the Seychelles Special Licenses for Seychelles Companies Act 2003. Even after a brokerage company has received FSA approval, it must continue to adhere to the standards for proper brokerage operations. Requirements such as mandatory operational capital, customer protection measures and other conditions that licensed brokers must meet are set out in the Securities Act 2007.

One reason why the Seychelles is a preferred jurisdiction for many forex brokers seeking legal access to multiple financial markets is the relatively lax tax system, which encourages foreign investment. Financial service providers licensed by the FSA are not obliged to pay capital gains tax, corporate tax or withholding tax. Typically, these are taxes that internationally regulated businesses are required to pay.

Another notable feature of Seychelles’ financial-service regulations is the low reporting threshold, which enables FSA brokers to operate with a relatively light administrative burden. Despite the lenient operational requirements, the FSA still imposes strict customer protection rules, demanding rigorous protection of clients’ confidentiality and privacy.

The FSA also offers a straightforward licensing process that is simple, quick and easy to follow. Because of the reasonable operational requirements, many brokerage companies are eligible to operate in the Seychelles and maintain their legal status in the forex sector.

In addition to the aforementioned pieces of legislation that form the regulatory framework for financial service providers operating in the Seychelles, the following legal documents are also applicable to forex brokers licensed by the FSA:

• Securities (Licensing and Market Conduct) Regulations 2008
• Anti-Money Laundering and Countering the Financing of Terrorism Act 2020
• Seychelles International Business Companies Act 2016
• Business Tax (Amendment) Act 2018

FSA’s responsibilities

In addition to being the official regulator licensing financial service providers in the Seychelles, the FSA must also monitor the local financial market, ensuring its integrity and maintaining a fair yet competitive trading environment. According to the Financial Services Act of 2013, the FSA has the following responsibilities:

• Licensing brokers and other non-bank entities that wish to operate in the Seychelles.
• Regulating licensed entities in accordance with the Financial Services Act 2013, and monitoring the operations of other financial service providers that carry out their businesses from within the Seychelles.
• Administering the registry legislation.
• Developing an appropriate legislative framework that ensures the effective implementation of financial-service legislation.
• Taking the measures required to inform and educate the general public on topics related to FSA operations and any matters concerning financial service providers.
• Taking appropriate actions against individuals conducting unauthorised financial-service businesses.

Guidelines FSA brokers need to comply with

To be eligible to operate under an FSA licence, forex brokers are required to meet several conditions to receive the authority’s approval. Moreover, licensed entities must abide by FSA regulatory measures to ensure a safe and fair trading environment that is equally favourable to traders and financial service providers in the Seychelles.

To operate in the Seychelles, forex brokers must meet the following requirements:

1. Obtain appropriate licence: Whether it is a Securities Dealer licence or any other licence model, forex brokers must obtain an FSA licence in order to operate in the Seychelles.
2. Adopt investor protection measures: Brokers must provide trading conditions that ensure integrity and transparency. Investor-protection tools must be adopted to guarantee high operational standards.
3. Compliance with AML requirements: Licensed brokers must implement strict customer-due-diligence practices. Brokers must also report any suspicious activities to the regulator and keep comprehensive records for inspection.
4. Meet capital and other operational requirements: Brokers applying for an FSA licence must hold a specific minimum level of operational capital. Licensed entities are subjected to regular audits and compliance checks. In order to obtain an FSA licence, brokers are required to complete several steps during the licence-application process:
5. Establishment of local company: To be eligible to apply for an FSA licence, companies must have a local entity established in the Seychelles. Businesses may register as an IBC (International Business Company), a CSL (Customer Service Level) or an LLC (Limited Liability Company).
6. Operational capital: A Securities Dealer licence requires starting capital of between 660,000 SCR (about $45,000) and more than 1.3 million SCR (about $90,000). The exact amount depends on the type of services provided by the entity.
7. Paying licensing fees: Applicants must pay licensing fees, the amount of which depends on the type of licence and the scope of services they plan to provide.
8. Ensuring compliance with FSA regulations: Personnel in key positions such as directors and managers must have clean criminal records and prove they are experienced in the relevant financial sector. Risk-management and compliance policies must be adopted to ensure proper operations. An AML officer must be appointed and effective procedures put in place.
9. Submission of correct documents: These include a detailed business plan, risk-assessment strategies, an AML/CFT policy document, a plan for business conduct, evidence of operational capital and other relevant documents required by the FSA during the application process.

Customer protection

The FSA has established strict client-protection measures that must be adopted by every financial service provider licensed to operate in the Seychelles. Forex brokers approved by the FSA are required to meet the following client-protection conditions:

• Brokers should be fully transparent and disclose all costs of trading, including spreads, commissions, financing fees and other surcharges related to the trading services offered to their clients.
• Clients should receive clear warnings about the high risks associated with trading CFD products.
• Segregation of funds is required, ensuring client funds are kept separately from the operating funds of the entity.
• Licensed brokers must provide an effective system for processing and handling customer complaints.
• Licensees must be fully compliant with the FSA’s data-protection requirements, guaranteeing the safety of their customers’ sensitive and financial information.

While some FSA-regulated brokers might offer retail clients negative balance protection, this is not a specific requirement imposed by the regulator in the Seychelles. Therefore, traders should be careful when choosing a broker for their trading activities, ensuring they select a brand with additional customer-protection features.