European License
Overview
In the European Union Forex services are regulated by the same legislation as investment services. Obtaining a license in the EU is a one-time process and does not have an expiration date.
European Licensing Options
A European Forex license allows you to operate a forex brokerage within the EU. The most common licensing options are:
Cyprus Securities and Exchange Commission (CySEC)
Offers a relatively straightforward process and is a popular choice due to its regulatory framework and EU passporting rights.
Financial Conduct Authority (FCA) - UK
Known for its stringent requirements, it provides strong regulatory oversight and is highly respected globally.
Malta Financial Services Authority (MFSA)
Provides a robust regulatory environment with access to the European market.
Bafin (Germany)
Known for its rigorous compliance standards, it offers access to the EU market and strong regulatory backing.
European License Requirements
To obtain a Forex broker licence in Europe, a number of requirements must be met, which may vary from jurisdiction to jurisdiction. Typically, the following requirements apply to the applicant:
Financial Requirements
The minimum share capital for a European Forex license ranges from €125,000 to €730,000, depending on the license type.
Company personnel
The company needs qualified management with financial experience, and some jurisdictions require a local director.
Business Plan and Policies
A business plan should outline services, market analysis, marketing, and risk management policies.
Operational Requirements
Choose a jurisdiction, set up a company, secure approval, meet requirements, and maintain compliance.