Forex license in Bulgaria: A complete guide for brokers

Obtaining a Forex license in Bulgaria gives dealers with unique prospects to enter the European pecuniary trading field, which is controlled by strict principles of the EU. The Bulgarian Forex license gives the prospect to work in among the most stable and generated pecuniary fields in the region, attract clientele from EU territories and other territories, while abiding with the prerequisites of transnational principles.

Brokerage activity in Bulgaria is undertaken in the status of a speculation enterprise, which necessitates an ISL license, which handles the list of aids provided and instruments used. That is, schemes on the FX trading field are equivalent to pecuniary schemes and require licensing. The main merit of obtaining a Bulgarian brokerage license is the ability to work throughout Europe, thanks to the MiFID (Markets in Financial Instruments Directive), which allows authorised firms to provide aids throughout the EU contingent on the principle of "passporting" - a permit given in one state is sufficient for schemes in other EU member states.

Also, all aspects related to the provision of aids on the securities market, finance and speculations are controlled by national legislation through the Markets in Financial Instruments Act (MiFIA), which generates terms for prolonged growth and fair competition on the trading field. Regulation of brokerage services in Bulgaria is undertaken by the Financial Supervision Commission (FSC), founded in 2003. It issues permits for brokerage schemes in the polity, asserts handling of the stability of the pecuniary trading field.

Forex License in Bulgaria: merits for brokers

The polity has become among the alluring territories for licensing FX dealers due to a combination of pecuniary and licit factors that are beneficial to both new and experienced market participants. Among the merits of obtaining a forex license in Bulgaria are the moderate prerequisites that make this territory an optimal platform for SME traders who want to reduce operating costs and work within the European licit model.

The merits of choosing a Forex broker license in Bulgaria include admittance to promising excise policies. The polity presents among the lowest CIT rates in the EU at 10%. Additionally, the initial capital of firms applying for licensing here must be 125,000 EUR for a basic permit and 750,000 EUR for a full range of aids, which is lower than similar prerequisites in some other European regions, including Cyprus and Malta.

As we have said, a Bulgarian forex broker license gives firms admittance to the entire European market through the so-called passporting prerogatives supplied by the EU MiFID directive. This initiative stipulates that brokerage companies authorised in Bulgaria can provide aid to clientele in any EU territory without the need to obtain additional permits.

Obtaining a Forex license in Bulgaria and the obligation to abide with the MiFID directives imply high principles of financier protection, openness of pecuniary dealings and the necessity for reserve capital. These policies assert the security of the trading field, escalating customer trust. MiFID also imposes reporting and audit obligations on traders, which helps handle transparent and reliable relationships with clientele.

A Forex license in Bulgaria gives authorised traders admittance to the European banking system and pecuniary payment infrastructure. This warrants them to attract client funds from the largest EU banks and guarantee reliable service. Clientele can be sure that their funds are safeguarded by the relevant European security principles, as traders are mandated to keep client assets separate from their own accounts.

Another prime aspect of forex broker licensing in Bulgaria is the protection of clientele' pursuits. FSC strictly handles the schemes of pecuniary firms, which gives clients trust in the openness of dealings and the reliability of traders.

Bulgarian legislation includes prerequisites for traders to keep client funds in segregated accounts, which excludes the possibility of their use by the broker for other aims. This rule asserts the security of client assets and helps to build trust in traders operating under a Bulgarian permit. Forex brokers in Bulgaria are mandated to have a peril oversight system, and to abide with policies to hinder the legalization of illicit money and illicit dealings (AML/CFT). These policies help to increase trust among clientele and partners.

A forex license in Bulgaria implies full openness of pecuniary information. According to EU prerequisites, all FX traders are necessitated to regularly submit reports on their schemes and pecuniary status. This includes auditing pecuniary reports and conveying regular reports to the FSC. This level of control helps to create trust among both clientele and partners. In addition, such a practice helps to reduce the peril of fraud and pecuniary manipulation, which is prime for creating healthy competition in the trading field.

The merit of the EU Passporting System is that Bulgarian-authorised traders do not have to spend time and money on additional certification in each individual EU territory. This sets the polity apart from some other well-known regions in the FX arena, as it reduces bureaucratic barriers and simplifies the sequence of transnational enhancement, allowing traders to focus on expanding their client base.

