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15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Commission's licence, including banking and payment rails.
Forex license in Guernsey: POI Law licence for dealing in derivatives.
A forex license in Guernsey is a POI Law licence for dealing in derivatives, CFDs among them, granted by the Guernsey Financial Services Commission. Net assets follow spending: £25,000 or 25% of annual expenditure, if higher. The Commission aims to decide within 28 business days of a complete application. It also expects two Guernsey-resident directors and a favourable track record. Our St Peter Port office runs the file.
27 yrs
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Licenses obtainedlicenses obtained
Updated · Reviewed by the Prifinance team
Guernsey in brief
Forex license in Guernsey: capital that follows spending, directors who live there.
The Guernsey Financial Services Commission licenses a CFD broker under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law), Order in Council No. XVIII of 2020. The Commission issues one licence type, scoped activity by activity, and summarises controlled investment business as a restricted activity carried on in connection with a controlled investment, by way of business. Controlled investments fall into Category 1, collective investment schemes, and Category 2, general securities and derivatives. The Licensees (Conduct of Business) Rules and Guidance, 2021 (CoB) say a derivative "includes a contract for differences, a future, or an option", so a CFD broker applies for Category 2 with dealing, as market maker or agent, and promotion, adding custody if it will hold client assets. Whether a rolling spot FX contract is a Category 2 investment is confirmed for the product list before filing. The licence goes only to entities, and its letter names the categories and restricted activities it allows.
Capital is a share of the firm's own costs, not a fixed sum per class. Under the Licensees (Capital Adequacy) Rules and Guidance, 2021, net assets must reach £25,000 or 25% of annual audited expenditure, whichever is greater, and a new licensee works from its first-year budget. Liquidity must cover the greater of £10,000 or 10% of that expenditure, and each derivative position is charged at 25% of carry value or four times initial margin, whichever is greater. The tests on people go further. The board needs at least two Guernsey-resident directors, the compliance officer must live in Guernsey, and the Commission's minimum criteria ask in most cases for two principal officers physically present in the Bailiwick and "a favourable track record in business equivalent to that to be conducted in Guernsey". The service standard is 28 business days from the fee and a complete application. A file whose queries sit unanswered for three months is archived.
A Commission licence under the POI Law for Category 2 dealing, CFDs included: net assets of £25,000 or 25% of annual expenditure, whichever is greater, and a 28-business-day service standard.
Two Guernsey-resident directors, a resident compliance officer and a favourable track record are expected. Dealing income falls under the 0% rate and custody income under 10%; no passport comes with the licence.
The two routes
A Category 2 licence for a Guernsey desk, or none for client-initiated business.
The licence is needed for business carried on in or from within the Bailiwick of Guernsey. A broker that wants its desk on the island takes the full Category 2 route; a broker based elsewhere whose Guernsey clients come to it first may need no Guernsey licence at all.
A Category 2 licence for a desk in Guernsey, or none for clients who come to you first.
01 - CATEGORY 2 · DEALING
The Guernsey dealing licensee
A market maker on the island holds a Category 2 licence covering dealing and promotion, plus custody if it holds client assets. Its net assets follow 25% of audited expenditure above the £25,000 floor, each derivative position is charged at 25% of carry value or four times initial margin, and client money sits in dedicated accounts at an approved bank.
A market maker on the island holds a Category 2 licence covering dealing and promotion, plus custody if it holds client assets. Its net assets follow 25% of audited expenditure above the £25,000 floor, each derivative position is charged at 25% of carry value or four times initial margin, and client money sits in dedicated accounts at an approved bank.
- ✓Category 2 · dealing, promotion, custody if needed
- ✓Net assets: £25,000 or 25% of expenditure
- ✓Liquidity: £10,000 or 10% of expenditure
- ✓PI cover: £250,000 or 3x relevant income
- ✓Two Guernsey-resident directors
- ✓Client money reconciled monthly
02 - REVERSE SOLICITATION
Client-initiated onlyGuernsey clients who approach you first
The Commission's investment FAQ says a firm without a base in the Bailiwick needs no licence for restricted activities carried out at the client's initiation. The wording covers business the client starts, and a base on the island takes a firm outside it, so we document the first approach client by client.
No base in the Bailiwick and the client approaches first: the Commission's FAQ says no licence is needed.
