Comprehensive guide to meeting strict eligibility and compliance standards set by Labuan Financial Services Authority for reputable, well-capitalized brokerages.
12 essential areas you must meet to obtain your Labuan forex broker license
Capital, incorporation, business plan, and management team setup
Office presence, operations, compliance, and trading restrictions
Client protection, reporting, fees, and digital asset special requirements
Essential baseline requirements to qualify for your Labuan license application
Paid-up capital must be deposited with a regulated bank in Malaysia or Labuan, remaining unimpaired by losses at all times.
≈ USD 215,000
≈ USD 325,000
Unimpaired Capital
Must remain intact at all times
Additional Capital
FSA may require more based on risk
Proof Required
Certified bank statement needed
Establish a proper legal structure through which your brokerage will operate under Labuan jurisdiction.
Labuan Company Limited by Shares
Sdn Bhd structure required
Licensed Labuan Trust Company
Must use authorized incorporator
At Least One Shareholder
Corporate or individual allowed
Local Resident Secretary
FSA-approved secretary required
Credible and viable business plan reflecting the sustainability of your operations - FSA places great emphasis on this document.
Nature and scope of brokerage services offered
Asia-Pacific, Middle East, global expansion plans
Commissions, spreads, fees structure
Trading platforms, risk management tools
AML/CFT obligations framework
Scaling and expansion strategy
Competent management team meeting "Fit and Proper" requirements - FSA assesses track record and reputation holistically.
Practical requirements for day-to-day operations and compliance management
Physical office ensures real presence in Malaysia, not just a paper company - accountability to regulators is key.
Properly equipped for business operations
Compliance, accounting, and reporting center
Stationed in Labuan for FSA communication
Strong operational readiness demonstrating professional systems and procedures for regulatory compliance.
Systems for accurate record keeping and financial tracking
Separate client accounts from company accounts
Compliance manuals, risk management, IT policies
Labuan-approved auditor appointment required
Any outsourced services must be approved and documented
Labuan brokers are Key Reporting Institutions under Malaysian law - comprehensive compliance framework required.
Client protection measures through trading limitations ensuring responsible market participation.
Forex Maximum Leverage
1% minimum margin requirement
Digital Assets Leverage
No margin trading allowed
Client Restrictions
As defined by Labuan FSA
Continuous obligations to maintain your license and ensure client protection
Comprehensive safeguards to protect clients and enhance broker credibility in the marketplace.
Continuous reporting requirements to maintain transparency and regulatory oversight.
Audited statements via COR@L system
Periodic regulatory reports to FSA
Directors, shareholding, office updates
IT failures, breaches, disruptions
Ongoing costs to maintain your license - payments must be made by 15 January each year to avoid suspension.
One-time application fee
As specified in 2022 amendments
Secretary, tax filing, services
Critical: Payments must be made by 15 January each year to avoid license suspension or cancellation.
Additional obligations for brokers applying to facilitate digital asset trading alongside traditional forex services.
Comprehensive checklist to ensure you meet all Labuan FSA requirements
Meeting these requirements gains your brokerage not only a license but also international credibility, client trust, and access to global financial markets.
Different licensing requirements across jurisdictions - how Labuan's requirements compare globally
Regulatory requirements ensure client funds are segregated and protected, building essential trust with traders
Meeting license requirements gains global credibility, enabling partnerships with banks, payment providers, and liquidity providers
Licensed brokers can accept institutional clients, access premium services, and scale operations globally
Proper licensing ensures robust operational controls, reducing business and regulatory risks
At USD 65,000, Labuan's capital requirement is 90% lower than Singapore while maintaining regulatory credibility
3-6 months vs 12+ months for premium jurisdictions, getting you to market faster with full regulation
Requirements designed for real business operations, not just regulatory compliance checkboxes
Let our experts guide you through every requirement to ensure your application meets all Labuan FSA standards. We make compliance straightforward and efficient.
All 12 requirements covered
Professional guidance throughout
International recognition achieved