Some online Forex brokers you probably encountered are regulated by the Securities Commission of The Bahamas (SCB). The SCB is legitimate, but it is considered to be a somewhat problematic regulator owing to issues involving transparency and taxes. From this guide, you will learn about the regulatory structure they provide as well as the gaps in their oversight.
To check whether a Forex broker is regulated by the SCB, you can use this official licensee search page.
Is the SCB a legitimate regulator?
Yes, the Securities Commission of the Bahamas is a legitimate, official regulator. It was founded in 1995, and was originally known as the Securities Board of The Bahamas. The Minister of Finance appoints its members.
Controversies
The SCB has received scrutiny for loopholes that allow people from other countries to get around paying their own fair share of taxes. The intergovernmental body known as the Organization for Economic Co-operation and Development (OECD) blacklisted the Bahamas in 2000 for facilitating tax evasion.
The Bahamas in response created nine laws to get the matter in check. The OECD then took it off the blacklist the next year.
It wasn't long though before the OECD added The Bahamas to its "grey list," which it did in 2009. The European Union also listed The Bahamas among uncooperative tax jurisdictions. However, the EU removed it from that list in February 2024 following an improved assessment by the OECD's Forum on Harmful Tax Practices.
The article linked above, published in 2016, explains there were also issues with transparency. Even though companies registering in The Bahamas were required to name their directors, they could simply name "nominees." This could obscure the people actually operating the companies.
This could make it challenging for individuals or governments to research companies that are registered in the Bahamas and get complete, accurate information.
The Financial Action Task Force (FATF) put The Bahamas under increased monitoring in October 2018 for deficiencies in its anti-money-laundering and counter-terrorist-financing safeguards. It removed The Bahamas from that list in December 2020 after the country completed its action plan. As of the time of this writing, the SCB is no longer on any lists (OECD, EU, or FATF).
Responsibilities of the SCB
The SCB is in charge of regulating financial entities under the following acts:
- The Securities Industry Act, 2024
- The Financial and Corporate Services Act (FCSPA), 2020
- The Digital Assets and Registered Exchanges (DARE) Act, 2024
- The Carbon Credit Trading Act (CCTA), 2022
Note that the DARE Act specifies that the SCB regulates digital asset trading, including cryptocurrencies, and requires that entities register with the SCB before attempting to conduct a digital asset business in the Bahamas.
Section 14 of the Securities Industry Act specifies the functions of the SCB. These include:
- Surveillance of the financial markets and promoting their stability
- Fostering accurate disclosure of financial information to the public
- Protecting market integrity against crime
- Acting as a resolution authority
- Promoting education for investors
- Cooperating with other domestic regulators
- Advising the Minister
- Doing any other duties required under law
Who should register with the SCB?
Under the Securities Industry Act, the following types of entities should register with the SCB (list from SCB's website):
- Firms dealing in securities
- Firms managing securities
- Firms advising on securities
- Firms arranging deals in securities
- Marketplaces
- Clearing facilities
- Registrar and transfer agents
- Chief executive officers of registered firms
- Compliance officers of registered firms
- Trading representatives of registered firms
- Discretionary management representatives of registered firms
- Advising representatives of registered firms
- Directors of registered firms
- Money laundering reporting officers
- Related parties (inclusive of, but not limited to, security holders, officers, auditors and attorneys)
Under the Investment Funds Act, the following types of investment funds should register with the SCB:
- Professional fund
- Standard fund
- SMART fund
- Self-Administered fund
Investment fund managers and administrators should also register.
The Financial Corporate Service Providers Act requires entities to register with the SCB if they are doing any of the following (list from SCB website):
- money lending
- money broking
- payday and cash advances
- credit extension
- bill paying services
- debt collection
- financial leasing
- financial advisory or consultancy services
- financial intermediation services
- trading in commodities and other financial instruments
- custody of digital assets
- wallet services provider
The SCB also specifies that corporate service providers need to register with them, and provides additional information on their supervision page.
