What is the best place to get a Forex license: UK, Cyprus
The Forex currency market is the largest trading market in the world that with the right approach, brings a good income to the participant. Tax authorities of many countries know about it, so it is impossible to work in the shadows. To be engaged in brokerage activity, one must obtain a Forex license in the country of the company's registration (except Saint Vincent and the Grenadines).
The choice of the country for obtaining a Forex license: what you should know
When choosing the country for obtaining a Forex license you should consider not only the costs and requirements, given that every jurisdiction has its own characteristics but also the reputation of the state. The clients you are going to cooperate with and whether you are able to work legally in certain jurisdictions directly depend on it.
In addition to the reputation of the country, when choosing a jurisdiction for a brokerage company, pay attention to the following points:
- The overall costs associated with registering and obtaining a license;
- The time it takes the regulatory authorities to register the company and issue a Forex license may vary from 3 months to a year;
- Requirements for obtaining a license and its maintenance. You should pay attention to the requirements for the authorized capital, due diligence, reporting rules, and tax benefits;
- Which financial services the license provides access to (insurance, corporate bank accounts);
- Currency regulations in the selected jurisdiction. Countries with less stringent brokerage regulations provide greater flexibility and wide access to the different types of services you can offer as a forex company.
The best countries for a Forex license
The list of trusted countries includes the United Kingdom and Cyprus. Businesses registered in these countries are trusted, and the requirements are much more forgiving than in the U.S. and Japan, which are top-tier jurisdictions.
A UK forex license is highly trusted around the world. The jurisdiction is ideal for companies that plan to compete with the leading forex companies in the world.
In order to obtain a Forex license in the UK, a company must meet these requirements:
- the directors must have serious experience in finance and investments;
- the amount of paid-up capital is €125,000-750,000 and depends on the approvals to be obtained;
- presence of a physical office with local directors in the country;
- FCA takes about a year to review the application. If you are in a hurry, it makes sense to buy a ready brokerage company FCA, for which we recommend contacting our experts.
A popular jurisdiction for a Forex license is Cyprus, which is part of the EU, and therefore opens up access to the European market. Jurisdiction does not have such strict requirements as the UK and the procedure of obtaining the license (CIF) takes 6 months.
The basic requirements for a Forex license in Cyprus include the following:
- excellent business reputation of shareholders, directors, beneficiaries, employees;
- clean origin of the share capital;
- experience in brokerage activities of the director and the staff;
- well-designed and secure IT structure;
- financial plan for 5 years;
- well-established risk management procedures.
The amount of the authorized capital should not be lower than the minimum level throughout the whole activity. It can be invested in low risk assets (determined by the regulator - CySEC).
How to choose a jurisdiction for a Forex license
If you are looking for a jurisdiction to register a Forex Company in 2022, contact IT-OFFSHORE experts and we will help you.