Multiple Offshore Jurisdictions with Deneo Partners

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Forex and Contracts for Difference (CFD) brokers from around the world are increasingly turning to foreign jurisdictions to obtain licenses, to the benefit of themselves, their clients, and even the foreign regulators who see their jurisdictions’ economies and reputations flourish due to the presence of these companies.

To cope with the increasing global regulatory pressure, many reputable brokers have wisely diversified their regulatory portfolio, obtaining licenses from several foreign jurisdictions in addition to their European, UK and Australian licenses; some well-known companies even operate only with their foreign licenses.

This approach allows them to take advantage of more favorable trading leverage levels, marketing strategies or promotions, offer CFDs on cryptocurrencies otherwise not accepted by some other regulators, and generally reach traders from more regions worldwide, among other advantages.

Another factor that brokers should take into account when looking for new opportunities in foreign jurisdictions is that more and more of these jurisdictions enforce economic substance requirements, forcing companies to set up local offices and hire local staff, in response to international tax and compliance. guidelines

Banking and payment provider options also present a challenge with opening bank accounts for foreign regulated entities, with some financial institutions even requiring legal opinions to be provided for certain regulations and others requesting other reputable licenses that brokers might have with other regulations.

From our years of professional experience in the industry, Deneo Partners has identified the key areas that Forex and CFD brokers look at and evaluate when choosing the jurisdiction that best fits their business model and strategic goals going forward:

· Reputable regulator and jurisdiction: Regulators such as the Financial Services Authority of Seychelles (FSA) and the Financial Services Commission of Mauritius (FSC) have long become prominent figures on the regulatory map for new starters and existing global brokerages alike, indicating a solid and profitable . trading environment for Forex brokers, increasing their competitiveness to attract clients from more countries worldwide.

· Favorable business environment: Brokers choose jurisdictions in which they and their clients feel comfortable dealing, taking into account moderate regulatory and reporting obligations, tax regimes, running costs and short periods of time to be licensed and start operations.

· Type of services to be offered: The business model of most brokers is designed for A-Book, also known as Straight Through Processing (STP), and B-Book, also known as Market Maker, as well as for the provision of Portfolio Management . services, all of which are offered by most foreign regulators.

· Regulatory requirements and annual costs: Each foreign jurisdiction regulator has specific requirements of its licensees when it comes to a minimum amount of initial capital, number of shareholders and directors, compliance, audit and professional indemnity insurance, among others, which brokers must evaluate beforehand. deciding on the jurisdiction. For example, while the BVI FSC has a regulatory capital of up to US$1 million, the operating costs are low and it also offers a favorable tax environment and economic stability in the long term.

· Length of time to be licensed: The standard period to obtain a license and start operations in most foreign regulated jurisdictions is 4 to 6 months, while registrations such as in St. Vincent and the Grenadines allows brokers to start operations in 2 to 3 weeks.

· Local presence requirements: Many regulators prefer local substance of their licensed companies, including a local office where resident employees and directors are based, with Vanuatu joining their ranks in the last year; a factor that may vary by jurisdiction. In some cases, this can also help brokers to have favorable tax rates, ie in Seychelles.

· Bank availability: Banking is generally a dynamic environment, especially when it comes to the Forex and CFD industry, with banks and other alternative payment institutions changing their requirements to open corporate and client bank accounts for brokers on a near daily basis. .

Below is an overview and comparison of some of the popular foreign jurisdictions for obtaining a merchant license, including the basic regulatory requirements, estimated application timelines and availability of banking/e-money institution (EMI) providers:

Although officially it is considered a registration rather than a foreign regulation, the Saint Vincent and the Grenadines still offers a quick and easy way to operate:

To contact and book a consultation with Deneo Partners, please click here or email us at info@deneopartners.com and via our social media at:

• Facebook: https://www.facebook.com/deneopartners/

• LinkedIn: https://cy.linkedin.com/company/deneo-partners

Forex and Contracts for Difference (CFD) brokers from around the world are increasingly turning to foreign jurisdictions to obtain licenses, to the benefit of themselves, their clients, and even the foreign regulators who see their jurisdictions’ economies and reputations flourish due to the presence of these companies.

