Labuan Forex License – How to Get a Forex License in Malaysia?
Labuan Forex Broker Forex License – Key Takeaways
- Labuan is the hub for forex regulation in South East Asia
- The Labuan Financial Services Authority (LFSA) regulates forex activity in Malaysia
- Leverage capped at 100:1
- Capital requirements set 1 million MR (~$200,000)
- Local office plus directors are required
- Labuan brokers are prohibited from soliciting investors based in Malaysia
Money Broking License in Labuan Malaysia Application Process – How Does It Work?
- To get started, we’ll need to know the desired business name of your brokerage, upon which we’ll incorporate a new entity in Labuan.
- Once we’ve successfully registered your new business, the license application process can officially start.
- Our team will then send a complete list of the documents required by the LFSA for license approval.
- Upon receipt of all required documentation, we’ll then start the application process.
- Once the application is underway, we’ll remain in contact with your team regarding updates and keep you informed of any requests for additional information.
- After the license has been approved, we’ll then proceed to set up a bank account as well as any PSP solutions that might be needed.
Labuan Forex License – Key Requirements
| Item | Details |
|---|---|
| Capital | 1,000,000 Malaysia Ringgit (~$200,000) |
| Local Office | ✅ |
| Leverage | 100:1 |
| Taxes | 3% of Net Profits |
| Physical Interview | ❌ No Longer Required |
| Ability to Upgrade Crypto Permissions | ✅ |
| Can Onboard Malaysia Clients? | ❌ |
Forex Broker Registration in Labuan, Malaysia – Check Out Our YouTube Channel
Why Obtain a Labuan Forex License?
Atomiq Consulting – Your Forex Broker Licensing Partner
Founded in 2014, Atomiq Consulting specializes in company registration, licensing and banking services for FX brokers. Having successfully established over 10 licenses in Labuan to date, we are the premiere offshore Labuan forex license consultants.
Why Atomiq Consulting? Atomiq Consulting does not sub contract your application to a 3rd party which is a common practice in this industry, we have a local team on the ground to handle your application. Additionally, we promise realistic delivery timelines because we value transparency over profit. With decades of industry experience and knowledge under our belts, we are the ideal partner to assist your brokerage in obtaining a forex broker license in Labuan, Malaysia.
To Learn More About Applying for an FX Broker License in Labuan – Contact Us Today!
To learn more about the set up process in Labuan, Malaysia, discuss ongoing costs associated with the license, or address any other questions, don’t hesitate to contact us today!
Labuan, Malaysia LFSA Forex License FAQ
Are there any forex brokers in Labuan for sale?
In addition to license consultation, we can also assist you in acquiring a fully licensed forex brokerage. Because our offers vary based on availability in the market, it is best to contact us directly to discuss our current offers.
How long does it take to get a forex broker license in Labuan?
Our research has shown that many consulting firms offer unrealistic timelines to hook the client in, something we find unethical. As proof, we advise anyone promised a 2 – 3 month turnaround time in Labuan to have this estimate put in writing with a full refund given should the license not be approved. Realistically, it will take around 6 – 7 months for license approval upon receiving all required documents. Note this could be longer and is at best an estimate.
Are Labuan licensed forex brokers able to solicit Malaysian clients?
No, investors from Malaysia are not allowed to open an account with an LFSA licensed brokerage.
How much does a forex license in Malaysia cost?
A budget of at least $300,000 is recommended in order to obtain a forex license in Malaysia. With capital set at 1 million RM, an applicant will need at least $200,000 to cover capital requirements. The remaining sum of $100,000 should be allocated to cover accounting, local director salaries, office rent, government fees, accounting and compliance.
Which regulatory body oversees licensed forex brokers in Malaysia?
The LFSA (Labuan Financial Services Authority) regulates forex activity in Labuan, Malaysia.
After the application has been submitted for an FX broker license in Labuan, Malaysia, how long does it take to receive license approval?
Because every application is unique, we cannot provide a time frame that is set in stone, however, our experience has shown that licenses are generally approved in 3 – 4 months.
Which jurisdictions are similar to Labuan, Malaysia?
In our opinion, Labuan, Malaysia is currently the optimal forex broker license in Asia. Brokers interested in alternative jurisdictions shouldn’t rule out Mauritius as one potential option. Furthermore, a forex broker license in Seychelles would be another region worth consideration.
Does the LFSA offer money management / asset management licenses?
Yes, in Labuan it is also possible to obtain a license for asset / fund management.
Is it possible to get a crypto license in Labuan?
Yes. The Labuan FSA classifies cryptocurrency exchanges as Digital Financial Service Providers. Our Labuan based team of consultants can assist you with obtaining a crypto license in Malaysia.
Are there any deposit bonus restrictions for licensed forex brokers in Labuan?
Currently the LFSA does not have any restrictions related to deposit bonus for brokers who hold an FX license in Labuan.
Does Labuan offer a “fast track” license application scheme?
Several years ago this option was offered by the LFSA but has since been discontinued.
How can I find a list of forex brokers licensed in Malaysia?
The list of approved forex brokers in Malaysia can be found by visiting the LFSA’s official directory of Labuan licensed money brokers.
Must the local directors reside in Labuan territory?
It is possible for one of the two required directors to reside outside of Labuan. Note, however, that any director residing outside of Labuan territory should spend a significant time in Labuan throughout the year (5 months or more are recommended) and be able to submit documentation for travel between territories.
Blog Posts
【亞洲Prop Trading熱潮】經紀商轉型新趨勢，你準備好了嗎？
亞洲Prop Trading熱潮加速來襲 近年來，亞洲地區的零售交易市場正快速成長，交易者的行為與偏好也出現顯著轉變。**Prop Trading（自營交易）**模式從歐美市場迅速擴散至亞洲，尤其在台灣、香港、新加坡、馬來西亞與菲律賓等地，Prop Firm 的吸引力正在穩步上升。 作為長期觀察亞洲經紀商發展與合規策略的顧問，我強烈建議有志拓展零售市場的券商，儘早布局自有品牌的Prop計畫。這不僅能提升品牌差異化，更能深化用戶參與與留存。 關鍵趨勢：為何亞洲經紀商該認真考慮Prop業務？ 1. 年輕交易者崛起，追求Gamified交易體驗 Z世代與千禧世代交易者不再滿足於傳統的下單平台。他們偏好有遊戲感、有挑戰性的交易環境，這讓Prop Firm中的「評估挑戰賽」、「晉級制度」與「分潤模式」高度吸引這群用戶，特別是在社群媒體與YouTube上透過KOL推廣，更是推波助瀾。 2. Prop Firm成為品牌與流量的雙引擎 傳統依賴Introducing Broker（IB）開戶導流的方式逐漸失去效力，反觀Prop模式能主動吸引有潛力的交易者報名參與比賽與培訓，大幅提高用戶質量與參與度。這些交易者一旦通過篩選，會自然成為長期交易用戶，也能成為品牌大使。 3. 合規與技術門檻下降，落地門檻更低 隨著第三方Prop技術提供商（如FTMO系統架構商）日趨成熟，以及經紀商能選擇設立於離岸持牌區域並與法律顧問合作設計合法契約架構，Prop的推動已經不再高不可攀。現在是進場的絕佳時機。 […]
View More
The Seychelles FSA Introduces Significant Changes To The Regulation of Forex & CFD Brokers
The Financial Services Authority (FSA) of Seychelles has introduced significant changes to their regulatory framework. Forex brokers already holding regulation […]
View More