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The Start-Up Forex Broker

by | Jul 8, 2018 | Blog

Differences between a Regulated Forex Company and an Offshore Forex Company

Surprisingly, there are still many foreign exchange brokers whom are not properly setup and licensed, thus posing multiple restrictions when it comes to complying with laws from other countries, and when receiving payments from customers. This causes discomfort when internal sales people, agents or affiliates have to deal with clients and develop new business.

Retail traders of this era are very savvy and informative with the amount of information that could be mined off the internet. Therefore, being properly registered as a business in a jurisdiction that allow your business activity, or if you have sufficient capitalization, getting properly regulated is what you may want to consider in order to legitimize your business and make your business marketable.

With a legitimate foreign exchange company setup, this positions your company better, thus making an easier route to accept payments globally for your company, and ease off less pressure with your potential partnering financial institutions as most of these partners will have to comply with strict risk management guidelines and compliance rules.

For Start-up Brokers at Development Stage: Offshore Jurisdictions

Offshore company incorporation is one of the preferred choices for start-up Forex broker. With this offshore company incorporated, together with some added paperwork, this allows you to start operating your Forex/CFD/Crypto brokerage business in a short time, and at a very low cost. With this offshore solution, we will be able to provide you with the solution to help you open bank accounts. With this solution, you can choose to operate as a broker that offer STP, or you could operate as an A Book or B Book broker as well.

How to Register an offshore Forex Company?

Since offshore companies has minimal foreign exchange control, companies are allowed to operate as Forex brokers globally, with this company and with good resources, you may be able to register for bank accounts, have registered offices and secretaries, and your local domiciled secretaries can help solve issues such as your company’s annual reporting.

The main advantages of an offshore Forex Company:

  1. Forex firm does not need to submit annual reports to any local authority.
  2. Your firm can be managed anywhere in the world.
  3. There is no requirement for annual external audit, nor has any financial records been released.
  4. In addition to those mentioned in the articles of association, there is no restriction on loans or dividends.
  5. There is no limit on the percentage of shares or property.
  6. Income tax is exempt if you operate out of the jurisdiction
  7. No capital gains tax or corporate tax as a result

If you are looking at getting yourself in this business, and interested to understand what we can offer as solutions for your setup, please feel free to reach us. 

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