Non-Licensed Vs. Regulated Forex Brokers – 4 Advantages in Obtaining a Forex Broker License

Banking options for unregulated forex brokers are becoming more difficult to obtain, which is one of several reasons to consider applying for a forex broker license.

Whether you are looking to start your own forex broker, or are currently operating as an unregulated business, a forex broker license should be an important consideration as you plan the future of your brokerage.

A decade ago, regulations in the forex industry were far less strict than they are now. For this reason it is not so easy as it once was to simply launch a new forex broker from scratch without a license. If you are looking to set up a new forex brokerage, or are currently operating unlicensed, we encourage you to check out these 4 reasons to consider applying for a forex broker license: 

1. Forex Broker Licenses Open the Door to Improved Banking Options  – It is becoming more and more challenging to establish a bank account without a forex broker license. Although we are able to offer several solutions to unlicensed brokerages, they are increasingly becoming more difficult to obtain, with fewer options available. One of the biggest advantages in applying for a forex broker license is the ability to secure a direct banking relationship. 

2. Without a Forex Broker License, It’s Almost Impossible to Work with Legitimate PSPs – Similar to the first point, PSP solutions are almost impossible to secure these days without a license. What’s even more challenging is that unregulated brokers have to proceed carefully with the few PSP options still available to them. Many of these firms are unregulated themselves and have a reputation for freezing payments or disappearing with client deposits. 

If credibility, banking, and PSP relationships are crucial to the success of your forex brokerage, then you should strongly consider obtaining a forex broker license.

3. An Excellent Stepping Stone to Top License Regions – We often speak to entrepreneurs who wish to start their own brokerage by first obtaining an FCA license in the UK or Cyprus. We are gladly able to assist in either region, however, our advice is to first consider a jurisdiction that grants licenses more quickly such as Labuan, Malaysia. It’s important to note that a forex broker license in Europe is a costly investment not just in money, but time as well.

Our suggestion is to first apply for a license in a region where that grants them relatively quickly, for example in 3 – 4 months. Not only can this license be used as a stepping stone to future licenses in Europe, or other areas, it will allow you to kick off the business in a matter of months, rather than an entire year.

4. A License Adds Credibility to Your Brokerage – An excellent way for your broker to stand out from the competition is to advertise the regions in which your firm holds a license. This will improve the image of your business and make it easier for higher net worth investors and institutions to consider trading with your brokerage.

Atomiq Consulting – Forex Broker License Consulting & Expertise

We specialize not only in forex broker licenses but also company incorporation services and banking, making Atomiq Consulting an excellent partner for all services related to licenses, banking, and PSPs. If you wish to explore forex broker license options in further detail, don’t hesitate to contact us today!

Have a look at some of the additional services our clients have found to be helpful in the growth of their business.

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