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Obtaining a license for brokerage in Bulgaria: a review and answers to key questions

There was a time, when only firms with an unlimited budget had the opportunity to obtain a license for brokerage in venerable jurisdictions (for example, the EU, USA, Canada, etc.). But in the modern world, almost everyone has access to the Internet, and most firms are armed with economic licenses and a strong business model, which is why the number of Forex licenses has increased in recent years.

What jurisdiction to choose for an economic license?

Pay attention to two leading options: applying to a Member State or applying for a license to a country outside the EU. Obtaining Forex broker licenses in the EU is marked by a high level of security for these permissions, including Bulgaria. European monetary licenses are issued under the auspices of the MiFID directive. Permits are issued by the European Commission for the harmonization of money offers. MiFID licenses, including Bulgarian ones, have every chance to be applied in all EU countries.

For example, having obtained Forex permits in Bulgaria, you will be able to carry out your activities in Germany or England by notifying authorities of these states.

Other superiorities of European jurisdictions: the economic and political stability, a wide range of money offers. If you apply for a Forex permit in Belize, Mauritius, another tropical country, this will not prevent you from expanding your business in the EU. Although, a bulk of Western banks are the least willing to issue accounts for these firms.

Application for obtaining a license in Bulgaria or another country

Between the jurisdictions of the EU - Bulgaria and Cyprus are on the first points cash payments (compulsory expenses).

Bulgaria still guarantees low requests for broker licensing, half as much as in Cyprus. Bulgaria reports, that obtaining a Forex broker license in Bulgaria requires payment of 25% of the savings. At the same time, Cyprus asks for all 100% of your money.

Taxes in your chosen jurisdiction

There are states in the European Union, where taxes are relatively low. But, at the same time, in most EU countries the collective tax rate is 30% and higher. And only 2 states can be called tax havens - these are Cyprus (12,5%) and Bulgaria (≥10%).

Read also:
Why is Bulgaria the most profitable option among EU countries?

This jurisdiction is characterized by the following types of brokerage permits:

  • Type I

Suitable for intermediary firms, that do not receive funds or other monetary instruments from buyers, do not carry out activities on their own behalf. The minimum capital for obtaining a brokerage license in Bulgaria of this type is 100 thousand leva (about 52 thousand euros).

  • Type II (STP - Through Processing)

The STP license in Bulgaria is granted to brokerage firms, that do not work on their own behalf, but carry out proposals for the execution of customer applications, related to economic instruments. The minimum fund for obtaining an STP license in Bulgaria is 250 thousand leva (about 127 thousand euros).

  • Type III (Market Maker)

Provided to companies that conduct business on their own behalf. The minimum cash fund is 1,5 million leva (approximately 767 thousand euros). For all types of licenses, 25% of the funds must be deposited before applying. 75% must be deposited within 14 days after the approval of the application.

How to obtain a brokerage license in Bulgaria?

IQD Consulting experts provide legal advice on obtaining a financial license in Europe and around the world. And we are ready to help collect documents, register a company under forex trading and accompany at all stages of obtaining a Forex license.

  • The information outlined in the article is actual at the time of its publication.
  • Please refer to our specialists for checking possible solutions for your business.
  • Still have any questions?

    Fill out the form or contact us as you find convenient. Our experts will help you resolve the issue.

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