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How to register a Forex brokerage company?

register a Forex brokerage company

The Forex market has an exceptionally high daily turnover of nearly $7 trillion. At the same time, the overall trading volume is estimated in quadrillions of dollars. That’s why this industry provides excellent opportunities for new traders and investors while the number of Forex prime brokers is rapidly growing. 

In theory, a brokerage company may create an electronic wallet, think of a name, and start operating illegally. However, it’s an easy road to nowhere. Traders prefer to work with regulated and reliable companies that offer a wide variety of solutions. There is high competition in the F.X. market, so brokers need to follow all norms. 

But there is a question — how to start Forex brokerage and follow all demands?

The critical steps to creating your FX broker

The process of running the brokerage company can be roughly divided into 7 steps:

  • Analyze the current market situation and select the country with the most practical demands.
  • Create the trading services provider.
  • Obtain a license from a reliable regulatory body.
  • Buy a regular license or choose the Forex brokerage White Label to reduce your expenses.
  • Develop an Internet page, connect a first-class CRM and a trader’s dashboard.
  • Cooperate with payment providers to allow traders to deposit and withdraw money. 
  • Found a call centre for the best customer support experience.

The first three steps are tied with the Forex legislature. That is why a newcomer brokerage company should learn more about these stages of developing the broker. 

What is the best country for Forex brokerage registration?

Newer brokers have registration in different countries. Diverse jurisdictions have unique requirements to follow by business founders. The following criteria are vital for founding an FX broker:

  1. Analyze the financial terms of the chosen country to obtain the license. In most cases, you should open a corporate bank account and deposit a certain amount of registered capital. 
  2. Learn more about the set of documents you need to apply to register your brokerage business. Jurisdictions without specific regulation provide fewer demands for newer companies.
  3. Explore taxation conditions. Forex broker regulations in different jurisdictions cover various taxes so that business founders need to know more about current rates. 

Core stages of founding your FX brokerage

Newcomer traders enter the market with some basic skills and understanding of all working principles. They prefer to avoid suspicious platforms and open accounts on platforms with a reliable license, ensuring that rights will be adequately protected. For example, Japan, the United States, the UK, and some other jurisdictions are the most reliable RBs. 

How to start a Forex business there? Let’s learn more about the specific circumstances of this process: 

  1. Explore which financial authority is responsible for an FX regulation. For example, in the USA, the Securities and Exchange Commission controls following norms and requirements of the national financial market. 
  2. Analyze whether Forex operations are legal in the chosen country? Are there any obstacles? In Singapore, the Accounting and Corporate Regulatory Authority requires brokers to follow the financial laws.
  3. Register company in compliance with requirements of the regulatory body. For example, the Japanese Financial Services Agency demands to rent an office in Japan. Further, all members of the governing board must have a Japanese residence.
  4. Once the company is registered, create a corporate bank account in one of the local banks. The Malta Financial Services Authority set a minimum amount of the registered capital – €750,000.

The next level is getting a license in a trustworthy jurisdiction. Every newer trader thinks, “are Forex brokers regulated?” when creating an account on a trading platform. Brokers without a license may fall under a string of limitations and sanctions, as well as problems with payment systems. 

How to get a license for the Forex brokerage business?

Every jurisdiction has a specific set of requirements for getting an FX license. For example, Singaporean regulatory bodies provide the most convenient demands for non-residents — The local license costs from $373,000 to $3.7 mln. Moreover, brokers need to pay from $1480 to $5920 for exploiting the license. 

As for the U.S. SEC license, the total registration expenses may be up to $1 mln. Local legislation indicates 7 steps of the founding process. Further, the minimum level of equity capital is $250,000.

Therefore, regular F.X. licenses may be too expensive for newcomer brokers, and there is no guarantee that brokerage companies will get the license. 

How to start a Forex brokerage firm: favourable alternatives?

It’s complicated to register a Forex brokerage company, while it requires much time, effort and money. Further, business founders need to discuss all steps with experts who have experience in the F.X. regulation. There are two possible ways:

1. Get a ready-made Forex brokerage solution.

When you decide to start a crypto exchange or an FX business, leave it to specialists. Contact a leading company that helps to pave the path to success. Experts will help with every stage, selecting the country, trading system, and other vital aspects. As a result, business owners will get a turnkey Forex brokerage company that meets all demands of financial authorities. 

2. Exploit the White Label F.X. broker.

This way is exceptionally attractive for newer brokerage companies. It helps to avoid most pitfalls, applying to the experienced and trustworthy broker. Business owners will get access to the top-notch trading platform, liquidity provider and reliable license. Further, W.L. solutions cut off expenses. 

B2Broker is always looking for innovative solutions and provides the best FX products. Business founders can choose between getting a ready-made Forex company or leveraging the White Label solution to save money. Our specialists boost your brokerage business to the next level.