The period for obtaining a Bulgarian brokerage license at the FSC takes about 4-6 months, contingent on the intricacy of the indenture check. The entire sequence necessitates careful preparation: registering a company in Bulgaria , conveying an application and confirming the availability of office space in the territory. The terms and costs of handling a permit remain competitive compared to other EU territories.

It should also be noted that the polity is among the most stable pecuniary fields in Eastern Europe. The territory's infrastructure is generating and the authorities are interested in the influx of foreign capital into various industries, including finance. This creates a promising sphere for FX traders. Thus, a Forex license in Bulgaria offers traders a number of merits, simplifying entry into the European trading field, reducing operating costs and providing conditions for working in the trading fields of European territories.

Types of Forex Licenses in Bulgaria

The licit model for regulating forex brokers in Bulgaria offers two types of licensing for schemes in this area.

The process of obtaining a license for a forex broker in Bulgaria covers a wide range of aids, including trading in pecuniary trading fields, speculation advice, and other types of currency and pecuniary dealings.

The Markets in Financial Instruments Act handles speculation firms and states that a broker's capital must be sufficient for the relevant schemes and peril. However, a prime aspect is that capital prerequisites may vary contingent on what aids the broker intends to provide.

• Base capital for brokerage schemes: According to MiFID II prerequisites, the base capital for a FX broker providing aids for trading pecuniary instruments is 125,000 euros. This necessity applies to a company that gives basic aids such as FX trading and other pecuniary dealings.
• Capital for a broker offering more complex aids: If a broker intends to offer additional pecuniary products and aids, such as asset oversight, speculation advice or clearing schemes, the capital prerequisites are higher. Contingent on the volume and intricacy of the aids provided, the base capital can reach 750,000 euros.

Obtaining a forex broker license in Bulgaria, in addition to the base capital, necessitates handling a certain level of current funds, which is confirmed by regular reports and inspections by the FSC. These prerequisites are related to asserting the stability of the broker's schemes and safeguarding clientele from perils associated with possible pecuniary difficulties of the company. Traders are obliged to handle a sufficient level of liquidity in order to fulfill their obligations to clientele at any time.

Additionally, FX traders must abide with reserve capital prerequisites. This is capital that the company is necessitated to hold as “insurance” in case of unexpected losses or damages. This reserve capital serves as a guarantee that the broker is able to cover its obligations even in the event of market instability.

How to obtain a brokerage license in Bulgaria?

Obtaining a Forex license in Bulgaria necessitates a number of mandatory steps that assert the company complies with the legislative norms and prerequisites of the FSC. A Forex license in Bulgaria allows a broker to enter the European market under simplified conditions, but the sequence of obtaining it necessitates careful observance of formalities. This sequence for obtaining a Forex license in Bulgaria includes several key stages.

1. Familiarization with licit prerequisites. First, you need to familiarize yourself with the FSC prerequisites and determine which type of permit is suitable for your trade: STP or Market Maker. At this stage, it is prime to consider the base capital speculation, the prerequisites for a local office and the need for qualified employees. This helps to prepare for the application and avoid discrepancies with the FSC Bulgaria directives.
2. Firm registration in Bulgaria. To apply for a permit, you must register a company in Bulgaria . Usually, they choose an organizational form that gives oversight flexibility. In this case, we are talking about a limited liability company (OOD). After enrollment, it is compulsory to register a licit address in the polity, which is a mandatory necessity for all authorised traders.
3. Preparation of indentures. The package of indentures for obtaining a forex license in Bulgaria includes a trade plan, peril oversight plan, AML/KYC policy, proof of min. capital. The trade plan must contain detailed information about the strategy, goals and planned development of the company, and AML/KYC procedures - policies to hinder pecuniary fraud. The indentures confirm the company's readiness to abide with directives and assert the safety of clientele.
4. Conveying an application and paying fees. Once the indentures have been prepared, an application for a Bulgarian Forex broker license is conveyed to the FSC. At this stage, all applicable government fees are also paid, which may vary contingent on the type of permit. Once the application has been conveyed, the FSC begins the verification sequence, including assessing the company’s reliability and checking for abidance, which can take several months.
5. Verification and approval. As the application is reviewed, FSC may request additional indentures to verify the company’s pecuniary stability and procedures. If all conditions are met, FSC issues a preliminary approval, after which the company is necessitated to complete the remaining formalities, such as opening an account and preparing reports.

