Why is CFTC RFED so much more expensive?

US CFTC requires $20 million minimum net capital for retail FX dealers. Combined with NFA membership and ongoing compliance, the all-in cost is dramatically higher than EU or APAC equivalents. It is not a route for new entrants without serious backing.

CySEC vs FCA — which is right for me?

CySEC is faster (~8 months vs 12+), cheaper, and offers EU passport. FCA carries higher prestige and broader institutional credibility but is harder to obtain and stricter on UBO due-diligence. For non-EU UBOs, CySEC is usually the only realistic regulated route.

Can I run on a VFSC or BVI licence and still bank in EU?

Increasingly difficult. EU EMIs and banks specifically flag VFSC and BVI broker licences for enhanced due diligence. Bahamas SCB has slightly better banking acceptance. None replace a real EU/UK regulated licence for credibility — they are starter routes only.

What about the cost of capital lock-up?

Initial capital is regulatory-locked — it cannot be deployed for trading P&L or marketing. The opportunity cost (typically 5-10% per year) is a real recurring expense and is rarely modelled in initial business cases.

CalculatorUpdated May 2026

Forex Broker Minimum Capital — 11 Regulators

Initial capital, segregated funds, PI insurance, ongoing CAR, retail leverage caps. CySEC, FCA, ASIC, CFTC, FSCA, VFSC, BVI, SCB, Malta.

Eleven regulator profiles, real 2026 capital requirements, real PI insurance minimums, real annual licence costs. Pick a regulator and a cost-of-capital assumption — get an honest 5-year all-in number.

Configuration

LicenceCost of capital (%)Expected AUM (€)

Upfront

€132,500

Annual ongoing

€37,400

Capital lock-up (annual opportunity cost)

€10,000

5-year all-in

€369,500

Initial capital€125,000

Segregated funds✓ Required

PI insurance min€1,120,000

Retail leverage1:30 majors

Setup time8 mo

CAR8%

Most popular EU passport route. STP only — no warehousing. ESMA-compliant.

Discuss these results with us.

We will look at your specific case, validate the numbers against our active banking partners, and give you a free, honest pre-approval read — usually within 24 hours.

⚠ For informational purposes only. This is not legal, tax, or financial advice. Verify with a qualified advisor before acting on any output.

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Methodology & sources

Initial capital is regulator-published. PI insurance minimums are mid-market for the licence type. Annual licence costs are calibrated against each regulator's published fee schedule plus reasonable advisor estimates for ongoing compliance.

Capital lock-up cost = initial capital × cost-of-capital%. This is the opportunity cost of capital that cannot be deployed for marketing, technology, or operations because it is regulatory-restricted.

5-year all-in = upfront + (annual ongoing + lock-up) × 5. Excluded: trading-tech build, marketing, operational headcount.

Frequently asked questions

Why is CFTC RFED so much more expensive?: US CFTC requires $20 million minimum net capital for retail FX dealers. Combined with NFA membership and ongoing compliance, the all-in cost is dramatically higher than EU or APAC equivalents. It is not a route for new entrants without serious backing.
CySEC vs FCA — which is right for me?: CySEC is faster (~8 months vs 12+), cheaper, and offers EU passport. FCA carries higher prestige and broader institutional credibility but is harder to obtain and stricter on UBO due-diligence. For non-EU UBOs, CySEC is usually the only realistic regulated route.
Can I run on a VFSC or BVI licence and still bank in EU?: Increasingly difficult. EU EMIs and banks specifically flag VFSC and BVI broker licences for enhanced due diligence. Bahamas SCB has slightly better banking acceptance. None replace a real EU/UK regulated licence for credibility — they are starter routes only.
What about the cost of capital lock-up?: Initial capital is regulatory-locked — it cannot be deployed for trading P&L or marketing. The opportunity cost (typically 5-10% per year) is a real recurring expense and is rarely modelled in initial business cases.

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Disclaimer

This calculator is for informational purposes only. It does not constitute legal, tax, or financial advice. Licence fees, tax rates, and regulatory requirements change. You must consult a qualified advisor in each relevant jurisdiction before making any commercial or investment decision. GetBanked and BMC Strategic Inc accept no liability for decisions made on the basis of these calculations.