| Updated: September 1, 2025In recent years, Vanuatu has emerged as a popular destination for forex brokers thanks to its favourable business environment and relatively straightforward regulatory requirements. To operate legally in the Pacific island nation, trading brands must obtain authorisation from the Vanuatu Financial Services Commission (VFSC), the authority responsible for overseeing and regulating the local financial sector.
Moreover, brokerages authorised by the VFSC can provide trading services to clients across the globe. The VFSC’s regulatory framework is designed to ensure that forex brokers operate fairly and transparently, thereby providing a safe and secure trading environment for individuals interested in trading forex, indices, commodities, stocks and more. If you would like to learn more about the VFSC and the brands whose operations it supervises, we encourage you to continue reading.
Expert opinion by Christopher Lewis:Below you can find a list of the best forex brokers regulated by the VFSC (Vanuatu):
Top 5 Forex Brokers Regulated by VFSC (Vanuatu)
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading InstrumentsDeposit Methods- Commodities CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
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Blueberry Markets
- Well-known broker, established in Australia
- Low trading fees
- MT4, MT5, Mobile Trading Platform
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Share CFDs
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Axi
- Raw spreads start from 0.0 pips
- Offers order execution faster than standard ECN model
- Axi Select Funded Trader Program offers funding up to $1 million
Trading InstrumentsDeposit Methods- Commodities CFDs
- Crypto CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Stock CFDs
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Admirals
- Trade using MetaTrader 4 and 5, as well as Admirals' specialized plugins for additional functionality.
- Access forex, shares, indices, commodities, ETFs, bonds, and cryptocurrency CFDs.
- Admirals is overseen by top-tier regulatory bodies: FCA, ASIC, CySEC, and EFSA, assuring transparency and customer security.
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodities CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Indices CFDs
- Metals CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
Brokers Compared by Spread
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| Global Prime | |
$0 |
| Blueberry Markets |  |
$100 |
| Axi | |
$0 |
| Admirals | |
$100 ($1 for Invest MT5 Account) |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| Global Prime | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| Blueberry Markets | |
1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| Axi | |
1:500 (Elite Account), 1:400 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (DFSA | Retail Account), 1:30 (FCA | Retail Account), 1:500 (SVGFSA) |
| Admirals | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:1000 (FSAS | Retail Account), 1:500 (FSCA | Retail Account), 1:100 (JSC | Retail Account) |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Global Prime | |
MetaTrader 4 |
| Blueberry Markets | |
MetaTrader 4, MetaTrader 5, TradingView |
| Axi | |
MetaTrader 4 |
| Admirals | |
MetaTrader 4, MetaTrader 5 |
Comprehensive Comparison of the Best VFSC (Vanuatu) Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.93 pips |
|
|
 |
$0 |
|
AVG 1.04 pips |
|
|
 |
$100 |
|
AVG 0.2 pips |
|
|
 |
$0 |
|
AVG 0.1 pips |
|
|
 |
$100 ($1 for Invest MT5 Account) |
|
AVG 0.8 pips |
|
The VFSC’s oversight of forex brokers is founded on principles and guidelines that seek to promote investor protection, market integrity and fair competition. Forex brokers licensed by the VFSC must meet specific capital adequacy requirements, maintain robust risk-management systems, and comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
How the VFSC Was Established and Its Role in Regulating Forex and Other Financial Markets
The Vanuatu Financial Services Commission (VFSC) was established in 1993 with the primary objective of regulating and supervising the financial services sector in Vanuatu. As an independent regulatory body, it ensures that financial services providers, including forex brokers, operate in a fair and transparent manner. The commission’s role is to promote investor protection, maintain market integrity and ensure compliance with relevant laws and regulations. The VFSC’s regulatory framework is based on international best practice and is designed to be consistent with global standards.
The VFSC’s role in regulating forex and other financial markets is multifaceted. The commission licenses and supervises forex brokers as well as other financial services providers such as banks, insurance companies and securities dealers. It also conducts regular audits and inspections to ensure that licensed entities comply with its regulatory requirements. In addition, the VFSC provides guidance and support to licence holders, helping them understand and comply with its regulatory framework.
With regard to its work with forex brokers, the VFSC is responsible for ensuring that these entities operate fairly and transparently. The commission requires brokers to meet minimum capital requirements, implement effective risk-management systems and comply with AML and KYC rules. The VFSC also conducts regular audits and inspections to confirm that brokers observe its regulatory requirements. Overall, the VFSC plays a crucial role in developing Vanuatu’s financial sector and safeguarding the interests of investors.
Regulatory Framework Governing Forex Trading in Vanuatu
Forex trading in Vanuatu is regulated by a range of laws and organisations, including the Vanuatu Financial Services Commission (VFSC), the Reserve Bank of Vanuatu (RBV) and the Vanuatu Parliament. The VFSC is the primary authority overseeing forex trading, whereas the RBV is responsible for monetary policy and banking regulation. The Vanuatu Parliament enacts the legislation that governs the financial services sector, including forex trading.
The key statutes governing forex trading in Vanuatu include the Financial Services Commission Act (1993) and the Anti-Money Laundering and Counter-Terrorism Financing Act (2008). Together they set out the framework for regulating forex trading in Vanuatu, including requirements for authorisation, capital adequacy, risk management and AML/KYC compliance.
