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How to Register Forex Brokerage?

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The Forex market is characterized by exceptionally high daily trading volumes of about $6.6 – 7 trillion, while the overall turnover is calculated in quadrillions. The market is still promising for newer brokers, as the number of traders steadily grows.

Theoretically, a broker may open an e-wallet, invent a name, and start offering services illegally, but this way leads a newer entrant to inevitable failure. Traders prefer a licensed trustworthy company to join, and the Forex market is fiercely competitive, offering a newer trader a wide range of solutions.

As such, the question arises once again – how to start Forex brokerage in compliance with legislative norms?

What are the mandatory steps to run your brokerage company?

The whole process includes the following stages:

  • Analyze the market and select the best jurisdiction (compare norms and requirements).
  • Found a company to ground your brokerage business on.
  • Get a license to offer brokerage services legally.
  • Purchase a trading platform or select the Forex brokerage White Label to cut your costs.
  • Develop a website, connect a high-quality CRM and trader’s room.
  • Connect payment providers to empower traders to deposit and withdraw funds easily.
  • Run a call center to provide users with high-class customer support.

Run a call center to provide users with high-class customer support.

What is the best jurisdiction for an FX broker?

Brokerage companies are registered in diverse countries, and jurisdictions have different conditions to offer for a business owner. Which criteria are the most important ones?

  • Look through financial conditions to get a license (some countries require a broker to deposit a certain sum to a bank account).
  • Understand what are the documents you need to obtain to run your brokerage company. Non-regulated jurisdictions have the simplest requirements.
  • Look through the taxation policy. Forex broker regulations impose different taxes, and a business owner needs to have a clear understanding of terms, conditions, and rates.

Key steps to register your Forex brokerage company

Contemporary FX traders have a deeper understanding of the market and face a wide range of brokers to create an account. Non-regulated jurisdictions are suspicious; this is why newcomer traders prefer to open an account on a platform that entirely protects their rights. For instance, Japan, Singapore, the United Kingdom, the USA, and some other locations are named among the most trustworthy regulations.

How to found a company there? Let’s dive into the peculiarities to disclose all the pitfalls.

  • Find out which organization is responsible for the national financial market control. For instance, in the UK FCA (Financial Conduct Authority) supervises companies that offer financial services. Look through the norms and demands adopted by the national financial regulator.
  • Understand whether Forex trading is legal in the chosen jurisdiction. Are there any pitfalls? For instance, the Japanese FSA requires every brokerage company to meet the regulatory guidelines that include a set of normative acts.
  • Run a company in correspondence with local governmental norms. For instance, Singapore offers one of the most convenient conditions for non-residents. A company’s equity capital should equal at least $1000. Furthermore, a company’s executive director should be a Singaporean resident.
  • After a company launch, open a corporate bank account in one of the local banking institutions.

Get a license for the Forex brokerage business

Conditions and expenses directly depend on the jurisdiction where a Forex broker is going to get a license.

Singapore offers clear and simple conditions for business owners. Meanwhile, the license costs from 500 000 to 5 million SG dollars (from $373 000 to $3.7 million). Furthermore, brokers may from 2 000 to 8 000 SG dollars annually for using the license.

As for the USA, legal requirements are among the strongest and include 7 stages, while the overall registration process may cost up to $1 million. Business owners need to keep a company’s capital above the level of $250 000.

This said, FX licenses are expensive enough, and there are no 100% chances your company will be licensed as a Forex broker.

How to start a Forex brokerage firm: better alternatives

As you can mention, the registration of a newer Forex broker is a complicated process that requires much effort and expenses. Furthermore, business owners need to consult with qualified advisors to avoid troubles and headaches on every step. Fortunately, they are able to pave alternative paths:

1. Get a turnkey Forex broker solution.

When you are going to get your feet wet in the FX brokerage business, rely on professionals. Apply to a successful company that offers to travel all the paths instead of you. As such, business owners are going to get a registered Forex brokerage company ready to work in compliance with the legal requirements. You may discuss every stage, selecting the preferred jurisdiction, trading platform, and other meaningful aspects.

2. Open a White Label Forex brokerage company.

Such a path is especially attractive for newcomer business owners. You avoid most hurdles, applying to a successful and reliable broker that lets a company use its trading platform, liquidity, and license. As such, expenses are essentially cut off.

B2Broker, an explorer of innovations and new ways to success, offers business owners both paths to pave: get a turnkey company or open a WL Forex broker to save funds. The high-level help of experienced professionals drives your business to new peaks.

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