The first step in obtaining your forex broker license is to decide which jurisdiction is most suitable for your particular needs. Starting Business currently offers licensing solutions in the following countries:
Each of the above jurisdictions has different procedures and requirements for obtaining the license. These various standards will most likely affect the degree of difficulty and financial expense to which you will be exposed. Starting Business can advise you on a jurisdiction that best fits the scope of your prospective activities that meets your budget.
Considerations in selecting a Forex Brokerage License
When selecting a jurisdiction for a forex brokerage license, you should consider the number of important factors that are applicable in each specific brokers case, as regulatory requirements and costs of getting a brokerage license differ substantially. The following factors should be taken into consideration:
- Minimum capital requirements
- Time frame for processing the application and getting the license
- Requirements in regards to minimum personnel, availability and their qualifications
- Taxes and office running costs in a specific country
- Compliance and other regulations which may restrict your business operations
- Technical and IT requirements
- Other legal requirements which may affect your business
- Reputation of the jurisdiction where you apply for forex broker licensing
You can not obtain the ideal option for all of the above listed characteristics, but you must make a sensible value for time and money selection, while making your decision as to where to apply for a forex brokerage license.
Brief Summarisation of each Jurisdiction
- Belize: Belize has a globally recognized financial regulatory body as well as a tax-exempt status
- BVI: The BVI offers a favorable tax environment, economic stability and asset protection opportunities
- Cyprus: Forex companies are licensed by one of the best financial regulatory bodies in the world – CySEC, whilst also operating in a tax-friendly environment.
- Gibraltar: As a member of the EU, Gibraltar is an established jurisdiction that issues licenses in line with EU standards
- Hong Kong: Obtaining a Hong Kong forex license lends credibility to a forex brokerage firm, and thus the potential to attract a broad clientele
- Malta: As part of the EU, Malta has a modern infrastructure and a stable constitution, making it a highly sought after business destination
- Mauritius: Forex companies established in Mauritius can benefit from favorable tax planning opportunities
- New Zealand: The cost of acquiring a New Zealand forex license is generally low, whilst the country has a stable economy and government
- Singapore: Singapore’s corporate tax rates are extremely competitive while the country has a stable economy and political environment
- United Kingdom: The UK is a very stringent, respected, and well regulated jurisdiction for forex company formation
Please Contact Us to have a preliminary discussion on the subject of selecting a jurisdiction for your forex broker licensing.