How to start a brokerage in 2023: the options

Author: Anastasia Taganova

Starting a brokerage company in 2023 can be tricky. The market is booming and is very lucrative, but the bureaucratic side of the KYC process for MetaTrader 5 can be difficult. Don’t be discouraged by the potential challenges, though! TFB is here to help, and today we will look at the options that potential brokers have when it comes to launching their businesses in the current environment.

The current trend for new brokerages

For a long time, the UK and SVG were among the top favoured jurisdictions for launching a brokerage. However, these days they are no longer as appealing as they used to be due to recent changes to requirements and regulations.

The instability and added risks that come with getting licenses from certain jurisdictions have pushed many aspiring brokers to look for comprehensive Forex licenses from the start. These licenses might cost more and take longer to obtain but ultimately allow for more predictability and security for the business in the long run.

To avoid complications with company formation and licensing, some brokers choose alternative trading platforms to launch their business on, for example, cTrader, which TFB also supports. cTrader is rather flexible and gives much more room for maneuvering, so it’s worth considering all the options available.

Top jurisdictions to launch a brokerage in 2023 by TFB

When deciding on a jurisdiction, every broker should only focus on their unique situation and identify what works best for them. Still, below are the options that we believe present a nice balance between the speed of launch and the credibility of the license.

Saint Lucia, Anguilla, Mwali (Moheli), or Marshall Islands

• The estimated timeline is 1 to 2 weeks.
• A faster solution but not a full license.
• Can offer FX/CFD services backed by a local legal opinion.
• Ideal for startups and if you are short on time.

Comoros

• The estimated timeline is 3 to 4 weeks.
• Fast and cost-effective license.
• A suitable choice for young brokerages.

Mauritius or Seychelles

• The estimated timeline is 4 to 6 months.
• A prestigious license that enhances credibility.
• Suited for growing brokerages.

Obtaining a fully-fledged Forex license

The options we shared above present versatile alternatives for brokers with different resources available at the start. Later, once the brokerage starts generating revenue and growing, brokers can upgrade to a fully-fledged Forex license to secure long-term sustainability and scalability.

Getting a proper license from MetaQuotes can be somewhat complicated, but as long as you pay attention to detail and do your due diligence, you have a greater chance of the entire process going smoothly.

Here are the key steps from MQ’s KYC process to watch out for:

• Corporate bank account confirmation with your full company name stated.
• Documented proof of the company operating in the financial field (such as Financial Services, Brokerage Services, Investment Services, Investment and Trading, Fund Management, etc.).
• Proof of the physical address with the full company name on the papers.

How can TFB assist you?

At TFB, we are dedicated to helping brokers launch their MT5 brand as quickly as possible. We have curated the best offers for company formation services in the market. By leveraging a network of professionals with direct contacts with MetaQuotes, we can introduce brokers to various options, enabling them to make an informed choice that aligns with their goals and aspirations.

And in terms of technology to power your future brokerage – we have you covered here too. TFB offers an ecosystem of solutions that target both the key and niche needs of brokers. Our solutions are feature-rich and flexible, and they will enrich the workflow of any brokerage, no matter the size or focus.