Finally, under the Digital Assets and Registered Exchanges Act, these types of businesses need to register with the SCB:
- Digital token exchanges
- Services that are related to such exchanges
- Payment service providers that use digital assets
- Digital asset service providers
Registration and compliance requirements
Under the SCB's rules, Forex brokers are all classified as CFD trading companies. There is no option for a Forex broker to be regulated with a 'Dealing in Capital Market Instruments' license only. They must apply for a CFD trading license.
There are three different application forms that are relevant within this category:
- Securities Industry (Contracts For Differences) Rules, 2020 Form CFD1 (Rule 6): Application for Registration as a Registered Firm, Including Dealing in Contracts for Differences
- Securities Industry (Contracts For Differences) Rules, 2020 Form CFD2 (Rule 6): Application for Registered Firm to be Approved to Carry on Business in Contracts for Difference
- Securities Industry (Contracts For Differences) Rules, 2020 (Rule 6(2) AND Form CFD 4): Application for Registration as a CEO, Compliance Officer, CFD Supervisory Officer or Registered Representative of Registered CFD Firm
These forms are labeled 2020, but are the most current forms available on the Securities Firms page under Applications.
- The application fee for most categories of registration for securities firms is $1,500. If, however, a broker wants to register in multiple categories, the application fee is $3,125. For brokers that want to deal in CFDs, the application fee is $5,000.
- Registration fees can range between $6,250 up to $20,000, depending on the category of registration. For CFD firms, it is $20,000.
- Annual renewal fees can range from $8,500 up to $45,000, again depending on the category. Brokers that want to deal in CFDs have a $45,000 fee.
- For securities firms in general, minimum capital requirement when dealing as agent and principal is $300,000. When dealing only as an agent, it is $120,000. But CFD firms have a much higher requirement of $1 million annually, held 50 percent in cash or cash equivalents and 50 percent in liquid assets. A 2026 proposal to amend the CFD rules would require firms to maintain $1 million on deposit with a bank licensed in The Bahamas, plus additional regulatory capital if the calculation under the proposed Financial Resources Rules produces a higher requirement.
There are a number of different types of administrative fees for securities firms.
- Appointment or change in directors: $625.00
- Approval of issue, transfer or disposal of shares: $625.00
- Letters of good standing: $500.00
- Replacement certificate (per certificate) $500.00
- Name change: $500.00
- Extension to file interim statements for a 1-month period (for a maximum of 2 extension requests): $700.00
- Extension to file audited statements for a 6-month period (for a maximum of 2 extension requests): $1,000.00
- Surrender of registration certificate: $500.00
- Application for "exemption" or "waiver" request: $500.00
In addition, there is a quarterly activity fee for CFD companies. The quarterly fee is usually $45,000. If, however, the firm's trading revenue is below $10 million for the quarter, it can be one of these reduced amounts:
Tier (Gross Trading Revenue) $USD Quarterly Activity Fee
- Tier 1: $0 to $100,000: $0
- Tier 2: $100,001 to $300,000: $5,000
- Tier 3: $300,001 to $1,000,000: $15,000
- Tier 4: $1,000,001 to $10,000,000: $30,000
| Tier | Gross Trading Revenue ($USD) | Quarterly Activity Fee |
| Tier 1 | $0 to $100,000 | $0 |
| Tier 2 | $100,001 to $300,000 | $5,000 |
| Tier 3 | $300,001 to $1,000,000 | $15,000 |
| Tier 4 | $1,000,001 to $10,000,000 | $30,000 |
There are also CFD Supervisory Officer fees. A detailed fee schedule lists the amounts.
Checking SCB registration
If you visit the SCB homepage, you'll see a box in the upper right that says "Registrant Licensee Status Search."
You cannot currently use the search box, because it is "under development." But if you try clicking on the search box, it'll bring up a little window that informs you of the fact. Click on the orange "Click Here" button in that window, and you will be taken to the lists of the SCB's licensees and registrants.
This takes you to a page where you will see four dropdowns:
- Securities Industry Act, 2024 (SIA)
- Investment Funds Act, 2019 (IFA)
- Financial and Corporate Service Providers Act, 2020 (FCSPA)
- Digital Assets and Registered Exchanges Act, 2024 (DARE)
Expanding any of these dropdowns will give you a link you can click on to view registrants under that act.
