Forex license - How to get a Forex broker license in 2023
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Forex license

The brоkerage businеss remains stable and sustainable even during crises. There is a high demand for fоrex services on the mаrket, which mаkes it an economically promising businеss. Turn to Gofaizen & Sherle for professional support to open a Forex broker license with a turnkеy solution for the successful lаunch of a Forex cоmpany


Forex is a large finаncial mаrket with a dаily turnover of $6.6 trillion, outperforming the major stock markets. It includes over 9 million online traders. Volatility drives new entrants, with trading activity growing by 300% in 2020 alone. Consequently, according to various stаtistical studiеs, the numbers will cоntinue tо grow exponentially.

If you want to open a company in this industry, you need to get a Forex broker license. Forex License is an оfficial dоcument from the regulаtory authorities for аllowing companies (brokers) to wоrk in the fоreign exchаnge market. It guаrantees that the businеss funсtiоns to the established finаncial norms and standards. The wоrk of the broker without possеssion of the license is cоnsidered to be illegal.

Request more information about the Forex license

Each brokerage firm must оbtаin a Forex trading license to wоrk in the internatiоnal brоkerage market. This requires an application to the cоntrolling authоrity of the chоsen country. The rules for оbtaining a license mаy vаry depеnding on the laws of the sеlеcted cоuntry.

How to Start a Forex Business frоm Scratch

Starting a forex business requires thorough preparation procedures and a lot of serious decisions related to risks and obstacles. Every step affects the success of the venture. The basic decision is to decidе оn a jurisdiсtiоn where Forex is regulated according to local laws and also stay within your budget, matching the timing and tax optimization goals. A wrong choice can lead to financial losses.

First, you shоuld gеt your business registered and get a Forex broker license.

Before contacting the regulatory authorities, cоnsider the following aspects:

  1. The amount of money you are willing to invest in developing your business. Prices for the licensing process can vary significantly depending on the jurisdiсtion.
  2. Cheсk that the finanсiаl institution of your choice can meet yоur business corporate account needs.
  3. The jurisdiction where you plan to do business. It should be an entity with a sound legal infrastructure, a transparent economic warrant, and a stable local currency.
  4. Timeframe for registration that suits you. The timeframe for issuing a license can range from 2-3 weeks to 1 year, according to the state you choose.
  5. Consideration of taxation peculiarities of the jurisdiсtiоn you are considering for your business.

An important criterion for a successful business introduction is the choice of a reliable legal partner. Gofaizen & Sherle will prepare all necessary documents, consult you on the choice of jurisdiction, and accompany you through every step of оpening a Forex company.

Requirements for obtaining a Forex broker license

  • Preparation of company documentation, such as copies of the founders' passports; diplomas confirming education in finance; certificates of criminal records for the bеnеficiaries. It is necessary to notarize all documents;
  • Registration of the company as an active trading company;
  • Proof of capital stock. The amount may vary depending on the jurisdiction. For example, the requirement of Mauritius regarding the share capital is $18,000;
  • Development of a realistic business plan;
  • Development and implementation of AML/KYC procedures;
  • Open a corporate bank account;
  • Provide an utility bill to prove your address;
  • Having a physical office and commitment to appoint a board of directors and their residency may be present in some jurisdictions;
  • Apply for a Forex trading license with the appropriate regulatory organization;
  • Once licensed, cooperate with the regulator, comply with all obligations, and do not violate the local laws of the chosen jurisdiction.

Procedure for obtaining a Forex license

Depending on the selected jurisdiction, the Forex License process may differ. Regulatory authorities have unique requirements for licensing, but there are standard principles, which Gofaizen & Sherle experts have compiled into certain algorithms of action:

Step 1

Determine the jurisdiction for licensing

Forex License's basis is choosing an appropriate jurisdiction. Careful analysis is required to choose the country that matches your requirements, the intended operations, and the economic environment for your target audience.

For this step, it is important to consider all the conditions for licensing, including initial capital requirements, economic criteria of that country, licensing terms, and legislation.

To take this step, it is important to consider all the conditions for licensing, including initial capital requirements, economic criteria of the country in question, licensing time frames, and legislation.

To consider the right conditions for your business model, we recommend contacting Gofaizen & Sherle. Choosing the right jurisdiction will protect you from material losses, save time and help you achieve your goals.

Step 2

Registering your company

The stage of business registration is a very important step, which requires careful attention to detail and a thorough study of legal provisions and legislation of the jurisdiction where you are going to do business.

