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Forex license in Bahrain: CBB Category 1 investment-firm licence.
A forex license in Bahrain is a Category 1 investment firm licence from the Central Bank of Bahrain (CBB), the only category allowed to deal as principal. It takes BD 1,000,000 of paid-in capital and at least one controller that is a financial institution in a regulated jurisdiction (AU-2.3.2). By law the CBB decides within 60 calendar days of a complete application. We run the file from Manama.
Updated · Reviewed by the Prifinance team
Forex license in Bahrain: a central-bank licence that needs a regulated controller.
Forex and CFD brokerage in Bahrain is licensed by the CBB under the Central Bank of Bahrain and Financial Institutions Law 2006 (CBB Law 2006), promulgated by Decree No. (64) of 2006. Art. 40(a) of the CBB Law bars any Regulated Service in the Kingdom without a CBB licence, and the working rules are in CBB Rulebook Volume 4 (Investment Business). Volume 4 has no forex or CFD category. Contracts for differences on any currency, index or interest rate count among its financial instruments (AU-1.5.10), and dealing as principal catches a market maker or a firm dealing on its own account through a system open to third parties (AU-1.4.12). Of the four categories in AU-1.1.6, only Category 1 may do that. Its minimum capital is BD 1,000,000 (CA-1.2.7), paid into a retail bank licensed in Bahrain and kept free from any pledge (CA-1.1.4), or more where the risk-based requirement is higher (CA-1.2.2).
The awkward rule is AU-2.3.2. In Categories 1 and 2, at least one controller must be a reputable financial institution of financial soundness, operating within a regulated jurisdiction, so a company owned only by its founders cannot hold the market-maker licence. The company itself is a Bahraini joint stock company (BSC) or a Bahrain branch of a foreign firm (AU-2.1.1). Once the application is complete, the CBB Law gives the CBB 60 calendar days to decide (Arts. 44-47); the CBB's guide puts the whole process at 3-6 months on average. Volume 4 does not ban retail FX or CFDs and sets no leverage cap. The CBB may attach conditions to each licence (AU-2.8.6, AU-2.8.8), and a retail position must be closed once a margin call has gone unmet for five business days, unless payment instructions are confirmed or the delay is beyond the client's control (BC-2.7.21). No investor compensation scheme covers investment firms yet.
A CBB Category 1 investment firm licence, the only category that may deal as principal: BD 1,000,000 of capital paid in at a Bahraini bank, a BSC and a regulated financial institution among the controllers.
BD 100 to apply, BD 6,000-24,000 a year. No leverage cap in Volume 4; positions close after a margin call unmet for five business days. No income tax on a stand-alone broker's 2026 profits.
Category 1 for principal dealing at BD 1,000,000, Category 2 for agency at BD 250,000.
A CBB licence names the category and the services a firm may provide, and the CBB may add restrictions to it (AU-2.8.6-2.8.8). Category 3, at BD 25,000, only arranges and advises and may hold no client assets, so a broker chooses between the two categories below.
Category 1 deals as principal at BD 1,000,000; Category 2 works as agent at BD 250,000.
The market-making firm
A CFD or FX market maker in Bahrain needs Category 1: under AU-1.4.13 such a firm makes markets with its own resources and may control client assets. Minimum capital is BD 1,000,000, and the margin facilities it extends to clients are paid for out of the firm's capital, not out of clients' assets (AU-1.4.16).
A CFD or FX market maker in Bahrain needs Category 1: under AU-1.4.13 such a firm makes markets with its own resources and may control client assets. Minimum capital is BD 1,000,000, and the margin facilities it extends to clients are paid for out of the firm's capital, not out of clients' assets (AU-1.4.16).
- ✓Dealing in financial instruments as principal
- ✓BD 1,000,000 minimum capital
- ✓Risk-based capital where higher
- ✓Margin credit from own capital
- ✓Annual fee BD 6,000-24,000
- ✓BSC or Bahrain branch, regulated controller
The agency broker
A Category 2 firm may provide every regulated investment service except dealing as principal (AU-1.1.15), so it executes client orders as agent and may hold client assets (AU-1.1.16A). Minimum capital is BD 250,000, or BD 1,000,000 where it also safeguards financial instruments as custodian, and the controller rule of AU-2.3.2 binds it too.
Every service except dealing as principal. BD 250,000, or BD 1,000,000 with custody; BD 4,000-12,000 a year.
