Forex license – how to choose, and which regulation to consider Choosing a suitable Forex license to establish a brokerage company, is a key business decision that requires taking many parameters into consideration including a set of regulatory procedures and compliance with domestic, community and international provisions and requirements.To get more news about fsc regulated forex brokers, you can visit wikifx.com official website. So, before you start planning and structuring your business you need to consider which regulatory jurisdiction offers you the best options to run your business. The forex market is growing every day, and numerous Forex brokerage companies are becoming active and being licensed in an increasingly regulated, competitive, and demanding setting. That is why each case should be analyzed properly, since one or more factors may play a decisive role. Below, we present the main criteria to consider when choosing the most appropriate forex license for running the business: Registration and maintenance cost – costs depend on the jurisdiction you might have a really high cost when registering a new entity and numerous of procedures involved. Some jurisdictions are well known for their low fees and requirements, which means the incorporation process is more accessible and less time-consuming. Broker forex licenses – Although there are few offshore jurisdictions where Forex brokerage firms are not regulated, the list is constantly shrinking and many brokers need to make a crucial decision about whether to run a regulated business and which jurisdiction is best for their business needs. The broker license is pretty expensive and obtaining it takes time (from several weeks to a year). However, you must be aware that doing business in an offshore jurisdiction where Forex is unregulated might be negatively viewed by your partners (investors, clients and banks). What exactly does the FCA do when it comes to regulating the retail FX / CFD industry? Protecting Consumers: One of the main roles of the FCA is to protect consumers and ensure that consumers don’t become victims of scams or end up being tied into unfair contracts. Supervise Firms: The organization plays a significant role in supervising the activities of regulated firms. The FCA performs regular assessments of firms’ conduct, with the largest firms being continuously assessed over rolling two-year periods. Fines and Disciplinary Action: The FCA has the power to fine investment services firms which breach UK regulatory law, these fines can be substantial and are a powerful tool when disciplining and encouraging firms to operate within the law. In addition the FCA has the power to revoke firms operating license should the regulatory breaches be particularly severe or the FCA doesn’t feel the firm will implement changes to prevent future breaches. Warnings: The FCA regularly releases warnings regarding the operation of unregulated firms. This helps protect consumers from doing business with unregulated firms and is an important part of consumer protection. You can find warnings regarding unregulated firms here.