The below is an excerpt of a longer article. Feel free to check out the full article at AtoZ Markets.

While we as traders are used to opposing offshore forex brokers, renowned regulators are actually making it impossible for people outside the US, Australia, New Zealand, and the US to trade spot FX. As an example, in June 2019 IC Markets stopped serving its clients outside Australia.

The same action is being enforced by CySEC as well. Brokers are being forced to get a compliance opinion from every country they accept clients from otherwise face the possibility of receiving a hefty fine. As a result, brokers are facing the following two actions:

Stop serving clients outside the EU
Open a separate offshore branch with relaxed regulatory requirements
Best country to set up a Forex brokerage
No matter how experienced you are, there is no one country that can be defined as the best country to set up a new Forex brokerage.

Your country choice should be based on how much money you have at your disposal as a start-up capital, what type of broker (A/B book or hybrid) you want to open and about your reason for going offshore.

If you don’t necessarily need to be in an offshore environment, it is always recommended to set up your new Forex brokerage in one of the EU countries e.g. Cyprus. Although there are many corporate service providers, based on our experience Parparinos Milonas Corporate & Legal Consultants will get you the best result for your buck, both for establishing a new broker in Cyprus or an offshore brokerage in any other jurisdiction.

On the other end of the spectrum are off-shore jurisdictions, like BVI, Mauritius, Dominican Republic, etc. Establishing a brokerage firm in one of these jurisdictions is pretty straight-forward and relatively cheap too. However, you will always have problems with banks and payment processors. Therefore, you need to select your CSP strategically so that you can get your operations running without any hiccup.

For those looking for further insight, check out the full article on Best offshore jurisdictions to set up Forex brokerage in 2021.