COREDO > Licensing > 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. The licence is governed by MiFID II Directive (2014/65/EU) and grants access to securities markets across all European Economic Area countries.

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Cost of the service
from 25 000 EUR

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).

Verification Table: Licence Comparison

Criteria	Securities Trader	Banking Licence	Forex Broker Licence
Minimum Capital	EUR 25,000–125,000	EUR 5,000,000	EUR 25,000–125,000
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 amount depends on your jurisdiction and category of trading activities. Detailed ranges appear in the FAQ section. Generally, expect EUR 25,000–125,000 across different jurisdictions.

Your capital must be fully paid and deposited at a credit institution in the EEA in compliance with Regulation (EU) 575/2013.

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 per Regulation AMLR (2024/1624), 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).

How We Work: Licensing Steps

Obtain your securities trading authorization through the following stages. The process typically takes 2–4 months, depending on your jurisdiction:

Stage 1: Document Preparation (2–4 weeks)

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 (1–2 days)

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 (1–3 months, varies by jurisdiction)

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 (several days–2 weeks)

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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Jurisdictions: Where to Obtain Securities Trader Licence

COREDO provides licensing services across Europe and Asia. The pricing table below reflects the full licensing package cost for Securities Trader Licence:

Jurisdiction	Cost in EUR	Typical Timeline	Notes
Estonia (EU)	from EUR 25,000	3–6 months	Fast review, fintech-friendly environment
Lithuania (EU Securities)	from EUR 60,000	2–4 months	Part of EEA, COREDO Baltic expertise
Czech Republic (EU)	from EUR 85,000	1–1.5 years	Nearest to COREDO HQ, conservative regulator ČNB
Singapore (APAC)	from EUR 60,000	2–4 months	MAS licensing, Asia-Pacific region

COREDO Service Costs: The stated prices include the full licensing package (document preparation, registration, regulator communication, requirement consultation).

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

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. COREDO assists securities firms in obtaining licences in major non-EU jurisdictions.

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, MSB status, 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 (EUR 25,000–125,000 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.

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?

Minimum own funds vary by jurisdiction and trading activity type: EUR 25,000–50,000 in Estonia, EUR 30,000–85,000 in Lithuania, EUR 50,000–125,000 in Czech Republic, and from EUR 60,000 in Singapore. Systematic Internalisers require EUR 5,000,000. Requirements are set by Regulation (EU) 2019/2033 (IFR) and national guidance.

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

A Securities Trader Licence (also called investment firm authorisation under MiFID II) covers a spectrum of investment services. Smaller firms may qualify as Class 1 investment firms under IFR with limited services and lower capital (EUR 25,000–50,000), while larger firms executing orders on behalf of clients or dealing on own account require higher capital classes. 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, capital adequacy monitoring under IFR (Regulation (EU) 2019/2033), 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: fines up to EUR 5 million or 10% of annual turnover under AMLR (2024/1624), suspension or revocation of the Securities Trader Licence, and personal liability for directors. 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 within 24 hours to discuss your project, assess opportunities, select the optimal jurisdiction, and calculate your securities trading licensing service costs.