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Regulated Forex Broker Malaysia

Labuan IBFC Complete Setup

Get your Labuan FSA Money Broking License without the hassle. We provide complete setup - incorporation, office, compliance, and licensing.

What is a Labuan Forex Broker License?

A Labuan Forex Broker License, formally called a Money Broking License, allows a company to act as an intermediary in the foreign exchange and money markets

Forex Market Intermediary

The broker facilitates trades between buyers and sellers in forex markets, earning commissions or spreads from these trades.

Transparent Operations

The broker cannot act as a principal or liquidity provider – it must always operate as a transparent intermediary.

Digital Assets Included

Labuan has updated its regulations to include digital assets, meaning licensed brokers can facilitate crypto-related trading activities.

License Scope

Foreign exchange trading
Money market operations
Digital asset facilitation
Commission-based revenue
Cannot act as market maker
Cannot provide liquidity as principal

Why Choose Malaysia Labuan?

Labuan is a Federal Territory of Malaysia and has been developed as a strategic offshore financial hub, combining Malaysia's strong legal system with business-friendly environment

International Recognition

Labuan FSA licenses are respected across Asia, Middle East, and other global markets.

Affordable Entry

Much lower capital and setup costs compared to Europe, US, or Australia.

Tax Efficiency

Choose between 3% tax on audited net profits or flat USD 20,000 annual tax.

Fast Processing

License can typically be obtained within 3–6 months, one of the quickest regulated paths.

Perfect Balance

For brokers looking to build trust with clients and attract global investors, Labuan provides the right balance of regulation and affordability.

Who Should Apply for a Labuan License?

A Labuan Forex Broker License is suitable for various types of financial enterprises

New Brokerage Startups

Entrepreneurs who want to launch a professional forex firm quickly and cost-effectively with proper regulatory backing.

Existing Brokers

Companies already operating but looking to add a recognized offshore license to their portfolio for expansion.

Prop Trading Firms

Firms that want a regulated base for managing client funds with proper oversight and compliance.

Fintech Startups

Companies offering FX + crypto solutions with regulatory oversight under one unified license.

Ideal for Institutional Focus

If your business targets institutional investors or high-net worth individuals, Labuan is especially attractive due to its clear regulatory framework and investor protections.

Key Benefits of Obtaining a Labuan License

Getting licensed in Labuan offers strategic benefits that go beyond just compliance

Credibility with Clients

Licensed brokers attract more traders and investors, as regulation builds confidence and reduces reputational risk. A Labuan FSA license signals professionalism and trustworthiness.

Regulatory Flexibility

Labuan strikes the right balance – it is stricter than unregulated offshore zones but more accessible than EU or US jurisdictions. Perfect middle ground for serious businesses.

Lower Capital Requirements

The minimum paid-up capital starts from RM 1,000,000 (≈ USD 215,000) – much lower than major Western jurisdictions which often require millions.

Business Expansion

With a Labuan license, brokers can expand globally, especially into Asia-Pacific, where Labuan is highly recognized and trusted by financial institutions.

Digital Asset Inclusion

Unlike many other regions, Labuan allows brokers to facilitate trading in digital assets under regulatory oversight, making it perfect for hybrid forex-crypto platforms.

Eligibility Requirements

To be approved by Labuan FSA, applicants must meet several eligibility criteria to ensure only serious, well-prepared companies are licensed

1

Experience Requirement

At least 3 years proven track record in money broking, forex, or financial services with documented experience.

2

Clean Reputation

A clean history with no major regulatory breaches or reputational issues. All directors must pass fit & proper assessments.

3

Business Plan

A credible plan detailing operations, compliance framework, and financial projections with clear revenue model.

4

Management Team

At least 2 directors who meet the Fit & Proper requirements of Labuan FSA with relevant qualifications.

Capital Requirements

Forex Only

Money broking activities

RM 1,000,000

≈ USD 215,000

Forex + Digital Assets

Including crypto trading

RM 1,500,000

≈ USD 325,000

Important: Capital must remain unimpaired by losses at all times and be deposited in a regulated bank.

Compliance and Oversight

Operating under a Labuan Forex Broker License means adhering to strict but fair compliance rules that provide both client protection and business sustainability

Annual Audit

Carried out by a Labuan-approved auditor to ensure financial transparency and regulatory compliance.