Once a broker has received an FX license in Bulgaria, they are necessitated to abide with post-permit prerequisites, including annual audits and regular abidance checks.

Starting a forex business in Bulgaria comes with a high cost. A more affordable option is to enter into a White Label partnership with an existing broker. This solution is suitable for those who want to start their own forex brokerage company on a limited budget. With a White Label, you get the prospect to create a unique brand with your own name, website and corporate identity. At the same time, your trade performs on the platform of the partner broker, gaining admittance to a controlled sphere and liquidity through the prime provider.

Indentures for obtaining a license for brokerage activities in Bulgaria

FX traders looking for an affordable way to enter the European trading field may want to consider the polity as an alternative to more expensive licensing options like Cyprus or Malta. With a well-generated FX infrastructure and EU-level directives, a brokerage license in Bulgaria offers many merits.

To obtain a Forex license in Bulgaria, it is compulsory to abide by strict statutory conditions and prepare a significant amount of documentation that asserts openness, stability and abidance with EU pecuniary principles. Let us remind you that the permit given by the Bulgarian FSC grants the prerogative to perform in all EU territories.

Indenture prerequisites:

• Permit Application. A formal application, completed according to the FSC template, confirms the company's agreement to abide by Bulgarian pecuniary principles and prerequisites. It also serves as the prime indenture for starting the licensing process.
• The company's constituent indentures. The key indentures are the charter, the certificate of incorporation and information on the shareholder structure. The company's charter describes in detail the scope of schemes, which includes the aids provided by the permit. Confirmation of the presence of shareholders and beneficiaries, whose data will be part of the public register, is necessitated.
• Pecuniary reporting and capital. According to the FSC directives, the base capital necessary to obtain an STP license in Bulgaria starts from 125,000 euros. For a Market Maker license in Bulgaria, the prerequisites are significantly higher and amount to 730,000 euros. Firms applying for such permits are necessitated to confirm the fact of payment of the authorized capital and provide a detailed report on their pecuniary position. Such reporting confirms the stability of the company and demonstrates its readiness to conduct stable and reliable pecuniary schemes.
• Trade plan. A detailed trade plan includes a description of the planned schemes, target trading fields and development strategy. It should demonstrate potential revenues, peril oversight and abidance of the corporate strategy with FSC prerequisites. The plan presents pecuniary forecasts and hedging strategies to minimize trading field perils.
• Details of oversight and key personnel. To assert that the applicant is highly qualified, FSC necessitates details of oversight and key personnel. This includes CVs proving experience in the pecuniary sector, educational qualifications and letters of recommendation from previous employers. The appointment of local directors is a mandatory need.
• Indentures confirming the sources of capital. To hinder money laundering, the FSC mandates firms applying for a forex license in Bulgaria to provide evidence of the origin of capital, including bank records, real estate indentures or other assets if the funds came from external sources. All pecuniary indentures must be audited and accompanied by a certified translation into Bulgarian or English.
• AML and KYC policies. Since the polity abides to strict EU anti-money laundering principles, firms are necessitated to provide internal AML and KYC policies. These policies include Customer Due Diligence and suspicious activity monitoring, a mechanism for reporting to the FSC.

Once the application and all indentures have been conveyed, the licensing sequence takes six to eight months. The company is expected to open an office in the polity and hire local staff. A Forex license obtained in Bulgaria gives reliable admittance to the EU trading field, facilitating entry into transnational pecuniary trading fields and improving the company's reputation at the EU level.

