Do you need a license to trade forex

Do you need a license to trade forex

19/11/ · The Series 34 is an exam and license required for individuals seeking to engage in off-exchange forex transactions with retail customers. It is part of the registration and certification process 21/05/ · Finally, unless you are trading for a couple very close friends and family members (still need a contract), do not go farther without proper state registration. Otherwise you can get hung out to dry and accused of providing a professional service without registration It is the forex brokers that need to comply with some regulations, particularly in the US. All the reputable forex brokers over the world hold regulatory licenses. For instance, Fxview is licensed by Cyprus Securities and Exchange Commission, IG holds the license of FCA

Do You Need A License to Start a Forex Proprietary Trading Firm / Prop Desk? - Atomiq Consulting

Our team has been engaging potential clients in many discussions surrounding all aspects of launching a prop trading desk.

As a starting point, we must first define a forex prop shop before we can offer guidance on the type of licensing required, do you need a license to trade forex. Before we can understand whether or not a license is required to run a prop desk, we would fist need to understand the business model. The traders can either bring in their own funds or are seeded capital directly by the prop firm, usually with specific criteria concerning drawdowns and performance.

The returns can either be held privately by the prop firm or are marketed to investors as an investment package. The main difference between a traditional prop firm and this new variation is that with a demo prop shop, returns are paid based on demo account performance only; in some cases these entities are also operating as a traditional prop firm where demo accounts are used to seek out profitable traders.

In our opinion though, it will be more challenging to operate unlicensed. Many liquidity providers will not legally be able to work with an unregulated money manager, which is how they often classify such firms.

This also means that banking options will be more difficult to secure without a license. For this reason, a license is highly recommended for any serious forex prop trading firm. Not only does an asset management license open many banking doors for the opr firm, it will also make it much easier for to obtain liquidity and keep the firm away from less reputable providers.

Because this model is new, specific licensing represents a grey area with no clear answer. In our opinion most of these firms will operate unlicensed since they are only providing demo trading to their users. In many cases, such companies may become victims of their own success.

As the firm grows bigger, it may catch the eye of local regulators. Because this model is so new, local regulators err on the side of caution and may require licensing as their main goal is the protection of clients, even if demo trading is all the firm is offering.

Because regulators are always several steps behind emerging trends and technology, the typical response is to ask for regulation while they can examine the business model.

For this reason, if your prop firm is growing, it would make sense to consider a licenseeven if it is not necessarily required. Atomiq Consulting keeps a pulse on the latest industry trends, being one of the first do you need a license to trade forex firms do you need a license to trade forex offer guidance on this topic. Powered by Contextual Related Posts.

Have a look at some of the additional services our clients have found to be helpful in the growth of their business. Contact us now! Related Posts: What is an FCA Appointed Representative AR? How to Get a Forex Broker License? Contact us Skype us. Tagged as:. Subscribe To Our YouTube Channel. Recent Posts Local Agent Vs, do you need a license to trade forex. Consulting Firm — Which is Better for Obtaining a Forex Broker License? The biggest challenge forex brokers face when exploring new licensing ….

Forex Trading for Beginners

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Do You Need a License to Trade Forex? - Faze

21/11/ · Only in countries like the USA, UK, Australia you need a license to trade other people's money, I suppose . Since forex is not regulated in most countries.. In all countries as a hedge fund manager u need license to trade, if u dont have you are not 08/05/ · While you need a Series 7 if you're trading stocks & commodities for others, you don't need any special license to trade the FOREX for others. That's another beautiful thing about this market. No unnecessary regulations. Let your profits be your proof that you are a good trader 19/11/ · The Series 34 is an exam and license required for individuals seeking to engage in off-exchange forex transactions with retail customers. It is part of the registration and certification process