- ✓No base in the Bailiwick
- ✓The client makes the first approach
- ✓No Commission application or annual fee
- ✓No Guernsey capital test or resident directors
- ✓First approach documented per client
- ✓A desk on the island needs the licence
Costs and timelines are confirmed for your case before any work begins. The broker's annual fee follows audited gross turnover, so the quote prices the band the business plan points to.
Why Guernsey
Capital tied to spending, 0% on dealing, and a resident board to match.
Guernsey sizes a broker's capital to its own costs and leaves dealing income in the 0% band, and in return it wants directors and officers on the island.
✓
Capital in proportion to costs
The Capital Adequacy Rules set net assets at £25,000 or 25% of annual audited expenditure, whichever is greater, and a new licensee measures it on its first-year budget. Directors' remuneration, directly attributable commissions and depreciation stay out of the base.£25,000 or 25% of audited expenditure.
✓
28 business days, 10 on the fast track
The Commission's service standard runs from the fee and a complete application to grant or refusal: 28 business days on the standard track, 10 on the fast track where the Commission allows it. Routine applications may go in without contacting Authorisations in advance.10 on the fast track, if allowed.
✓
An annual fee banded by turnover
From 1 January 2026 the application fee is £3,200, non-refundable. A broker's annual fee then follows audited gross turnover in six bands, from £4,580 below £1.5 million to £26,000 at £18 million and above, invoiced in January and due by 31 January.£4,580 to £26,000 a year.
✓
0% on dealing income
The Revenue Service's 10% rate lists custody services, individual-client investment management and the administration of controlled investments, but not dealing, so a broker's dealing income falls under the 0% standard rate. Distributions to non-resident shareholders create no Guernsey tax charge.Custody income taxed at 10%.
✓
Client protection by contract
Guernsey's Conduct of Business Rules are silent on retail leverage, negative balance protection and margin close-out. What they require is a written agreement for retail services, signed by both parties unless the client declines in writing, charges disclosed in writing beforehand, and client money paid into a dedicated account by the next business day.Written agreements, client money rules.
✓
Warning: directors and officers on the island
Two directors must be resident in Guernsey, one if another Bailiwick firm administers the licensee, and so must the compliance officer. In most cases the Commission also wants two principal officers physically present to control the business day to day, and a favourable track record in equivalent business.Two directors, officers present, track record.
How it compares
How Guernsey differs from other routes.
Guernsey and the Cayman Islands both set capital at a fixed floor or a quarter of annual expenditure, whichever is greater: £25,000 in Guernsey, CI$100,000 for a Cayman broker-dealer. A UK firm dealing on own account holds £750,000 of own funds, a full-service Mauritian dealer MUR 1,000,000. Guernsey's licence carries no passport, and CoB 5.4.3 leaves each licensee to check that its promotion abroad complies with that country's law.
Guernsey vs other jurisdictions
| Feature |  Guernsey | Other jurisdictions |
|---|---|---|
| Capital test | £25,000 or 25% of expenditure | £750,000 UK own funds · MUR 1,000,000 Mauritius · CI$100,000 Cayman |
| Time to licence | 28 business days standard · 4-6 months planned | 4-8 months Mauritius · 6-12 Cayman · 9-15 UK |
| Retail leverage | No cap in the Conduct of Business Rules | 30:1 under PS19/18 in the UK |
| Corporate tax | 0% on dealing · 10% on custody | 25% UK · 3% effective Mauritius · none in Cayman |
Capital test
Guernsey£25,000 or 25% of expenditure
Other jurisdictions£750,000 UK own funds · MUR 1,000,000 Mauritius · CI$100,000 Cayman
Time to licence
Guernsey28 business days standard · 4-6 months planned
Other jurisdictions4-8 months Mauritius · 6-12 Cayman · 9-15 UK
Retail leverage
GuernseyNo cap in the Conduct of Business Rules
Other jurisdictions30:1 under PS19/18 in the UK
Corporate tax
Guernsey0% on dealing · 10% on custody
Other jurisdictions25% UK · 3% effective Mauritius · none in Cayman
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Guernsey | POI Law licence, Category 2 | 0% on dealing · 10% custody | £25,000 or 25% of expenditure, two resident directors |
 United Kingdom | FCA investment firm | 25% CIT · 19% small | £75k-£750k own funds, PS19/18 |
 Mauritius | FSC Investment Dealer | 15% · 3% effective | MUR 1M, 2 officers if domestic |
 Cayman Islands | CIMA SIB licence | No corporate income tax | CI$100k floor, CI$10k annual |
GuernseyLicense typePOI Law licence, Category 2
Taxation0% on dealing · 10% custody
Requirements£25,000 or 25% of expenditure, two resident directors
United KingdomLicense typeFCA investment firm
Taxation25% CIT · 19% small
Requirements£75k-£750k own funds, PS19/18
MauritiusLicense typeFSC Investment Dealer
Taxation15% · 3% effective
RequirementsMUR 1M, 2 officers if domestic
Cayman IslandsLicense typeCIMA SIB licence
TaxationNo corporate income tax
RequirementsCI$100k floor, CI$10k annual
Rest of Europe
Forex licences in neighbouring jurisdictions
All 79 forex licence jurisdictions →
How to start a forex brokerage: license, capital and steps →
Before you apply
Forex license requirements in Guernsey: what the Commission checks.Guernsey forex license requirements.