FSC Bulgaria: the role of the regulator and prerequisites

FSC Bulgaria is the prime regulator of pecuniary trading fields, including traditional currency trading fields, securities trading fields. In recent years, FSC has been implementing statutory principles for working with crypto assets and other pecuniary technologies, creating promising conditions for innovation. FSC's schemes are aimed at handling the stability of pecuniary dealings, checking accountability among pecuniary trading field participants. Particular attention is paid to safeguarding financier pursuits through the development of strict corporate governance principles, hindering pecuniary violations and promoting openness. The Commission performs on the basis of European directives, the prime one of which, transferred to national legislation, is MiFID II, which allows brokers authorised in Bulgaria to work on the principle of passporting, asserting admittance to the trading fields of all EU territories.

The regulation of brokerage activities in Bulgaria by the FSC involves competent statutory assistance to firms in adapting to digital operating principles. The FSC is directly involved in the development of new digital principles, in particular by implementing initiatives on digital security oversight and resilience to cyber threats. These policies include the implementation of the Digital Operational Resilience Act (DORA) and support for the Markets in Crypto Assets Act (MiCA), which creates the basis for a safe and transparent digital trading field in the polity. In 2025, the FSC aims to further expand forex regulation in Bulgaria to assert stability in the context of digital transformation, strengthening its role as a reliable pecuniary regulator in the region.

FSC's prime responsibilities and its role in safeguarding financiers

As we have said, the prime duties of the FSC are to handle stability, openness and accountability in the territory's pecuniary trading field. The Commission asserts that traders who serve clientele both domestically and transnationally abide by statutory prerequisites. This control is crucial in handling financier trust and safeguarding their funds from potential perils and violations.

• Licensing and enrollment: The FSC’s main obligation is to license FX brokers in Bulgaria and other pecuniary institutions that must strictly abide with the regulator’s criteria in order to perform on the Bulgarian trading field. Traders must undergo extensive due diligence and demonstrate that they are able to assert the protection of clientele’ assets and abide by strict oversight principles. The regulator necessitates abidance with base capital principles and transparent reporting, which gives financiers trust in the pecuniary strength of the firms.
• Ongoing control of dealers in Bulgaria: FSC actively monitors traders’ abidance with legislation and European directives, such as MiFID II. Regular inspections conducted by FSC include analysis of pecuniary records and assessment of schemes to identify possible violations. Traders are mandated to provide reports, including data on the distribution of client funds, which asserts the protection of financiers’ pursuits and hinders conflicts of interest. This allows FSC to handle a high level of security and openness in the trading field.
• Application of sanctions and safeguards: In case of violations, the FSC applies strict policies, including suspension of the Forex Bulgaria license , imposition of fines or even revocation of the permit. Such policies serve to hinder unfair practices and strengthen trust in the Bulgarian pecuniary trading field. The introduction of directives such as DORA and MiCA allows the FSC to adapt to the changes in the digital world, safeguarding financiers and their funds from new types of threats related to digital assets and cyber perils.

To hinder the use of client funds for the merit of the company, all authorised forex companies in Bulgaria are necessitated to segregate client assets from their own. This approach allows the FSC to handle high security principles by conducting regular audits and requiring reporting, abidance with pan-European MiFID principles. Since 2024, the FSC has introduced additional policies to facilitate the transition to the euro, which emphasizes its role in adapting to global and European principles.

Obtaining a license for investment services in Bulgaria: capital prerequisites

Investment firms that do not fall into the exceptional categories are necessitated to have an initial capital of at least EUR 766,800. This also applies to firms whose licence covers the oversight of multilateral trading facilitators (MTF) and organised trading facilitators (OTF). This level of capital enables the firm to effectively manage potential perils and liabilities arising from the performance of speculation schemes.

Investment firms that do not carry out schemes on their own account or participate in the organisation of trading venues, but hold funds or pecuniary instruments of clientele, must have an initial capital of at least EUR 127,800. Such firms include those that provide basic speculation aids, such as receiving and transmitting instructions for pecuniary instruments, executing orders on behalf of clientele and managing portfolios. These prerequisites are aimed at safeguarding the pursuits of clientele in holding their assets and asserting their basic schemes.

The registration of a Bulgarian company that will not be engaged in the custody of funds or pecuniary instruments of clientele and will not conduct dealings on its own account, necessitates an initial capital of at least 51,120 euros. These firms provide basic speculation aids, such as the reception and transmission of instructions, portfolio oversight and advice, and do not engage in the riskier aspects of speculation schemes.

