Obtain Forex License in Labuan

Obtaining a Forex license in Labuan allows a company to operate as a legal entity engaged in foreign exchange trading activities. It is mandatory for businesses that want to offer forex brokerage services to clients, including trading in various currency pairs, derivatives, and other related financial instruments to obtain this license. Our specialists in opening a company in Labuan can assist you in this process.

Eligible applicants for a forex license in Labuan

Forex licenses in Labuan are governed by the Labuan Financial Services Authority (Labuan FSA). Individuals and institutions, foreign or local, with expertise in money broking and a good track record in conducting such business, are eligible for opening a forex company in Labuan. They should have a sufficient number of years of experience, typically at least three years.Licensed institutions, including approved money brokers under the Financial Services Act 2013, with prior approval from the Central Bank of Malaysia, are also eligible applicants.
However, foreign entities must obtain a Letter of Awareness or written consent from their home supervisory authority to conduct such activities.
If you are unsure if you are an eligible applicant, please discuss with our specialists in company incorporation in Labuan.

Requirements for opening a forex company in Labuan

In order to set up a forex company in Labuan, you must have a minimum paid-up capital of at least 1,000,000 Malaysian Ringgit (RM 1,500,000 if digital-asset activities are also offered) or its equivalent in foreign currency. Another requirement is to have an operational physical office in Labuan, with at least one local employee. Virtual offices are not permitted.
The company must have at least 2 directors that meet the „fit and proper” person requirements set by Labuan FSA.
Money brokers are expected to limit the leverage provided to clients to a maximum of 100:1, meaning clients need to maintain a minimum margin deposit of 1% to open a trade position.
To find out more details about the requirements for forex licenses and company incorporation in Labuan, feel free to reach out to our specialists.

Documents needed to apply for a forex license in Labuan

The general documents required when applying for a forex license in Labuan include:

• A business plan for the next 3 years, with financial projections and marketing strategies;
• Directors and shareholders profiles, including their qualifications and backgrounds;
• Audited accounts for the previous two years (if applicable);
• Documents attesting your compliance with KYC (Know Your Customer) and AMLA (Anti-Money Laundering Act) regulations, along with an Operations Manual/Procedures document that outlines your company’s operational processes and guidelines.

The annual forex (money broker) license fee in Labuan is USD 5,000 (existing licensees pay a transitional USD 1,500 in 2026), paid when the license is initially issued. After the first payment, subsequent annual license fees are due on or before January 15 of each year.

There are plenty of advantages when opening a company in Labuan, including setting up a forex company, as highlighted by these statistics:

• There were 96 licensed money brokers in Labuan at the end of 2025;
• There were 4,971 operating companies in Labuan in 2025 engaging in various business activities;
• In 2025, new incorporations and registrations grew by 5.1% to 659;
• 71% of the new businesses incorporated in Labuan in 2025 related to finance-focused professional services.

If you need more details regarding Labuan offshore companies or company formation, please contact our team.