Do I need to get a license to start a Forex business? Forex trading is, at its most basic, simply buying currency at a low price and then, hopefully trading it for a higher price in order to make a profit. Many people are drawn to Forex trading by the possibilities of swift wealth accumulation as well as the ease with which trading can be commenced. There is often considerable confusion about when Forex businesses require a licence and when they can trade without one. Take a look at circumstances where licensing is important and where it can be avoided
Who is your audience?
If you're simply trading using your own monies and aren't investing resources belonging to other people or agencies, then there is no need to be licensed. Coddan Ltd can give you information regarding everything you need to do to get your limited company registered, incorporated and operational, either abroad or in the UK. Once your organisation has been legally constituted, you can trade as and when you wish with your own resources.
Foreign incorporation: if you base your business outside the UK, for example in Belize or Panama, then you can invest using money from other people, provided you adhere to the rules of the country where your company is registered. Many offshore locations do not require brokers to be licensed in order to work. Coddan Ltd can advise on those countries which might best suit your needs for a corporate base, as well as help with all the necessary paperwork.
UK trading: whilst you do normally need a license if you're intending to offer a brokerage service to UK customers and are UK based, you can still legally trade in the UK and offer brokerage services without a license in some circumstances. Coddan Ltd have a significant track record in providing specialist advice on all aspects of Forex trading start-up and can give you further information.