Registration of an investment company in Bulgaria that will not provide ancillary aids and does not have a permit to hold clientele' funds or pecuniary instruments necessitates such a licit entity to abide with among the following prerequisites:

• Have an initial capital of at least EUR 511,200; or
• Have professional liability insurance to cover potential losses from failure to fulfill obligations.

The base amount of insurance coverage must be the equivalent of EUR 1,000,000 per insured event and EUR 1,500,000 per year. It is also possible to combine these prerequisites to achieve the necessitated level of pecuniary protection.

Firms planning to participate in auctions on behalf of clientele must have an initial capital of at least EUR 511,307. In order to participate in auctions for trading greenhouse gas emissions quotas organised under EU regulation, firms must abide by all prerequisites and obtain permission from the Financial Commission.

Forex regulation in Bulgaria: Office prerequisites and personnel qualifications

Obtaining a Forex license in Bulgaria necessitates a local office and qualified employees. These principles promote openness of schemes and increase customer trust in the broker. Firms seeking a Forex license in Bulgaria are necessitated to establish a stable physical presence in the territory, which includes renting or owning an office and hiring employees locally.

• Prerequisites for a broker’s office in Bulgaria: Traders are necessitated to register a fully-fledged office in the polity to manage the firm’s schemes and meet local presence prerequisites. This includes having a separate address that is accessible for inspection by FSC representatives. The office plays an prime role in asserting abidance, as a local address facilitates interactions with the FSC, including the verification of pecuniary records and an overall assessment of the company’s trade practices. The necessity for a local office is part of FSC’s efforts to increase openness, which is especially relevant given the growing number of transnational clientele seeking to work with EU-authorised traders.
• Qualifications of Broker Employees in Bulgaria: Along with an office, traders must employ qualified professionals who can handle a high level of service and abidance with principles. Base prerequisites include hiring at least three local employees, with senior positions such as director and schemes manager being held by professionals with proven experience in the monetary sector. The FSC strictly verifies the qualifications of key employees, which asserts a high level of peril oversight and protection of clientele' pursuits. In addition to professional experience, employees are checked for the compulsory indentures and must meet FSC criteria to assert the reliability of schemes.
• Obligations of staff: As part of the qualification prerequisites, staff responsible for key aspects of the work are necessitated to abide with reporting principles, client funds oversight and abidance prerequisites to hinder monetary irregularities. This enables FSC to confidently manage trading field perils and protect the pursuits of financiers.

Licensing and post-licensing obligations for brokers

Once a Forex license is issued in Bulgaria, traders are necessitated to strictly abide by statutory prerequisites that support the stability of their schemes and the protection of their clientele. Post-permit obligations include detailed monetary controls, annual audits, and mandatory abidance with the licit principles set by the FSC. Traders are mandated to submit regular reports to the FSC confirming their monetary stability and the accuracy of their accounting records. Such monitoring allows the controlling authority to promptly respond to potential monetary perils and protect financiers.

A prime condition for the licit operation of firms with a forex license in Bulgaria is, as we have repeatedly drawn attention to, abidance with the rules for the protection of client assets. All client funds must be kept in separate accounts, excluding their use for the operational needs of the company. This practice minimizes the peril to financiers and helps the FSC handle a high level of security in the trading field. In addition, traders are necessitated to implement strict policies to AML and KYC procedures, which helps the FSC protect the system from fraud and other offenses that may affect the reputation of the trading field.

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Forex license in Bulgaria: reporting and mandatory audit

For holders of Forex dealer licenses in Bulgaria mandatory audit and submission of full monetary records are prime post-license obligations that assert that firms abide with the regulator's prerequisites and assert the openness of their monetary dealings. Traders are necessitated to prepare an annual monetary report, which includes a balance sheet, income statement, capital turnover statement and explanatory notes. These reports must abide with international standards (IFRS), which not only enhances financier trust but also facilitates transnational comparability of data.

Mandatory audits for traders in the polity are undertaken in accordance with the prerequisites set out in the Independent Financial Audit Act, which was supplemented in 2024 with directives to increase the sustainability and openness of pecuniary records. Independent auditors, certified by the Institute of Certified Public Accountants in Bulgaria (ICPAB), review the accuracy of firms’ pecuniary records, confirming that they abide with IFRS prerequisites and EU directives such as the Transparency Directive. Auditors assess internal control systems and client records, verifying that client funds are kept separate from corporate funds.