In addition to these laws, the VFSC has issued several guidelines and codes of practice that shed further light on its regulatory expectations. They cover areas such as authorisation, compliance and enforcement, and are intended to help licence holders understand and meet the VFSC’s standards.
Collectively, the laws and organisations regulating forex trading in Vanuatu ensure that brokers operate fairly and transparently and that investors are protected. The VFSC plays a vital role in promoting the development of Vanuatu’s financial sector and safeguarding the interests of investors, and its framework is both flexible and adaptable, enabling it to respond swiftly to changes in the financial markets and emerging trends.
Requirements for Obtaining a VFSC Forex Licence
Compared with other jurisdictions, the authorisation process in Vanuatu is relatively straightforward. Obtaining a VFSC forex licence involves the following steps:
- Company incorporation: The first step in securing a VFSC forex licence is to incorporate a company in Vanuatu. This entails registering the company with the Vanuatu Registrar of Companies and obtaining a certificate of incorporation.
- Business plan: Next, prepare a comprehensive business plan outlining the company’s objectives, strategies and financial projections. It should also detail the management structure, risk-management systems and AML/KYC policies.
- Application form: Complete the application form available on the VFSC’s website, providing detailed information about the company’s business activities, management structure and financial resources.
- Documentation: Submit supporting documents, including the certificate of incorporation, the business plan and evidence of the company’s financial resources.
- Fit-and-proper test: The VFSC assesses the company’s management and directors to ensure they are suitable to operate a forex brokerage.
- Capital adequacy: The firm must demonstrate it has sufficient capital to operate as a forex brokerage. The VFSC currently requires a minimum capital base of US$100,000.
- Risk management: The company must show that effective systems are in place to manage market, credit and operational risk.
- AML and KYC: Robust AML and KYC policies and procedures must be adopted, including systems for verifying client identity and monitoring suspicious transactions.
- Audit: The company must undergo an audit of its financial statements and systems to confirm compliance with the VFSC’s requirements.
- Licence fee: Finally, the company must pay an annual licence fee, currently set at US$2,000.
Each of these steps is critical, and the VFSC will carefully review every application to ensure the company meets its regulatory requirements. The VFSC’s licensing process is rigorous, ensuring that only reputable and trustworthy firms can operate in Vanuatu.
Leverage Limits Under VFSC Regulation
The VFSC does not impose specific leverage caps on forex brokers. However, the commission requires brokers to ensure that their leverage ratios are reasonable and do not pose a threat to the stability of the financial system. Brokers must also provide clients with adequate information and clear disclosure of the associated risks.
The leverage ratios offered by VFSC-regulated brokers vary according to the broker and the instrument traded. Based on industry practice and regulatory expectations, the following typical leverage levels are available:
- For major currency pairs (EUR/USD, USD/JPY, etc.): 1:100 to 1:500
- For minor currency pairs (EUR/GBP, NZD/CAD, etc.): 1:50 to 1:200
- For exotic currency pairs (AUD/NOK, EUR/HUF, etc.): 1:20 to 1:100
Brokers must also disclose their leverage ratios clearly and ensure that clients understand the risks associated with high leverage. Some VFSC-regulated brokers may offer higher leverage ratios of up to 1:1000 or more, but these are usually available only to professional or institutional clients with extensive trading experience and a proven understanding of the risks involved.
Tax Rates Applicable to Traders in Vanuatu
Vanuatu is regarded as a tax-friendly jurisdiction, offering a range of incentives and exemptions to traders and forex brokers. The country operates a zero-tax policy on foreign-sourced income, meaning that traders and brokers are not required to pay tax on income earned outside Vanuatu. In addition, there is no capital gains tax, no withholding tax and no value-added tax (VAT).
The tax burden for traders in Vanuatu is therefore relatively low, with a corporate tax rate of 0% on foreign-sourced income and a personal tax rate of 0% for individuals who are not Vanuatu residents. However, traders and brokers who are resident in Vanuatu may be subject to a personal tax rate of up to 12% on their worldwide income.
Anyone considering operating in Vanuatu should consult a qualified tax professional to ensure full compliance with all applicable laws and regulations. The VFSC also provides guidance on tax matters, and traders and brokers can contact the Commission for more information on the rates and rules that apply in Vanuatu.
Investor Protection Tools at VFSC-Regulated Forex Brokers
Although VFSC-regulated forex brokers are not obliged to implement specific investor-protection tools, some Vanuatu-licensed brokers offer various measures designed to shield clients from potential risks. These include:
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Segregation of client funds
VFSC-regulated brokers often segregate client money from their own operating funds, helping to protect traders in the event of the broker’s insolvency.
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Negative balance protection
Some brokers offer negative balance protection, ensuring that clients cannot lose more than their initial deposit.
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Stop-loss orders
VFSC-regulated brokers may also provide stop-loss orders, which can help traders limit potential losses.
These and other initiatives adopted by certain VFSC-regulated brokers contribute to a safer trading environment for clients. Bear in mind, however, that the VFSC itself has not implemented stringent investor-protection requirements for its licence holders.
Conclusion
In conclusion, the Vanuatu Financial Services Commission (VFSC) is a reputable regulatory body that offers numerous benefits to forex brokers and traders. Its framework is designed to promote investor protection, uphold market integrity and ensure compliance with relevant laws and regulations. The VFSC’s tax-friendly environment, combined with low corporate and personal tax rates, makes Vanuatu an attractive jurisdiction for brokers and traders seeking to minimise their tax liability.
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