Forex License Basics
Obtaining a Forex license can be a rather lengthily and complicated process. The applicant needs to compile and submit a large amount of legal documents verifying their good standing and outlining in detail their business plan.
Start-up brokers are advised to consult with a professional company to help them select the jurisdiction which best suits their needs and requirements. By consulting with a professional Forex brokers can be assured that they will obtain their license in an efficient and timely manner.
Choosing a Broker Licensing Jurisdiction
In order to become a licensed, legitimate Forex brokerage company you need to acquire a Forex license. Before doing so you should assess which jurisdiction offers the most favorable terms, regulations and conditions to companies and how this meets your company’s requirements. Prior to making any decision you should consider the following points:
Minimum Capital Requirements: How much does the jurisdiction require as the minimum capital to be deposited in order to obtain a license? The capital requirement is determine by the size of the company and the services they plan to offer.
Processing Time: How long does it take the jurisdiction’s regulatory body to issue a license?
Tax Regulations: What are the jurisdiction’s tax laws? Would their tax system benefit your company in terms of profits and capital gains?
Technical Requirements: What are the software, technical support, infrastructure and IT facilities available in the jurisdiction? You will need a forex white label and fast Internet platform to run your online Forex business efficiently.
Marketing: Will this jurisdiction meet your marketing needs? Once you have obtained the Forex license and your business is set up and running you will need to market your business and appeal to a large audience in order to generate a substantial clientele.