For most forex brokers who are at their growth stage in this business, enhancing their existing regulatory regime can help them to gain better reputation in the market. This means the company becomes ready to take on an increase in their compliance cost. Below are some common choices for jurisdictional Forex and CFD licenses where growth stage brokers would like to come to us for:
LABUAN (Malaysia) Money Broker License
Application period is 4-6 months (include delivery time of original documents). First of all, to start a local company (industry experience required), apply for the Money Broker license, attain approval from the financial regulator in Malaysia, operate the business in accordance with local laws. The Money Broker License only allows registered brokerage firms to exercise risk control via Straight through Process (STP) as the only risk management model. Through this license, getting a bank account is easy. This jurisdiction has good secrecy laws, details of beneficial owners, shareholders, directors are not put into public directories, and tax is low (about 3%), there is restriction on the venue where Annual General Meetings are held. This license allows the company to open multiple bank accounts in Malaysia to facilitate flow of funds.
Vanuatu Securities Dealer License
Vanuatu license is the preferred choice or most Forex firms who are in their growth stage. The application time is short (within 3 months), no high requirements in terms of capital and directors, and there are lots of preferential tax policies such as, corporate income tax, capital gains tax, heritage tax and so on. The policies on the financial industry is exceptionally good, the company within the initial 20 years of operations are exempt from capital gains tax, income Tax, stamp duty etc. The jurisdiction provides a high degree of confidentiality for beneficiaries, shareholders, directors and other management. Board meetings can be held globally without having to seek permission from the government or by other proxies. This simplifies the administration process of maintaining the company and thus reducing lots of red tape.
Seychelles Securities Dealer License
Seychelles is a preferred choice for the expanding Forex & CFD broker. Through attaining this license, you can operate a comprehensive brokerage business and be allowed to deal with almost all classes of derivatives and securities, such as forex, CFD, crypto, securities and so on. The broker can conduct the business as a market maker or as an STP broker. Seychelles as a jurisdiction is stable and welcome new potential businesses. It is a preferred jurisdiction for brokers who are interested to deal with a wide variety of asset classes. The jurisdiction laws are extensive, regulatory regime is accommodating for business owners, strong privacy ruling, stable in terms of political and social, and it is on the white list of the OECD and IMF. No restrictions on requirements.