15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the FSC permission, including banking and payment rails.
Forex license in Taiwan: FSC leverage transaction merchant permission.
A forex license in Taiwan is a Financial Supervisory Commission (FSC) permission to operate as a leverage transaction merchant, dealing as principal in leveraged FX and other leverage margin contracts. Only a futures dealer already licensed in Taiwan may apply, after three years of proprietary trading and with NT$1 billion of audited net worth, so a newcomer builds or buys into one first. We map that route from Taipei.
Updated · Reviewed by the Prifinance team
Forex license in Taiwan: a second permission for futures dealers, never a first one.
Taiwan treats OTC leveraged FX as futures trading. Art. 3(1)4 of the Futures Trading Act of 1997, last amended on 28 June 2023, defines the leverage margin contract: one party pays a percentage of the price, or draws on a credit line from the other, and the two settle the price difference or deliver within an agreed future period. On 28 May 2020 the FSC called foreign-currency margin trading a futures transaction, to be traded through lawful domestic firms. Art. 80 lets a leverage transaction merchant start business only with FSC permission and a licence. Under the Regulations Governing Leverage Transaction Merchants of 12 July 2012, last amended on 6 May 2025, only a futures commission merchant (FCM) running futures proprietary business may apply, adding the leverage business to its futures business (Art. 5). The Regulations offer no stand-alone licence and no agency model: the merchant deals as principal at its own premises.
An applicant must show three years of proprietary business, net worth of at least NT$1 billion in its latest CPA-audited report with no accumulated losses, adjusted net capital averaging 40% or more of required customer margin in each of the last six months, and a clean recent disciplinary record (Art. 6(1)). Once permitted, it posts a NT$10 million operating deposit (Art. 10). For a newcomer this means a futures dealer first: a company limited by shares with NT$400 million of paid-in capital under the Standards Governing the Establishment of Futures Commission Merchants (Art. 8), then three years of trading. On 24 October 2026 the Chinese National Futures Association (CNFA) listed five leverage transaction merchants, all units of Taiwanese futures firms. A foreign firm's Taiwan branch is an untested route, confirmed per case. Dealing without permission carries up to seven years' imprisonment and a fine of up to NT$3 million (Act Art. 112(5)4).
Taiwan's forex licence is an FSC permission that an FCM adds to its futures business, to deal in leverage margin contracts, FX included, as principal. The Regulations offer no stand-alone or agency licence.
Applicants need three years of proprietary trading and NT$1 billion of net worth, then post a NT$10 million deposit. A newcomer founds a futures dealer first, on NT$400 million. The CNFA listed five merchants on 24 October 2026.
A permission a futures dealer adds, and the dealer a newcomer has to found first.
One business and one kind of applicant: proprietary dealing in leverage margin contracts, by an FCM with its own futures dealing book (Regulations Art. 5). A group without such a firm in Taiwan starts a step earlier.
One permission for futures dealers, and the dealer a newcomer must found first.
The leverage permission on a futures dealer's licence
An FCM with three years of proprietary business, NT$1 billion of audited net worth and six months of adjusted net capital at 40% or more of required customer margin applies to the FSC for permission to deal in leverage margin contracts as principal (Regulations Arts. 5-6). It then has six months to post the NT$10 million operating deposit, obtain the Taipei Exchange (TPEx) opinion on its risk management and apply for the licence (Art. 8).
An FCM with three years of proprietary business, NT$1 billion of audited net worth and six months of adjusted net capital at 40% or more of required customer margin applies to the FSC for permission to deal in leverage margin contracts as principal (Regulations Arts. 5-6). It then has six months to post the NT$10 million operating deposit, obtain the Taipei Exchange (TPEx) opinion on its risk management and apply for the licence (Art. 8).
- ✓Dealing as principal - Art. 5(1)
- ✓3 years of futures proprietary business
- ✓NT$1 billion audited net worth
- ✓Adjusted net capital 40%+ for six months
- ✓NT$10 million operating deposit
- ✓CNFA membership before the first trade
Found or buy into a Taiwanese futures dealer
A group with no futures firm in Taiwan cannot file for the permission. It can found a futures dealer, with NT$400 million of paid-in capital and a NT$10 million bank deposit at filing (Establishment Standards Arts. 8, 10), and trade for three years, or take a stake in an existing futures firm, with approvals confirmed per case. A licence in Hong Kong or Singapore serves clients outside Taiwan; it gives no access to Taiwanese clients (Act Arts. 56, 105).
Found a futures dealer on NT$400 million and trade three years, or buy into one; a foreign firm's branch is confirmed per case.