- ✓Dealing as agent and arranging deals
- ✓Client assets in separate accounts
- ✓BD 250,000 minimum capital
- ✓BD 1,000,000 with custody
- ✓Annual fee BD 4,000-12,000
- ✓Professional indemnity cover (GR-9)
Costs and timelines are confirmed for your case before any work begins. The CBB's BD 100 application fee is non-refundable, the capital is itemised as a deposit at a Bahraini retail bank, and a Category 2 firm places its professional indemnity policy or escrow deposit within 6 months of the licence.
A central-bank regulator, a 60-day clock in statute and no tax on a stand-alone broker's 2026 profits.
Bahrain puts brokers under its central bank, prices the annual licence on costs rather than revenue and, in 2026, leaves a stand-alone broker's profits untaxed.
The CBB, successor to the Bahrain Monetary Agency, licenses banks, insurers, investment firms and capital market licensees under its Rulebook, Volumes 1-7 and a Common Volume. It counted 49 investment business firms in December 2022, and a bank licensed under Volume 1 or 2 needs no separate investment firm licence (AU-1.1.4, AU-1.1.5).The CBB licenses the whole sector.
Arts. 44-47 of the CBB Law set a single-stage process and a decision within 60 calendar days of a complete application. Under its guide the CBB has 30 calendar days from receipt to ask for more information, and a refusal leaves at least 30 days to appeal (AU-5.1.12J, Art. 46).Set by Arts. 44-47 of the CBB Law.
The CBB's application fee is BD 100 (AU-6.1.1). The annual fee is 0.25% of relevant operating expenses, with a floor of BD 6,000 and a cap of BD 24,000 for Category 1, and BD 4,000-12,000 for Category 2 (AU-6.2.3-6.2.5).0.25% of costs, BD 6,000-24,000.
Bahrain's Income Tax Law of 1979 taxes only oil companies, so a stand-alone FX or CFD broker owes no corporate income tax on its 2026 profits.For a stand-alone broker in 2026.
Nobody may market financial services in Bahrain without a CBB licence, an exemption by Directive or the CBB's express written permission (AU-1.1.1(c)), with penalties under Arts. 129 and 161 of the CBB Law.Unlicensed marketing needs CBB permission.
Since January 2024 investment firms must not deal in crypto-assets as principal (AU-1.1.22D). If crypto CFDs are on the product list, we put that question to the CBB before the file goes in.No crypto dealing as principal.
How Bahrain differs from other routes.
A market maker needs BD 1,000,000 of capital in Bahrain, US$2 million for DFSA Category 2 in Dubai and €750,000 for a CySEC investment firm dealing on own account. Mauritius licenses a full-service dealer on MUR 1,000,000, and we plan 4-8 months there against 6-9 months for Bahrain. In Bahrain the controller rule of AU-2.3.2 comes on top of the capital.
| Feature | Bahrain | Other jurisdictions |
|---|---|---|
| Market-maker capital | BD 1,000,000 · CBB Category 1 | US$2 million DFSA Cat 2 · €750,000 CySEC |
| Agency broker capital | BD 250,000 · Category 2 | US$500,000 DFSA Cat 3A · €150,000 CySEC |
| Retail leverage | No cap in Volume 4 · terms per licence | 30:1 to 2:1 by class in Cyprus |
| Realistic timeline | 6-9 months · CBB average 3-6 | 8-14 months Cyprus and DIFC 3A · 4-8 Mauritius |
| Country | License type | Taxation | Requirements |
|---|---|---|---|
Bahrain | CBB Category 1 investment firm | No CIT if stand-alone · 2027 draft announced | BD 1M capital, regulated controller |
UAE · DIFC | DFSA Cat 3A/2 | 9% · 0% qualifying | US$500k-2M, common law |
Cyprus | CySEC CIF | 15% CIT (2026) | €75k-€750k, ESMA retail rules |
Mauritius | FSC Investment Dealer | 15% · 3% effective | MUR 1M, 2 officers if domestic |
Bahrain
UAE · DIFC
Cyprus
MauritiusForex licences in neighbouring jurisdictions
All 79 forex licence jurisdictions →
How to start a forex brokerage: license, capital and steps →
Forex license requirements in Bahrain: what the CBB checks.Bahrain forex license requirements.
The CBB's licensing conditions are set out in AU-2 and its document list in AU-5.1.5. Files are accepted in Arabic or English only (AU-5.1.9), and a law firm may file on the applicant's behalf while the applicant stays responsible (AU-5.1.3).
