Investment Services Licensing
FOREX BROKERAGE LICENCE
MIFID or Markets in Financial Instrument Directive, is the EU's legislation that regulates firms who provide services to clients involved with 'financial instruments, such as shares, bonds, units in collective investment schemes and derivatives, and the venues such instruments are traded. MIFID II came into force on 3 January 2018.
Foreign Exchange (FOREX) brokerage licence categories:
(1) Dealing on own account (Dealer Licence) - this licence is equivalent to "market making" and involves position-taking which includes in the conclusion of transaction in financial instruments.
(2) Matched Principle (Intermediary Licence) also known as STP/straight through processing involves client trades being hedged with an equal transaction with a liquidity provider.
(3) Restricted Broker licence - This is an introducer or referral type of licence, permitting firms to conduct sales and marketing but not being able to hold client funds.
Initial Capital Requirements
Dealing on own account licence (dealer licence) - EUR 730,000
Matched Principle licence - EUR 125,000
Restricted Broker licence - EUR 50,000
When might a firm be executing orders on behalf of clients?
When a firm is acting to conclude agreements to buy or sell one or more MiFID financial instruments on behalf of clients. You will be providing this investment service if you participate in the execution of an order on behalf of a client, as opposed simply to arranging the relevant deal.
When we discuss your requirements, we will assess your business model, directors and senior management, their experience and suitability and your governance (risk & compliance), operations, structure, business model and viability, to ensure that you meet the state regulator's requirements. Following our assessment, we will provide you with a realistic and honest assessment on application strength, as well as making our recommendations, before we take on your application.
In a hurry? We offer a fast-track service
If you are in a hurry or have a deadline to meet, please contact us about our fast track service.
Our fees and next step
Contact us for an initial assessment of your proposed project and we will provide you with your options and suitability. We will will then discuss your project and provide you with costing. Once you are happy and we are confident that you have a strong chance of meeting the regulator's requirements of being approved, we will then proceed with your project.