Forex License in Africa in 2021
One of the main advantages of getting a Forex license in Africa in 2021 is the improvement of brokers' reputations and the possibility to advertise services. All regulators require brokers to provide quality services and insurance of funds. The license is considered to be the warranty of trustworthiness. Registration of the special permission gives the possibility to develop business in the countries, where Forex activity is subject to regulation.
Peculiarities of licensing
FSCA is the regulatory body for non-banking financial services activities in South Africa. The FSCA is considered responsible for the regulation and supervision of financial service providers.
To get a forex license in Kenya in 2021, you will need to collect a number of documents and keep in touch with FSCA at all times. A local applicant must be present. The planned activities for which you need to obtain a forex license in South Africa in 2021 will be carefully analyzed, and you need to make a quality business plan.
Each applicant is required to appoint a representative in South Africa. Each person must register with the FSCA. Representatives and key individuals in the business will need to undergo regulatory reviews. An account with a local financial institution is required to contribute initial capital. A company that has obtained a license must strictly maintain records and provide data on its activities to the FSCA.
FOREX license in Kenya is divided into three types: "Money manager", "Dealing online foreign exchange broker", and "Non-dealing online foreign exchange broker".
1 - The "Money manager" category allows the following:
- To be a financial manager of the client;
- Select and manage the investments for his\her clients;
- Develop a suitable investment strategy;
- Take a position in the market to achieve the investment objectives of the client;
- Conduct financial analysis and oversee foreign currency portfolio investments on behalf of the client.
Minimum Authorized Capital requirement is 92,000 USD.
2 - The "Non-dealing online foreign exchange broker" category allows the following:
- Open trading accounts for clients;
- Provide a trading platform;
- Provide access to market information clients can use while formulating their strategies;
- Monitor traders' positions.
Minimum Authorized Capital requirements is 270,000 USD.
3 - The "Dealing online foreign exchange broker" category allows the following:
- To work as a principal and as a market-maker.
Minimum Authorized Capital requirement is 455 000 USD
Permitted asset classes to work with are: FOREX, securities, indices, interest or other rates, currencies, futures, commodities, shares, CFD.
Main requirements for registration
In order to obtain a license, you need to collect KYC documents, which undergo a preliminary examination. After successful completion of the regulatory examinations, a branch or firm is set up. You need to open an account with a local bank and deposit capital.
Here are the personnel requirements:
- Presence of 1 individual director;
- A representative is required;
- At least two key persons;
- External auditor.
On average, it can take up to 1 year to obtain a license. A local registered office is required. The company will need to pay taxes - the corporate tax rate is 28%, capital gains tax rate is 18.6%. To obtain a brokerage permit, contact our experts at IT-OFFSHORE.
FSCA works with brokers from abroad as long as they conduct honest legitimate business without fraudulent schemes. If a company loses its license for any reason, it cannot operate in the African territory.