Prior to briefly describing the existing options for registering a company with forex trader license, we would like to give a few examples of questions that a future forex broker needs to get answered before making a final decision regarding the initiation of choosing offshore forex licensing.
- What geographical region will the company’s forex broker trading activities cover?
It should be noted here that, despite the positioning of most licensed forex brokers themselves as online service providers, their lack of a license to provide forex services or participate in marketing activities might result in a significant fine or cancellation of the operation.
- What is the period for launching a company?
- What is the future business model of the broker – mixed type, DD, Money Maker, STP?
- Is the existence of a license and jurisdiction important for existing and potential users of services of forex broker license?
- In which banking institution will the company open a corporate account?
- What is the total amount of liquid assets at the disposal of the new firm (in the example we are considering, liquid means cash)? In addition, what is the amount that the broker can spend on legal services?
Based on the responses that will be received, you should turn your attention to the following jurisdictions and select offshore forex broker licensing upon your request. However, keep in mind that you will have some responsibility for how fast, efficient and responsive your regulatory process will be. Regardless of the level of jurisdiction, having all documentation provided in a timely manner and properly prepared will greatly facilitate all relevant processes. Thus, the faster you respond to the regulator’s questions and try to satisfy certain requests, the faster the regulation will occur.
In the context of ensuring proper protection of citizens from fraudulent transactions, most states have decided to form private or public structures in order to regulate the Forex trading market. For the most part, such structures receive active support from the state apparatus. Some of the toughest regulators operate in Japan (FSA Japan) and the USA (CFTC, NFA). These two jurisdictions are qualified as First Type regulators.
We will be glad for finding necessary forex broker license for you together. Do not remind to contact our specialists for going ahead.
You can consider the following offshore jurisdictions for starting your Forex business and pass a licensing. In particular, pay ettention to the following hot offers:
- Hong Kong Forex Broker License;
- Offshore Banking License;
- The financial company in Hong Kong for sale.
For more information and professional advice, please contact our specialists.