Holding a Vanuatu Forex license (VFSC – Vanuatu Financial Services Commission) is very useful to brokerages as it allows them to buy, sell and trade investments like shares, options, bonds amidst several other instruments legally. The forex license also enables brokerages to manage investment portfolios on behalf of traders.

The business-friendly environment of the region makes it attractive to not only FX brokerages. Other investment and fund management institutions such as brokerage firms and hedge funds who have clients wishing to invest in securities not permitted in their resident jurisdiction or that require complicated and costly compliance steps, may find holding a Vanuatu Forex License very useful. By having a Vanuatu Forex License, these types of investments can be done through a brokerage incorporated in Vanuatu, licensed to trade securities, thus bypassing constraints existing in other countries in a legal manner. For example, a brokerage incorporated in the EU, holding a license there, can have an additional Vanuatu licensed company. Vanuatu is fast becoming a preferred jurisdiction for Forex brokers in search of regulation.