Discount Broker
A streamlined brokerage licence for online and technology-enabled platforms focused on low-cost, high-efficiency retail and institutional order execution.
A Discount Broker licence is the most targeted of the three Investment Dealer categories, designed specifically for technology-driven, low-cost execution platforms that provide order execution services without advisory, research, or principal trading activities. The Discount Broker licence is ideally suited to online trading platforms, fintech brokerage applications, and digital securities access platforms that aim to provide investors with direct market access at competitive transaction costs. Mauritius provides an excellent regulatory home for such platforms given its strong technology infrastructure, favourable tax environment, and growing reputation as a fintech-friendly jurisdiction.
Permitted Activities
A Discount Broker may receive, transmit, and execute client orders in securities on an execution-only basis. No investment advice, research, market making, or proprietary trading is permitted. The focus is entirely on efficient, low-cost order execution for clients.
Capital Requirements
Discount Brokers are subject to the lowest minimum capital requirements among the three dealer categories, reflecting the execution-only nature and the absence of both advisory and principal risk. This makes the licence financially accessible for emerging fintech platforms.
Technology Requirements
Applicants must demonstrate robust, secure technology infrastructure capable of handling client orders, executing trades, and maintaining records in accordance with FSC requirements. Cybersecurity arrangements are subject to FSC review.
Client Onboarding
Despite the streamlined nature of the licence, Discount Brokers must implement comprehensive KYC/AML client onboarding procedures. Digital onboarding solutions are acceptable provided they meet the FSC's identity verification and AML/CFT standards.
Fee Structure
Discount Brokers typically operate on a commission-per-trade or subscription fee model, providing investors with transparent, low-cost access to securities markets. The fee structure must be clearly disclosed to clients in the client agreement.
Licensing Process
Discount Broker applications focus heavily on technology systems, cybersecurity, AML/CFT onboarding procedures, and the business model's viability. PrimeLuxe manages the complete application process including FSC liaison and documentation preparation.
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