The Seychelles is an offshore jurisdiction in the Indian Ocean that is home to a large number of forex brokers, including many ECN forex brokers. ECN brokers in the Seychelles and other places are popular mainly among professional traders because they offer tighter spreads than other brokers, while charging commissions on all trades instead.
In terms of regulatory oversight, the situation in the Seychelles is a bit complicated. In theory, both ECN brokers and other brokers should hold a license from the Seychelles’ Financial Services Authority (FSA), which is the government’s regulator for “non-bank financial services.” In practice, however, many brokers operate out of the Seychelles without any such license, and they seem to be doing do legally. To compensate for the lack of government regulation, some ECN brokers in the Seychelles are members of third-party dispute resolution organizations.