United Kingdom

The United Kingdom (UK) has been a global economic powerhouse for centuries. 


United Kingdom

As the City of London is one of the financial capitals of the world, it is home to some of the largest financial institutions in the world.

The forex regulatory procedure outlined by the Financial Conduct Authority (FCA), UK is considered one of the most stringent legal frameworks for the forex industry in the world.

The FCA regulates the financial market by enforcing the Financial Services Act 2012 and the Bank of England and Financial Services Act 2016.

The UK forex license is highly prized and the holders take pride in compliance of laws.

Three Types of Licenses are issued :

  • Dealer License  – a full license equivalent to “Market Making”, the owner has the option to run a B-Book as the client’s counterparty. Capital Requirement £660,000 (EUR 730,000)

  • Intermediary License – a “Matched Principal” license limiting a broker’s activities to Straight-Through-Processing (STP) of orders in the case of an Agency or A-Book model. Capital Requirement £113,000 (EUR 125,000)

  • Restricted Broker License – an introducer license allowing sales and marketing but not authorized to hold client funds. Capital Requirement £46,000 (EUR 50,000)

(A Dealer or Intermediary license allows a firm to offer Contracts for Difference (CFDs) in forex, commodities, futures and shares to retail and wholesale clients.  Whereas a Restricted license would allow a firm to introduce clients to a Dealer or Intermediary firm.)

  • Time frame: Approximately 6 – 12 Months
  • Taxation: 
    • Corporate Tax: 17%
    • Capital Gain Tax: 10%
  • License: Forex License
For each Director, Shareholder and Ultimate Beneficial Owner:
  • Notarised / Certified True Copy of Passport
  • Notarised / Certified True Copy of Proof of Address
  • Notarised / Certified True Copy of Bank Statement
  • Notarised / Certified True Copy of University Diploma
  • Criminal record certificate
  • Reference Letter by Bank
  • Reference Letter by Lawyer
  • Curriculum Vitae (C.V.)

For each Corporate Shareholders of the company:
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of associations
  • Articles of Incorporation
  • Register of Directors  
  • Register of Shareholdings
  • Certificate of Good Standing (if the company is over a year old)
  • Signed and notarised application forms

Other Required Documents:
  • The Memorandum of Association of your company
  • The Articles of Association of your company
  • Company manuals for internal and external procedures
  • Liquidity Provider Agreement
  • Proof of Source of Wealth
  • A detailed Business and Financial Plan
  • Supervisory and Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Manuals
  • Know Your Customer (KYC) documents of directors, beneficial owners and affiliates
  • Proof of Professional Indemnity (PI) Insurance
Company structure:
  • Minimum 1 shareholder (natural or legal person, no nationality restriction)
  • Minimum 1 local director
  • Beneficial owners’ details will be disclosed to the authorities
  • Shareholders’ details are part of public record
  • Directors’ details are part of public record

  • Corporate Income Tax: 17%
  • Capital Gain Tax: 10%

Accounting and Auditing:
  • Capital adequacy requirements must be calculated daily
  • An audited financial statement must be submitted annually
  • Interim financial statements prepared in accordance with generally accepted accounting principles must be submitted monthly
  • Any material changes to the firm, its operations or people must be informed as and when necessary

To demonstrate “mind and control” from within the UK, your company needs:
  • A physical presence
  • A designate a Compliance Officer and a Chief Executive Officer (CEO) who must be based in the UK (each must pass fit and proper tests and be approved persons by the regulator)
  • Depending on the size of the firm, sales, technical, compliance and accounting staff may also be required
  • Legal Framework: Financial Services Act 2012 and the Bank of England and Financial Services Act 2016

  • Regulatory Authority: Financial Conduct Authority (FCA), UK

  • Capital Requirement:
    • Dealer Licence – £660,000 (EUR 730,000)
    • Intermediary Licence – £113,000 (EUR 125,000)
    • Restricted Broker Licence – £46,000 (EUR 50,000)

Permitted Activities:
  • Licensed brokerages are allowed to engage in forex trading and trading of derivative instruments (securities, futures, options, contract for differences etc).
  1. Compile and prepare of all of the documents for initial verification

  2. Incorporation of a company in the United Kingdom (UK)

  3. Submit the application of Forex License to Financial Conduct Authority (FCA)

  4. During the process, FCA might require additional documents that will have to be provided in order to back-up specific information

  5. Offshore Tech & Intermediary Services will liaise with FCA on follow-up actions

  6. If all conditions are met, provisional approval will be granted by FCA

  7. We will provide a local office and a list of qualified employees, as the experience and qualifications of personnel constitute one of the most important elements of a successful application
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