Forex Trading License in Panama

Our Panama company formation experts can help you apply for a Forex trading license, depending on your company’s activities.

Quick Facts
Forex broker obligation in Panama	Licensed activity
Forex broker license in Panama for foreign brokers (Yes/No)	Yes
Forex broker license issuing authority	The Superintendency of the Securities Market (SMV)
Relevant laws governing brokerage	The Securities Market Law (Decree-Law 1 of 1999, as amended by Law 67 of 2011, Texto Unico) and other relevant regulations
Special license for brokers	Yes
Laws to be observed for licensing	The Securities Law and subsequent legal requirements
Conditions for licensing	Minimum capital conditions, fit and proper conditions, etc.
Management requirements	Must provide proof of proper capacity to engage in its functions.
On-site inspection for licensing	Can apply
Application documents	Prospectus, company incorporation documents, financial documents, etc.
When to apply	Before starting the activities
Costs to expect	Company incorporation costs, license application costs, additional services fees, etc.
Assistance for application	Our team offers complete assistance for application.
Forex broker license issue time (approx.)	Several weeks, varying on a case-by-case basis.
Reasons to apply for a Forex broker license in Panama	The favourable local taxation policies for companies, possibility to offer services to international clients while based in Panama, straightforward company management and control requirements.

What companies are required to obtain a forex trading license in Panama?

Businesses that will engage in buying and selling currencies on the global marketplace. Some types of activities that may be taken into account prior to starting the process to open a company in Panama include:

Spot forex trading;
Derivatives trading;
Currency exchange-traded funds.

Please keep in mind that these are simply examples and, in practice, companies suit their business plan and obtain a forex trading license according to their actual activities.

Can I offer exchange services without a license?

It is expressly forbidden to carry out or advise on the FOREX Activity without due authorization, in accordance with the provisions of article 255 of the Securities Market Law.

What are the main requirements for a Panama forex trading license?

If you are interested in obtaining a Panama forex trading license, our team presents a list of requirements for the brokerage house:

You must have a minimum total capital of US$350,000, and you must be very dedicated to the broker-dealer business;
You must have your offices in Panama;
A board of directors with proven professional and business integrity is required, or at least three individuals equivalent to the board of directors. Corporate directors are not permitted;
A minimum of one third of the members of the board of directors should have knowledge and experience of the stock market or have general experience in the financial sector. On a side note: those individuals deemed to have adequate knowledge and experience who have worked as principal executives or have done other finance-related jobs in the public or private sectors for at least two years;
Every broker-dealer house appoints at least one person as a principal executive; however, the number of principal executives may change depending upon the volume of the business. These principal executives must have the corresponding licenses issued by the Superintendent;
The articles of incorporation should have a corporate purpose satisfactory to the activities regarding broker-dealer house business;
Pay the application fees for the application of forex trading licenses in Panama.

What documents must I provide to obtain the foreign trading license in Panama?

As previously stated, certain requirements are mandatory. As a result, applicants are asked to deliver a set of obligatory documentation, including:

Proof of proper company formation in Panama;
Documents attesting the adequacy of the board members and their relevant experience;
Proof of application fee payments;
A company business plan.

Where do I submit my application for a forex trading license in Panama?

Applications are submitted to and processed by the Superintendency of the Securities Market, or the SMV.

When do I submit the application for forex licensing?

After the incorporation of the business, as the company’s Articles of Incorporation are required.

For branches of foreign companies, forex licensing takes place once the branch is duly included in the Public Registry of Panama.

Are licensed forex companies in Panama subject to special listing?

Entities that receive approval to offer Forex services in Panama are included in a list that is periodically updated by the Superintendency. Moreover, the Superintendency also issues notifications regarding entities that are not licensed to provide these services.

Must forex companies in Panama comply with special regulations?

Apart from the mandatory condition to not operate without a forex trading license in Panama, businesses that offer foreign-exchange solutions observe anti-money laundering provisions.

Some of the key provisions of the anti-money laundering laws followed by forex companies include:

Performing adequate customer due diligence. This is known as the know-your-client obligation;
Reporting suspicious transactions;
Ensuring confidentiality and legal protection;
Failure to comply with the ongoing regulations (and any controls or reporting requirements) results in penalties and possible license suspensions or cancellations.

Licensed forex companies in Panama are subject to ongoing compliance requirements.

You can contact our consultants for details about the forex trading licenses in Panama.