Legalization of the activities of a brokerage company is one of the most important factors in its successful development. The positive consequence of obtaining a Forex license is the absence of claims from official structures and the trust of traders. By working legally, you get the opportunity to openly advertise your services and resolve possible conflicts using legal mechanisms.
Why Do You Need a FX Broker License?
Reputation of a Reliable Forex Service Provider
If a company is not inspected by regulatory authorities, traders may have doubts regarding its integrity and compliance with all agreements. Since Forex trading is a powerful attractor not only for traders but also for scammers, a license is the best confirmation of the reliability of a broker.
Transparency of Services
Since a licensed broker reports to the state regulator, its activities are transparent and do not leave possibilities for cheating clients.
Easy Cooperation with Banks
If you need to partner with banks or other financial institutions, establishing contacts with them will be much easier.
Scaling of Services
With internationally recognized Forex licenses, you will gain legal access to a wider target audience.
Stages of Obtaining a Forex License
- You should choose the jurisdiction depending on your preferences regarding the types of clients, authorized capital, and amount of paperwork.
- Develop a detailed business plan that will allow the commission to assess your qualifications to provide financial services.
- Register a company in the chosen jurisdiction, open an account, rent an office, and fulfill all other regulatory requirements.
- Prepare your license application and collect all necessary documents. In some jurisdictions, this is the most difficult stage due to the number of documents required, while in others, regulators will ask for a minimum package of documents.
- Wait for the regulator’s decision and get a license.
To make the process of obtaining a Forex license as comfortable as possible, use the services of Fintech Harbor Consulting LTD. The most experienced specialists working in the field of jurisprudence for a long time will help you prepare all documents and avoid lengthy bureaucratic delays in the licensing process.
