The most affordable forex licenses: Seychelles, Labuan, Mauritius
A company that receives a Forex license in 2022 is thoroughly checked, so it can be trusted. It is necessary to choose the jurisdiction carefully, because many clients pay attention to who issued it. Each country has its own rules, pluses, minuses, and reputation.
What you need to know when choosing a jurisdiction
Before deciding in which jurisdiction to get a Forex license, pay attention to:
- the price of the license;
- how favorable the banks are to the jurisdiction;
- the time it takes to get a license;
- the jurisdiction's reputation.
Too low a price is not a good choice. The regulator does a minimum of due diligence, and the banks you will be working with pay attention to this. If the bank doesn't like the jurisdiction, it may refuse to work with the broker. You should also consider the possibility of fraud. If you make a deal with a broker who has been given a cheap license, he or she may scam you.
With these factors in mind, IT-OFFSHORE experts have compiled a list of jurisdictions that are ideal for buying a forex license.
Banks willingly cooperate with a company that gets a forex license in the Seychelles. The jurisdiction is located in the Indian Ocean in East Africa, and offers a license at a favorable price. It takes about 4 months to verify the documents.
A company that decides to get a forex license in the Seychelles will be able to:
- trade Forex or CFD securities for its own account or on behalf of clients;
- issue products with a managed account;
- accept deposits;
- create their own price and commission schemes (charge for managed account, profit share, mark-up, etc.).
To obtain a license, you must register a company in the Seychelles, the authorized capital of which is not less than $50000. The money must be on the account at the time of granting a license, and then you can withdraw it. The company must be managed by at least 2 directors who have a good professional reputation. Physical office must be in the jurisdiction.
Mauritius has recently attracted the attention of forex brokers due to the large number of traders, bankers and investors working in this field. Strict confidentiality laws are in place here, and the cost of the license is reasonable.
The regulator issues a license for such forms of work:
- asset management;
- investment and financial advisory services;
- investment operations in the Forex market.
To register a company in Mauritius, you need to hire two resident directors, as well as a local secretary, an auditor. Directors must be knowledgeable in finance, have a good reputation. The presence of a physical office - is mandatory. Registration of the company takes 2-3 months. Then you can apply for a Forex License in Mauritius, which takes 6-8 months.
Another interesting jurisdiction for a forex license is Labuan. Here there are rules that provide a safe environment for trading, and taxes are low (3% of verified income). To register a company it is enough to have one director and one shareholder. It is obligatory to rent an office.
To get a Forex license on Labuan, you must not only register a company, but also to pass a special test. It is mandatory to provide certificates confirming the solvency of the applicant. Brokers must have at least 300 thousand Malaysian ringgit on their reserves. Issuance of the license takes 3-4 months.
Where to get a Forex license
If you are looking for an affordable forex jurisdiction in 2022, contact IT-OFFSHORE experts.