The global forex industry trades some $5.3 trillion dollars every 24 hours and it is the most liquid market in the world. With 170 different currencies, it is 12 times larger than the futures market and 27 times larger than the stock market. There are also approximately 10 million forex traders worldwide- meaning that one in every 750 people trades in foreign currency.
These statistics show that setting up a forex brokerage could open a wide range of lucrative business opportunities in a market that is going from strength to strength. For those wishing to take the leap and open a Forex brokerage, the first decision is which jurisdiction to apply for licensing in.
Seychelles are a great option for those looking for a fast and straightforward licensing procedure in a jurisdiction with favourable fiscal incentives and a sterling reputation. When our clients ask us what the best location for a start up forex brokerage with low start up and licensing costs, Seychelles is always our first recommendation.
First things first
In order to open a forex brokerage in Seychelles, you first need to incorporate a domestic company with a share capital of $50,000. You need to appoint two shareholders and two directors and the process takes around two weeks.
Then a Securities Dealers License in Seychelles needs to be obtained which will allow the holder to buy, sell, and trade securities such as shares, bonds, options, and of course Forex. It also allows the holder to manage a portfolio of investment on behalf of clients.
Applying for a license
In order to apply for this license, a fully furnished and functioning office in Seychelles is required. This premises will be inspected by officials from the authorities. Requirements for this office include internet, electricity, water, a rental contract, and an active phone number.
The business must also have a designated compliance officer, a security dealer license representative, professional indemnity cover, and a local legal advisor. It is also required that annual financial statements are prepared and auditing is carried out dependent on the volume, number, and nature of transactions.
To apply for a license, a number of documents need to be submitted, including police good conduct certificates, financial standing certificates, ID and bank references for all directors/ officers/ shareholders/ beneficial owners- all of which must not be older than three months at the time of submission. CVs and professional reference letters are also required so the authorities can be satisfied that all of those in senior positions within the entity are capable and reputable.
Benefits of Seychelles
When it comes to doing business in Seychelles, those who have a local Seychelles company can benefit from low tax on profits and capital gains. There are also high levels of confidentiality due to the fact that no personal or sensitive information is publicly available and the lack of information sharing agreements with other nations. All in all, it is a flexible business jurisdiction that offers minimal fuss or hassle for those wanting to get the ball rolling.
How Fast Offshore can assist
Since 1998, Fast Offshore has assisted clients with acquiring various licenses in Seychelles, including forex licenses. With over two decades (and counting) of experience in the global FX brokerage field, our team is willing and able to guide you through the whole application process as well as liaising with government departments and other entities. We also provide ongoing support, management, and advice, once the license has been obtained.
If you are interested in setting up a forex business in Seychelles or any other jurisdiction, contact us today.