Labuan · Labuan FSA · Regulated offshore
Labuan forex licence (Money Broking Licence)
An Asian-time-zone centre backed by Malaysia’s framework and a 3% tax, but with a narrow scope since 2024: agency-only, FX-only and aimed at high-net-worth clients. Available on request.
Updated
Labuan licenses forex brokers with a Money Broking Licence under the Labuan Financial Services and Securities Act 2010 and the September 2024 guidelines. The licence is agency-only (no market making), FX-only with a 100:1 leverage cap and aimed at institutional and high-net-worth clients; an operational office in Labuan is required.
Key facts
| Regulator | Labuan Financial Services Authority (Labuan FSA) |
|---|---|
| Licence | Money Broking Licence |
| Legal basis | Labuan Financial Services and Securities Act 2010; Money Broking Guidelines (September 2024) |
| Entity | Labuan company |
| Typical timeline | Typically 4–8 months |
| Capital | Yes, set by the regulator by licence category |
| Tax | 3% of audited net profit on Labuan trading activity when substance tests are met |
| Recognition | Good within Asia, but narrow scope |
| Client markets | Institutional and high-net-worth clients; no Malaysian residents or ringgit; no passporting |
| EU passport | No |
| Our service | On request via partners |
Indicative information for comparison only, reviewed on the date shown. Requirements change and depend on your structure; confirm with the regulator and local counsel before deciding.
Overview
The Labuan Financial Services Authority issues Money Broking Licences. Since 2024 these are intermediary-only: no dealing as principal, FX and money-market products only, and a leverage cap.
Full CFD dealing needs a different Labuan licence. Labuan suits agency FX brokers focused on Asian professional clients rather than retail CFD market makers.
Substance and people
- Operational office in Labuan
- Staff for finance, reporting and records; a principal officer
- At least two board members
- Fit-and-proper directors and controllers
- Labuan-approved auditor
Ongoing obligations
- Annual audit
- Periodic statistical returns
- AML/CFT reporting
- Labuan business activity tax substance tests
Advantages
- Asian time zone with an onshore-backed regulator
- Low 3% tax
- Clear written guidelines
Drawbacks
- Agency-only, FX-only scope; not for B-book CFD brokers
- High-net-worth/institutional focus and leverage cap
- Real office and staff costs
Recent changes
The September 2024 Money Broking Guidelines raised capital, restricted scope to FX as an intermediary, set a 100:1 leverage cap and focused the regime on institutional and high-net-worth clients. Labuan substance rules for tax purposes were also tightened in 2024–2025.
Frequently asked questions
Can a Labuan money broker be a market maker?
No. Since the 2024 guidelines the licence is agency-only.
Can I offer CFDs on indices or commodities?
Not under a money broking licence, which covers FX and money-market products only.
Official sources
Primary sources we rely on. Rules change; always confirm current requirements with the authority.
- Labuan FSA: money broking labuanfsa.gov.my
- Labuan FSA Guidelines on Money Broking Business (Sept 2024) labuanfsa.gov.my
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