- ✓Futures dealer - NT$400 million paid-in
- ✓NT$10 million bank deposit at filing
- ✓Three years of proprietary trading
- ✓A stake in a futures firm - approvals per case
- ✓Foreign firm's branch - confirmed per case
- ✓Foreign licences give no access - Art. 105
Costs and timelines are confirmed for your case before any work begins. The Establishment Standards charge a licence fee of 1/4000 of the statutory minimum paid-in capital when a futures firm is licensed or adds a business type (Art. 47); the Regulations add no fee of their own, and any annual FSC, TPEx or CNFA charges are confirmed in the quote.
Five licensees in October 2026, and criminal penalties for dealing without the permission.
Inside that small, protected market, the Regulations and the product permissions of Taiwan's Central Bank (CBC) narrow what a merchant may sell.
On 24 October 2026 the CNFA's list of lawful futures enterprises showed five leverage transaction merchants, each a unit of a Taiwanese futures firm. A merchant may start business only after it joins the CNFA (Regulations Art. 8(3)).On the CNFA list, 24 October 2026.
Running a leverage transaction merchant without permission carries up to seven years' imprisonment and a fine of up to NT$3 million (Act Art. 112(5)4), and Art. 105 bars anyone from entrusting futures trading to an unapproved firm. In May 2020 the FSC warned that illegal operators pose as financial investment companies, financial consultancies and IT companies.Up to seven years for unlicensed dealing.
Client margin runs through a segregated customer margin account at an institution the FSC designates, and money leaves it only by transfer (Regulations Art. 15). The merchant's creditors cannot attach that account (Act Art. 70).Segregated; creditors cannot attach it.
Art. 81 of the Act applies the FCM rules to the leverage business. The merchant assesses each client's capacity and refuses business beyond it (Art. 64), has a registered person deliver the risk disclosure statement before the account opens (Art. 65), and sends trade confirmations and monthly statements (Art. 68). It may not guarantee profits or run exaggerated or biased promotion (Art. 63).Suitability, risk disclosure, monthly statements.
Taiwan taxes the entire taxable income at 20% once it passes NT$120,000 (Income Tax Act Art. 5(5)). A company filing blue returns or CPA-certified returns carries losses forward for 10 years (Art. 39).Losses carried forward for 10 years.
No contract may involve the New Taiwan dollar exchange rate (Regulations Art. 13(2)). Each FX-linked business item also needs the CBC's permission before launch (CBC letter of 2 December 2016), and the CBC may revoke it if the business is not carried on for more than a year after its reported start date.No NT dollar contracts; CBC permission.
How Taiwan differs from other routes.
Hong Kong licenses leveraged FX as SFC Type 3 business on HK$30 million paid-up and HK$15 million liquid capital, Singapore asks S$1-5 million of base capital for a MAS licence, and Japan registers a Type I operator on ¥50 million with a 120% capital adequacy ratio. All three license a company set up for the purpose. Taiwan does not: its permission goes to a futures dealer with NT$1 billion of net worth and three years of proprietary trading behind it.
| Feature | Taiwan | Other jurisdictions |
|---|---|---|
| Who may apply | Licensed futures dealers · 3 years' record | A company set up for the licence |
| Capital | NT$400M paid-in dealer · NT$1B net worth to apply | HK$30M + HK$15M liquid · S$1M-5M · ¥50M |
| Timeline | New dealer: 3 years first · FSC review per case | 8-14 months HK · 6-12 Singapore, Japan |
| Corporate tax | 20% · 21% on dividends abroad | 8.25% / 16.5% HK · 17% Singapore · ~30% Japan |
| Country | License type | Taxation | Requirements |
|---|---|---|---|
Taiwan | FSC leverage transaction merchant | 20% CIT · 21% WHT to non-residents | Futures dealer, NT$1B net worth |
Hong Kong | SFC Type 3 | 8.25% / 16.5% | HK$30M paid-up + HK$15M liquid |
Singapore | MAS CMS licence | 17% · exemptions | S$1M-5M base capital |
Japan | FSA Type I FIBO | ~30% effective | ¥50M · CAR 120% · 25:1 |
Taiwan
Hong Kong
Singapore
JapanForex licences in neighbouring jurisdictions
All 90 forex licence jurisdictions →
How to start a forex brokerage: license, capital and steps →
Forex license requirements in Taiwan: what the FSC checks.Taiwan forex license requirements.
The FSC rules on the permission, TPEx gives its opinion on risk management before the licence issues, and the CNFA registers the staff. The first four points decide whether a firm may file at all.
Reflects the Futures Trading Act as amended on 28 June 2023, the Regulations as amended on 6 May 2025 and the Establishment Standards as amended on 6 January 2015, as of October 2026; an article without a prefix is one of the Regulations. Quotations from the Chinese texts are our translations.Futures Trading Act and the Regulations as amended 6 May 2025, as of October 2026.
