In accordance to the Estonian law, services such as forex broker services qualify as "investment services". Companies that carry out forex activities require a special license the EFSA, are governed by domestic law Securities Market Act, as well as the MIFID - EU directive of financial instruments on the EU markets.
Forex license EFSA
EFSA issues licenses to companies registered in Estonia, with an address in Estonia and the main activities in Estonia.
Licensed activities that require a license of investment are as follows:
• stock market (securities)
• other services related to securities
• forex broker services
• e-money services.
In accordance to the Law "About the Securities Market" in Estonia under the term securities falls:
• shares or other equivalent rights, which are in circulation
• debentures, convertible securities, other debt obligation that is issued and in circulation, and is not an instrument of money market
• the right to acquire securities
• Shares in the investment fund
• money market instrument
• derivative security or derivative contract
• outstanding evidence of the deposit of the securities.
In order to meet to obtain a license, a company must be registered with the organizational-legal form.
Limited liability company in Estonia. Leaders of any regulated entity must meet certain requirements - have the appropriate education and experience (to be provided CV, certificates of education), as well as having an impeccable reputation (no bankruptcy cases, license revocation, criminal record, etc.). Shareholders with significant part in the management of the company must also have an impeccable reputation and have no record of criminal offenses. In addition, EFSA will assess their financial situation.
Requirements to the capital for the license of a forex broker:
50,000 euros, if the company provides the following services:
1) reception and transmission of orders related to securities
2) execution of orders related to securities on behalf of or for the account of the client
125,000 euros, if the company provides the following services:
1) portfolio management
2) the organization offer or issue of securities
3) custody and management of securities for the client, as well as related activities, including the transfer of securities, mortgage securities and other actions related to the encumbrance of securities of clients and transfer for execution
730,000 euros, if the company provides the following services:
1) securities transactions for own account;
2) provision of securities or guarantee of the offer, issue or sale of securities;
In each case, you must provide proof of the origin of funds.
Thus, for the STP type of license is requires an authorized capital in the amount of 125,000 euros for the license MarketMaker - 730,000 euros.
Received the license of the forex broker, the company has the right to certify its activities in any country in the Eurozone. To do this, you must submit a set of documents to the Supervision Authority: State name in which the company is planning activities, as well as a business plan describing the activities and services with sworn by appropriate transfer of the necessary documents.
Requirements for staff of company
1) ensure that workers should have sufficient skills, experience and competence to perform professional or official duties;
In accordance with the law, the person concerned:
2) the investment manager of the company and its investment agent;
3) the investment manager of the investment company agent;
4) the investment firm and its employee investment agent, which is involved in the provision of investment or ancillary services or perform investment activities;
5) a physical person who is involved in the provision of investment services to investment companies and whose services are placed at the disposal and under the control of the investment company or investment agent;
6) a physical person who provides the relevant services of the investment company or investment agent under the agreement on the transfer of operations.
Managers CEO of forex broker
(1) Only people who have the education, experience and professional qualifications necessary to manage forex companies and who have an impeccable reputation may be elected or appointed heads of forex companies.
(2) the company's forex management board shall consist of not less than two members.
(3) The members of the board of forex companies must have a university degree or its equivalent education and experience necessary to manage their respective companies.
To apply for a license EFSA, must be given a full set of documents to the applicant company (some of them may be related to the operating company, and not to the newly established entity).
The procedure for submitting and reviewing applications to EFSA lasts from 3 to 6 months. State fee for filing an application is 1000 Euro.
The cost of our services for the preparation and submission of the application, the internal rules, policies and other documents based on the pre-agreed scope of work, help in collecting all necessary documents is from 10,000 euros. In the event of additional work, such as the long-term debate about the compatibility with the Estonian business regulation, additional proceedings with EFSA (the preparation of responses to their additional requests, participation in meetings), will be charged an additional fee based on hourly work.
If you need help in obtaining Forex license in Europe or elsewhere, contact our expericenced specialists, call us via telephone, or send us e-mail. We shall advise you appropriate forex jurisdiction appreciating your budget and requirements.