The forex market is a lucrative industry and one of the most viable methods of making money online. Although even individual traders can make profit trading, you will make the most when you are a broker. An offshore forex license enables a company to charge fees and commissions on trading, enabling them to make a healthy profit. Here is a complete guide on the requirements before you can get a license.
It is a requirement for every trading company to have an initial deposit as well as maintain the minimum amount of capital. This will vary based on the type of license you are applying for.
Forex license application & associated costs
There are various fees charged by regulating authorities for licensing and processing. The specific amount of fees will also vary according to your jurisdiction and the kind of license being applied for. Besides, there are also legal and consultancy outsourcing that you will need to pay for.
Establishing an operational office
Some jurisdictions will require a forex broker to have a fully operational office in the country in which the license is issued. Note that the office has to be established as per the regulations stipulated by the relevant bodies.
The right documentation
Managers, directors, and shareholders of forex broking firms that are applying for a license must be identified clearly, and this is through the provision of certified copies of their ID documents. They must also provide proof of residential address. Furthermore, directors must show industry significance and professional experience. This is done via producing documentary evidence (for instance certificates or CVs). Also, the shareholders must prove their financial standing which will ensure they are of sound reputation and integrity.
Adequate software & IT systems
Nearly all trades are conducted over the internet, and this means that a broker must have software to process investment. The software must pass stringent tests to ensure fair play and that it is not prone to manipulation.
Before you plunge into forex trading as a broker, you must have a forex license. This is what will enable you to charge fees and commissions on trading and therefore make good money. The above conditions must be met before you can be issued with a license. Note that the requirements might vary from one jurisdiction to another, but the above are the bare minimums.