How to get an FX License?
There are various jurisdiction that offers forex trading license, however not all carry the same weight. Identifying the best jurisdiction will depend on your requirements such as which region you are targeting and the legal requirements.
In the below paragraph we shall delve more into the points of consideration.
1. Cost of License
Applying for a forex license is capital intensive hence examining your budget will be a key determining factor. Obtaining a license from a level A jurisdiction such as USA and Japan will bring more trust to your clients due to their strict compliance requirements and you will also benefit from lower fees as the risk associated with these restrictions are lower. However, obtaining license from these territories requires a deep pocket and may not necessarily be within the reach of a startup brokerage. Alternatively, we have seen other emerging jurisdictions offering licenses at a more competitive rate yet well regarded. Jurisdiction such as Seychelles has lower requirements and within a reasonable amount of time you could be the proud owner of a forex company. Seychelles has a very low capital capital , a minimum of 2 local directors and a physical address. More benefits from such jurisdiction flow from the competitive tax rate and the period required to be approved for a license. Other attractive jurisdiction includes Mauritius where the capital requirement is as low and a license could be acquired in a short time frame.
2. Time Frame
As underlined above the amount of time it takes to obtain a license varies from jurisdiction to another. If time is of the essence, then considering a country with a lower processing time is to be opted for. Some jurisdictions could take up to 18 months whilst others could take as little as 4 months.
Which region are you targeting?
The next consideration will be where do you plan to focus your business? It is futile to apply a license in every region in the world, hence focusing on one area as a startup brokerage is more sensible.
What does the License application process entail ?
These requirements may vary from one jurisdiction to another but this provides an indication of the basic requirements.
- Register a company
- Prepare corporate documents
- Provide identity documents
- Proof of Address
- Prepapre a business plan
- Capital requirements
- Bank reference letter
- CV and Bio of directors
- A corporate bank Account
- Submitting application form to the relevant financial authority
As noted the licensing process is an important part of a newly setup brokerage and can be time consuming if you are to go around it yourself. Hence why at Forexcs we offer you a complete solution from your setup of your brokerage technology to helping you in obtaining a forex license .Our years of experience and knowledge of various jurisdiction makes us an ideal choice for your forex acquisition license. You may contact our team on email@example.com to help you make an informed decision.