In recent months there has been a trend in illegitimate / fake forex licenses reaching the marketplace. We were the first consulting firm to point out the issues with Comoros. Additionally, we’ve gone public about Nauru also being a phony license. Dominica is an interesting case which we’ll explore in more detail in today’s post.
Dominica Does Not Offer Forex Regulation
Unlike Comoros or Nauru, Dominica turns out to be a legitimate offshore jurisdiction for financial services. The only challenge is that there is no regulatory framework for forex & CFD trading in Dominica. Instead of regulating securities like forex, stocks, and CFDs, Dominica only offers banking licenses. For this reason, it is not possible to apply for a forex broker license in Dominica.
Sub Licenses Being Offered as Licenses
We’ve been approached by several clients asking us for guidance in obtaining a Dominica license. When we inform the client that it is not a possibility, we’ve then been presented with a certificate which appears to show a broker regulated by Dominica. It’s important to highlight that this is not a true forex license, rather a sub-license of a Dominica bank.
We caution against paying money for this type of sub-license. Unlike applying for a true forex broker license, a sub-license will not result in the actual ownership of the license, meaning the firm which issues it could also retract it at any point in time. Additionally, the operator of the license has full authority over all activity pertaining to your broker, a major downside since you may be limited in the trading products offered, regions to target, and leverage as just a few examples.
If you are looking to apply for an offshore forex broker license, we remain at your disposal. With a decade of expertise in the realm of online forex & CFD broker regulation, Atomiq Consulting is the ideal partner to assist you with obtaining an offshore forex license.
