The forex market today is worth trillions of dollars, and forex brokers are very popular there, but without a forex license a brokerage company has no legal right to process traders’ transactions.
The activity of brokerage companies which do not have a forex license is considered to be illegal and unsafe, and traders avoid such companies.
Each jurisdiction has a regulator, which controls the transactions in this market and licenses the brokers. A brokerage company can raise a lot of questions from these authorities. In any case, if a forex broker does not want to have problems with the regulators or wants to get new clients, it is necessary to get a forex license.
Jurisdictions to pay attention to:
The first issue for a forex broker is choosing the jurisdiction in which a novice forex broker can set up business and obtain a brokerage license at the best price and in the shortest period of time.
Considering such factors as the price, the term of obtaining a forex license and the reputation of the jurisdiction, all the countries are divided into several categories.
Jurisdictions C and D are the most popular among the forex brokers due to the fast and cheap procedure of obtaining forex licenses.
The best choice for a forex broker who starts its activities in this market is Vanuatu. The process of obtaining a Forex license takes only 2-3 months from the moment all the necessary documents are received. The minimum registered capital is 50 thousand USD.
How to get a Forex License?
We have made a short checklist for obtaining a Forex license in any jurisdiction:
Obtaining a Forex license: additional requirements
Additional costs include:
A forex license in Vanuatu is the best option for a novice forex broker in 2020.
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