If you intend starting commercial journey by becoming the head of a forex brokerage structure, then one of first aspects that you need paying attention to is obtaining a forex license. Presence of such a document will have a beneficial effect on financial betterment of your company, as well as a positive effect on the number of customers.
The first thing you should think about when starting working as broker is business placement. Your company activity doesn’t have to be tied to registration territory. However, very getting permission procedure also involves some difficulties, in particular, annual license fee, document obtaining cost, deadlines and demands compliance stipulated by regulation enactments, and so on.
Despite the fact that each jurisdiction develops and implements its legal basis, creating appropriate regulatory authority, most sought-after states among forex brokers, more often meeting, are those whose economic level remains in a leading place in accordance with world standards. In particular, the United Kingdom, the United States and Austria are considered to be such. Permit issued in one or another of mentioned spaces will become a guarantor of a more loyal and trusting attitude on the part of traders, making your brokerage enterprise activities more attractive to them. In addition, it has a corresponding impact on the customer base.
Among other things, having a license greatly simplifies trading or bank account opening for broker. You may want to consider lowering the fee, as a permit obtained in the above three jurisdictions is grounded by lower operational risks. Nevertheless, in order to obtain a license for forex trading in one of these states, it is necessary having quite a lot of capital, due to which such a procedure becomes unprofitable for most novice brokers. Alternative will be a more affordable choice – a good option for companies with a medium budget, promising to become incredibly wide spreading in future.
First of such methods is Cyprus CySEC regulation – one of leading spaces, which forex broker companies turn their attention to. This is due to several rather pleasant commercial factors: EU membership (the ability directly offering their services to other countries being European Union members), reduced corporate tax rate, a rapidly developing financial sphere and skilled working resources. Thus, Cyprus is one of best places among forex permitted jurisdictions. Permit obtaining process takes about six months.
Among brokers with minor capital, forex licensed entities in Hong Kong (FSC) are also popular. For many forex broker firms, such way is the most optimal, because it is less prestigious and, therefore, less complicated. This is one of the main reasons why Hong Kong attracts entry-level traders.
Seychelles can be singled out among the most budgetary and affordable offshore spaces. In addition, quite often novice forex brokers choose Mauritius for themselves, where starting net capital should be only 20 thousand dollars, and period for obtaining a forex license will take approximately 4-5 months. Among other inexpensive and simpler variants, we note Vanuatu and New Zealand, which have rather soft and loyal regulation provisions.
Thus, getting licensed permit process by a company is important aspect of establishing a new brokerage structure, which will take a lot of time to go through. This is reason for fact that most forex brokers are trying finding and choose the easiest and least financially costly way leading to forex popular jurisdictions.
A ready-made forex company is a more optimal and reasonable way to establish brokerage business in shortest possible time, while not incurring considerable financial resources related to licensing and putting firm into operation. This method is economical and efficient compared to when traders try to start the activity on their own. All these obstacles will be avoided by the opportunity to choose a ready-made B2Broker project on a turnkey basis. In addition, legal processes and licensing procedures, in particular, structure registering, bank account opening and PSP connecting, marketing strategies development, have already been completed for the finished structure.
Eternity Law International are open for assisting with getting forex activities license, so do not hesitate to contact our specialist.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.