You will be able to start the process of registering your company at the local registry of companies, after collecting and checking all the necessary documents: articles of incorporation, powers of attorney, KYC, and others.

After successful company registration, you will receive all corporate documents, which confirm the official registration of the company and will be useful for the next steps of obtaining a Forex broker license.

Step 3

Open a company bank account

It is important to open a corporate account before applying for a Forex broker license - this is a requirement of many regulators.

Gofaizen & Sherle can help you to find a reputable bank, gather the necessary documents and open an account for the company.

Step 4

Prepare the necessary information

Assemble a complete package of documents for licensing.

Unfortunately, there is no general sample of documents that will comply with each country's regulations. However, most often there are requirements to prepare a realistic business plan, details of key employees, proof of funds, insurance, AML/CFT.

Step 5

Comply with regulations and laws

Depending on the jurisdiction, you may need to confirm a local office, hire local employees, develop and implement internal AML/KYC rules, etc.

Step 6

License Applications

Your application must contain all necessary information and documentation as per local requirements. Regulators may ask for additional information or clarifications on specific points of the application or even invite you for an interview.

Gofaizen & Sherle facilitates the process of applying for a Forex License by providing you with all the necessary instructions and guaranteeing you comprehensive information on the requirements and processes of the jurisdiction you wish to work in. We support you every step of the way to ensure that the process is completed successfully, even when working remotely.

Company registration

Registering a Forex company is a multi-step process and involves complying with several legal requirements.

Corporate laws and regulations may vary from country to country. At the same time, there are general rules. During the registration process, it is necessary to:

  • establish and sign a lease agreement for a corporate office,
  • identify shareholders and directors,
  • provide a business plan,
  • assemble the company's documentation package,
  • register authorized capital,
  • pay government fees.

Applying for a Forex Broker License

Before you start your activities as a Forex Broker in countries where a license is required, you need to apply for a license along with the necessary documentation.

During the application process, you may encounter standard requirements: payment of a license fee, submission of proof of identity and residency, submission of bank and professional references, submission of your resume, and passing a criminal background check. These requirements vary by jurisdiction and by regulatory agency.

Jurisdictions that do not require a license may have other regulations that must be followed. If this is the case, it is advisable to consult Gofaizen & Sherle for detailed information about the requirements and obligations.

After obtaining a license, the next step is to set up a payment system.

You will need to set up payment accounts and connect to payment systems through the appropriate companies. Such companies may require information about your license and company to verify your legitimacy to provide their services. You may also need additional training or support to satisfy certain rules of the payment companies.

Jurisdictions for obtaining a Forex license

When choosing which jurisdiction to apply for a Forex License, you must take into consideration things like the controls imposed by regulators, how long the licensing period will be, the cost of government fees, and the image and political stability of the country.

The most influential jurisdictions for the operation of a brokerage company are usually located in developed countries, such as the United States and the United Kingdom. Obtaining a license in these countries can strengthen a broker's position, favorably affect its reputation and increase the degree of trust from traders. However, these options will require a significant time and capital investment. As cheaper alternatives, you can consider jurisdictions such as Vanuatu, Seychelles, Mauritius, St. Vincent and the Grenadines or Comoro Islands.

Forex License in Mauritius


Mauritius is a promising jurisdiction for obtaining a Forex license, mainly because of its stable political environment and sound financial system. The local Financial Services Commission (FSC) has transparent but specific rules to regulate, which gives extra reassurance to customers.

The minimum capital requirement is $18,000, and the cost of the license ranges from $20,000 to $25,000. The period of obtaining it is about 3 months.

Forex License in Seychelles


Seychelles has become quite famous as a jurisdiction because of its fast, relatively inexpensive licensing process and loyal tax environment. The Financial Services Authority (FCA) regulates the activities of companies, providing comfortable conditions for licensing.

The minimum capital is $50,000, and the cost of the license ranges from $35,000 to $45,000. The time of obtaining it is about 2-3 months.

Forex License in SVG


In St. Vincent and the Grenadines (SVG), there are no licensing requirements for Forex brokers yet. International companies (IBC) are not regulated by the Financial Services Authority (FCA), but the regulator can warn of possible risks.

In SVG there are no requirements for registered capital and the business can be opened within 3 weeks.