The national FSC strictly handles the audit process and necessitates auditors to assert the reliability of pecuniary indicators and protect clientele' funds from possible violations. If deviations/violations are detected, the FSC has the prerogative to impose sanctions, suspend the license or even revoke it if the violations undermine the security of clientele. These policies not only handle a high level of trust in the Bulgarian brokerage sector, but also make the territory attractive to transnational financiers who value stability and strict pecuniary control.

Forex License Bulgaria: Client Data oversight and KYC abidance

In the polity, traders are necessitated to strictly abide by the prerequisites for storing client data and KYC procedures. These are mandatory actions for pecuniary openness, which is critical to handling a license and financier trust. KYC procedures are a prime tool for minimizing the perils of fraud and other pecuniary crimes. They are aimed at establishing and confirming the identity of clientele, which allows firms to be sure of who they are interacting with.

The KYC sequence includes checking the pecuniary stability of clientele, which helps not only to identify possible perils but also to determine whether the client meets the company's prerequisites and policies. Firms that abide with KYC prerequisites demonstrate their commitment to openness and obligation, creating trust with clientele and regulators.

The sequence for Forex brokers in Bulgaria involves collecting detailed information about the client, including their name, date of birth, address, pecuniary status, speculation history and objectives. Such checks allow traders to more accurately assess perils, offering clients suitable conditions and products. Moreover, for high-peril clients (such as those with political connections), dealers are necessitated to perform an in-depth investigation known as Enhanced Due Diligence (EDD), which includes checking for links to corruption or criminal offenses. This approach minimizes the possibility of pecuniary crime and handles abidance with transnational security principles.

In the event of a breach of data protection, firms with a Forex license in Bulgaria are necessitated to immediately notify the Data Protection Commission and the affected persons, which helps to promptly respond to threats and protect clients' personal data from unauthorized admittance and use. Such principles and obligations underline the high level of protection and role of regional dealers to clients, which makes the trading field reliable and compliant with transnational necessities.

Bulgaria as a center for broker licensing: minimal excise rates and fiscal incentives

Low excise rates and fiscal incentives make the nation promising to transnational FX dealers and other firms looking to reduce their excise costs in the EU.

• Corporate excise rate . The polity keeps corporate excise at 10%, which is among the lowest percentages in the EU. This is especially advantageous when compared to other regions such as France and Germany, where rates are significantly higher. Dealers can handle a higher level of profitability, making the Bulgarian excise system ideal for new and experienced participants in the pecuniary sector.
• Dividend excise . This excise is charged at a rate of only 5%, which encourages foreign shareholders to invest in Bulgarian firms, receiving tangible merits from the return of capital. This allows dealers to pay dividends to their financiers on more promising terms than in other European territories.
• International agreements on avoidance of double taxation (DTT) . Bulgaria has agreements on avoidance of double taxation with more than 60 territories, including Germany, Great Britain and the USA. This reduces the peril of double taxation and allows dealers from different territories to work on the Bulgarian trading field with minimal fiscal perils.

Conclusion

Licensing for brokers in Bulgaria is a profitable prospect for firms wishing to enter the European trading field with minimal excise rates and flexible capital necessities. The polity offers additional merits for dealers wishing to perform in the European space. A FX permit obtained in the polity allows you to perform throughout the EU within the EU Passporting System.

However, setting up an FX brokerage business in Bulgaria is a sequence that necessitates considerable time and effort. To hinder complications at the licensing stage and further abidance with obligations, it is advisable to trust a competent consultant. Our team will help potential clients navigate the licit and excise nuances of Forex licensing in Europe , and will also provide full support at all stages of obtaining a forex license in Bulgaria so that you achieve the desired results.

We provide consulting and aids for transnational dealers centered on entering the European trading field. Among the offers are ready-made companies with a Forex license for sale in Bulgaria . Having experience and knowledge in the field of licensing, we will help you build a sustainable trade and generate in the conditions of strict European regulation of brokerage activities.