The forex market is becoming increasingly popular. All countries across the world revise their laws and introduce concessions for the financial market. This trend is now especially visible in CIS countries.
The demand is growing and forex is a fast and rather easy way to discourage investments and set up a thriving business. Therefore, the competition between companies is growing and the process of licensing became a soft way to regulate the market.
An insolvent, noncompetitive or illegal business does not receive a license and cannot provide its services. Business conditions are becoming transparent and shareholders can count on state support.
The type of license itself also plays a role. The more developed is the country in which you obtained the license, the greater the chance that you will have reliable partners and a large customer base.
How to choose a jurisdiction?
The most popular jurisdiction are still current or former offshore zones, f.e. Cyprus, Malta, Beliz or Seychelles. Their market has formed a long time ago, so everything is provided here for the business owners. It is worth noticing, that Cyprus and Malta are one of the best options for brokerage activity, as they identified these areas as their priorities.
We also recommend our clients to pay attention to the conditions in the UK, the USA, Australia and some European countries with a stable economy – Switzerland, Latvia or Estonia. It is easy to set up business there and you will have an opportunity to enter other European markets, which are situated near.
Before choosing an appropriate jurisdiction it is better to form a business plan and outline your main goals and plans for the next years. The experienced consultant will help you to pick options that will satisfy your basic needs – the list of possible partners, confidentiality, terms of license obtaining, state support, low taxes and so on.
It is important to analyze the political and economic situation in the country you are choosing. After all, your business should exist for more than one year. Some countries are already declaring that the development of the forex market is included in their priority plans. Some countries keep silent, which means that you should not invest money in their markets.
Also, we recommend paying attention to the banking system. The license requires the opening of the bank account and conducting all financial transactions through the local bank.
Passportization in the EU
If you plan to provide services on the EU territory, you will meet a process of passportization. What does it mean? After license obtaining in one country, you need to declare your plans to enter the other country. This rule applies to all countries-members of the European Economic Area.
Do not worry, this process is simplified. It aims to facilitate access to other markets. companies that have passed certification can freely provide their services in other countries.
The process itself is regulated by the Markets in Financial Instruments Directive.
Eternity Law international will gladly help you with forex license, and our specialists will answer all your questions. Take advantage of our many years of practical experience – save your time and your money.
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