In 2024, there are over 1,500 licensed forex brokers operating in the UK market, with the total forex transactions in London exceeding $3.6 trillion per day: this is more than any other financial center in the world. Such impressive statistics reflect not just the scale but also the level of trust that clients and partners worldwide have in the British jurisdiction. Why has the UK forex license become synonymous with reliability and international recognition for brokers and investors? What are the real advantages of a UK forex license for those building a global business?
Every year, the FCA regulator’s requirements become more stringent, and the process of registering a UK forex broker becomes increasingly complex. Entrepreneurs face numerous nuances: from corporate structure transparency to the implementation of advanced UK AML requirements and client fund protection. In the face of growing competition and regulatory changes in 2025, the choice of license and jurisdiction becomes strategic.
If you want to understand how to get a forex license UK with maximum efficiency, avoid common mistakes, and build a long-term business scaling model – I recommend reading this material to the end. In the article, I will thoroughly analyze the minimum requirements, the application process, key risks, and the strategic advantages of licensing a forex broker in the UK, based on the practical experience of the COREDO team and the latest data from leading international sources.
Forex Licenses in the UK: Types and Differences
The UK offers a unique range of licenses for forex brokers, each aligned with a specific business model, level of access to client funds, and transaction volume. It is important to understand that a UK forex license is not a one-size-fits-all solution but a tool that must be precisely tailored to the company’s strategy.
Types of FCA Licenses: Dealer, STP, Consulting
The FCA licensing structure highlights three key types:
| Type of FCA License | Capital (€) | Activity | Company Requirements |
|---|---|---|---|
| Investment Consulting | 50,000 | Consulting, no access to client funds | Ltd, director, office, compliance |
| STP/A-Book | 125,000 | STP, client fund holding | Ltd, director, office, compliance |
| Market Maker (Dealer) | 730,000 | Market making, B-Book | Ltd, director, office, compliance |
- Limited UK brokerage license (Investment Consulting): suitable for companies providing consulting services without access to client funds. Minimum share capital – €50,000.
- STP/A-Book: allows for client fund holding, requires capital from €125,000, strict IT infrastructure, and operational security requirements.
- Market Maker (Dealer): the most capital-intensive model, involves B-Book operations, market making, and risk management. Capital – at least €730,000, requiring professional insurance and a separate bank account.
The choice of a specific license type depends on the specifics of your business, planned services, and readiness to meet regulatory requirements.
How to Choose a License for Business
For instance, an Investment Consulting model is optimal for starting with minimal investment and market testing, while a Market Maker license is required for expanding to the global market and working with large institutional clients.
In several cases, the COREDO team has implemented projects where transitioning from STP to Market Maker allowed for increasing the ROI of the forex license by expanding the product range and entering new markets. It is important to consider the long-term consequences of licensing: the chosen model defines corporate governance, reporting, and operational transparency requirements.
FCA Minimum Requirements for Companies
The FCA regulator imposes comprehensive minimum requirements for forex licenses, covering capital, corporate structure, physical presence, and personnel qualifications. These parameters are the starting point for successfully obtaining an FCA license.
Capital Requirements for Licenses
The minimum share capital for a UK forex license depends on the chosen model:
- Investment Consulting – €50,000
- STP/A-Book – €125,000
- Market Maker (Dealer) – €730,000
Next, we will consider the main requirements for company registration and office opening.
Company Registration and Office Requirements
To register a legal entity for forex in the UK, it is necessary to establish a private limited company (Ltd), appoint at least one local director, and ensure physical presence – a registered office available for FCA inspections. The office must meet UK forex license office requirements, including IT infrastructure, data storage, and information protection.
COREDO practice confirms: lack of a clear management and control structure can lead to delayed licensing or additional regulatory requests. In one case, a solution developed in COREDO allowed a client to register and open an office in London in 21 days due to pre-prepared documentation and compliance officer implementation.
Criteria for Director and Key Personnel
Key personnel and directors undergo an FCA fit and proper assessment, including verification of qualifications, experience, reputation, and compliance with Due Diligence requirements. The FCA evaluates not only education and experience but also the absence of criminal records, involvement in litigation, and risk management and compliance skills.
The COREDO team regularly prepares client personnel for the fit and proper assessment, organizing training, resume audits, and preparation for regulator interviews. It is important to remember: insufficient qualifications or the absence of a compliance officer are common reasons for license denial.
FCA Compliance and AML Requirements
The UK FCA regulator pays special attention to UK AML requirements and the implementation of advanced UK KYC procedures. Compliance becomes not just a formality but a foundation for long-term business sustainability.
