Once there was a saying that, Belize is too much flexible for Forex brokers. Even if a broker try to kill the market or spread too much scam, there is no one to take a step. But the total scenario changed when Belize started the IFIC forex license with a minimum capital requirement and some other strict regulations. The term ‘IFIC’ means International Financial Services Commissions which is now the key organization to regulate and filter out the under-standard brokers from the market. And today we are going to discuss on IFSC forex brokers and all about it.
IFSC forex broker or IFSC regulated broker seems a normal tagline to a beginner. But if you’ve proper knowledge on regulation, then you can understand how powerful this tag is.
First of all, an IFSC regulated broker means it already paid a notable amount of license fees and minimum requirements. It means the chance of getting bankrupted or insolvent reduced.
Besides, maintaining this high minimum capital makes harder for scam brokers to enter into the market so easily. As a result an IFSC Forex broker means a loyal & qualified Forex Broker to retailers. And a retail broker can easily rely on a IFSC regulated broker.
The application fee is US$1,000.00 while the annual license fees is US$2,500.00, US$5,000.00 and US$25,000.00 .
Belize is an English speaking country in Central America which got independence from Britain in 1981. That time the country’s economy was agriculture based. And to diversify their financial sector, from that time, the country focused on other sides. As a consequence, in 1990, Belize enacted the International Business Companies Act based on the British Virgin Islands model. And within a span of only 10 years the country registered more than 10,000 Forex brokers.
But like every industry it also started facing scammers. That’s why some rules were necessary & IBC was formed. This regulation was suitable for both local and offshore investors. And day by day due to difference circumstances, laws were changed or new laws were added. Right now, with the latest rules & protocols IFSC is regulating the FX market of Belize.
IFSC has both laws to regulate the brokers and they are also connected to international financial organizations to stop money laundering and fraudulent. It makes this authority very popular to both brokers and retailers.
A handsome license fee, a minimum capital to secure their client’s in any worst situation and strong commitment is the key featured to be offered by an IFSC regulated brokers. Additionally, there are some other minor requirements also. But these are the main points to be noted.
The main mission of IFSC is to regulate the brokers in terms of some rules and protocols. And this mission incorporates some more works like market inspection, trading audit and other works related to money making market.
IFSC regulation team is always aware of scams & mischievous behavior of their approved brokers. So, if you are a retailer and you’ve got any activities those are violating the rules of IFSC, then you can inform the authority by emailing here [email protected]. And if your complain has good evidence and strong base, then even if the broker is one of the top one, it’ll be punished instantly.
According to the quality and terms of IFSC regulation, one broker need to fulfill many protocols to get approval. It makes them more reliable and retailer-friendly.
In Belize, IFSC forex license is not so easy to get. Even sometimes, the rule seems so hard that many weak brokers doesn’t become enough confident to apply for Belize IFSC forex license. And it makes IFSC a trustworthy and reliable regulator among the retailers. And this trust tends both brokers and retailers to a new edge of success. Happy trading.