Forex trading can be lucrative for those who know how to play the game. The relative values of currencies continuously change with time and this volatility is where the money is. If you can time your trades well, then you can earn substantial profits. Do this consistently and you could be looking at a full-time job. Of course, there are also risks involved. Some actually lose money because they made the wrong bets. However, there is one way to make money on every trade all the time: be a broker. Brokers facilitate trades and earn a commission on each.
Offshore Forex License
You need a license to operate as a broker. This is extremely difficult to obtain if you are in highly regulated countries such as the US and the UK. The financial requirements are high and the responsibilities are enormous. For this reason, some people consider getting an offshore license instead. This means applying for a license in a different country which usually has lower capital requirements. There will be less regulations and faster approvals. Overhead costs are small so brokers could potentially earn more money. For example, some try to get a Belize forex license for this purpose.
Considerations on Regulation
While many view regulation as a bad thing, it should be pointed out that this is for the good of the industry and the people involved in it. Regulation protects everyone from possible financial shocks in case things go wrong. It ensures transparency and sustainability. Knowing this, getting a license should be taken seriously. Find a country that has a good track record in managing its financial system while still providing perks that attract businesses to its shores. Study various options and check how well older brokers faired after they started their operations. If they made any mistakes, then learn from them.
License Legitimacy
There are a lot of scams out there including ones that promise a Belize forex license without actually delivering one. Be careful who you deal with because many are not quite as good as you perceive them to be. Check track records and official listings. There are illegitimate licenses floating around so do not fall victim to those. Do everything by the book to guarantee legality. Consult an expert in the field to prevent any costly missteps. Make sure that you understand what you can do and what you can’t do with the license as well.
