Vanuatu Vs. Mauritius – An Offshore Forex License Comparison
Vanuatu and Mauritius have their own respective advantages and limitations. Banking, ongoing maintenance costs, and ease of approval are important considerations when applying for a forex broker license in either Vanuatu or Mauritius.
In discussions with our partners and new clients about offshore forex broker licensing, there are 2 regions which almost always enter the discussion: Vanuatu and Mauritius. When applying for an offshore forex & CFD broker license, compromises always need to be made as there is no “holy grail” of licenses. No matter which offshore license a forex broker selects, some trade-offs will have to be made.
With the above in mind, we’ll outline a brief comparison of Vanuatu and Mauritius so that brokers looking to obtain offshore forex license will have enough knowledge to confidently make the a decision that best fits their needs.
A Mauritius Forex License is More Challenging for Startup Brokers to Obtain
If your brokerage is currently unregulated and applying for its first license, Vanuatu would be one of the best entry level licenses. The reason Vanuatu is preferred over Mauritius is due to stricter requirements from the Mauritius Financial Services Commission (FSC). This doesn’t imply that it is impossible for startup brokers to obtain licensing in Mauritius, rather the criteria for approval in Mauritius is much stricter when compared to a jurisdiction like Vanuatu.
It Is More Cost Effective to Operate A Vanuatu Licensed Forex Broker
Until recently, forex brokers in Vanuatu were able to operate without a maintaining a local office or directors physically based on the island. This changed in 2021 when the VFSC, the regulator in Vanuatu, introduced a physical substance requirement. Despite the bump in costs, it is still more cost effective to operate a licensed broker out of Vanuatu than Mauritius.
Note that when operating out of Mauritius, licensed forex brokers must employ two local directors, maintain a physical office, regularly submit compliance reports as well as maintain accounting records. Vanuatu, however, simply requires a small office space with one director, making the ongoing license maintenance costs less daunting when compared to Mauritius.
Mauritius Offers Better Banking Options
When it comes to banking, Mauritius is without a doubt the better option when compared to Vanuatu. Banking in Vanuatu is restricted to a handful of local options; the majority of Vanuatu licensed forex rely heavily on external payment and banking options to fulfill their banking needs. In Mauritius, however, it is possible to obtain accounts with multiple, physical banks on the island. Additionally, Mauritius banks are far more sophisticated when compared to Vanuatu banks.
Atomiq Consulting – Expertise in Forex & CFD Broker Licensing Since 2014
Atomiq Consulting has years of experience helping forex brokers navigate the offshore licensing space. Our commitment to excellence, positive reputation and detailed knowledge of forex broker regulation make us the ideal firm to partner with when obtaining an offshore forex broker license.
If you are looking to obtain an offshore forex broker license in either Mauritius or Vanuatu, don’t hesitate to contact Atomiq Consulting today.