Official sources
Regulator pages, legal texts and public registers the figures on this page are based on.
- LawRegulations Governing Leverage Transaction Merchants (as amended 6 May 2025) - Laws & Regulations Database (Chinese)law.moj.gov.tw
- LawFutures Trading Act (as amended 28 June 2023) - Laws & Regulations Database (Chinese)law.moj.gov.tw
- FeesStandards Governing the Establishment of Futures Commission Merchants (capital, deposit, licence fee) - Laws & Regulations Database (Chinese)law.moj.gov.tw
- RegulatorFSC - Press release on foreign-currency margin trading through lawful firms, 28 May 2020 (Chinese)fsc.gov.tw
- RegisterChinese National Futures Association - List of lawful futures enterprises (leverage transaction merchants L001-L005)futures.org.tw
From the futures dealer's three-year record to the first leverage trade.
We check the group against Arts. 5-6: a futures dealer that already qualifies, one that needs more time, or a newcomer that must found or buy into a dealer. A foreign firm's branch goes to the FSC as a question first.Qualifying dealer, newcomer or branch.
The futures dealer completes three years of proprietary business and reaches NT$1 billion of audited net worth with no accumulated losses. Its adjusted net capital stays at 40% or more of required customer margin for six months running.Three years, NT$1 billion, 40% for six months.
The Art. 7 file goes to the FSC with a business plan for the opening year and the next. A file left incomplete after the FSC's deadline comes back (Art. 9(1)); the FSC's review time is confirmed per case.Art. 7 file to the FSC.
The articles are amended and the change registered, the NT$10 million operating deposit is posted, and the licence application goes in with TPEx's opinion and the CNFA roster. One extension of up to six months is possible, after which the permission is revoked (Art. 8(2)).Deposit, TPEx opinion, CNFA roster.
The firm joins the CNFA as a leverage transaction merchant, a condition of starting business under Art. 8(3), and obtains the CBC permission for each FX-linked product before launch.Membership, then product permissions.
The Regulations give the merchant six months from the permission to finish the licence stage, plus one extension of up to six months; the FSC's own review time is confirmed per case. When a newcomer founds its own futures dealer, the three-year record comes first, and our plan starts there.
Run from our Taipei office.

Whether the group already owns a futures dealer that meets Art. 6, needs to found one, or should raise a stake or a foreign firm's branch with the FSC first.Qualifying dealer, new dealer, stake or branch.
A company limited by shares with NT$400 million paid in, the NT$10 million filing deposit, at least three registered staff and a Chinese translation of each foreign-language filing (Establishment Standards Arts. 3, 8-10).NT$400 million, deposit, staff, Chinese filings.
The Art. 7 permission file, the internal-control system that TPEx reviews, the CNFA staff roster and the NT$10 million operating deposit with a custodian bank.Art. 7 file, TPEx review, CNFA roster.
The CBC permission for each FX-linked product, then monthly business reports to the CBC and TPEx by the 5th of the following month (Art. 12(5)).Per-product permission, monthly reports by the 5th.






Taxation of forex brokers in Taiwan.
A leverage transaction merchant pays 20% corporate income tax in Taiwan, and dividends it sends to a foreign parent bear 21% withholding before any treaty relief.
Taxable income up to NT$120,000 is exempt. Above that, Art. 5(5) of the Income Tax Act taxes the entire taxable income at 20%, with the tax capped at half of the part above NT$120,000; the Ministry of Finance raised the rate from 17% to 20% from 2018.Above NT$120,000 of taxable income.
The Ministry of Finance cut the surtax on companies' undistributed earnings from 10% to 5% from 2018. We model the payout policy against it per structure.On undistributed earnings since 2018.
Dividends to non-resident individuals and to enterprises with their head office outside Taiwan bear 21% withholding (Withholding Rate Standards Arts. 3(1)1 and 4, as amended 30 June 2021). Dividends between Taiwanese companies are not taxable income (Income Tax Act Art. 42). Treaty relief is confirmed per structure.To non-residents, before treaty relief.
Gains and losses on derivatives trading approved by the competent authority are added to corporate income in the year of settlement, outside the suspended taxes on securities and futures trading gains (Income Tax Act Art. 24-2(2)).Taxed in the settlement year.
The futures industry pays gross business receipts tax at 2% on core-business sales and at the general rate, set by the Executive Yuan between 5% and 10%, on other sales (Business Tax Act Arts. 10, 11(1)). The sales amount of financial derivatives is exempt, but commissions and service charges are not (Art. 8(1)32).Core sales; derivative sales exempt.
