Forex Broker Licence

• Legal consultation and document preparation

• Investment strategy development for regulators

• Company restructuring to meet MiFID II requirements

• Coordination with financial regulators (CySEC, CNMV, FCA, CNB, and others)

• Organization of bank accounts for capital placement

• Implementation of AML/CFT and KYC procedures

• Technical support after licence receipt

Capital Requirements:

Initial capital of EUR 75,000, EUR 150,000 or EUR 750,000 for an investment firm under Directive (EU) 2019/2034, depending on its services, client-asset holding and own-account dealing.

Competent Management:

Board members, shareholders, and key staff must demonstrate significant professional experience in currency and financial markets, appropriate financial education, and unblemished reputation.

Regulators conduct EU sanctions list screening for all officers.

Currency Trading Competence:

Companies must demonstrate proven experience in currency trading, risk management, and knowledge of MiFID II principles.

Compliance with regulatory requirements and investor protection is mandatory.

Risk Management Policies and Procedures:

Develop systems managing credit, market, and liquidity risks.

Systems must include open position limits, portfolio stress tests, and capital adequacy monitoring.

AML/CFT Compliance:

Implement AML controls under national AML laws based on Directive (EU) 2015/849, including KYC verification for all clients and suspicious transaction monitoring. From 10 July 2027 the EU AML Regulation (2024/1624) applies directly.

Investment Policy and Marketing:

Describe service types provided, investment strategies, client categories, commission models, marketing methods, and permitted currency pairs.

IT Infrastructure and Security:

Maintain reliable trading and accounting systems, client data protection, GDPR and DORA compliance.

Singapore (MAS):

Forex activity is regulated by the Monetary Authority of Singapore (MAS) under the Capital Markets Services (CMS) licence. For broker-dealers the base capital requirement ranges from SGD 50,000 to SGD 5 million, depending on products and clientele. The licence covers FX and derivatives trading with strict requirements for cross-border operations, capital adequacy, and risk management.

Switzerland (FINMA):

FINMA supervises banks and securities firms, including their AML compliance; providers not prudentially supervised by FINMA must join an SRO for AML supervision. Securities firms need minimum capital of CHF 1.5 million, paid up in full (Financial Institutions Ordinance). Regulation is based on a national framework, focusing on a risk-based approach rather than EU MiFID II rules.

Dubai and UAE (DFSA/CMA/VARA):

The UAE operates a multi-layer regulatory system: DFSA regulates forex and investment firms in DIFC, the Capital Market Authority (CMA, formerly SCA) oversees mainland operations, and VARA regulates virtual asset broker-dealer and exchange services in Dubai outside the DIFC. All structures require licensing, local presence, and AML compliance frameworks.

Canada:

Forex and investment activities are regulated at the provincial level through CSA and CIRO; securities dealers are FINTRAC reporting entities for AML/CTF, and MSB registration is needed only for foreign exchange dealing outside investment services. The system combines provincial licensing with federal compliance requirements.

Bridging Global and EU Markets:

Access to the EU and international markets requires a separated corporate structure with an EU MiFID II licence and distinct operational jurisdictions. Segregated AML and compliance frameworks are mandatory, along with a group structure of subsidiaries across regions.