Mauritius Vs. Vanuatu – An Offshore License Comparison
In discussions with partners and new clients about offshore forex broker licensing, there are 2 regions which almost always enter the discussion: Vanuatu and Mauritius. When selecting an offshore FX & CFD broker license, compromises always need to be made as there is no “holy grail” of licenses: no matter which license you select, some trade-offs will have to be made.
With the above in mind, we’ll offer a brief comparison of the 2 regions so that those considering an offshore license in either Mauritius or Vanuatu will have enough basic knowledge to confidently make the best decision for their brokerage.
A Mauritius FX License is More Challenging for Startups to Obtain
If your brokerage is applying for its first license, Vanuatu would be an excellent entry level license. The reason is that the Mauritius Financial Services Commission (FSC) tends to be more strict when it comes to applicants with no prior licensing. While this doesn’t mean it is impossible for startups to obtain licensing in Mauritius, the criteria is much higher. Contact one of our consultants to discuss the requirements in Mauritius should you wish to explore this option in more detail.
Vanuatu is More Cost Effective to Operate
Until recently, it was possible to operate in Vanuatu without the need for a physical presence. Even with the introduction of a physical presence requirement, ongoing costs in Vanuatu are relatively small in comparison to Mauritius. Note that when operating out of Mauritius, one must employ two local directors, maintain a physical office, and also meet the required regulatory reporting and government renewal fees. In Vanuatu, only a single director is needed with a physical presence. When comparing both regions, ongoing costs tend to be lower in Vanuatu.
Mauritius Offers Better Banking Options
When it comes to banking, Mauritius is the better option when compared to Vanuatu. Banking in Vanuatu is restricted to several local options, requiring licensed entities to often rely 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
One of our expert consultants would be happy to walk your broker through the specific details of either offshore region. Additionally, we can help in other areas as well, simply contact us to get started!
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