COREDO > Licensing > Financial Licences in the EU > Securities Trader Licence

Securities Trader Licence

Securities Trader Licence — Official Permission to Trade Securities in the EU

A Securities Trader Licence is an official authorization to conduct trading activities in securities and operations with financial instruments throughout the European Union.

This licence empowers your company to become an investment firm and execute dealing operations, brokerage services, and portfolio management across all European Economic Area countries. Since 2016, COREDO has supported companies in obtaining it.

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Cost of the service
from EUR 25,000

What the Licence Permits

A Securities Trader Licence authorizes your company to:

Execute dealing operations

Buy and sell shares, bonds, and derivatives on your own account using your own capital

Provide brokerage services

Execute securities transactions on behalf of clients and earn commission fees

Manage portfolios and securities

Provide investment management services for client portfolios including stocks, bonds, funds, and derivatives

Offer underwriting services

Assist companies in issuing securities, place securities offerings, and guarantee issuances

Deliver investment advice

Provide independent or personalized investment recommendations for securities

Expand across EEA jurisdictions

Use the MiFID II passport mechanism to offer services throughout the EEA without separate licences

Unlike Banking Licences, a Securities Trader Licence focuses on securities and financial instruments rather than deposit-taking.

Similar to a Forex Broker Licence, it enables professional investment activities but covers a broader range of financial instruments (not just currencies).

Regulatory Framework: Licence Comparison

A Securities Trader Licence is an investment firm authorisation under MiFID II (Directive 2014/65/EU), and own funds are set by IFR (Regulation (EU) 2019/2033) and national rules. The application goes to the national financial regulator — ČNB in the Czech Republic, FSA in Estonia or the Bank of Lithuania. The table compares the capital and permitted activities with other licences.

Criteria	Securities Trader	Banking Licence	Forex Broker Licence
Minimum Capital	EUR 75,000–750,000 (IFD, Art. 9)	EUR 5,000,000	EUR 75,000–750,000 (IFD, Art. 9)
Dealing Operations	✅ Yes	✅ Yes	✅ Yes (currencies)
Accept Deposits	❌ No	✅ Yes	❌ No
Brokerage Services	✅ Yes	✅ Yes	✅ Yes
Asset Management	✅ Yes	✅ Yes	❌ No
MiFID II Passport	✅ Yes	✅ Yes	✅ Yes

Key Requirements for Securities Trader Licence

Obtain a Securities Trader Licence by meeting strict MiFID II and IFR Regulation (EU) 2019/2033 requirements:

Capital Requirements:

Minimum own funds are set by Regulation (EU) 2019/2033 (IFR) and national rules.

The initial capital depends on the investment services you are authorised for, not on the country: EUR 75,000, EUR 150,000 or EUR 750,000 under Article 9 of Directive (EU) 2019/2034 (IFD). The FAQ section explains which services fall into each level.

Competent Management:

Board members, shareholders, directors, and key staff must possess significant professional experience in financial markets and relevant financial education.

Maintain an impeccable reputation. Regulators conduct screening against sanctions lists (OFAC, EU sanctions, national lists).

Securities Trading Competence:

Demonstrate experience trading shares, bonds, derivatives, managing risk, knowledge of MiFID II, compliance with national regulatory requirements, and investor protection.

Risk Management Policies and Procedures:

Establish systems to manage credit, market, and liquidity risks. For securities trading, include open position limits, stress testing of investment portfolios, capital adequacy monitoring, and regulatory reporting.

AML/CFT Compliance:

Implement AML controls under Directive (EU) 2015/849 and, from 10 July 2027, Regulation (EU) 2024/1624 (AMLR), including KYC procedures for all clients, sanctions list screening (OFAC, EU sanctions), transaction registries, and annual audits.

Investment Policy and Marketing:

Provide detailed descriptions of trading service types, client categories (retail, professional, counterparties), commission structures, marketing methods, permitted financial instruments, and trading strategies.

IT Infrastructure and Security:

Deploy robust trading systems and settlement infrastructure, client data protection, GDPR compliance (Regulation 2016/679), and DORA compliance (Digital Operational Resilience Regulation).

