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.
Quick Facts | |
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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 |
Our Cayman company formation agents describe the main requirements for licensing as well as the licensing process. 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 that is specialiazed in opening a company in Cayman Islands 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 with company incorporation in the Cayman Islands.
Table of Contents
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:
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.
To obtain a Forex broker license in the Cayman Islands, you will need to apply to the Cayman Islands Monetary Authority (CIMA). CIMA is the regulatory body responsible for issuing licenses to financial service providers, including forex brokers.
To apply for a license, you will need to submit a detailed application to CIMA, including information about your Cayman Islands Company, your financial resources, and your compliance with anti-money laundering and counter-terrorism financing regulations. You will also need to provide evidence of your financial stability, such as audited financial statements and proof of insurance.
In addition to the application process, you will also need to meet certain operational requirements to obtain a Forex broker license in the Cayman Islands. These requirements may include: maintaining adequate capital, establishing and maintaining policies and procedures to ensure compliance with regulations, and conducting ongoing training for employees.
As part of the licensing process, the applicant will need to comply with several conditions set forth by the Cayman Islands Monetary Authority. Our team briefly lists these below:
In order to find out if the advantages of obtaining a Forex broker license in the Cayman Islands are beneficial for you, it is advisable to consult with a legal expert in order to obtain legal advice. We mention a few of the benefits of obtaining a Forex broker license:
Obtaining a forex broker license in the Cayman Islands can sometimes be a complicated process and it requires more steps. Each stage of the process can be different according to each situation and type of business involved. In general, most businesses might go through the next steps:
Altogether the process can be complex and requires more stages. This being said, it is advisable to contact one of our experts for more information and to begin the application process.
Part of the documents that are submitted with the application includes the following:
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:
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 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.