All types of cryptocurrency trading deals have their pros and cons, but they are all completely different, which is essential to bear in mind. On crypto exchange, people trade real finance on their account. In other words, there’s a sale and purchase of virtual assets and fiat. Forex-brokers use a contract for the difference in the value of CFD, and the trader receives income from the forecast of the value of the asset. Cryptobroker combines the features of these two areas of activity. They can act as financial intermediaries, allowing users to exchange cryptocurrencies between themselves and for fiat. Also, they can provide crypto CFD trading services.
Our specialists are ready to give you professional support in licensing crypto and brokerage businesses and launching such structures. We have vast expertise and knowledge allowing us to achieve the best and most efficient services for our clients.
How can you become a FX broker?
In the FX market, there aren’t only banking institutions and funds, but also private traders who want to earn from difference in exchange rates. All of them are clients of firms called FX brokers.
- Market analysis. To launch Forex structure and the rapid growth of such a company, you need to initially analyze competitors and identify the target audience. The ideal option would be to determine the gender, age, income, place of residence and hobbies of target customers.
- Initial capital estimation. To start a successful and profitable brokerage business, you need to calculate the price of growth for the coming years and think about what expenses you are ready for in the next few months. Calculate and replenish operating and trading funds.
- Licensing for effective trade. By registering in a jurisdiction with a good reputation, you will gain more trust from clients and be able to attract more traders.
Mauritius license for FX broker
Mauritius offers the most favorable and inexpensive environment for registering brokers with ability to work globally. Permit holders have rights to:
- open a company of Forex-brokers;
- provide customers with platforms for Internet-trading and exchanging digital money for fiat;
- enable clients to open their accounts for trading;
- open debit cards;
- process payments, exchange currencies and lend.
No local directors are needed to run licensed firms.
How can you become cryptocurrency broker?
- First it’s necessary to select a platform for work and a provider. The main process of success depends on the choice of platform for trading-deals. Metatrader is considered a popular and powerful platform. cTrader and xStation platforms are also often used.
- Start-up capital is also very important, you need to invest thousands of dollars to get started, the specific amount depends on the country you choose for registration and licensing.
- It is necessary to determine the target states, organize the work of the company and create advertisements, keep records, etc.
- Decide on a KYC partner. Considering the difficulties of working with personal information, it is better to delegate this issue to specialists.
- Gather your team. To work, you need to find IT specialists, technical support, lawyers, salespeople, financiers and other employees.
- You should also choose payment-systems for work. These can be banking cards, Skrill, PayPal, crypto and other options.
- It is also necessary to develop a personal account and interfaces for employees and clients. It is allowed to use ready-made systems or create everything yourself.
Most importantly, you need to choose right country for doing business-activities. Some states, for example, Great Britain, Switzerland or Estonia, are more loyal to crypto-business. It’s more difficult for offshore companies without requirements to work with banking institutions.
Best countries for a crypto broker services
List includes all countries where regulators are active in determining the legal status of digital assets, or have already taken these actions.
- Australia is committed to developing and improving the blockchain. Cryptocurrencies are considered payment options.
- The Hong Kong authorities stated back in 2013 that Bitcoin is considered a virtual product. Thus, other digital assets become the same. Crypto transactions in the country are slightly regulated by local legislative system, but in 2023 these rules will become more stringent, in particular, licensing standards.
- Singapore is also a technological and progressive jurisdiction. This is a great place to register a company and start a business. There is a qualified workforce here, which is important for operational development.
USA, Japan, Australia – universal quality standards
America and Australia are high-tech and very prestigious countries where you can buy a brokerage-license and quickly develop a firm. But normative rules here are quite high, it will be very difficult for small organizations to obtain permits in these countries. You need a minimum initial capital and official registration with the NFA and CFTC, which are controlled by the SEC.
Japan is also considered a very favorable and prestigious jurisdiction for conducting a brokerage business, but even here one can encounter strict selection criteria and excessive requirements.