Jurisdictions: Where to Obtain Securities Trader Licence

COREDO provides licensing services across Europe and Asia. The table compares the regulator, minimum capital, timeline and COREDO price in each jurisdiction:

Jurisdiction	Regulator	Minimum capital	Timeline	COREDO price	Details
Estonia (EU)	Finantsinspektsioon	EUR 75,000 / 150,000 / 750,000	decision within 2 months of a complete file, no later than 6 months after filing	from EUR 25,000 + VAT	Financial Licence in Estonia
Czech Republic (EU)	ČNB	EUR 75,000 / 150,000 / 750,000	decision within 6 months of a complete application	from EUR 85,000 + VAT	Securities Dealer Licence in the Czech Republic
Cyprus (EU)	CySEC (Cyprus Investment Firm)	EUR 75,000 / 150,000 / 750,000	9–12 months to obtain the licence	from EUR 75,000 + VAT	Financial Licence in Cyprus: CIF, EMI and PSP
Lithuania (EU)	Lietuvos bankas	EUR 75,000 / 150,000 / 750,000	decision within 6 months of a complete application	on request	Financial Licence in Lithuania
Singapore (APAC)	MAS	SGD 50,000 to SGD 5 million, by products and clients	review of a complete application up to 6 months	on request	Financial Licence in Singapore

COREDO Service Costs: The stated prices include the full licensing package (document preparation, registration, regulator communication, requirement consultation) and are exclusive of VAT. The state registration fee is paid separately.

Exact pricing depends on jurisdiction, financial instrument types, trading volume, and business model specifics. Contact our team for a detailed calculation.

How We Work: Licensing Steps

Obtain your securities trading authorization through the following stages. The timeline depends on your jurisdiction; the table above shows it for each country:

Stage 1: Document Preparation

Prepare your complete registration package: corporate documents, beneficial ownership extracts, founder financial documents, management qualifications, trading strategy and target client descriptions, IT infrastructure, risk management policies, AML/CFT procedures, and 3–5 year business plan.

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Stage 2: Submit Application

File your application with the national financial regulator (ČNB in Czech Republic, FSA in Estonia, Bank of Lithuania in Lithuania, etc.). Pay the state registration fee, which varies by jurisdiction and is not included in COREDO services.

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Stage 3: Regulatory Review

The regulator assesses management qualifications, trading strategy soundness, capital adequacy, and risk management systems. All owners and beneficial owners undergo reputation, sanctions, and criminal history screening.

Regulators may request clarifying information, additional documents, or meetings with management.

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Stage 4: Licence Issuance

Following approval, your licence is registered in the state registry of investment firms. You receive your licence number and authorization to commence securities trading.

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Securities Trading Licences Beyond the EU

While the MiFID II framework provides powerful passporting rights across the European Economic Area, many investment firms expand beyond Europe. Each major market outside the EU has its own regulator and its own licence:

United Kingdom (FCA)

Investment firms are licensed by the FCA under FSMA 2000 for securities dealing, asset management, and advisory services. After Brexit, access to the EU market requires a separate MiFID II licence. Operating in both the UK and EU requires dual authorisation and separate compliance frameworks.

Switzerland (FINMA)

Activities are regulated by FINMA under FinIA and FinSA. Switzerland has an independent regulatory system and requires a separate licence for securities trading. Providing services to EU clients triggers MiFID II-related requirements and cross-border licensing considerations.

Dubai/United Arab Emirates (DFSA/SCA)

DFSA regulates operations in DIFC, while SCA oversees mainland activities. Separate licensing and compliance regimes apply. Market entry requires registration in the relevant jurisdiction and adherence to local regulatory requirements.

Canada (CIRO)

Securities dealers must be members of CIRO. AML/CTF compliance is overseen by FINTRAC. Market entry requires dealer registration and implementation of AML/KYC infrastructure.

Why Choose COREDO

Securities Markets Access

Right to conduct dealing operations and brokerage services throughout the EEA

Lower Capital

Compared to banking licences (from EUR 75,000 vs EUR 5 million)

MiFID II Passport

Rapid expansion to other jurisdictions without separate licences

Attract Investors

Licensed investment firm status builds confidence

Flexibility

Focus on securities trading without banking constraints

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Our Services and EEA Expansion

The key advantage is offering brokerage services across all European Economic Area countries without separate licences. The MiFID II passport mechanism (Articles 34–35 of Directive 2014/65/EU) enables your company to:

Expand services to other EEA countries through the passport mechanism (passive service provision) by notifying the home country regulator

Attract trading clients from all EEA countries regulated under MiFID II without establishing subsidiaries or branches

Open branches and representative offices in other EEA jurisdictions with minimal regulatory barriers

Provide services in multiple currencies (EUR, USD, GBP, etc.) across various securities markets

This makes such a licence especially valuable for ambitious companies planning expansion in the European securities market.