AML/CFT Compliance

Mandatory Anti-Money Laundering and Counter-Terrorism Financing frameworks with ongoing monitoring.

Client Funds Protection

Client monies must be kept in segregated accounts, separate from company funds for maximum protection.

Leverage Limits

  • Forex: maximum leverage of 100:1
  • Digital assets: maximum leverage of 1:1

Reporting Requirements

Regular financial statements and regulatory reports submitted to Labuan FSA with incident reporting.

Strong Framework

This comprehensive compliance framework ensures both client protection and business sustainability

Tax Advantages in Labuan

Labuan offers one of the most tax-friendly environments for forex brokers with flexible options to optimize your tax burden

Choose Your Tax Structure

Option 1

Profit-Based

3%

Corporate tax on audited net profits

Best for: High-profit brokers with significant revenue streams

Option 2

Fixed Rate

$20,000

Flat annual tax (USD)

Best for: Startups and smaller brokers with predictable costs

Additional Benefits

No Withholding Taxes

No withholding taxes on dividends or royalties, maximizing your profit distribution.

70+ Tax Treaties

Access to Malaysia's double tax agreements with over 70 countries for global tax optimization.

Planning Flexibility

Choose and optimize between tax options annually based on your business performance.

Tax Optimization Example

A broker with $1M annual profit would pay $30,000 (3%) vs $20,000 (flat rate). Choose the flat rate for maximum savings.

Transparent Cost Overview

While Labuan is cost-effective, transparency about setup and running costs is important for your planning

First-Year Setup Costs

Company Incorporation & Setup $4,200
LFSA License Fee (advance) $1,600
Work Permit (per person, 2 years) $2,250
Office Rental (6 months) $150
Bank Account Opening $650
Miscellaneous $250
Total (1 Employment Pass) $9,100

Annual Renewal Costs

Resident Secretary & Office $3,350
Tax Filing & E-Employer $630
Miscellaneous $800
Total Annual $4,780

Additional Employment Passes

  • • 2 EPs: Total $11,500
  • • 3 EPs: Total $13,900
  • • 4 EPs: Total $16,300

Most Affordable Regulated License

This makes Labuan one of the most affordable regulated licenses worldwide, comparing favorably to EU jurisdictions that often require millions in setup costs.

Why Work with Brokeret?

At Brokeret, we help entrepreneurs and financial firms turn their brokerage ideas into reality with comprehensive support services

End-to-End Setup Assistance

Complete company setup and licensing support from initial consultation to license issuance and beyond.

Compliance Documentation

Preparing compliance documents, business plans, and all regulatory requirements for Labuan FSA approval.

Infrastructure Setup

Support with bank accounts, Employment Passes, office setup, and all local infrastructure needs.

Ongoing Compliance Support

Guidance on ongoing compliance, annual audits, renewals, and regulatory changes to keep you compliant.

Strategic Business Advisory

Strategic advisory for growing your forex or fintech business with market insights and expansion guidance.

Industry Experience

Real experience in the forex industry with deep understanding of regulatory requirements and market dynamics.

Your Trusted Partner

By choosing Brokeret, you gain a trusted partner with real experience in the forex industry. We don't just process paperwork – we ensure your long-term success.

Start Your Labuan License Journey Today

Malaysia Labuan License Packages

Choose your complete Labuan setup package. We handle everything from incorporation to licensing, making it hassle-free for you.

Standard Setup

Complete Labuan setup with 1 Employment Pass

$9,100 first year
  • Labuan Company Incorporation
  • Labuan FSA License Application
  • 1 Employment Pass (2 years)
  • Office Setup (6 months)
  • Bank Account Opening Assistance
  • Resident Secretary Service
  • Regulatory Documentation
  • Application Processing
  • Capital: RM 1M (USD 215,000)
  • Annual renewal: ~USD 4,780
Most Popular

Extended Setup

Enhanced setup with multiple Employment Passes for larger teams

$13,900 first year
  • Everything in Standard Setup PLUS:
  • 3 Employment Passes (2 years each)
  • Extended Office Setup
  • Multiple Director Support
  • Enhanced Banking Assistance
  • Priority Application Processing
  • Digital Assets License Option
  • Ongoing Compliance Support
  • Capital: RM 1.5M for crypto (USD 325,000)
  • Dedicated Account Management

Capital Requirements: RM 1M (USD 215,000) for forex only, RM 1.5M (USD 325,000) for forex + digital assets

Capital stays in your company bank account. Annual renewals start from USD 4,780 after first year.

