The allure of the forex market brokerage industry is undeniable for many investors. However, a Forex broker or securities dealer's license requirement is paramount. At Alliance Advisers Corporate Services, we guide you through the Forex license application process, informing you of all the Forex license requirements. We work with various jurisdictions and regulators and are here to assist you.
The Forex market stands as the world’s largest and most liquid financial market. Its everyday trading volume is approximately $6 trillion, making it more significant than all the leading stock exchanges.
High volatility in the global financial markets has encouraged millions of new traders to join constantly. According to estimates, trading activity may have increased by up to 350 percent in 2021, a previously unprecedented increase. It appears unlikely that all new users will cease trading soon. Somewhat, the number is expected to rise while retaining a sizable proportion of traders.
To start a forex brokerage business, you should prepare to make numerous decisions and choices. You should also be aware of challenges that may arise. Each step of this process will ultimately determine whether or not you are successful in your Forex business.
The first and most important decision is where you will base your operations. Choose a jurisdiction where Forex trading is legal and regulated and fits your budget, timeline, and tax optimization goals. If you rush and choose the wrong jurisdiction, you could end up making costly mistakes. This is not a decision to be made lightly!
Alliance will review and analyze your business case and recommend completely tailored solutions that fit your needs, whether offshore or onshore Alliance can provide you with the ultimate solutions for starting your business quickly and efficiently. We will assess your business plan, including a budget, target audience, and goals. Then we'll recommend the best option for where you should incorporate and where you should not incorporate.
The following components must be drafted and assembled to the highest professional standards in order to qualify for a forex broker license; the basic application will include the following components:
Qualified shareholders and directors
Review of KYC by Alliance compliance team
Source of invested funds
Organizational structure and key officers' backgrounds.
Operating Manual
Policy for combating Against Money Laundering and terrorist financing.
Manual for Risk Management and Compliance.
Market research
Distribution channels and market segmentation
Marketing operations Strategy.
Payment services to be provided are described in detail.
Diagram of an entire cycle Transaction
profit and loss statement
balance sheet
cash flow statement, and essential requirements and projections.
Financial requirements: budget forecasts are broken down into target and worst scenarios for the next three years.
Any additional critical assumptions and explanations
Revenue and cost projections from capital sources
Forms of application and a collection of supporting documents for all business elements
Obtaining your Forex or securities dealer license may be difficult, but it is worthwhile. Alliance Advisers can guide you through the entire process and assist you in making informed decisions. We've helped an increasing number of clients apply for and obtain Forex licenses and incorporate their Forex business. We can handle every aspect of the launch because we have over two decades of experience in the financial brokerage industry.
Everything from bank accounts to payment processors to compliance and risk management is covered.