Blog Details
It is essential to start a broker dealer business with proper business registrations and licenses, without a proper setup, this could lead to restrictions in compliance with international laws and limit the ability of the broker dealer to receive payments. Most importantly, it impose your internal sales people and affiliates with the legitimacy of your business operation.
Retail traders of today are very well-informed, and are only willing to cooperate with credible businesses. Proper registration in a jurisdiction that support your business activity or obtaining a company complying with jurisdiction regulations via sufficient capitalization legitimizes your business operation and enhance the marketability of your business.
A legitimate broker dealer setup has a higher chance of working with credible payment providers, so they can foster smoother partnerships with financial institutions that could help them facilitate global payment acceptance, as payment providers generally adhere to very strict compliance guidelines.
For Start-up Brokers in Development: Offshore Jurisdictions
Start-up forex brokers often opt for offshore company incorporation due to its simplicity and low costs. This approach allows quick commencement of their brokerage business. Offshore setups offer flexibility for the business to operate as a broker that facilitate STP, A Book, or B Book dealing operations.
How to Register an Offshore Broker Dealer Company?
Offshore jurisdictions offer flexibility for the new broker, this enable them to operate their online brokerage operations. Establishing such a company with proper proof of legitimacy of the owners, could allow the business access to bank accounts, registered offices, and local secretarial services to manage annual reporting requirements.
Advantages of using an Offshore Company:
- Flexible requirements on annual reports to local authorities
- Manage the business from anywhere in the world
- No mandatory external audits
- Easy to manage loans, dividends, and shares without restrictions
- Perks on having income derived from out of the jurisdiction
If you’re considering entering the broker dealer business and want to explore a solution for setting up, feel free to contact us for more information.
