To learn more about being regulated by FINMA, please view our Switzerland Broker License services page.

Alternatively if you would like to learn more about this financial regulatory authority’s requirements, please Contact DeltaQuest.

Features of FINMA

FINMA is the financial regulatory body that supervises all financial activity within Switzerland. This includes all activity carried out by brokers, banks, insurance companies, financial services companies and stock exchanges, amongst other financial institutions in Switzerland. In addition to this, the regulatory body is also responsible for granting and issuing licenses to new financial institutions.

Founded in 2007, FINMA has a broad range of responsibilities that include supervising and monitoring all financial activity. It is also responsible for establishing the framework, standards and requirements of companies within the financial services industry, whilst protecting companies and investors within Switzerland’s financial markets.

Switzerland is a popular jurisdiction for forex company formation for a number of reasons. It has a stable, prosperous economy and features advantageous tax agreements for international investors. It is well known for its flexible business strategies, which is one the many reasons why people from across the globe choose Switzerland for the formation of their forex companies.

Nevertheless FINMA is an extremely stringent regulatory body that has strict rules and procedures for obtaining a license and operating a financial company. In order to obtain a forex license from this body, it is important to have a company formed with the specific intention of providing forex activity. In addition, company Memorandum and Articles of Association must be submitted, along with the completion of a fit and proper test by the relevant persons.

DeltaQuest can assist you with every aspect of your forex company formation. For more information, please visit our Services for Brokers page.

Anti-money laundering explained

Money laundering involves the movement of funds through criminal activity, and makes funds available for terrorist activity. In most cases, the funds are transferred from one owner to another through a series of stages, making the original source of the funds untraceable. The methods by which capital can be laundered are varied and there are therefore a number of techniques that can be adopted to reduce such activity or conceal the source of illegally obtained money.

Anti-money laundering is an activity that is predominantly carried out by financial and legal institutions in order to reduce the illegal practice of money laundering activity. It is a set of procedures, laws and regulations that are designed to prevent such practice, by implementing a number of practices within the company.

Through the use of anti-money laundering laws and activity, illicit financial activity is hindered. Financial institutions are required to complete a number of due-diligence procedures to ensure that they are not promoting or facilitating any money laundering activity.

Firms can carry out AML checks by conducting a thorough background check on both existing and potential clients. Through AML laws, they are able to identify and report any suspicious financial activity that is detected. Software can be acquired that is designed to automatically detect suspicious activity, and it is advisable that every forex company invests in the software necessary to counteract illicit transactions taking place.

It is crucial that financial institutions consistently perform anti-money laundering activity. Preventing money laundering is a major responsibility and aim of regulatory authorities worldwide. In administering your own forex company, it is fundamental that you prevent any money laundering activity through the services that you offer and the activity that you conduct.

To learn about the process of setting up a forex company, please view our Services for Brokers page.

Features of the Shanghai stock exchange

Shanghai is the commercial and financial centre of mainland China, and is one of the most affluent cities in Eastern Asia. Although the Shanghai Stock Exchange is a relatively new institution, it has already generated significant revenue from its operations. Its main purpose is to provide a variety of functions and services; it is an institution that enables investors, such as traders and stock brokers, to trade stocks, bonds, and various other securities.

The main purpose of the SSE is to facilitate, organize and monitor securities trading. In addition to this, it implements new, updated business rules where necessary, in order to uphold its professional services. The SSE also regulates who will be listed on its stock exchange, and has stringent rules in place for establishing who will be listed on this exchange.

After several years in operation, the Shanghai Stock Exchange has developed to become the fifth largest stock market in the world, having generated US$2.7 trillion in December 2010. To contrast with the Hong Kong Stock Exchange, the SSE is not entirely open to foreign investors at present. This is because of complex Chinese governmental legislation that aims to control the value of the Chinese currency (the Yuan) and to maintain tight capital account controls. In 2012, the SSE aims to further enhance its regulations and market presence by introducing new policies and enhancing its international presence.

DeltaQuest provides complete forex company formation, management and administration solutions. To learn more, please view our Services for Brokers page.

Stocks trading features

Stocks trading is often considered to be exceptionally high risk, particularly with a limited knowledge of the international markets and how this affects domestic securities. However, with the right amount of time, knowledge and understanding of these instruments, stocks trading can generate significant financial rewards.