AML/KYC: What Documents Are Needed?
For successful forex license registration, you need to prepare:
- Complete set of corporate documents
- Business processes and operational infrastructure descriptions
- Detailed AML/KYC policies in line with The Money Laundering, Criminal Financing and Transfer of Funds Regulations 2017
- Due diligence system for clients and partners
Common mistakes: insufficient detail in AML procedures, lack of regular compliance checks, weak data protection. The solution developed in COREDO includes audits of all documents and preparation for possible FCA requests.
Protection of Client Funds and Risk Management
The operational infrastructure of a forex broker must ensure not only the security of client funds but also compliance with risk management framework requirements. FCA requires:
- Separation of client and corporate funds
- Implementation of transaction monitoring systems
- Regular IT infrastructure audits
- Participation in FSCS (deposit insurance system)
Obtaining a Forex License in the UK
The process of obtaining a forex license in the UK is structured and requires strict adherence to all stages.
Documents and Business Plan: How to Prepare
Key documents for application submission:
- Company charter
- Business plan with financial forecasts
- Descriptions of operational infrastructure
- AML/KYC policies
- Resumes of directors and key personnel
- Documents confirming capital and physical presence
The COREDO team supports clients at all stages, including business strategy development and preparation for compliance procedures. Important: FCA evaluates not only financial indicators but also business model transparency, risk management mechanisms, and client fund protection.
Submitting an Application to the FCA: How to Proceed?
COREDO practice shows: pre-prepared document packages and active interaction with the FCA significantly reduce application review times and minimize rejection risks.
How to Get a License: Stages and Approval
After completing all compliance checks, the FCA conducts a final due diligence and fit and proper assessment. The license is issued indefinitely but is subject to regular control: annual reporting, auditing, compliance checks on AML/KYC.
Errors and Risks in Obtaining a UK Forex License
FCA statistics show that up to 30% of UK forex license applications are rejected due to documentation errors, compliance shortcomings, or staff non-compliance with requirements.
Errors in Business Plan and Documents
Common issues:
- Incorrect financial reporting
- Lack of risk management strategy
- Insufficiently detailed business plan
Compliance and Personnel Shortcomings
Insufficient qualifications of directors, absence of a compliance officer, poor preparation for the fit and proper assessment: reasons for license denial and revocation of already granted permits. In one COREDO case, additional staff training allowed passing the FCA re-evaluation and maintaining the license.
Risks of License Loss for Business
License revocation leads to market access loss, fines, and severe reputational consequences. The long-term consequences of licensing require constant monitoring of regulatory changes and updates of internal procedures.
UK Forex License: Benefits and ROI
Flexible UK regulatory conditions enable adapting business strategies to the demands of major international markets, accelerating the expansion process.
Read more about scaling strategies in the next section.
Business Scaling: Entering New Markets
The UK license is recognized in all major financial centers worldwide, allowing quick product launches for retail and wholesale clients, expanding geography, and increasing transaction volumes. In one COREDO project, obtaining an FCA license served as a catalyst for the company’s entry into EU and Asian markets, increasing forex license ROI by 60% in the first year.
UK License vs Other Countries
The UK stands out with stringent transparency, client fund protection, and corporate governance requirements, forming a high level of trust from partners and investors. Compared to other jurisdictions (Cyprus, Estonia, Dubai), a UK license offers the best conditions for long-term resilience and international recognition.
The COREDO team regularly conducts comparative analyses of requirements and benefits, helping clients choose optimal licensing strategies.
Regulatory Changes in 2025
COREDO’s practice is already adapted to these changes: we integrate modern monitoring systems and update internal policies following regulatory trends.
Summary and Recommendations
A UK forex license is not just a formality but a strategic asset determining business success and sustainability in the international market. FCA minimum requirements cover capital, corporate structure, personnel qualifications, physical presence, and compliance. Each application stage requires precise document preparation, the implementation of advanced AML/KYC procedures, and operational infrastructure development.
The COREDO team recommends:
- Carefully analyze the business model and choose a license type aligned with long-term goals
- Prepare personnel for the fit and proper assessment, invest in training and development of a compliance officer
- Implement modern risk management systems, client fund protection, and transaction monitoring
- Regularly update internal policies to align with FCA regulatory changes
- Use professional support at all stages, from document preparation to regulatory interaction
COREDO’s practical experience shows: a strategic approach to licensing, process transparency, and a high level of compliance are key success factors in the UK market. If you are considering entering the UK market or scaling your forex business, an FCA license will be a reliable foundation for long-term growth and international recognition.