Forex trading in the Republic of Serbia is regulated by the Law on Capital Markets, the Law on Foreign Exchange Transactions and the Decision on Trading with Financial Derivatives.
A Forex company provides demo accounts on certain platforms with real time info, enabling users to practice, while they open real accounts at foreign traders (partners of the Forex company in Serbia). Thus, a Forex company is in practice a mediator, since it only provides requests/mandates and documentation to its foreign partners which open and maintain the real accounts of the users.
The foreign partners of a Forex company in Serbia must hold a license issued by a state authority competent for such activities in the country of their seat (headquarters). Typically, these companies are investment companies providing services, platforms, real time info and maintaining clients’ accounts, while the clients are independent in their decision making process.
Requirements for opening a Forex company in Serbia:
Despite the mediation nature of the services forex companies provide, the legal framework in Serbia requires the following criteria to be met:
• A stock company to be incorporated (LLCs cannot practice this activity)
• A minimum capital of EUR 125,000
• Obtaining a license from the Republic of Serbia’s Securities Commission (for the activities of investment consulting, capital structure advisory, research and financial analysis in the investment field and other forms of general consulting regarding transactions with financial instruments)
• Additional criteria related to corporate management
It is worth noting that there are other options available, such as the establishment of a broker-dealer company or an investment company. However, such types of companies have a wider range of permitted business activities and as such the minimum requirements (including the starting capital) are higher.