The International Financial Services Commission (IFSC), the finance regulatory body of Belize, issued on Thursday a notice, warning that local brokers Broker Capital Ltd and G. STAR FX Inc no longer fall under its regulation as they are no longer licensed by the IFSC for trading in securities or to engage in any other international financial services.
The regulator provided no details, nor did it explain why the brokers are no longer licensed.
Broker Capital was formerly known as Island Bay Services and is based in Belize. According to a notice on the broker’s website, as of end-October 2015 the accounts of its clients are managed by FX Globe Inter, or www.fxglobe-inter.com. Clients’ balances have been transferred to be managed by the “new licensed broker”, but the reason for the this was not disclosed.
Our research showed the website of FC Globe Inter is not active.
G. STAR FX, also based in Belize, is a forex spot and options broker. Its website does not reflect the delicensing and it still states G.STAR FX is regulated in Belize by the IFSC.
Belize is known as an offshore destination for forex traders, where the regulation is not as strict as in other places and the requirements for acquiring a license are more liberal than in UK, Australia or Cyprus. Many forex brokers choose to register and be regulated in Belize since the provision of a license there requires them to meet fewer and softer criteria and to comply with less strict rules and requirements than if they registered in other countries. Moreover, costs related to incorporation and regulation are significantly lower in Belize and brokers’ required unimpaired capital needs to be as low as $100,000.
Brokers that hold licenses from Belize include FX Choice, RoboForex, FBS, and Weltrade.