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The main advantage of the Forex-market is the organization of trades at free prices without publishing information about the transactions carried out with the possibility of rates throughout the day. The main profit in such trades comes from the difference in the sale and purchase of various currencies. To be able to organize such transactions and prove their legality, traders need a license. In this article, we will consider whether it is worth obtaining this permit yourself or buying Forex License would be a more effective solution.
Our company is ready to assist you in establishing and licensing your commercial structure. We work with hundreds of jurisdictions around the world. Our experience and professionalism are confirmed by many testimonials from our grateful customers.
Pros and cons of getting a Forex-license
To date, a Forex-license is issued in many countries, but the conditions for obtaining it may differ. Depending on the country that issues the license, there may be different complexity, cost and terms for obtaining a forex license. Depending on these factors, all countries, as well as the reputation of the jurisdiction itself, all countries can be conditionally divided into several categories. If you are a beginner broker, then it will be important for you to choose the right country in which it is better to start your business, because physically you do not have to be in the same country with your company, and all operations can be carried out at a distance.
At the moment, obtaining brokerage licenses is most popular in countries such as Cyprus, Great Britain and Mauritius. If you become a license holder of one of these countries, then the level of trust from a trader to your business will increase, and it will also become much easier for you to open a bank or trading account for your broker. But obtaining such a license is an expensive pleasure and not financially available to every broker, so let’s take a closer look at more budget options for obtaining a broker’s review in other countries.
Offshore Forex-license
But if the above options are too expensive for your capital, then we can offer you more budget types of licenses. For example, the Hong Kong Forex-license (FSC). The requirement list of this jurisdiction for the license applicant and his capital are much lower, but it should also be taken into account that licenses for a lower cost have fewer advantages, as well as brokers with such licenses will have a lower level of confidence from a trader.
If you didn’t like Hong Kong when choosing a location for budget licensing, then you can also consider obtaining a Forex-license in the Seychelles (FSA). There, you will be charged no more than $200 for obtaining a license, and the annual license fee will be only $1,000.
The next, no less budget option is the Mauritius Forex-License (FSC). The minimum capital for obtaining it is just over 20,000 US dollars, and you can get a license in your hands in 4-5 months.
In addition, a Forex license in the Comoros is a great option for new companies, as well as for businesses that urgently need to legalize their work. It has quite simple and easy-to-implement requirements. Another plus is that Comoros not blacklisted by the EU, so there will no problems with international transactions. The applicant applies for a brokerage license, which provides for forex trading in currencies. Among the advantages of a brokerage license are quick registration and a minimum of bureaucracy.
The best jurisdictions for getting a Forex license
You already know about the most budget licenses, so now let’s pay attention to the most prestigious options in this area.
- Cyprus is a popular country that is respected in the field of trading and where you can get a Forex license. The conditions for obtaining a license in this country are quite strict.
You will need to register with the CySEC regulator – local regulatory authority. This is one of the most popular countries for Forex-brokers, because thanks to the country’s membership in the European Union. Brokers have the opportunity to provide their service range to all EU member states. As well as licensed in this country, you benefit from low corporate taxes, a vibrant financial sector and a skilled workforce.
It is these advantages that have made the Cyprus Investment Firm (CIF) license so popular. The cost of such pleasure varies from 40,000 to 100,000 euros. Also, the period for which you can issue it is approximately 6 months, depending on whether the reviewers have any questions for you. A license in this jurisdiction for STP through trading will cost 125,000 EUR, and Market-Maker. - Great Britain. Here, in order to obtain a license, you need to spend from 35,000 to 50,000 pounds, and your starting capital must be at least 100,000 pounds. The license approved by the FCA, this regulator trusted by a large number of customers.
Verification in this jurisdiction will be even more stringent than in the US. And most importantly, when applying for a permit in this state, you will need to be present in person. - Mauritius. Companies registered in Mauritius can apply for a license that allows you to legally work with options, securities, futures. It also a permit required by companies to trade on the Forex currency markets.
Exploring purchasing options
You can buy a forex license in such popular countries.
- Cyprus. The Cyprus Securities and Exchange Commission (CySEC) issues licensing documents, with the exception of brokerage functions.
The Cyprus license has a number of advantages: minimum documents are required for registration, prompt registration, small fees, the minimum deposit on the account, absence of currency control and double taxation, low commissions for operational purposes. A Cyprus license costs 35-40% less than in other EU countries. You can issue this permit in 6-8 months, and in Belize this period will be 3-4 months. - Belize. International Financial Commission issues documents that allow you to use the tool for offshore business. With such a license, you can engage in both brokerage and trading activities.
- Mauritius. The State of Mauritius is one of the best prospects for Forex activity. The main reasons for the popularity of this small territory are the loyal attitude of the government. Towards foreign investors, clear and stable legislation, minimum requirements for authorized capital and document flow.
- The MFSA license in Malta is also among the top options for brokers. It will provide a solid regulatory framework and participation in the European Union. To obtain a license in this jurisdiction, you will need to have an initial capital and meet other special standards.
You can also purchase a Forex-license in hundreds of other jurisdictions around the world. Our specialists will provide you with comprehensive professional support at every stage of this process.
Advantages of purchasing a Forex-license
By paying a certain price, you will receive the following advantages over the independent option:
- registered company abroad;
- most companies are provided with active corporate banking account;
- consulting at all stages of paperwork;
- presence of registered sections of the memorandum of association “Policy of the company” and “Procedures”.
- full assistance in filing an application with the Financial Commission of Belize and the Multilateral Marketplace of Cyprus;
- assistance in negotiating until obtaining permission to conduct financial transactions in the Forex-market.
If it is necessary for you, you can additionally request the writing of a business plan with the introduction of an individual business schedule. Also, state fees and notarization of documents, the search for personnel and premises for the conduct of activities.
Our specialists are always ready to help you with obtaining and issuing licenses. We also offer you mediation in obtaining permits for financial transactions in any country worldwide.
The author of this article is Denys Chernyshov – CEO and founder of the world-famous law firm Eternity Law International.