How to Get Your Malaysia Labuan Broker License

DIY Approach Handle everything yourself - more complex but lower cost

1

Find Local Resources

Source directors, office, compliance staff yourself

2

Coordinate Everything

Manage multiple vendors and service providers

3

Hope for the Best

Deal with delays, rejections, and complications

4

Ongoing Headaches

Handle compliance, renewals, changes yourself

Reality Check: Save $10,000 but spend months of your time and risk compliance issues

Recommended

Full-Service Approach We handle everything - simple and efficient

1

Quick Call (Day 1)

30-minute consultation to understand your needs

2

Send Documents (Day 2-7)

Just passport, address proof, business description

3

We Do Everything (Weeks 1-8)

Office, directors, staff, applications - all handled

Get Your License

Start trading immediately, we handle compliance

Smart Choice: Focus on your business while we handle all Mauritius requirements

Ready to start your regulated forex broker in Malaysia Labuan?

Get Your Labuan License Today

What Makes Us Different

We're Not Consultants - We're Your Malaysia Labuan Partner

Others Tell You What to Do

  • Give you requirements list
  • Charge for "guidance"
  • Leave you to figure it out
  • Disappear after payment

We Actually Do Everything

  • Provide ready infrastructure
  • Supply all personnel
  • Handle every requirement
  • Stay as your partner

Real Client Results

"The Labuan setup was incredibly smooth. Brokeret handled everything - incorporation, licensing, office setup. 4 months later, I had my Money Broking License."

- Michael C., Singapore

"Labuan was the perfect jurisdiction for us. Lower costs than Europe, proper regulation, and tax advantages. Total setup was under USD 15,000."

- Sarah L., London

"What I love about Labuan is the flexibility. We can offer both forex and digital assets under one license. Perfect for our hybrid platform."

- David K., Hong Kong

Global Forex Licensing Landscape

Understanding how a forex broker license in Labuan Malaysia compares with other international jurisdictions helps you make the right choice for your brokerage

Popular Licensing Jurisdictions

Labuan Malaysia (Current Focus)

Cost-effective regulated option with tax benefits and streamlined process. Perfect balance of regulation and affordability.

Mauritius Investment Dealer License

Full-scale regulatory framework ideal for institutional brokers seeking comprehensive licensing.

Singapore Forex License

Prestigious but requires substantial capital and extensive compliance infrastructure.

Saint Lucia Registration

Fast offshore incorporation with minimal requirements, often used alongside regulated licensing.

Complete Broker Technology Stack

Forex Brokerage Compliance Tools

AML/CFT systems, client onboarding, KYC verification, and regulatory reporting automation.

Forex Back Office Management

Complete client management, risk management, and operational control systems.

Forex Brokerage Payment Gateways

Multi-currency processing, instant deposits/withdrawals, and regulatory-compliant payment solutions.

Broker Technology Solutions

MT4/MT5 integration, trading platforms, liquidity bridges, and risk management tools.

Why Choose Labuan Over Other Jurisdictions?

Cost Effective

Unlike expensive options like forex broker license Singapore or Dubai, Labuan offers regulated licensing at a fraction of the cost.

Faster Process

3-6 months timeline compared to 12+ months for jurisdictions like forex broker license in Georgia or Vanuatu.

Regulated Framework

Full regulatory oversight with international recognition, providing credibility that offshore-only options cannot match.

MALAYSIA LABUAN FSA LICENSE SOLUTIONS

Get Licensed in 3-6 Months

Ready to Launch Your Regulated Forex Broker in Malaysia?

Launch your regulated forex broker in Malaysia Labuan with complete setup service. We handle incorporation, licensing, office setup, Employment Passes, and compliance. You focus on your business - we handle Labuan. Transparent pricing, expert guidance.

From USD 9,100
Everything Included
Full Support Guaranteed