Regulation has become a hot topic of discussion in the Forex industry. The unprecedented growth of the sector has prompted regulators around the world to tighten the reigns over financial trading firms in order to protect consumers from what was traditionally a blood-in-the-water market. Regulators across Europe have stepped up their game modifying the laws governing not just FX firms, but call centers, liquidity providers and other complimentary services and increasing their reach when it comes to enforcement. Just last year, fines and settlements imposed or entered into by CySEC were as high as €1,000,000, a number well surpassing the sporadic €5,000 fine that was seen in prior years. New countries are looking at implementing regulation, such as Russia for example.
While becoming regulated is not an easy process to undertake, not being regulated is becoming less of a choice for brokerages that mean business and want to succeed in the long run. Not only are regulators in a hunt to shut down unregulated brokers, but consumers are becoming more and more aware of the high standards of practice that regulated brokerages must abide by and know that their funds will be better protected when invested with a regulated broker, leaving unregulated brokers with a much smaller opportunity and much bigger challenges.
How can you obtain EU Forex regulation?
Two ways: Instant Regulation under the umbrella of your tech provider, or Regulation with Full ownership
Obtain Instant Regulation with LXLite
The entire regulatory landscape of the FX industry is constantly evolving and while we see it as a positive step, one that will ultimately legitimize the industry, we realize that it poses a tremendous burden on small brokerages and those looking to start-up. Just the process of becoming licensed is not an easy one. The fees can be in the tens of thousands of dollars, jurisdictions providing licenses require that an office be set up within their borders, adding yet more to your expenses, and the process may take an average of 4 to 6 months.
Standing at the perfect crossroads of 1. Difficulty faced by many brokers to cope with new and stricter regulatory measures 2. Higher consumer awareness, is Leverate’s LXLite, a full solution that lets new brokerages hit the ground running. With LXLite, brokers get all the necessary tools needed to operate a successful business, from multiple front end platforms that include a regulation-compliant social trading network, to back end solutions such as CRM, payment processing systems, liquidity providers, risk management, data feed and more, to instant EU regulation. By partnering up with us, you acquire the knowledge from an experienced team, the tools to help you face the market, and allows you to focus on your top line: sales and marketing.
Want to consider holding your independent license?
Obtain Regulation with Full Ownership
As the regulatory landscape becomes stricter and more complex, obtaining licensing and regulation from a reputable jurisdiction stops being a “nice to have” to become a “must have”. Obtain your own regulation with the help of a lawyer specializing in helping brokers obtain Forex regulation and let Leverate provide you with all the necessary tools to operate your business. Our end-to-end solutions provide you with front end platforms that include a regulation-compliant social trading network, and back end management systems such as CRM, payment processing systems, liquidity providers, risk management, data feed and more.