- Start from your clients and partners, not from the cheapest or fastest option.
- Your model (market maker or STP) decides the licence category.
- Recognition by banks, PSPs and liquidity providers matters as much as the licence itself.
- Substance is a recurring cost; plan it before you apply.
1. Start with your target clients
Where your clients live decides which licences are even possible. To market to EU/EEA clients you need an EU licence such as a Cyprus CIF. For the Middle East, a UAE licence carries the most weight. For global clients outside the EU, UK and US, regulated offshore centres such as Mauritius or Seychelles are common.
2. Define your business model
Will you take the other side of client trades (market maker / B-book) or pass them to liquidity providers (STP / A-book)? Dealing on own account usually needs a wider permission, more capital and a risk function. See licence types.
3. Weigh recognition
Banks, payment providers and liquidity providers each run their own due diligence. A licence they recognise opens accounts faster and on better terms. Light offshore licences can be quick to obtain but hard to bank.
4. Balance speed and substance
Faster routes need less local presence; stronger licences need offices, resident directors and officers. Decide what substance you can realistically maintain for years, not just for the application.
5. Shortlist and compare
Use the licence finder for a first shortlist and the comparison table to compare like with like. Then discuss the shortlist with an adviser who knows current regulator practice.
Frequently asked questions
What is the best forex licence for a new broker?
It depends on clients and budget. Many new brokers choose a regulated offshore licence such as Mauritius or Seychelles for a balance of credibility and cost.
Can I change jurisdiction later?
Yes. Many groups add a second, stronger licence as they grow. Plan the group structure from the start.