Why Consider An FX Broker License In Malaysia?
Forex Broker License Focus: Labuan, Malaysia
The regulatory landscape for fx broker licenses is similar to a rollercoaster ride, with plenty of twists, turns and surprises. Regions which were popular only several years ago have basically shut their doors, while newer areas are constantly emerging. An example is Labuan, Malaysia, a fairly recent option for those interested in an offshore forex broker license.
Why would a broker consider setting up their offshore license in, Labuan Malaysia, or considering it as an option? We’ll outline a few attractive points in today’s article.
- Real STP – When we say real STP, what does that mean exactly? It’s a common trend in the industry for a b-book broker to advertise as STP only to be running a book on the back end. Currently, the only type of license offered in Malaysia is one which in the broker must operate an STP-style business. This is a major selling point. Any broker boasting a Malaysia license has proof that they are truly running an STP business, something the competition will have trouble matching.
- Favorable Taxes – A licensed brokerage only pays 3% of profits or a fixed sum of 20000 MYR. This is much better compared to other areas. In addition, the simplicity makes it easy to grow the business without being burdened by tax complications.
- Competitive Costs – Both capital requirements and set up costs are far more cost effective when compared to other jurisdictions. Labuan is a great option for first time brokers as it has a higher level of credibility than islands and comes with full regulatory oversight.
Atomiq Consulting specializes in fx brokerage registration and licensing options for both new and existing brokerages. Our team of experts is available to assist you in making the most cost effective decision, reach out to us today for more details.
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