Reflects the CBB Law 2006 and CBB Rulebook Volume 4 (Module AU as amended May 2026, Module CA April 2023, Module BC October 2020) with the CBB's licensing guide, as of October 2026.CBB Law 2006, Volume 4 and the CBB guide, as of October 2026.
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawCentral Bank of Bahrain and Financial Institutions Law 2006, Article 40 - CBB Rulebookcbben.thomsonreuters.com
- RegulatorCBB - Licensing & Registration (Guide to the CBB's Licensing Process)cbb.gov.bh
- RegulatorCBB Rulebook Volume 4 - Module AU, AU-2 Licensing Conditionscbben.thomsonreuters.com
- RegulatorCBB Rulebook Volume 4 - Module CA, Capital Adequacycbben.thomsonreuters.com
- GuidanceCBB Rulebook Volume 4 - Module BC, Business Conductcbben.thomsonreuters.com
From the pre-application meeting to the CBB licence.
Requested in writing with a short summary of the business; the CBB's Licensing Directorate normally expects at least one such meeting (AU-5.1.12E, F).Meeting requested in writing.
An unsigned draft with the controllers, directors, business plan, close links, supervisor letters and accounts goes to the CBB for its first review.Controllers, directors, business plan.
The CBB confirms in principle and lists the documents still outstanding. That confirmation does not constitute a licence approval (AU-5.1.12B-D).Not yet a licence approval.
BD 1,000,000 is paid in and confirmed by the bank (AU-5.1.12K), and the signed Form 1 goes in with the BD 100 fee. The 60 days run from completeness.BD 1M paid in; BD 100 fee.
The licence is published in the Official Gazette and in two local newspapers at the firm's cost (AU-5.6.1). Commercial registration follows, never before final approval (AU-5.1.12D).Gazette notice, then registration.
The 60 calendar days start only once every AU-5.1.5 item and each clarification the CBB asked for is in (AU-5.1.12). From the pre-application meeting to the published licence we plan for 6-9 months.
Run from our Manama office.

The BSC and its regulated controller planned together, with the controller's three years of audited accounts and its lead supervisor's non-objection letter ready for the file.Planned together from day one.
The pre-application summary, the draft Form 1, Forms 2 and 3 and the business plan with its independent risk assessment, drafted by us and taken through to the CBB's in-principle confirmation.Drafted to in-principle confirmation.
BD 1,000,000 paid in at a retail bank licensed in the Kingdom, kept unencumbered, and the bank's confirmation filed before the CBB's final approval.BD 1M at a Bahraini bank.
Premises, commercial registration in Arabic and English, the auditor's acceptance and the continuity plan delivered within 6 months of the licence (AU-5.1.13), with operations started inside the same 6 months (AU-5.1.14).Premises, registration, auditor, start.






Taxation of forex brokers in Bahrain.
Bahrain taxes the profits of oil companies and of very large groups, and a stand-alone broker is neither; the open question is the profits tax announced for 2027.
The Bahrain Income Tax Law, Amiri Decree No. 22/1979, taxes at 46% only companies exploring for, producing or refining crude oil and other hydrocarbons in Bahrain (Art. 2). An FX or CFD broker falls outside it.Oil companies only, 1979 law.
Decree-Law No. (11) of 2024 has applied a domestic minimum top-up tax since 1 January 2025 to multinational groups with global revenue of EUR 750 million or more, so that their Bahrain profits bear at least 15%.Groups with EUR 750m revenue.
The National Bureau for Revenue announced a draft profits tax for 2027; we check its status before modelling. Business plans that run past 2026 carry it as an open line in the meantime.Status checked before modelling.
The annual licence fee is 0.25% of relevant operating expenses in the latest audited accounts, after training costs, charitable donations, CBB fees and non-executive directors' pay are deducted (AU-6.2.6, AU-6.2.7). For Category 1 the floor is BD 6,000 and the cap BD 24,000.0.25% of operating expenses.
Each year's fee falls due on 1 December of the year before (AU-6.2.1), Form ALF goes in by 15 October (AU-6.2.10), and nothing is refunded if the licence is cancelled (AU-6.2.13). The first year's fee is payable when the licence is issued; AU-6.2.11 sets it at the floor amount, and the CBB's licensing guide pro-rates that floor for the rest of the year, which we confirm with the CBB.Due 1 December, no refunds.
Books must be available for inspection within the Kingdom of Bahrain and follow IAS (AU-2.8.1), and the CBB approves the external auditor in advance (AU-2.7.1).IAS books in Bahrain, approved auditor.
