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Forex Company Formation Guide for Brokers

When you are done with the research and planning to start your own forex broker business and want to execute the plan, Forex company formation is the very first step in the process of forex brokerage business setup. Every legit business needs a registered company and a forex brokerage business is no exception. In fact, it’s mandatory for a forex broker firm to be properly registered from a jurisdiction that allows online forex broker business.

In this blog, we will explain to you the step-by-step process that you need to follow when you intend to go with Forex company formation.

Forex Company Formation Process, Documents Required, Fee & other Charges

When someone plans to start their own forex brokerage business, they are required to work on the business plan, the services offerings, target customers, revenue model, technology and other infrastructure, seed capital, budgeting, etc.

It gives a roadmap about how to set up your own fx brokerage business.

All these things are on paper but to make the dream of a forex brokerage business real and tangible; one needs to start somewhere and the offshore forex company formation is the first thing that needs to be done in this process.

A properly formed offshore forex company gives the identity to your forex brokerage and forms the base of other essential things that you need to get in order to set up your brokerage firm.

list of some essential things that depend on company formation;

Every forex broker needs to get different approvals and sign up for third-party services and solutions. Most of them need a duly registered company for the KYC process. Here is the list of some essential things that depend on company formation;

  • Bank Account Opening
  • Forex License
  • Forex White Label
  • Payment gateway integration
  • Signing up with Liquidity Providers,
  • Third-party KYC and AML solution providers
  • Regulatory compliance filings and reporting etc.

Every time you approach these businesses and vendors, you will need an offshore company to do the KYC to get the services, solutions, vendors, etc.

List of top Jurisdictions where you can open a Forex Brokerage Company:

Here is the list of Jurisdictions that are friendly to entrepreneurs and help them to open an offshore Forex Brokerage Company:

  • Labuan
  • Mauritius
  • Seychelles
  • St. Vincent & Grenadines
  • Belize Offshore Company
  • United Kingdom
  • Cyprus
  • Malta

There are several other jurisdictions that let forex brokers open and operate their business but these are those few who are friendly and lenient to forex brokerage firms in terms of regulations and strictness.

12 Things to consider before selecting a jurisdiction for Forex Broker Company Registration

I. Tax Exemption

Many of these countries offer lucrative tax exemptions to attract business to bring business to their country. For example, IBC in St Vincent is exempt from all taxes for 25 years. (Option of 1% Tax on all profits where investor’s domestic law requires evidence of tax distribution)

II. Asset Protection

Forex broker business is inherently risky. Litigations and legal complaints are very frequent and common. An aspiring forex broker should look for a jurisdiction that offers strong asset protection to businesses that operate from their land.

III. Privacy Policy

Always check if the jurisdiction you are interested in has a strong Confidentiality law providing protection against disclosures. It might look non-essential initially will help you in the long term when your business is grown and operating at a large scale.

IV. Double Taxation

You should search for a jurisdiction that offers No Double Taxation Treaties or sharing of trading activities with the country you are a resident of. It not only saves money but also a lot of time which is wasted on paperwork and red tape.

V. Low Incorporation and Annual Fees

Low Incorporation and Annual Fees is very essential especially when you are starting up and want to test the waters first. You need funds for other things like marketing, customer acquisitions, technology, etc. Look for low-cost consultants but do not cut corners.

VI. Local Stamp Duty Requirement

Search for a jurisdiction that offers Stamp Duty Exemption on share and property transactions for a substantial duration. For example, St Vincent offers Stamp Duty Exemption on share and property transactions for 25 years.

VII. Financial Reporting Norms

Financial record-keeping and reporting is a daunting task that doesn’t add to the top line of the forex broker business but consumes substantial time and cost. There are jurisdictions that allow No or lenient Financial Reporting Requirements. You might want to go easy on Financial Reporting Norms in the initial years of your business.

VIII. Fast Incorporation

Ideally, it shouldn’t take more than a few days or a week to incorporate a forex broker company. And there are jurisdictions that expedite the incorporation process for they understand everything depends on it.

IX. Capital Requirements

Jurisdictions that offer No minimum Capital Requirements are best because that drains your seed capital which you could have used in other productive things like forex trading software or marketing and promotion.

X. Flexibility with No. of Directors

Look for a jurisdiction that does not insist on more than 1 director. And do not insist on mandatory local director which is a big drag on your business. Only one Director or Shareholder is really good for those who want to go solo as far as ownership is concerned.

XI. Privacy of Key Personnel

Give preference to the jurisdiction that does not show publicly accessible records of Directors or Shareholders. For example, St Vincent & Grenadines shows the company details publicly but doesn’t show the director’s details to the public.

