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 set up an overseas account or 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
- Forex Broker Banking 101
- The Worst Forex Broker Idea Ever
- Where to Open a Forex Broker Account?
- Do You Want Help Opening Bank Accounts?
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” clients that most banks are looking for. For this reason, they typically have very few banking options available. Though there are options available.
Alternatively, if you’re a digital nomad looking for a banking district, you might consider opening accounts with one of the best banks in Mexico.
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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.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
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