Which forex license do I need
In order to offer forex services to your customers it is indispensable that you acquire a forex license. Once you have set up your company in the jurisdiction of your choice, you are ready to begin the forex license acquisition procedure. The license that you need is completely dependent upon the specific nature of your forex company. In addition, the procedure for obtaining the license is dependent upon the jurisdiction that you establish your forex company in, as each jurisdiction has specific procedures and regulations.
To learn more about obtaining a forex license, please view our Broker Licensing services page.
Forex licenses explained
A forex license is a compulsory business license that all forex brokerage firms must obtain in order to operate and process transactions in a legal manner. The forex license that you need is entirely dependent upon the jurisdiction that you will form your company in.
As the procedure for obtaining the license can be relatively complex and lengthy, it is recommended to gain the legal and financial advice of a professional consultancy firm, before proceeding with the acquisition procedure.
The exact license that you need will depend upon the above factors and more. If your company will trade currencies only, the license required will be issued within the specific boundaries of trading currencies. If you plan to trade futures, CFDs and other commodities, for example, then you will be provided with a broader authorization that covers the exact services that you will offer.
Each forex company features its own unique services and facilities, which is why when applying for a license, the relevant regulatory body will assess your application and issue you with the applicable license. If at any stage you wish to increase or amend your company’s services, the license must be adjusted to reflect those changes.
Since all brokerage firms are related to monetary institutions and banks, they must be licensed and regulated by the specific regulatory body of their jurisdiction. Once the license has been issued and the company is able to begin offering foreign exchange services, all activity carried out by the company will be regularly monitored.
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