There are countless ways to trade stocks and a great many benefits from doing so. The most fundamental benefit of this type of trading is the ease of making an income. As a well-trained trader, there is the potential to place a small amount of money into a trade and augment the value of that money within a short period of time. This is not easy to achieve however; it requires resilience, confidence and risk. In many instances, stock trading is known to carry a great deal of risk.

Nevertheless an inexperienced trader with little money to start with can trade on the markets by investing in ‘penny stocks’. There are a group of stocks that cost less than US$5 a share, and offer novice investors the opportunity to experience stock trading.

Other types of stocks available to trade are known as ‘blue chips’. These are stocks that have an established and stable performance history. They are known to show little or no indication or being unsuccessful in the future, and are very low in risk but do not have as much potential to generate a high rate of return on the market.

Provided you are trading stocks that are solid with a good history and projected outlook, you can reap many successes by trading stocks. They are appealing to traders and investors who are able to dedicate the time and effort to analyzing the international market and assess the impact it is having on national stock prices.

To learn more about being regulated by the Dubai FSA, please view our Dubai Broker License page.

Alternatively, you can Contact DeltaQuest for detailed advice and guidance in relation to the financial regulatory authority’s requirements.

The financial regulatory body FSA

The DFSA is the financial regulatory body that supervises all financial activity within Dubai. This includes the activity of brokers, banks, credit institutions, financial services companies and stock exchanges. It has a broad range of responsibilities, including creating and enforcing new policies and rules, as well as supervising and authorizing all financial activity.

In addition to the above, this regulatory body is responsible for granting and issuing licenses to new financial institutions.

If you wish to obtain a forex license from the Dubai FSA, it is necessary to first have an offshore company in Dubai that is formed with the specific intention of offering forex-related activity. This business must be based within the Dubai International Financial Centre, as the Dubai FSA specifically regulates all financial activity that is carried out within this region.

In order to obtain the license you must first make your application to the FSA, together with the necessary documentation. You must also send the memorandum and articles of association.

The DFSA has extremely stringent guidelines in place for obtaining a Dubai forex license and carrying out Dubai forex business. It is necessary that all applicants follow these guidelines in the appropriate manner in order to avoid any legal complications or errors.

The DFSA regulates a broad range of financial services, including exchange, insurance, Islamic finance, commodities futures trading and securities, amongst others.

To learn more about setting up a forex company in Malta, please view our Malta Broker License services page.

Alternatively, if you are ready to begin the process of obtaining a Malta forex license, please complete our Forex License Application form.

Obtaining a Malta broker license

Malta, officially known as the Republic of Malta, has an advanced economy and is regarded as one of the world’s strongest financial centers.  Forming a forex company in this jurisdiction offers numerous benefits, from having a license issued by a recognized and reputable regulatory body, to taking advantage of favorable tax rates.

In order to obtain a Malta broker license you will need to apply to the Malta Financial Services Authority (MFSA). This independent body was established in 2002 and eventually became the sole regulatory body for financial activity in Malta. Prior to this, three bodies dealt with the issuing of financial licenses and regulatory work in Malta. The MFSA is responsible for granting and issuing financial licenses, as well as regulating and supervising all financial services activity in Malta. This body is also responsible for carrying out regular inspections of licensed financial services businesses, to ensure that all companies are consistently operating in compliance with the MFSA’s standards.

In order to obtain a Malta FSA license it is necessary to have a company formed specifically with the intention of offering forex related activity. You will need to submit Memorandum and Articles of Association, along with a number of other documents, as well as the completion of a fit and proper test.

DeltaQuest offer advice and assistance to forex companies looking for professional IT solutions. To learn more, please Contact Us.

Forex company software and IT arrangements features

It is important when setting up a forex brokerage firm or investment firm that is has professional business software in place in order to effectively and efficiently operate. It is vital that the business is provided with state-of-the-art technology that enables it to proficiently and competently function as a forex company.

Forex company software and IT arrangements refer to the software that the company’s in-house traders trade with, the IT arrangements in place for all employees and the downloadable software and platform available to clients. It is fundamental to have the most up-to-date and professional IT solutions for all of the above purposes, in order to play an active role in the industry. The forex industry is highly competitive and there are many forex companies that offer similar services, therefore it is vital to have advanced and sophisticated software in place in order to appeal to a broad clientele.

