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Forex Company Formation Guide for Brokers

So you have decided to start your own forex broker business! Congratulation! Forex company formation is the very first step in the process of forex brokerage business setup. Every legit business needs a registered company.

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.

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, etc.

You will need an offshore company to do the KYC to get the services, solutions, vendors, etc.

List of top Jurisdictions where one 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 linient 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

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

The jurisdiction should offer strong Asset Protection

III. Privacy Policy

Does the jurisdiction have a strong Confidentiality law providing the protection against disclosures

IV. Double Taxation

You should search for a jurisdiction that offers No Double Taxation Treaties or sharing of trading activities

V. Low Incorporation and Annual Fees

This is very essential especially when you are starting up and want to test the waters first. You need funds for other things.

VI. Local Stamp Duty Requirement

Search for a jurisdiction that offers Stamp Duty Exemption on share and property transactions for a substantial duration like 25 years in St Vincent

VII. Financial Reporting Norms

There are jurisdictions that allow No or lenient Financial Reporting Requirements. You might want to go easy on the initial years of your business.

VIII. Fast Incorporation

Ideally it shouldn’t take more than few days or a week to incorporate a forex company.

IX. Capital Requirements

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

Only one Director or Shareholder I really good for those who want to go solo as far as ownership is concerned.

XI. Privacy of Key Personnel

No publicly accessible record 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, United Kingdom shows not only the company details but also the directors’ name and their addresses.

XII. Banking Secrecy

The government agencies are really sneaky these days. You might want to maintain secrecy on your banking details.

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

How to register a forex company?

Forex Company Registration is done using a consultant that would help you with the 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 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 consultant
  8. Help the consultant with screening of documents and filling 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 the 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 forex brokerage business set up

List of Documents Required for Forex Company Registration

Whichever jurisdiction that you choose for theForex Company Registration, there are few standard documents that you would need for the formation process. Sharing an indicative list of documents for your reference here.

  • Passport
  • 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, documents screening, application processing, etc.

Poin 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 the opening bank account for forex brokerage business but we advise you 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 them withdrawals and most importantly to get a payment gateway solution integrated with your forex brokerage business.

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

Do check with them the pro and cons of opening bank account in a jurisdiction over other and decide whats 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 who allows to onboard clients from most if not all the target locations.
  3. Select 2-3 jurisdictions and then go and see which jurisdiction offers most from the list of things to consider that we discussed above.
  4. Choose the jurisdiction that meets most of the requirement.
  5. Offshore forex company formation cost comes last as its 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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