Foreign Exchange (FOREX) License
The foreign exchange market, known as Forex, is where currencies from different countries are bought and sold. Companies that want to join this sector need a forex license or a business structure that meets the regulatory requirements of the country where they operate. Getting a license means following specific rules and setting up the right corporate structure.
At Kraemer & Kraemer, we help clients form new companies, acquire existing entities, or handle the direct application for Forex licenses, depending on what local regulations allow. We also prepare the paperwork and guide the legal process so your project meets all regulatory support it needs.
Overview
A Forex license is a legal authorization that lets a company act as a currency broker. This license is issued by a regulatory authority in a particular jurisdiction and is required to offer brokerage services in the international currency market.
Running a forex company without a license can lead to fines, bank account closures, and a loss of trust from clients. This is why many companies choose to set up in countries where they can apply for a Forex license or form a company that works under a license from another jurisdiction.
Requirements and documents
The exact documents depend on the country that issues the main license and on the scope of the project. Basic requirements often include:
- The company’s articles of incorporation and corporate records.
- A detailed business plan.
- Compliance policies (AML/KYC).
- Financial statements or proof of minimum capital.
- Identification documents and references for directors.
- Information on the team’s technical or professional experience.
Who needs this license?
A forex broker license is for those who want to:
- Offer online forex trading platforms.
- Legally act as brokers in currency transactions.
- Set up offshore operations under a regulated model.
On the other hand, those who only provide technical or commercial support to licensed brokers often do not need their own license, as long as they do not handle client funds or carry out trades.
Benefits of having a structured forex company
- Access to banking relationships and payment providers.
- More trust from clients, partners, and investors.
- Meeting the legal requirements of the chosen country.
- Ability to work legally across multiple jurisdictions.
- Legal backing to run brokerage, support, or commercial representation activities.
Available jurisdictions
At Kraemer & Kraemer, we help build legal structures for forex trading, always in line with each country’s rules. We also manage forex broker license applications where local laws allow.
Saint Vincent and the Grenadines
Since 2023, the FSA in Saint Vincent requires companies that engage in Forex brokerage to either provide a certified copy of a valid license from another country, or submit confirmation from the relevant authority if no license is required in that jurisdiction. It is possible to set up a new company or acquire an existing one, as long as requirements like AML/KYC policies and an administrative presence in the country are met.
Panama
Panama is a strong starting point for setting up companies that provide services linked to the Forex market. This activity is regulated through Securities House licenses granted by the Superintendency of the Securities Market, which allow companies to offer brokerage services in foreign exchange and other financial instruments. To obtain this license, a company must meet requirements such as minimum capital, a board with industry experience, and active AML/KYC compliance policies.
Many businesses also use Panamanian structures as holdings, consulting entities, or representatives of brokers licensed in another jurisdiction, benefiting from Panama’s territorial tax system and supportive corporate laws.
Colombia
In Colombia, forex broker activities are limited to authorized financial institutions. However, many companies operate from abroad and serve Colombian clients without setting up locally. It is possible to form a company in Colombia to act as a representative or provide commercial support to an international broker, as long as it does not handle funds or execute transactions from within the country.
Pre-formed companies for other sectors
In addition to setting up companies for forex trading, Kraemer & Kraemer can also help with structures suited to other business areas. These may be entities already formed or ones to be created for regulated or commercial activities in real estate, money transfers, private investment funds (PIF-20), universities, translation services, or projects under white label structures. If you want to discuss options or the next steps, reach out to us. We’ll be glad to review what’s available and show you how to move forward.
General process
How you structure your forex company depends on whether you want to operate as a licensed forex broker or just set up a business for corporate or admin functions. Typical options include:
For those who already have a company in the country that issues the forex broker license, and want to handle just the regulatory license application.
Steps:
- Review compliance and analyze the existing company.
- Prepare the required documents (business plan, AML/KYC policies, proof of capital, team background).
- Submit the application to the relevant regulator and track the process until the license is obtained.
For those who need to set up a new local company in a country that issues Forex licenses and get authorization to run a regulated brokerage.
Steps:
- Define the business model and select the country that grants the Forex license.
- Form the company under local law.
- Prepare the needed regulatory documents and submit the application.
- Follow the process with the authority until the license is received.
For those who want to set up a company for admin, holding, invoicing, or tech development in a country that does not issue forex licenses, while relying on authorization from another jurisdiction for their forex trading activities.
Steps:
- Review the business model and pick the country that fits best (due to tax rules or ease of operation).
- Form the company under local laws.
- Coordinate with the licensed company abroad so the whole group meets compliance and tax rules.
Note: The exact steps, timing, and paperwork depend on the chosen country, the type of forex services, and whether the client already has an active company where the license is held.
Estimated time and costs
Time:
It may take 2 to 4 weeks, while the process to get specific licenses in other jurisdictions could range from 1 to 6 months, depending on the country and regulatory requirements. These are approximate timeframes and may change with each case.
Costs:
They vary by structure, country, and business model. Contact us for more details.
Contact
If you want to run a forex brokerage business legally, contact us. At Kraemer & Kraemer, we help form companies prepared for the Forex market, whether with an active license or with a legal structure built to meet the regulatory requirements of each country.
Frequently Asked Questions
A: Yes. If you want to offer currency brokerage services directly to clients, you need a forex license from the regulator in the country where your company is registered. Many start by forming the company in a place with business advantages, then apply for the license or buy a company that already holds one. At Kraemer & Kraemer, we can help with either option.
A: Having a valid license helps avoid fines, banking problems, and builds trust with investors, clients, and business partners. It also means the company follows the law, which protects the business from complaints and audits.
A: Each country has its own rules. Most issue a forex broker license only to companies formed under their laws. We guide clients through creating these companies and meeting all legal requirements so they can file the application properly.
A: Yes. Some countries require a minimum capital to apply for a forex license. The amount varies widely. Our team can help you check these starting requirements and build your company accordingly.
A: No. Licenses are valid only in the country that issues them and are tied to the company formed there. This means they cannot be used to cover or directly authorize companies in other countries, nor to let other entities act as brokers under that same license. Each jurisdiction has its own laws and regulators. To work internationally, you can build a group with subsidiaries or holdings in other places that collaborate with the licensed company.