Setting up a company with a UK Forex licence. Service offer

There are three main categories of licences relevant to forex broker platform services in the UK:

A dealer licence or intermediary licence allows a company to offer contracts for difference (CFDs) in forex, commodities, futures, and shares to retail and wholesale clients. A restricted licence allows a company to introduce clients to dealer or intermediary companies.

Regulator: Financial Conduct Authority (FCA).

Main governing legislation: Financial Services and Markets Act 2000 (FSMA).

1. local qualified director;
2. physical office in the UK;
3. local qualified Compliance Officer;
4. developed and accepted AML procedures in place, with a strict code of conduct implemented by the FCA;
5. individually drafted business plan and financial projections for 3 years;
6. Due Diligence and the fit and proper test successfully passed by the individuals in the structure;
7. paid-up minimum share capital (depending on the licence category: from EUR 50 000 to EUR 730 000);
8. external auditor.

The business plan needs to include the following sections and information:

A) Goals and clients:

• as detailed as possible an explanation of the business and its origin (including its legal structure and creation);
• goals (e.g. business opportunities, market share, objectives, assets under management);
• target market, key clients, distribution, products, and prices;
• marketing strategy;
• services that the clients of the business will receive;
• key dependencies and business risks.

B) Personnel and management:

• proposed investment strategies, commission and remuneration policies, management structure and key personnel;
• experience of the company’s management in the regulated activity that they propose to carry on;
• work experience, professional experience, and relevant qualification of each individual performing supervised or senior management functions and how this will assist them in the performance of their functions;
• analysis of key risks of employee behaviour.

C) Plans and projections:

• long-term strategy and expansion plans;
• outsourcing plans or other key operational issues;
• financial projections for one or three years, depending on the MiFID status.

The application assessment time by the FCA is 6 to 12 months after the full set of documents is submitted.

The cost of renting an office with a separate address depends on the size and location of the premises, as well as the amenities available.

By way of example, renting an office of 14 sq. m may cost GBP 1 500 per month + VAT.

Effective management in the UK requires a local qualified director who will need to be approved by the UK financial regulator, be officially employed, and paid a salary, as well as a local Compliance Officer. Depending on its size, a company may also require sales, technical support, compliance, and accounting staff. Staff recruiting services are provided upon request based on business needs, employee’s duties and work schedule.

The fee for such services is 30-35% of the employee’s annual salary.

In the UK, the minimum wage of an employee without any serious qualification is from GBP 1 000 per month (not including taxes and contributions).

The fees of a local professional director qualified for FCA approval start at EUR 7 000 per month, on average.

• passports of the individuals in the structure (2 notarised copies with a notarised translation into English for each individual);
• proof of residential address of the individuals in the structure (utility bill), not older than 3 months (original and 2 notarised copies with a notarised translation into English for each individual);
• bank reference letter for the director and shareholders;
• reference letter from a licensed lawyer for the director and shareholders;
• proof of education in the relevant field (notarised copies with a notarised translation into English);
• CV of the director and shareholders;
• clean criminal record certificate for the director and shareholders;
• completed and signed Application to the FCA;
• Declarations;
• set of documents for bank account opening, completed and signed bank forms (the list of documents depends on the specific bank);
• AML (Anti Money Laundering) procedures;
• Business plan;
• Financial projections for 3 years;
• Balance sheet with projections;
• AML/CFT Declaration;
• confirmation from the bank to the FCA of the paid-up share capital.

Office rent

Compliance fee

[1] The fees are valid as of November 2024.