The Commission tests a new applicant against its minimum criteria, the Conduct of Business Rules and the Capital Adequacy Rules of 2021. Ten points decide whether a Category 2 dealing file is ready to go in.
01
Scope - Category 2 controlled investments with dealing and promotion, plus custody where client assets are held, and the status of rolling spot FX confirmed for the product list before filing.
02
Applicant - a company with definite and early plans to conduct controlled investment business, transparent ownership and activities that match its business plan; the POI Law does not license individuals.
03
Financial resources - net assets of at least £25,000 or 25% of annual audited expenditure, whichever is greater, measured on the first-year budget for a new licensee (Capital Adequacy Rules 2.1(1)(e) and 5.1(2)).
04
Liquidity and position risk - liquidity of the greater of £10,000 or 10% of annual audited expenditure (rule 3.1), a charge on each derivative of 25% of carry value or four times initial margin, whichever is greater, and immediate notice of a breach or one expected within a month (4.1).
05
Insurance - professional indemnity and employee fraud cover of at least three times relevant income or £250,000, whichever is greater (2A.2(3)), extended to ombudsman awards where relevant; the Channel Islands Financial Ombudsman (CIFO) can make awards of up to £150,000 that bind the firm once the complainant accepts.
06
Board - at least two Guernsey-resident directors, or one where another Bailiwick firm administers the licensee (CoB 2.1(7)), plus a chief executive (2.1(5)) and Bailiwick-based senior executives in proportion to the business (2.1(8)).
07
Principal officers - in most cases two, with executive powers and physically present in the Bailiwick, and a compliance officer resident in Guernsey who reports directly to the board (CoB 3.2).
08
Track record - suitable experience and a favourable track record in business equivalent to the Guernsey plan, with an Online Personal Questionnaire from every beneficial owner, controller, director, MLRO, MLCO and compliance officer.
09
Financial crime - a business risk assessment under chapter 3 of the Commission's Handbook on Countering Financial Crime, and compliance procedures covering money laundering, terrorist financing, market abuse and insider dealing (CoB 3.1(3)(c)).
10
Client money - held in dedicated client money accounts at an approved bank, which acknowledges that it holds them on trust and waives set-off; money is banked no later than the next business day, reconciled every month, and any shortfall is made good at once (CoB 9.2-9.5).
01
Category 2: dealing, promotion, custody if needed.
02
A company with definite plans.
03
£25,000 or 25% of expenditure.
04
Liquidity £10,000 or 10%.
05
Insurance: £250,000 or 3x income.
06
Two Guernsey-resident directors.
07
Officers present, compliance officer resident.
08
Favourable track record.
09
Financial-crime risk assessment.
10
Client money at an approved bank.
Reflects the Commission's investment pages and its Conduct of Business and Capital Adequacy Rules of 2021, as of October 2026. The scope and minimum criteria set in the POI Law itself are checked for each file before it goes in.Commission pages, CoB and Capital Adequacy Rules 2021; POI Law checked per file; October 2026.
