Fake Vs. Real Forex Licenses – How To Tell if a Forex Broker License Jurisdiction is Legitimate?
In recent months we’ve seen an increase in requests for fx broker license jurisdictions which our team believes are not legitimate. Because we have been offering forex broker license consultation services for nearly a decade, our opinion holds weight yet one could argue we are simply favoring certain licensing jurisdictions over others. For this reason, we’ll outline 3 ways to determine whether a forex broker license is legitimate or not worth the investment.
#1. Speed of Approval – If A Forex Broker License is Approved Too Quickly, That’s a Red Flag
There will always be demand for fx broker licenses which can be obtained in a short period of time. The question we pose to our clients will be, do you want to invest tens of thousands of dollars in a license you can get in 3 days?
Any forex license worth its value should take a reasonable period to obtain. The length of approval itself doesn’t add value to the license, rather one should consider what’s involved when a regulatory body reviews a license application: due diligence on the owners, review of the business plan, criminal background checks, interviews, etc. A license of value should not be easy to obtain because your competitors will have to go through the same process if they want to hold the same license as you do.
#2. A Forex Broker License of Value Offers Access to a Physical (Non-E-Wallet) Bank Account
We believe regulation helps forex brokers differentiate themselves from the many non-regulated entities which constantly emerge in the online forex trading industry. Regulation alone is not the main incentive for most brokers pursuing a license. In our view, access to banking is the major incentive for most brokers to obtain a forex broker license.
Regions such as Comoros or Nauru do not offer access to physical banking, ie having an account with a traditional brick and mortar bank. What value then do such licenses hold? Our team can help your broker get access to the same banking options as a broker with a Comoros license, so why invest the thousands of extra dollars?
#3. A Forex Broker License Worth Obtaining Will Have Resale Value
Finally, any forex broker license worth the effort in obtaining should have some resale value. We always have several brokerages on sale but you will never find Comoros or Nauru listed there. Because these licenses are rubber stamped in their approval, what value is there in reselling it? Additionally, the license offers no banking options so what would you be paying for?
Since 2014, Atomiq Consulting has helped brokers of all shapes and sizes successfully obtain their licenses in an array of global jurisdictions. To speak with one of our consultants, don’t hesitate to contact us today.