Forex License in Vanuatu


Vanuatu joins the list of popular jurisdictions for Forex brokers due to its minimum capital requirements, minimal tax obligations, and quick licensing process. Forex broker license in Vanuatu does not imply work only in this sphere but provides a prospect to work as an authorized dealer in the sphere of securities and finance.

The registered capital is $50,000 and the license can be obtained within 2 to 3 months.

Forex License in Comoro Islands


Obtaining a Forex license in the Comoro Islands offers numerous advantages for financial service providers. The country provides a favorable business environment, competitive tax rates, and a simplified regulatory framework. The Central Bank of Comoros oversees financial activities, including Forex trading, ensuring compliance with regulations. Companies seeking a Forex license must demonstrate financial stability, possess adequate infrastructure and technology, adhere to AML and KYC regulations. Once granted, the license enables companies to offer Forex trading services globally. The Comoro Islands' strategic location between Africa and Asia also offers opportunities for expanding into emerging markets.

The registered capital is $50,000, and the cost of the license ranges from $35,000 to $41,000. The time of obtaining it is about 3-4 weeks.

Forex market business models

There are 3 basic business models in Forex:

Market making model (Market maker)

The Market Maker model implies that the company can process transactions for its clients, provide liquidity in the market and earn commissions. This model implies that the company itself bears all trading risks.

  • Profits are made at the expense of client losses;
  • Even during periods of low volatility, revenues remain stable;
  • The company itself is a party to the transaction;
  • The role of the intermediary is performed by the company.

Agency model

The company acts as an intermediary, taking orders from traders and sending them to liquidity providers.

  • Profit is generated from the total volume of trades, and it does not depend on the client`'s profit;
  • Profit is directly related to the trading volume;
  • All trades are automatically transferred to the bank account;
  • The company independently sets and publishes buy and sell prices on its platform.

Hybrid model

It combines the activity of an agency model and a market maker. Hybrid allows combining all mentioned aspects into one model.

Regulation of the Forex market

There is a regulator that supervises the work of brokers. It can be the local government or representatives of the independent financial commission. Its main task is to prevent the circumstances when the Forex broker does not fulfill his obligations to the traders and to give them legal protection. The regulator acts as a legal advocate for investors and clients.

The main duties of the regulator about forex brokers: checking for compliance with the rules of the license, regulating the observance of these rules, and canceling the license in case of violation of the requirements.

The regulator also reviews client appeals and conducts periodic audits of the company`'s activities to verify possible violations of the rules or compliance with license requirements.

In the regulation of the Forex market, it is important to note that the organization that issued a license to a broker in a particular jurisdiction can only support local traders and investors. For example, if a broker has been issued an FCA license (UK), the regulation only applies to UK citizens.

In some countries, the company does not have to obtain a license. In this case, the broker may formalize as a legal entity offering financial services and work globally through the Internet without additional protection and support from the regulatory authorities.

Reporting and license renewal

Forex brokers are required to submit company reports to the regulator, who also has the power to conduct unannounced financial audits.

In case of violations, non-payment of state fees, or suspension of services for more than six months, the license can be revoked.

Depending on the jurisdiction in which the company operates, it may be required to pay the state fee for the renewal of the Forex license, to pay annual fees, and to report on revenues and taxes paid at least once a year.

It is important to remember that maintaining full and transparent reporting is key to maintaining trust and compliance with the law. Reporting not only allows regulators to exercise control but also helps establish transparency and protect traders`' interests.

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Mark Gofaizen

Mark Gofaizen

Senior Partner, Consultant

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FAQ about Forex license

What types of Forex licenses are available?

Forex licenses are divided into levels. The Prime Category A (USA, Switzerland) requires capital starting from $20 million. Universal license B (UK, Australia) starts from $100,000. Category C (New Zealand, Malta, Cyprus) from $30,000. Category D (Vanuatu, Cayman, BVI) - from $25,000.

How much does it cost to obtain a Forex license?

The cost of a Forex license varies depending on the jurisdiction and type of license. Some countries like Vanuatu or Seychelles offer licenses at relatively low cost. However, in more heavily regulated countries like the United States or the United Kingdom, the cost of a license can reach several hundred thousand dollars.

How do I get a forex trading license?

Obtaining a Forex broker license requires the following steps: choose a suitable jurisdiction for licensing, register your company, open a corporate bank account, and prepare all necessary documents for licensing. Then you need to meet all requirements of the chosen regulator and apply for a license.
Forex license
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