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Get Your Bank To Pay For Your Licensing!



Can Your Bank Absorb the Expense of a Proper License?


Absolutely!


Many FX brokers struggle with the prospect of securing a license from regulatory bodies like FCA, CySEC, ASIC, and others. The significant investment in both capital and time might be overwhelming for emerging brokers.


As a result, a plethora of brokers have historically established themselves in cost-effective regions such as Saint Vincent and the Grenadines, Saint Kitts and Nevis, Belize, and even Antarctica. Initially, this might have seemed prudent, but it's becoming increasingly clear that this strategy poses problems for most brokers.


The challenges extend beyond regulatory compliance. Banking and PSP complications have plagued brokers operating in these less-regulated jurisdictions, and these problems are likely to escalate.


FX brokers who have attempted to secure banking and PSP services are acutely aware that their regulatory status directly influences their risk profile with banks. A higher risk perception by banks translates into greater costs for the broker. It's a straightforward relationship.


Turmic LLC offers Labuan, Mauritius, Seychelles midshore and offshore licenses for brokers through our innovative “Sandwich” license model, which integrates FX and Crypto services. Although the Labuan license might be pricier than those from lower-tier offshore locales, its return on investment (ROI) is notably higher and quicker.

The fees levied by your bank and PSP will vary based on factors like transaction volumes, currency conversions, deposits, withdrawals, monthly maintenance, and minimum deposits. The fee differential for clients classified as low-risk, medium-risk, high-risk, or ultra-high-risk can be significant.


Our analysis indicates that, depending on trade volumes, the savings on banking fees alone could offset the expense of a Labuan midshore license within 4 to 8 months.

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