Forex brokers are immensely popular in the market today but broker companies are not legally entitled to process traders’ transactions without holding a Forex license. Traders stay away from unlicensed brokers because their activities are deemed illegal and unsafe.

Besides, that kind of broker companies may raise red flags for regulatory authorities. Forex brokers looking to avoid getting in trouble with regulators or losing potential customers need to get a Forex license.

So how much does a Forex license cost? Which jurisdictions are perfect for getting a Forex license? This article will cover those and other Forex license-related questions.

What is the best place for obtaining a Forex license?

First and foremost, a beginning broker should select a jurisdiction for registering their business and applying for a broker license. Depending on a number of aspects, namely the Forex license price and issue term, and the jurisdiction’s reputation, all countries may be classified as follows:

A Category Countries: the USA and Switzerland. Granting access to high profile clients, Forex licenses in those countries are the most sought-after. Those jurisdictions are the most expensive and exacting. The minimum equity of a US Forex broker is $20 million. It takes 1 to 2 years to obtain the license.

B Category Countries: Great Britain and Australia. Those countries are less exigent in terms of capital and accounts. The UK’s minimum capital, for instance, is $100 thousand, and the license issue takes about 1 year, costing from $22 to $50 thousand.

С Category Countries: Cyprus, New Zealand, and Malta. D Category Countries: Belize, British Virgin Islands, Cayman Islands, and Vanuatu. C and D category countries are most popular with Forex brokers thanks to the quick and affordable Forex license issue.

Forex brokers often opt for Vanuatu. This jurisdiction has very low capital requirements – $50 thousand. And the issue process takes merely 2-3 months after all necessary documents are provided.

What does the Forex licensing process involve?

We have made a small checklist for getting a Forex license in any jurisdiction:

• Register a company;
• Prepare corporate documents;
• Pay state duties;
• Draw up a business plan, AML/KYC policies, and other documents;
• Fill out and submit an application for the Forex license to the relevant authority;
• Set up a corporate bank account;
• Connect to a merchant account to process bank payments.

The documentation requirements vary depending on the jurisdiction but the general picture is similar.

SBSB International Law Firm offers miscellaneous Forex license solutions on a turnkey basis. The Vanuatu Forex license costs $18 thousand and includes all checklist items. It is worth mentioning that Vanuatu is the optimum licensing option for a beginner Forex broker in 2020.

Getting a Forex license: extras

The extra costs include:

• Accounting services;
• Virtual or physical office;
• Salaried employees;
• Website formalities, drafting of policies such as Terms of Use, Privacy Policy and Cookies Policy (as per GDPR and payment system requirements).

SBSB lawyers are well-versed in the Forex market in various countries and are there to share their experience with you. Why choose us? We provide comprehensive legal services for Forex companies on a turnkey basis. We at SBSB will offer customized solutions, with consideration for the legislative framework, budget, residency, and other specifics. Join our Telegram chat to get a free consultation from our FinTech lawyers.