To become a Forex broker, it is necessary to register a foreign company. We allocate 3 groups of the countries which are suitable for the organization of Forex services. They are different in the requirements of doing business and the cost of registration.
Unregulated jurisdictions – are the countries where Forex services are not regulated. These include Saint Vincent and the Grenadines and Marshall Islands. Company registration takes 2 days and costs from 1500 USD. It is a right decision to register a company this country to start a business. 9 out of 10 Forex brokers use this option.
Semi-regulated jurisdictions - are the countries where there is a regulation of Forex brokers, and low requirements for doing business. These include Vanuatu, Malaysia, Belize or the Seychelles. The option is doubtful, since there is no advantage to work with registration costs from 20,000 USD.
Regulated jurisdictions – are the European Union countries such as UK, Cyprus, Bulgaria and others. These are the countries where Mifid requirements work. Registration costs 50 000 USD, plus the payment of the share capital of 125 000 EUR. The establishment of the company must have at least 6 months. After registration you will become a Forex broker with a license. Taking into account the high costs of creation and, later, the maintenance of the company, this option is suitable for large businesses with a customer base of 100 000 accounts. The company in the European Union gets full access to work with clients from Europe and favorable conditions from payment systems.