When establishing which forex company software to acquire it is recommended to obtain the advice and assistance of a reputable consultancy firm. This will ensure that the selection and acquisition of the required software, servers and hardware configuration is accurate, and that the software is obtained from a reliable source.

The eventual company software and IT arrangement selected will significantly affect the overall operations of your company and the level of professionalism that the company emits. Having attractive and easy-to-navigate software is more likely to catch the attention of a wider audience.

To learn more about becoming a licensed and regulated broker by the Hong Kong SFC, please view our Hong Kong Forex License services page.

The Hong Kong SFC

Hong Kong is a region in China that has its own political and financial system. It is one of the world’s leading international financial centers and strives to maintain a high level of financial stability at all times. It has a major capitalist service economy that is well-known for its low taxation and free trade. For this reason, countless international investors choose to establish businesses and business relations in this region.

The Hong Kong SFC was established in 1989 and is one of the oldest securities and futures regulators in the world. It was founded in an effort to create a strong and forceful regulatory authority, with the intention of creating a body that regulated and supervised all aspects of financial activity in Hong Kong.

When setting up a forex-related business in Hong Kong, you must apply to the Hong Kong SFC in order to obtain the license. This is achieved by submitting an application, along with the necessary documentation, to this body. Once the license has been approved and obtained, you will be supervised and monitored by the Hong Kong SFC in compliance with stringent ordinance, codes, guidelines, rules and regulations.

The main purpose of the Hong Kong SFC is to plan and implement policies relating to the financial system, whilst regulating and supervising all financial services activity. The Hong Kong SFC is also responsible for investigating any financial misconduct, complaints or suspicious criminal activity. In addition, they are responsible for taking action against any market misconduct, or violation of the law.

DeltaQuest can assist you in setting up a forex company in the jurisdiction of your choice. To learn more, please view our Broker License Jurisdictions page.

Commodities trading defined

In forex trading, commodities trading involves the trading of goods that are considered to be of value. Commodities are generally produced in large amounts and can be purchased by investors for a wide range of uses. However in forex, they are traded for the sole purpose of making a return.

In the forex industry, commodities are items which generally have the same market value internationally, as there is no difference based on the quality of the commodities. An example can be found in a commodity such as copper, which always has roughly the same value across the globe, because its existence does not differ from one country to another.

Investors who choose to place trades in commodities can do so by carrying out a number of techniques, including Spot Trading and Futures Contracts. Spot Trading is something that occurs when deals are executed immediately with regards to price and delivery, or if the delivery takes place within a minimum amount of time after the trade has been confirmed. Futures Contracts is where the price of a commodity is decided immediately; however the delivery of the commodity is made after a certain period. This is a highly worthwhile technique that can generate a significant return if executed correctly.

Commodities trading is an ideal way to diversify any investment portfolio. It is becoming increasingly popular as a trading technique due to the possibility of making high returns on investment. After the 2008 financial crisis, commodities trading became incredibly popular, as investors sought the security of these resources in place of paper money.

DeltaQuest provides complete forex company formation, licensing, management and administration solutions. To learn more, please view our Services for Brokers page.

Benefits of trading frequently

There are a number of reasons why any investor should trade frequently. By trading on a regular basis, the trader will obtain a comprehensive understanding of the forex markets that will enhance their confidence during difficult trading circumstances. An enhanced knowledge, combined with additional trader confidence, will only assist in enhancing a trader’s capital.

Trading frequently increases a trader’s confidence in making both minor and major trades. This enables the fast creation of profits and thus provides for a regular and consistent income. Many forex traders believe that a combination of the above trading tactics is the most beneficial trading technique that can be adopted.

Trading frequently enables the trader to take advantage of both rises and falls in the market. For example when a currency such as the Japanese Yen drops in value, the trader can buy the currency at a cheaper price, and wait for its value to rise. Once the currency has risen in value, the trader is able to sell it at an augmented price. However it is vital to trade on a regular basis before placing trades such as these, as there are many risks involved in the placement of such trades.

Other reasons to trade frequently include the opportunity to trade on commission. Once you start to become a regular and experienced trader, you will be in a position to trade on the commission that you have earned, enabling your capital investments to grow significantly.