If you’re new to the forex industry and are interested in starting your very own forex brokerage, one of the foremost considerations you will encounter is forex licencing and the process of applying for and obtaining a forex licence. The forex industry, particularly from the broker’s perspective, is challenging yet exciting at the same time. For brokers however, it is particularly challenging as legal and regulatory burdens typically fall upon the shoulders of the brokerage.

Let’s make this crystal clear at the onset: there is no easy or “magical” process to becoming a licenced brokerage. There will be plenty of tedious paperwork and multiple meetings with regulators. There will be application fees and licencing fees. However, these difficulties are miniscule compared to the return on investment. Possessing a forex licence will have an immeasurable positive impact on the operational and financial success of your forex brokerage.

The A-Z of Forex Licencing

As you start to build your forex brokerage, you need to decide on a country or territory in which you will incorporate your business. The physical location of your offices does not need to be the same as the location in which the brokerage is incorporated. It is important to note, however, that the location of incorporation will affect the licencing process.

Although every country has its own legal framework and regulatory agency, the most popular jurisdictions in which forex brokerages are regulated are usually in countries with world-leading economies such as Hong Kong, the United Kingdom and Australia. Possessing a licence issued by the regulatory agency from one of these jurisdictions, for example an SFC licence or an FCA licence, evokes a sense of trust and reliability from traders, elevates the appeal of your brokerage to them and opens the door for a wider and more lucrative client base. Furthermore, possessing a forex licence eliminates some hurdles when opening a bank account for your brokerage.

Obtaining a forex trading licence in these jurisdictions often involves large sums of fees and other administrative charges; as a result, licensure in these jurisdictions may not be suitable or realistic for many new forex brokerages. The following reputable, reasonably priced options have been recognised as a popular workaround.

Popular Jurisdictions

The Cyprus Securities and Exchange Commission (CySEC) is one of the leading jurisdictions for forex brokerages, due to Cyrus being a member of the European Union, allowing brokers to offer products and services to residents of all EU countries. Additionally, low corporate taxes and a thriving financial sector make it one of the best jurisdictions in which to begin your journey in the world of forex trading. The cost of a Cyprus Investment Firm (CIF) licence ranges from €40 000 ~ €100 000, and the application process takes around six months.

The Malta Financial Services Authority (MFSA) is another popular option for forex licencing and regulation. Malta has been established as a forex-friendly business environment due to reliable regulatory frameworks in addition to its European Union inclusivity. Capital needed for an MFSA licence is approximately €730 000.

Offshore Forex Licensure

Cheaper options such as a Seychelles forex licence (Financial Services Authority), with an application fee of only $200, do exist for brokers with less capital or different priorities, who can choose to incorporate their company in an offshore region. These jurisdictions usually have lower requirements on capital as well as more relaxed regulatory demands. However, jurisdictions such as these, along with the regulations and licences they provide, are less prestigious than those mentioned previously. As a result, it may be more difficult to attract certain traders with a licence from these offshore regulators.

The licensure process is a critical procedure that you will undertake when you establish your forex brokerage. This process requires significant time, resources and dedication. Many brokers with industry knowledge opt for an easier, more straightforward method through which to enter the forex industry. A reliable forex broker turnkey will handle the entire brokerage setup process, including the regulatory and licencing procedures.

The Easiest, Most Reliable Option

A forex turnkey solution is the intuitive industry insider’s “key” to getting a new forex brokerage business up and running in a short amount of time minus the significant expenses, setup and licencing complexities. It is a significantly more cost-effective and time-saving way to let your forex turnkey solution handle the groundwork instead of managing the entire process singlehandedly. You, yes you, can bypass all of these speed humps by choosing industry-proven Doo Clearing’s Forex Broker Turnkey Solution.

Doo Clearing will provide you with all the products and services you need to start your forex brokerage:

– White label MT4/MT5 implementation

– Multiple asset class liquidity

– FIX API, MT4, MT5 connectivity

– BrokerForce CRM for clients and staff back office

– PAMM/MAM, social trading investment platforms

– Landing page

– 24/7 multilingual support

– Cost-effective pricing

If getting your own licenced forex brokerage business up and running in just 3 weeks sounds like music to your ears, contact our expert support team here.

London Office

Phone: +44 2071128722

Email: [email protected]

Website: www.dooclearing.co.uk

Hong Kong Office

Phone: +852 95612013

Email:  [email protected]

Website: www.dooclearing.com