Our Experts

Pavel Kos

Pavel has been with COREDO since June 2017 and has led the legal team since July 2020. He specializes in obtaining investment licences across EU countries and brings deep expertise in licensing brokerage and trading companies, MiFID II compliance, and national regulatory requirements.

Alena Mach

Executive Director

Nikita Veremeev

Founder & NED

Gregory Lutsenko

Head of Compliance

Case Studies

Case 01Securities Broker in Estonia.

A small brokerage firm seeking to offer equity trading and CFD services on European exchanges required Securities Trader licence in Estonia with EUR 50,000 capital. COREDO coordinated full licensing including trading policies, order execution standards, and client segregation procedures. Licence issued in 3 months; broker began market data distribution and client trade execution within 1 week.

Case 02Derivatives Dealer in Lithuania.

A derivatives trading firm with EUR 100,000 capital sought a Lithuania Securities licence to offer structured products and OTC derivatives. COREDO managed the licensing application including risk management framework and product disclosure documents. The Bank of Lithuania (Lietuvos bankas) approved the licence in 2.5 months; the firm launched derivatives sales to institutional clients.

Case 03Investment Firm in Czech Republic.

A Czech-based investment consulting firm expanded to offer securities portfolio management and discretionary trading requiring full Securities Trader licence. COREDO prepared comprehensive licensing documentation including compliance infrastructure, transaction supervision procedures, and suitability assessments. ČNB issued the licence in 14 months; within 3 months of authorization the firm managed EUR 50 million in institutional portfolios.

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Frequently Asked Questions

What minimum capital is required?

Initial capital depends on the investment services in your authorisation, not on the country. It is EUR 75,000 for reception and transmission of orders, execution of orders, portfolio management, investment advice or placing without a firm commitment, where the firm may not hold client money or securities. Dealing on own account or underwriting on a firm commitment basis requires EUR 750,000, and all other cases EUR 150,000 (Directive (EU) 2019/2034, Art. 9). Ongoing own funds are then calculated under Regulation (EU) 2019/2033 (IFR).

What is the difference between a Securities Trader Licence and a full investment firm authorization?

A Securities Trader Licence is an investment firm authorisation under MiFID II, and its scope is the list of investment services in the authorisation. Firms that meet every threshold of Article 12(1) IFR are small and non-interconnected investment firms with a lighter prudential regime. The thresholds include assets under management below EUR 1.2 billion, a balance sheet below EUR 100 million and annual revenue from investment services below EUR 30 million. Such a firm also holds no client money or client assets and has no trading-book positions. Firms that hold client assets or deal on own account fall outside that category and need more capital. The right structure depends on your planned services and target client base.

Which financial instruments can I offer clients?

You may offer shares, bonds, derivatives (futures, options, swaps), investment funds, structured products, and other financial instruments according to your licence and regulatory requirements.

Can I transfer or purchase an existing Securities Trader Licence instead of applying for a new one?

Yes — COREDO offers ready-made companies with existing financial licences as an alternative to the full licensing process. Acquiring an already-licensed entity can cut the time to market significantly. However, regulators must approve changes of ownership and management, so due diligence and regulatory notification are required. Contact COREDO to explore available ready-made options.

What ongoing compliance obligations does a Securities Trader Licence holder carry?

Post-licensing obligations are substantial: annual regulatory reporting to the home regulator, periodic internal audits of AML/CFT procedures, and capital adequacy monitoring under IFR (Regulation (EU) 2019/2033). They also include transaction reporting under MiFIR, best-execution policy reviews, and client suitability assessments. COREDO offers outsourced compliance and MLRO support to help investment firms stay permanently compliant.

What are the consequences of non-compliance with AML requirements after licensing?

Non-compliance with AML/CFT obligations after receiving your licence can result in severe penalties. For a financial institution that is a legal person, national law must set maximum administrative fines of at least EUR 5 million or 10% of total annual turnover (Directive (EU) 2015/849, Art. 59). The Securities Trader Licence may also be suspended or revoked, and directors may face personal liability. Regulators in Estonia, Lithuania, and Czech Republic conduct routine inspections and may trigger enhanced supervision upon any AML deficiency.

Contact COREDO

COREDO Contact Information:

COREDO · +420 228 886 867 · info@coredo.eu K Cervenemu dvoru 3269/25a, Prague, 130 00

Get a Consultation:

Submit a request on our website or call us. Our team will contact you to discuss your project, assess opportunities, select the optimal jurisdiction, and calculate your securities trading licensing service costs.

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