Forex trading was very popular for the past 10 years. Forex market daily activity has seen an increase from US$ 1.2 trillion in 2001 to US$ 6.6 trillion in 2019. But during 2020 this sphere has experienced another wave of interest from people around the world. There are several reasons for that. People were forced to stay at home and in the situation when many of them had lost their jobs, they started to look for new income opportunities. For example, a popular trading platform eToro has reported a 200% increase in trading volume in Q1 of 2020 as opposed to Q1 of 2019. As a result, in 2021 the worldwide forex market is worth $2,409,000,000 ($2.409 quadrillion). This fact makes forex trading very appealing both for individuals and for companies. If you’re planning to start a Forex business, you have to decide, which forex brokerage license to obtain. In 2021 the list of top-5 brokerage licenses can include the following countries:
1. United Kingdom
Our list of TOP-5 brokerage licenses to obtain in 2021 heads FCA Forex Broker License in the UK. If you want to compete with leaders of the market, then you should obtain this one, since it is one of the prestigious jurisdictions. The required authorized capital may vary from 125 000 to 725 00 euros depending on the permissions. One of the main requirements is also a physical office in the country. The process of obtaining the FCA Forex Broker License in the UK can take up to 12 months. But it will pay off, since this procedure will provide you freedom of trading. For example, there are no such restrictions like a maximum cap on leverage or any limitations to hedging/scalping strategies. This license was obtained by the following major players of the market: FOREX.com, eToro, Saxo Bank, FIBO Group, Swissquote and Alpari Limited.
In second place in the list of TOP-5 brokerage licenses to obtain in 2021, if you’re planning to start a business in this field is Australia. To obtain the Australian forex brokerage license, you need to submit an application to the ASIC, the australian regulatory body. This license has quite strict requirements, but as a benefit we should mention that ASIC regulated brokers are considered safe. This can help to attract more traders to the platforms. The earlier mentioned eToro has this license. Besides that, we can mention also Plus500, AvaTrade and FOREX.com.
One of the benefits of obtaining a brokerage license in Cyprus is that it is recognized by all countries in the European Union. The list of requirements includes opening a local office, hiring at least 2 citizens of Cyprus on the Board of Directors and at least 3 local directors. The second reason why Cyprus is on our list of TOP-5 brokerage licenses to obtain in 2021 is timing. You can get this license within less than 6 months. Such traders like UWC, Admiral Markets, FOREXYARD have obtained this license.
The next jurisdiction on our list of TOP brokerage licenses is Malta. To obtain it in 2021 you will need to have the authorized capital in amount of 730 000 euros. Malta is also a member of the European Union; this means that by obtaining a forex brokerage license there a company can operate in all European countries. Companies, that have this license: UFX, NSFX, Binary.com.
And completes our list of TOP-5 brokerage licenses, which you should consider to obtain in 2021, is Vanuatu. This country has business friendly environment and tax-regime. Vanuatu Forex license can be obtained by non-resident companies and the terms are not exceeding 3 months. This license was obtained by the following players: xDirect, Accent Forex, Worldforex.
As you may see, there are several jurisdictions around the world, which provide favorable conditions for obtaining a forex brokerage license. First of all, it is important to decide, which market is more interesting for you. After that you can already choose the jurisdiction responsible for it. The process of obtaining may vary from couple of weeks till 1 year. To shorten it, you must prepare all the documents according to the list of requirements. Universepay can help you with license obtaining and provide you all the consultations at every stage of the process. Just fill in the application form below and our managers will contact you immediately.