So, for instance, you can click on "Securities Industries Act, 2024 (SIA)," and you will see "SIA Registrants." Click on that, and it will open a PDF that contains a list of all registrants that fall under that umbrella, along with some details for each. You can use your browser's search function to find what you need in the list.
This system is a little inconvenient, because if you pick the wrong list to open, you will need to go back and keep going through the lists one by one until you find the one that has the company you are trying to look up. This might happen if you do not know how the company is classified.
SCB client protections
Here is what the SCB does to protect investors who are dealing with the companies that it regulates.
- The Securities Industry Act has a subsidiary legislation called the Securities Industry Regulations, 2012. Section 88 of this document stipulates that registered firms must segregate client assets from the firm's assets.
- We did not find a maximum leverage cap in general for financial businesses operating in the Bahamas, but the SCB does specify a minimum margin of 0.5%, equivalent to maximum leverage of 1:200 for brokers dealing in CFDs specifically. This 2026 proposal would replace that fixed percentage with margin rules based on each underlying asset class.
- SCB requires brokers to close retail clients' open positions, or obtain additional margin, when account equity falls below 50% of the required margin (a forced stop-out).
- SCB rules limit a CFD firm retail client's liability to the funds in the relevant trading account (i.e., negative balance protection for traders).
- CFD firms are required to communicate risk disclosures to investors, i.e. "X% of retail investor accounts lose money when trading CFDs with this provider." Every three months, each firm must recalculate its percentage and update its warnings.
- The SCB bans marketing, advertising, offering, selling or trading binary options with retail clients.
In addition, the SCB is able to receive and review reports and complaints. They can issue alerts to the public, and take enforcement actions against companies that break regulations or fail to meet ongoing requirements to maintain their licenses (see below).
Powers at the SCB's disposal
In the enforcement of its duties, the SCB may take actions such as:
- Petitioning for the wind-up or liquidation of a company.
- Suspending or revoking a company's license
- Prohibiting a company from doing business in the Bahamas.
- Taking a company to court or settling outside of court.
The SCB can also issue warning notices to the public, including in the case of companies that it does not regulate, but which claim to be regulated by the SCB.
Here is an example of a Public Notice the SCB published on February 19th, 2026, regarding ARGOFX LIMITED. The notice advises the public that this company is not registered with or licensed by the SCB, and may be violating the Securities Industry Act 2024.
Reporting to the SCB
If you think that a company may be violating the laws the SCB enforces, you can report that company to the SCB through their official reporting process. The SCB has released a Guidance Note For the Public on Complaints Against Licensees and Registrants.
This guidance specifies that you must first complain directly to the entity that you have the issue with. You can then complain to the SCB if you are dissatisfied with the entity's response or if they do not respond. Note that you can skip this step if you believe your funds or assets are at immediate risk or have another urgent issue.
To file a complaint, start by filling out the Complaint Submission Form. Then, email it to ecomplaints@scb.gov.bs along with any attachments you need to provide to make your case. The more information and documentation you can offer, the easier it will be for you to prove that the issue exists and that an investigation is necessary.
Email is the main method for filing a complaint with the SCB. But the SCB also accepts complaints via fax, telephone, paper mail, or in person.
Keep in mind that if you choose to make a verbal complaint, that will not create a paper trail that you can maintain. You will need to use email, fax or paper mail for that.
After submitting a complaint, the SCB can take up to 10 business days to inform you of the outcome of its initial assessment. It can take up to 40 business days from receipt of your complaint to provide a substantive update or resolution. Additional updates will occur within 40-day intervals until the issue is closed. If the SCB requests more information, there is up to 20 days to furnish a response.
Be aware that the SCB is not empowered to award compensations. The only ways to do that are through the entity itself or through the legal system.
Conclusion
The Securities Commission of the Bahamas (SCB) is an official government regulator, but it is one with serious issues involving transparency. Its regulatory loopholes allow for tax evasion-related exploitation. It does pursue enforcement actions and issue warnings to the public, however. Given this regulator's pros and cons, you will need to decide for yourself whether you trust a Forex broker that is regulated by the SCB.
