Forex Broker Bank Account [Forex Trading Accounts]

Opening a forex broker bank account is not easy. So, it’s no surprise that we receive a lot of questions about it from entrepreneurs, new brokerages, and forex platforms.

In short, whether you can open a foreign bank account online as a forex broker depends on several factors, including the country of registration, licensing, transaction volume, and where your customers are based.

In this article, we’re going to explore the account opening options, talk through some of the variables, and discuss what might be one of the worst ideas when it comes to the world of forex.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. Forex Broker Banking 101
  2. The Worst Forex Broker Idea Ever
  3. Where to Open a Forex Broker Account?
  4. Ready to Open a Forex Broker Bank Account?

Forex Broker Banking 101

Let’s first talk through some of the reasons why opening a bank account for a forex broker is so difficult.

First of all, banks typically avoid regulated activities, like forex trading. That’s because providing banking services to entities or individuals involved in regulated activities adds complexity to their compliance, monitoring, and onboarding processes.

Of course, in certain cases, banks are willing to deal with this extra compliance. But it has to be worth their time. In other words, the client has to be seen as profitable by the bank and manageable from a compliance perspective.

In most cases, when entrepreneurs are trying to open an account for a forex broker, they tend to be in the early stages of their business. As a result, they are not the kind of “profitable” client that most banks are looking for. For this reason, they typically have very few banking options available. Though there are options available.

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The Worst Forex Broker Idea Ever

There is a myth in the world of international banking related to forex brokers, it goes something like this…

“If you register a forex brokerage in a country that doesn’t require forex brokers to be licensed or regulated, then that entity should be able to bank and do business everywhere without being licensed or regulated.”

This is not true.

Unfortunately, we’ve come across many entrepreneurs who have been duped into expensive structures by greedy service providers in countries that do not require forex brokers to be licensed.

This is something that happens with Saint Vincent and the Grenadines structures frequently.

It’s gotten to the point that if you contact our team to ask for account opening assistance for an SVG company, our first question is whether you have an unlicensed forex brokerage.

In short, if you want to open international bank accounts for a forex brokerage, you need to have a license or be willing to bank in countries that do not regulate such activities… which typically aren’t the most desirable from a banking perspective.

Where to Open a Forex Broker Account?

On the other hand, if you have a licensed forex brokerage, have proper compliance procedures in place, have experience in the industry, and it’s clear that your business is profitable for the bank, then you’ll have options.

Of course, it can still be a challenge to open accounts and you’ll likely need to consider a number of different options before finding a bank that is willing to onboard your company. However, it is possible to navigate the process.

With this in mind, the specific countries that a forex broker can consider opening accounts in will vary widely from company to company. So, there is no single silver bullet.

That said, entrepreneurs with a licensed forex broker in need of a bank account may want to consider the UAE, UK, Netherlands, etc. Some forex brokers also utilize PSPs and liquidity providers.

Note: the available account opening options will depend on the specific financial institution you’re dealing (and your business profile) with rather than the country.

Ready to Open a Forex Broker Bank Account?

If you would like assistance navigating your banking options at home or abroad, we can help.

You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.

But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.

Of course, if you have any questions, please get in touch with us directly.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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