You need to pay approx USD 250 to see the details. That’s some barrier for nuisance creators. On the contrary, the United Kingdom shows not only the company details but also the directors’ names and addresses.

XII. Banking Secrecy

Government agencies are really sneaky these days. You might want to maintain secrecy on your banking details. Look for jurisdictions that have stringent rules regarding how regulatory and law enforcement agencies get access to your banking details.

You might not find everything in one jurisdiction so try to look for the best fit for your requirement.

IMPORTANT: We are sharing these points in good faith that you have every intention to run a legitimate business. And have no intention to run a fraudulent fx broker business. It’s just that these things are time and money consuming and don’t add much to your top line.

But they are all important all the same time. So even if your jurisdiction is lenient you must run a fair and clean broker business. Keep all the traders and financial records.

Even the most lenient jurisdictions want to offer ease of doing a legitimate business. If you indulge in fraudulent and illegitimate activities you are not going to get a free ride.

How to register a forex company?

Forex Company Registration is done using a consultant that would help you with document screening, application, and statutory filings.

  1. Search for the forex company formation consultants
  2. Shortlist 3-4 consultants
  3. Contact them and share your requirement and ask for their guidance on which jurisdiction is best for your business requirement. They would want to know the countries you would want to operate your forex brokerage in. Do share everything with them so that they could guide you properly.
  4. Decide the jurisdiction where you want to incorporate your forex business
  5. Arrange the docs and screen them once yourself. It would be good if you get the documents notarized locally.
  6. Make the payment for Forex Broker Company Registration Cost
  7. Share the documents with the consultant
  8. Help the consultant with the screening of documents and filling out the application form
  9. Your forex broker company gets formed
  10. Your consultant shares the Company Certificate, Memorandum of Articles, Share Certificate, etc.
  11. Most jurisdictions’ authorities have a website where one can search and find the company registered with them. Do check your company details on the respective website.
  12. You are good to proceed with the other steps of the forex brokerage business setup

List of Documents Required for Forex Company Registration

Whichever jurisdiction you choose for the Forex Company Registration, there are a few standard documents that you would need for the formation process.

Sharing an indicative list of documents for your reference here.

  • Passport of director(s)
  • Utility Bill (Electricity, Water, Gas, Land Line, etc)
  • Bank Letter of good standing
  • Source of fund
  • Additional Identity Proof

Please note that this list may increase or decrease depending on the jurisdiction and their KYC and AML checks. But the first 2 documents in the list i.e. Passport & Utility Bill are common requirements everywhere.

Forex Broker Company Registration Cost

Forex Broker Company Registration Costs between USD 1200-1500. It includes the company formation fee, consultant fee, virtual address, document screening, application processing, etc.

A point worth noting is that the statutory business filings and renewals may cost you around 30-40% or USD 500-800 of formation charges.

Corporate Bank Accounts for Forex Brokers

The next logical step after the forex company formation is to get a Corporate Bank Account. Check with your consultant for the best Corporate Bank Accounts for Forex Brokers.

Although several start-up brokers skip opening a bank account for forex brokerage business we advise you to get it right at the beginning.

A good bank account for your forex brokerage will help you to process payments to your vendors, receive the deposits from your clients and make withdrawals, and most importantly get a payment gateway solution integrated with your forex brokerage business.

Some consultants suggest opening a bank account for your brokerage business within the same jurisdiction while same may suggest you open it in another jurisdiction.

Do check with them about the pro and cons of opening a bank account in one jurisdiction over other and decide what’s best for you.


We have tried to cover different aspects of the forex company formation process, requirements, costs, and key considerations. Hope it gave you greater clarity.

You might be wondering which jurisdiction is the best for you when someone is considering Forex Company Registration. And there is no standard answer to that but will share how you can decide.

  1. First, you need to see who are your target customers and the countries where they are located.
  2. Now go and find the jurisdiction that allows onboarding clients from most if not all the target locations.
  3. Select 2-3 jurisdictions and then go and see which jurisdiction offers the most from the list of things to consider that we discussed above.
  4. Choose the jurisdiction that meets most of the requirements.
  5. Offshore forex company formation cost comes last as it’s almost similar for different jurisdictions.

Offshore forex company formation is the very first step towards the setup of your own forex brokerage business. Be a little careful but do not let the analysis paralysis hold you from moving ahead.

Decide a jurisdiction and get the forex company formation done.

It’s just a beginning of a long journey.

Wish you great success.

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