Can I work without receiving a Forex permit?
Several trillions of dollars pass through the Forex every day, making it a leader in the financial market. More than 9 million traders worldwide participate in it, which increases significantly yearly. It is due to more significant economic opportunities and access to trade on international currency markets. However, you must obtain a forex trading license to work there.
Forex and its rules
If you want to engage in trading legally, you need permitting. This is because, in this field of activity, specific standards and rules are established at the legislative level in each state where the relevant authorities control such financial activities. Working there without a certificate will not be possible to achieve the desired economic success. This is because all permitted firms (and many more of them) also prefer to deal with partners with the appropriate permit. After all, such a document confirms the honesty and transparency of operations.
Without a certificate, the trader’s activities will be considered illegal. If he continues to work, he can only cooperate with the same unpermitted partners of dubious reputation. All this may result in dishonest financial transactions, legal proceedings, and substantial financial losses. Only permitted traders can effectively develop and expand their activities due to the opportunity to enter this market.
What will the illegal activity of a trader lead to?
By working in this market without special permission, a trader breaks the law and loses the following opportunities that benefit business expansion.
Lack of trust
An unpermitted broker will not inspire confidence among clients and potential partners. This is because they need more faith in the honesty and transparency of your activities, which means there is a high probability of losing their money.
Illegal transactions with shadow structures are possible since there will be no permission for legal currency trading. Only permitting provides guaranteed protection and the opportunity to conduct business with reliable partners honestly.
Difficulties with access to banking services
Only some banks would want to service a trader who has legal permission to do so. Therefore, opening a bank account takes much work and effort.
Emergence of increased risks
Without a permit, a trader will be exposed to enormous financial and legal risks associated with his activities. Only permitting can protect your business from illegal operations and dubious transactions that the competent authorities will detect. It leads to business closure and litigation.
Business development will be impossible
It will be possible to engage in trading with access to the market fully. No certified firm would want such cooperation, and clients would prefer traders with permission to trade. Such an attitude will not contribute to business expansion but will only lead to various problems: financial losses and a ban from regulatory authorities on conducting illegal activities.
All this suggests that if you want to invest and increase your capital successfully, then only after passing the permitting of a broker will you have this opportunity.
How do you start a business in this area?
First, people will have to decide on the country for permitting. It is advisable to consider several states and compare financial and legislative demands: the size of the authorized capital, permitting costs, taxation, and much more. The firm registration process will include the following:
- rent or purchase an office and provide the agreement;
- appoint shareholders and management;
- draw up a business project for the activity;
- confirm the starting capital and register it;
- provide papers required in a given state (business registration certificate, registration, confirmation of source of income, employee education diplomas and experience in this field, and much more).
If people have a complete package of papers, their firms will be registered, and they may apply for a permit. After submitting the necessary papers, people must pay a state fee. Next, the regulator will check all the demands to operate legally in such a market. It is important to note that including an AML program in the firm’s activities and appointing responsible persons to monitor these aspects is imperative. If everything is done correctly, you will be issued a permit, and you can begin organizing the infrastructure for your activities.
The absence of a permit will not lead to anything good, but legal activities will help attract reliable partners and a vast client audience.