Verify it yourself
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawLicensees (Conduct of Business) Rules and Guidance, 2021 - Guernsey Financial Services Commissiongfsc.gg
- LawLicensees (Capital Adequacy) Rules and Guidance, 2021 - Guernsey Financial Services Commissiongfsc.gg
- RegulatorGuernsey Financial Services Commission - Standard Track Licensing (investment licence applications)gfsc.gg
- RegulatorGuernsey Financial Services Commission - New Applicants (minimum criteria, mind and management)gfsc.gg
- FeesGuernsey Financial Services Commission - Investment fees from 1 January 2026gfsc.gg
How it works
From the product list to the Commission's licence letter.
01
Product list and record
Each product mapped to Category 2, rolling spot FX included, and the group's history weighed against the Commission's test of a favourable track record in equivalent business.Category 2 scope, track record weighed.
02
Company, board and officers
The Guernsey company formed and capitalised, two resident directors and a resident compliance officer appointed, and an online personal questionnaire lodged for each of them.Resident directors, questionnaires.
03
Authorisations, if the model is new
A routine dealing application goes straight in. An innovative model is discussed with the Commission's Authorisations team before anything is filed.New models discussed first.
04
Filing and the clock
The file goes in with the £3,200 fee and the 28 business days start. The clock stops while the Commission waits for answers, and queries left unanswered for three months archive the application.£3,200 paid, 28 business days run.
05
The licence letter
The Commission issues a licence letter that sets out the categories, the restricted activities and any non-standard conditions, and the first annual fee is charged pro rata.Categories, activities, conditions.
Quick facts
RegulatorGuernsey Financial Services Commission
LawPOI Law 2020
ScopeCategory 2 · dealing
Net assets£25,000 or 25% of expenditure
Liquidity£10,000 or 10% of expenditure
Application fee£3,200 (2026)
Service standard28 business days
Plan for4-6 months end to end
The 28 business days start once the fee and a complete application are in, and pause while a query is open. Most of the calendar goes on recruiting resident directors and officers before filing, and we plan for 4-6 months end to end.
On the ground in Guernsey
Run from our St Peter Port office.
Prifinance - Guernsey
St Peter Port · Guernsey
St Peter Port, Guernsey
01
The Guernsey company
A company formed for the licence, share capital received before filing with proof for the Commission, and a board with at least two directors resident in Guernsey.Capital received, two resident directors.
02
Officers on the island
Two principal officers able to run the business day to day from the Bailiwick, a compliance officer resident in Guernsey, plus the money laundering reporting and compliance officers, each lodged through an online personal questionnaire.Principal officers, compliance officer, MLRO.
03
The application pack
Business plan, financial-crime risk assessment, group and staff charts, draft client contracts, audited statements with budgeted projections, and a capital model built on the first-year budget.Plan, risk assessment, budget-based capital.
04
Once licensed
The annual fee paid by each 31 January, client money reconciled every month, immediate notice of any capital or liquidity breach, and records kept in English for at least six years.Fee by 31 January, monthly reconciliation.
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Good to know
Taxation of forex brokers in Guernsey.
Guernsey taxes companies by activity at 0%, 10% or 20%: dealing is not on the 10% list and custody is, so we model a broker's income line by line.
0% standard rate for dealing
The Revenue Service's 10% intermediate rate covers banking, fiduciary and insurance business and named investment services, and dealing as principal or agent is not among them. Dealing income therefore falls under the 0% standard rate; the treatment of each income line is confirmed per case.Not on the 10% list.
10% on custody income
Provision of custody services is on the 10% list. A broker that also holds client assets may therefore have a 10% slice, and whether holding client margin counts as custody for tax is confirmed per case.Client assets may add a slice.
Managed accounts: the C57 split
Statement of Practice C57 taxes investment management for individual clients at 10% since 1 January 2018, and management of collective investment schemes at 0%. Mixed income is split between the two rates.Individual-client management at 10%.
No tax on distributions abroad
A distribution to a non-resident beneficial member creates no Guernsey tax charge, given evidence of non-residence. Tax is deducted on distributions to Guernsey-resident members where the income was taxed below 20%.Non-resident members pay no Guernsey tax.
20% is for other sectors
The higher 20% rate applies to CICRA-regulated trading, hydrocarbon oil and gas, large retail with taxable profit over £500,000, Guernsey land and buildings and cannabis, none of them a broking activity.Other sectors, not broking.
The 2025 return and the accounts
A Guernsey company files its 2025 return by 30 November 2026, with accounts certified by a qualified accountant. Pillar Two top-up taxes concern only groups whose revenue reaches EUR 750 million.Due by 30 November 2026.
