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Forex Broker Licence in Cayman Islands

Forex Broker Licence in Cayman Islands

A Forex broker licence in Cayman Islands is required for legal persons that will be involved in and provide services related to foreign exchange, the buying and selling of foreign currencies.

Investors who are interested in setting up a Cayman Islands company that will require a FOREX license after its incorporation can reach out to our team for information on the registration steps. The process is not a complicated one, however, foreign investors can benefit from working with a local team of specialists, such as our own, if they cannot be present in the Islands.

Our Cayman company formation agents describe the main requirements for licensing as well as the licensing process.

 Quick Facts  
 Forex broker obligation in Cayman Islands  Subject to control and licensing by the local authorities

 Forex broker licence in Cayman Islands for foreign brokers (Yes/No)

Yes 

 Forex broker licence in Cayman Islands issuing authority

The Cayman Islands Monetary Authority (CIMA) 

 Relevant laws governing brokerage The Securities Investment Business Act (SIBA) and other CIMA regulations
Special license for brokers 

Securities Investment Business Licence 

 Laws to be observed for licensing

 Compliance with the SIBA and anti-money laundering regulations

 Conditions for licensing

– relevant skills and knowledge to conduct the business,

– appropriate facilities and records 

 Management requirements

Fit and proper test for individuals occupying management and senior positions 

On-site inspection for licensing 

A brief inspection is possible and at the discretion of the authority. 

 Application documents

– filled-in application form,

– proof of fee payment,

– supporting documentation  

 Broker dealer application fee

 CI$ 500

 First grant fee for a broker dealer in Cayman Islands

CI$ 8,000 

Annual broker dealer renewal fee 

 CI$ 8,000

 Forex broker licence issue time (approx.)

4-6 weeks 

 Reasons to apply for a Forex broker licence in Cayman Islands

– the Cayman Islands is one of the most popular offshore centers,

– business-friendly regulations,

– transparent requirements,

– full foreign ownership in case of company formation,

– easy offshore company set-up 

Please note that the regulatory authorities examine each application by means of a formal review that takes into account numerous factors.

Upon request, our team can assist with the incorporation of a corporation that will be subject to licensing, and follow through with the licensing process and requirements as part of the overall incorporation package.

You can reach out to us if you need specialized assistance in obtaining a Forex broker licence in Cayman Islands.

Company formation in Cayman Islands

Company formation is the first step handled by investors who then wish to engage in and provide financial services activities, such as trading in foreign currencies on the foreign exchange (forex) market.

Before the company can apply for a Forex broker licence in Cayman Islands, it needs to be registered in the jurisdiction.

According to law, the following legal entities can engage in securities investment businesses:

  • Companies incorporated under the Companies Law;
  • General partnerships and limited partnerships registered under the Partnership Law;
  • Exempted limited partnerships;
  • Foreign companies;
  • Limited liability companies incorporated and registered under the Limited Liability Companies Law.

Our agents specializing in company formation assist foreign investors who wish to open a company in the Cayman Islands.

Upon request, our team can handle the incorporation phase and prepare the needed documentation to follow through with the licensing for the purpose of conducting Forex trading activities.

As needed, our team also offers virtual office packages, which can be used by Forex broker companies. The advantages of the virtual office can be described in more detail by one of our team members.

Conditions for obtaining the Forex broker licence in Cayman Islands

As part of the licensing process, the applicant will need to comply with several conditions set forth by the Cayman Islands Monetary Authority (CIMA). Our team briefly lists these below:

  1. Comply with the provisions of the Securities Investment Business Law, and its subsequent amendments and additions;
  2. Comply with the requirements of the Anti-Money Laundering Regulations (the 2020 Revision);
  3. Not perform activities that are against the public interest;
  4. Have employees with the relevant skills, knowledge and experience;
  5. Have senior officers and managers that are considered fit and proper.

Part of the documents that are submitted with the application includes the following:

  • Application form;
  • Paid prescribed application fees;
  • Details of qualification for key personnel;
  • Copies of the company’s Articles of Association and Memorandum;
  • Business plan;
  • Information about the corporate shareholders;
  • Other documents such as the auditor’s letter of consent and details concerning the manner in which the safety of the client will be ensured.

Please keep in mind that this is a brief list of the application requirements.

Applicants can consult with one of our Cayman Islands company formation specialists before they apply for licensing with CIMA.

The formal review of the application for a Forex broker licence in Cayman Islands is a process that takes into account multiple factors, as briefly described above.

Along with the aforementioned application requirements, the following fees are in place:

  • Broker dealer application fee: CI$ 500;
  • Broker dealer fee payable on first grant: CI$ 8,000;
  • Broker dealer annual renewal fee: CI$8,000;
  • Broker member application fee: CI$250.

When working with our team, you can make sure that the application is submitted as directed by the authorities, thus increasing your chances of obtaining a favorable approval.

Contact our Cayman Islands company formation agents for more information about how we can assist you in applying for a Forex broker licence in Cayman Islands.

You can also reach out to us for matters concerning residency or immigration to the Islands.