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Regulated broker with below US$100K budget?

by | Oct 22, 2019 | Blog, Incorporation, Licence

Is setting your own business as a broker dealer your wish? Can you be a regulated broker with just below US$100K budget today? Let’s start with gaining your clients’ trust, where do you begin with for a legal and yet globally recognized business structure? In obtaining trust with your clients, it starts by being regulated and supervised by a financial authority or regulatory body of a specific country. That country also become the jurisdiction where you register your business through their local authorities and proclaim that you are legally operating your broker/dealer business under their governance, and you are subject to their supervisory laws and meet their requirements thus complying with their financial regulations. Through compliance and being supervised by a country’s regulator, customers, investors of your company, and other business partners will gain more trust, as governance is supposed to lay a third eye on your business, and through complying with operating rules and regulations with the jurisdiction’s financial services laws, it is seen that measures can be taken if your business perform any form of misconduct. All financial dealings are built on the basis of trust. 

The assumption is when a company gets watched over by regulators, the risk of misconduct greatly reduces. There will be requirements for the company to be transparent with investors and customers. Next point to bring up, it is about having an advantage over competitors, specifically those entities who have yet to attain any license. When your business is well regulated, your business gets the least resistance from other governments. Third, solve the biggest problem all brokers encounter nowadays, that is attaining bank accounts. With the status of being regulated, applying for a bank account to conduct business transactions will be less of a headache, and you have wider access to payment gateway services. When you take away the stressful part of image building, your focus can be towards on the smooth running of your hardware and services, spend more time to manage risk, reduce work load on back office, supervise on some compliance reporting work, and maximize your assets in brief. Last, continue to produce variety and diversity of products to customers. 

Seychelles Securities License: A Preferred Licensing Jurisdiction


The Republic of Seychelles, or Seychelles for short, is an archipelagic country in the Indian Ocean of eastern Africa. On June 29, 1976, Seychelles declared its independence and established the Republic of Seychelles, which is a member of the Commonwealth. Half the area is reserved for  nature reserve, and it enjoys the reputation of “tourism paradise”.

As we all know, Seychelles, like Hong Kong, is a financial center of Africa. Their main source of income depends on the financial industry and tourism industry, so they play a significant role in regulation. In Seychelles, the regulator is the FSA Financial Services Authority and the license type is Securities Dealer. The license holder can offer a variety of financial instruments (including stocks, bonds, options futures and CFD contracts) for trading.

Regulator’s right: to guide the nature and scope of the Licensee’s business, including the type of securities offered, and determine whether the licensee can hold client funds, and to require the licensee to obtain and maintain membership on a recognized overseas stock exchange. In terms of office location requirements, it is worth mentioning that there would be physical office location and permanent employees.

In terms of regulatory requirements, the minimum paid up capital to be maintained is above US$50,000 (contact us for more information). If the company is subject to any arbitration or issues causing the licensee to cease operation, the licensee must notify the FSA Financial Services authority. Companies must maintain a separate bank account for segregating clients’ money from their operating funds. One more thing to add, Seychelles is worth mentioning is because that Seychelles is a member of the Commonwealth, and it has great advantages when applying for a bank account around the region. We have helped many Seychelles companies obtain Bank account.

On accounting and audit requirements, the licensee must keep reasonable accounting records in accordance with financial reporting standards. Our secretariat and legal team can assist you in completing the application requirements. We will help you prepare and coordinate on documents, offices, employees, and apply from respective departments etc. so that you get to fulfill the requirements of the regulator. If attaining a Seychelles Securities Dealer License is what you are looking for, reach us  

So can you become a regulated broker with just below US$100K budget today?

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