Tax summary
Dealing income0% standard rate
Custody income10%
Individual-client management10% · C57
Distributions to non-residentsNo Guernsey tax
2025 returnDue 30 November 2026
*As of 2026 per the Revenue Service company tax guidance (modified 18 August 2026) and Statement of Practice C57. Group and founder-level outcomes are modelled per structure.
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Guernsey · POI Law
Get your forex license in Guernsey with expert support.
Full-service assistance - from the Guernsey company and its resident directors to the Category 2 file, the Commission's queries and the licence letter - run through our St Peter Port office.
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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.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
What brokers ask about the Guernsey licence.
Which licence does a CFD broker need in Guernsey?+
A licence from the Guernsey Financial Services Commission under the POI Law for Category 2 controlled investments, with dealing and promotion, plus custody if client assets are held. The rules define a derivative as including a contract for differences, a future or an option; whether rolling spot FX falls in Category 2 is confirmed for the product list.
How is a Guernsey broker's capital calculated?+
As the greater of £25,000 or 25% of annual audited expenditure, held as net assets, with liquidity of the greater of £10,000 or 10% of that expenditure. A new firm works from its first-year budget, so the figure comes out of the business plan, and derivative positions add a position-risk charge.
Does the Commission need to see a track record?+
Yes. The Commission's minimum criteria look for suitable experience and a favourable track record in business equivalent to the one planned for Guernsey. Checks on owners abroad move at the pace of their home regulators, which the Commission names as a factor in how long due diligence takes.
Who has to live in Guernsey?+
At least two directors and the compliance officer must be Guernsey residents; a licensee administered by another Bailiwick firm needs one resident director. In most cases two principal officers with executive powers must also be physically present to control the day-to-day business.
How long does a forex license in Guernsey take?+
The Commission's service standard is 28 business days on the standard track from the fee and a complete application, 10 on the fast track where the Commission allows it. Queries stop the clock. Resident directors and officers have to be recruited before filing, which is why we plan for 4-6 months end to end.
What does a forex license in Guernsey cost?+
From 1 January 2026 the Commission charges £3,200 to apply and an annual broker fee banded by audited turnover, from £4,580 under £1.5 million to £26,000 at £18 million or more. On top come PI cover from £250,000 and net assets from £25,000; directors' fees and Guernsey salaries are confirmed in the quote.
Is retail leverage capped in Guernsey?+
No. Nothing in the Conduct of Business Rules limits retail leverage or requires negative balance protection, a close-out level or a CFD risk warning. Retail clients get written agreements, fees disclosed in writing, a best-execution policy that names venues, and promotions that are clear, fair and not misleading.
Does a broker licensed abroad need a Guernsey licence for Guernsey clients?+
Not where the client makes the first approach: the Commission's FAQ says a firm without a base in the Bailiwick needs no licence on a reverse-solicitation basis. A licence is needed for business carried on in or from within the Bailiwick, so a desk on the island needs one.
Guernsey or the Cayman Islands for an institutional FX desk?+
The Cayman Islands, if every client is institutional: CIMA's Registered Person regime is a lighter registration for firms dealing only with institutional and high-net-worth categories, and Cayman has no corporate income tax. Guernsey has one licence type and asks for two resident directors, but its capital floor is £25,000 against Cayman's CI$100,000, and dealing income is taxed at 0%.
Why Prifinance for Guernsey?+
We start with the product list and the expenditure budget, because together they fix the licence scope and the capital. The resident directors and officers are recruited and documented next, and our St Peter Port office prepares the Category 2 file and answers the Commission's queries.
Which licence?+
Commission licence, Category 2 dealing.
How is capital set?+
£25,000 or 25% of expenditure.
Record needed?+
Favourable, in equivalent business.
Who must be resident?+
Two directors and the compliance officer.
Timeline?+
Standard 28 business days; plan 4-6 months.
Fees?+
£3,200 to apply; £4,580-£26,000 a year.
Retail leverage?+
Uncapped; conduct rules apply instead.
Licence for Guernsey clients?+
Not if they approach you first.
Or the Cayman Islands?+
Cayman for institutional-only desks.
Why Prifinance?+
Budget and products first, St Peter Port office.
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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 Guernsey Financial Services Commission or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.