An enterprise with its head office abroad pays tax on its Taiwan income through separate branch books (Income Tax Act Arts. 3(3), 41). Whether a branch may hold the leverage permission at all is a question for the FSC first.Separate books for a foreign firm.
*As of 2026 per the Income Tax Act as amended to 11 September 2026, the Withholding Rate Standards, the Value-added and Non-value-added Business Tax Act as amended on 28 May 2025 and the Ministry of Finance. Group and founder-level outcomes are modelled per structure.
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Get your forex license in Taiwan with expert support.
Full-service assistance - from the route decision and the futures dealer to the Art. 7 permission file, TPEx's opinion and the CBC filings - run through our Taipei 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.
Every route to the FSC permission runs through a futures dealer.
Can a new company get the leverage permission in Taiwan?+
No. The FSC grants it only to an FCM that already runs futures proprietary business, with three years of that business, NT$1 billion of audited net worth and no accumulated losses (Regulations Arts. 5-6). A new group first founds or buys into a futures dealer.
Is forex margin trading legal in Taiwan?+
Yes, through a licensed firm. The FSC treats foreign-currency margin trading as a futures transaction under the Futures Trading Act, to be traded through lawful domestic firms (press release of 28 May 2020). Unlicensed operators face up to seven years in prison and a fine of up to NT$3 million.
How long does a forex license in Taiwan take?+
At least three years for a newcomer that founds its own futures dealer, because the applicant needs three years of futures proprietary business before it may file (Art. 6(1)1). After the FSC's permission the licence stage must be finished within six months, extendable once by up to six months (Art. 8); the FSC's review time is confirmed per case.
What does a forex license in Taiwan cost?+
The money in Taiwan goes into the futures dealer: NT$400 million of paid-in capital to found it, NT$1 billion of audited net worth to apply, and a NT$10 million operating deposit after the permission. The licence fee of 1/4000 of the statutory minimum capital, any annual FSC, TPEx and CNFA charges and our fees are confirmed in the quote.
Can a foreign broker's Taiwan branch hold the permission?+
Untested so far: the Regulations neither include nor exclude a foreign firm's Taiwan branch, so we confirm it with the FSC per case. Opening one takes ROC recognition and FSC permission (Act Art. 56(3)), with operating capital at the domestic minimum (Establishment Standards Art. 20). All five merchants on the CNFA list of 24 October 2026 are Taiwanese companies.
Are CFDs covered by the leverage permission?+
Product by product. The Act's leverage margin contract settles a price difference within an agreed period (Art. 3(1)4), and a Securities and Futures Bureau official's article in the FSC monthly journal of 16 November 2012 reads CFDs on commodities, currencies, securities, interest rates and indices as such contracts. It is not a ruling; we confirm each CFD with the FSC.
What leverage can a Taiwanese merchant offer clients?+
Neither the Act nor the Regulations set a figure: leverage and margin terms for non-professional clients would be set in TPEx's business rules for leverage margin contract trading, so we confirm them with TPEx before quoting. The Regulations do bar a merchant from lending money to clients or brokering loans for them (Art. 22(2)12).
How is client money protected?+
By segregation at an institution the FSC designates: all client margin passes through a customer margin account, withdrawals go only by transfer (Art. 15), and the merchant's creditors cannot attach the account (Act Art. 70). The merchant may not hold clients' money, seals or passbooks itself (Art. 22(2)8).
Taiwan or Hong Kong for an Asian FX broker?+
Hong Kong, for a newcomer. The SFC licenses leveraged FX as Type 3 business for a corporation set up to hold it, on HK$30 million paid-up and HK$15 million liquid capital, and we plan 8-14 months there. Taiwan is for a group that owns or will build a Taiwanese futures dealer and wants Taiwanese clients, whom no foreign licence reaches.
Why Prifinance for Taiwan?+
In Taiwan the permission is an add-on to a futures dealer, and our Taipei office plans the two together. For a dealer that already qualifies we prepare the Art. 7 file, the internal controls TPEx reviews and the CBC filings; a group without one starts with a plan to found or buy into a dealer.
A newcomer?+
No; futures dealers only.
Legal?+
Yes, through lawful domestic firms.
How long?+
New dealer: three years first; then per case.
Cost?+
NT$400M dealer, NT$1B net worth, NT$10M deposit.
Foreign branch?+
Confirmed per case.
CFDs?+
Product by product, with the FSC.
Leverage?+
Not in the Act; confirmed with TPEx.
Client money?+
Segregated; creditors cannot attach it.
Or Hong Kong?+
Hong Kong for a newcomer.
Why you?+
Taipei office; the route checked first.
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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 your group can reach the FSC leverage permission in Taiwan, by which route, 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 Financial Supervisory Commission (FSC) or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.