To cope with the increasing global regulatory pressure, many reputable brokers have wisely diversified their regulatory portfolio, obtaining licenses from several foreign jurisdictions in addition to their European, UK and Australian licenses; some well-known companies even operate only with their foreign licenses.

This approach allows them to take advantage of more favorable trading leverage levels, marketing strategies or promotions, offer CFDs on cryptocurrencies otherwise not accepted by some other regulators, and generally reach traders from more regions worldwide, among other advantages.

Another factor that brokers should take into account when looking for new opportunities in foreign jurisdictions is that more and more of these jurisdictions enforce economic substance requirements, forcing companies to set up local offices and hire local staff, in response to international tax and compliance. guidelines

Banking and payment provider options also present a challenge with opening bank accounts for foreign regulated entities, with some financial institutions even requiring legal opinions to be provided for certain regulations and others requesting other reputable licenses that brokers might have with other regulations.

From our years of professional experience in the industry, Deneo Partners has identified the key areas that Forex and CFD brokers look at and evaluate when choosing the jurisdiction that best fits their business model and strategic goals going forward:

· Reputable regulator and jurisdiction: Regulators such as the Financial Services Authority of Seychelles (FSA) and the Financial Services Commission of Mauritius (FSC) have long become prominent figures on the regulatory map for new starters and existing global brokerages alike, indicating a solid and profitable . trading environment for Forex brokers, increasing their competitiveness to attract clients from more countries worldwide.

· Favorable business environment: Brokers choose jurisdictions in which they and their clients feel comfortable dealing, taking into account moderate regulatory and reporting obligations, tax regimes, running costs and short periods of time to be licensed and start operations.

· Type of services to be offered: The business model of most brokers is designed for A-Book, also known as Straight Through Processing (STP), and B-Book, also known as Market Maker, as well as for the provision of Portfolio Management . services, all of which are offered by most foreign regulators.

· Regulatory requirements and annual costs: Each foreign jurisdiction regulator has specific requirements of its licensees when it comes to a minimum amount of initial capital, number of shareholders and directors, compliance, audit and professional indemnity insurance, among others, which brokers must evaluate beforehand. deciding on the jurisdiction. For example, while the BVI FSC has a regulatory capital of up to US$1 million, the operating costs are low and it also offers a favorable tax environment and economic stability in the long term.

· Length of time to be licensed: The standard period to obtain a license and start operations in most foreign regulated jurisdictions is 4 to 6 months, while registrations such as in St. Vincent and the Grenadines allows brokers to start operations in 2 to 3 weeks.

· Local presence requirements: Many regulators prefer local substance of their licensed companies, including a local office where resident employees and directors are based, with Vanuatu joining their ranks in the last year; a factor that may vary by jurisdiction. In some cases, this can also help brokers to have favorable tax rates, ie in Seychelles.

· Bank availability: Banking is generally a dynamic environment, especially when it comes to the Forex and CFD industry, with banks and other alternative payment institutions changing their requirements to open corporate and client bank accounts for brokers on a near daily basis. .

Below is an overview and comparison of some of the popular foreign jurisdictions for obtaining a merchant license, including the basic regulatory requirements, estimated application timelines and availability of banking/e-money institution (EMI) providers:

Although officially it is considered a registration rather than a foreign regulation, the Saint Vincent and the Grenadines still offers a quick and easy way to operate:

To contact and book a consultation with Deneo Partners, please click here or email us at info@deneopartners.com and via our social media at:

• Facebook: https://www.facebook.com/deneopartners/

• LinkedIn: https://cy.linkedin.com/company/deneo-partners

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