*As of 2026 per the Bahrain Income Tax Law (Amiri Decree No. 22/1979), Decree-Law No. (11) of 2024 and CBB Rulebook Volume 4, chapter AU-6. Group and founder-level outcomes are modelled per structure.
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Builds the application itself: Bahraini shareholding company (BSC), AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed broker.
Active across our channels.
Get your forex license in Bahrain with expert support.
Full-service assistance - from the BSC and its regulated controller to the CBB file, the capital deposit and the first six months after the licence - run through our Manama office.
Get a consultation →Is Bahrain the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
What brokers ask before applying to the CBB.
What licence does a forex broker need in Bahrain?+
A CBB Category 1 investment firm licence, if the broker makes markets: it is the only category that may deal in financial instruments as principal. Bahrain has no separate forex or CFD licence, and a broker that only executes client orders as agent can hold Category 2 at BD 250,000.
Can founders own a Bahraini market maker on their own?+
No. Under AU-2.3.2 at least one controller of a Category 1 or Category 2 firm must be a reputable, financially sound financial institution operating within a regulated jurisdiction. Founders without such an institution among their shareholders cannot hold the market-maker licence; a regulated firm already in the group can be that controller if the CBB accepts it.
How long does a forex license in Bahrain take?+
The CBB must decide within 60 calendar days of a complete application (Arts. 44-47 of the CBB Law), and its guide puts the whole process at 3-6 months on average. The pre-application meeting, the draft Form 1 and the capital deposit come first, so we plan for 6-9 months.
What does a forex license in Bahrain cost?+
The CBB charges BD 100 to apply and, each year, 0.25% of relevant operating expenses, with a floor of BD 6,000 and a cap of BD 24,000 for Category 1. Minimum capital is BD 1,000,000, paid in at a Bahraini retail bank. Our fees, staff and premises costs are confirmed in the quote.
Does Bahrain cap leverage for retail clients?+
Not in CBB Rulebook Volume 4, which sets no leverage cap and no negative balance protection rule. What applies instead: conditions the CBB may write into each licence (AU-2.8.6, AU-2.8.8), written warnings on leverage, liquidity and price volatility (BC-2.6.6), and a duty to close a retail position once a margin call has gone unmet for five business days, unless payment instructions are confirmed or the delay is beyond the client's control (BC-2.7.21).
Do forex brokers pay corporate tax in Bahrain?+
Not on 2026 profits, for a stand-alone broker: the Income Tax Law of 1979 reaches only oil companies. The National Bureau for Revenue has also announced a draft profits tax for 2027, and we confirm where it stands before a business plan models the years after 2026.
Can an introducing broker use a Category 3 licence?+
Not if a dealer pays it. A Category 3 firm may take fees or commissions only from its own client (AU-1.1.18), and an introducer paid by anyone else, without accounting for it to the client, loses the introducing exclusion (AU-1.4.22). We therefore plan a rebate-paid introducing broker as a Category 1 or 2 firm.
Does a CBB licence reach clients outside Bahrain?+
Only as far as each other country's rules allow. The licence covers services within or from the Kingdom of Bahrain (AU-1.1.1) and carries no passport; the GCC Funds Passporting Regime covers funds, not brokers. Each target market is checked against its own licensing rules before clients there are taken on.
Bahrain or Dubai for a Gulf market maker?+
Dubai, if English common law and the DIFC's own courts weigh most with your banks and counterparties: DFSA Category 2 asks US$2 million of base capital, with 9% corporate tax and 0% on qualifying income. Bahrain asks BD 1,000,000 and a regulated financial institution among the controllers, and leaves a stand-alone broker's 2026 profits untaxed.
Why Prifinance for Bahrain?+
We plan the BSC, its regulated controller and the CBB file as one programme, and take the board and senior managers through the Module FP review. The work runs from our Manama office.
What licence?+
CBB Category 1 investment firm.
Owners?+
A regulated institution among the controllers.
How long?+
60 days by law; 6-9 months planned.
Cost?+
BD 100 fee; BD 6,000-24,000 a year.
Leverage cap?+
None in Volume 4; 5-day close-out.
Corporate tax?+
None for a stand-alone broker; 2027 draft.
Category 3 IB?+
Not if a dealer pays rebates.
Other markets?+
No passport; services within or from Bahrain.
Or Dubai?+
Dubai for common law; Bahrain for tax.
Why you?+
Manama office, controller planned in.
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: whether a CBB licence fits your model and your shareholders, and what it will cost.
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Central Bank of Bahrain (CBB) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.