The foreign exchange or Forex market is an extremely lucrative industry involving trading foreign currencies and amenities such as precious metals and oil, with approximately three trillion US dollars being invested in foreign exchange trades on a daily basis globally it is, in terms of volume of trading, the largest market in the world.
The foreign exchange market is where money in one currency is exchanged, purchased or sold for another. The fluctuation in value between one currency or amenity and another one can be a profitable hobby or business venture, if the correct expertise is applied.
Although individual traders can certainly make a profit in the forex industry, the most profit to be made lies with the broker. With an offshore Forex license a company can charge commission and fees on trading, making a healthy profit once well established.
Below is a comprehensive checklist of procedures to be followed in order to effectively achieve their forex or investment licensing goals.
1. Capital requirements
In order to effectively obtain a forex license, every trading company must make an initial deposit and maintain a minimum capital as required by relevant regulators of the jurisdiction where the license application is submitted. The minimum capital requirements vary depending on the type of license required.
2. Forex license application & associated costs
Every regulatory authority charges varying processing and licensing fees; this will of course depend on your jurisdiction of choice and also on the sort of license being applied for. Moreover, a company will also have to consider consultancy and legal outsourcing to work alongside the aforementioned licensing procedure.
3. Establishing a legitimate operational office
Certain jurisdictions that regulate financial services require that the licensee holds a fully-fledged operational office in the country where the license is issued. Eltoma Corporate Services can assist with establishing your office as per the minimum requirements as stipulated by relevant regulations. Click here to read more.
4. Personal due diligence documentation
Any Directors, Managers and Shareholders of companies applying for a forex license must be clearly identified by presenting certified copies of their identification documents (such as passport) and proof of their residential address (using utility bills etc). Directors to a forex company must also show their significance to the industry and past professional experience by producing documentary relevant evidence (such as CV’s, degree certificates). The Shareholders must also be able to potentially prove their financial good standing as ultimately it is them who will have to ensure and maintain the company’s good standing and sound reputation with integrity.
5. Obtaining adequate software & IT systems
It is common knowledge that virtually all trades are presently conducted on-line and as such your organisation would require relevant software in order to process investment, forex or binary options transactions. We have IT specialists on hand to provide the selection and acquirement of recommended software. We have an exclusive license for selling renowned financial software in Cyprus and Singapore. Eltoma Corporate Services will also be able to advise you on requirements certain regulators impose regarding software and network related matters. Click here to view our software products.