Bulgaria

Bulgaria offers access to the entire European Union (EU) market with a Financial Supervision Commission (FSC) license, allowing you to reach a large client base.

Bulgaria’s FX and CFDs market is growing alongside its developing economy, presenting an opportunity for brokers to enter an expanding market.

The Financial Supervision Commission (FSC) enforces a regulatory framework for FX and CFDs brokers, ensuring investor protection and market stability. the FSC regulations are harmonized with EU directives, providing a familiar framework for international brokers.

Financial Supervision Commission (FSC): The FSC is a well-established regulator working to strengthen its reputation within the EU.
Focus on Alignment: The FSC actively works to align its regulations with the latest EU directives.
Cost-Competitive Environment: Bulgaria offers a very competitive corporate tax rate of 10%, making it a highly cost-effective location for setting up and operating a brokerage firm.
Skilled Workforce: Bulgaria boasts a well-educated and multilingual workforce, with a growing pool of talent in the financial services sector.
EU Membership Benefits: Companies in Bulgaria benefit from the free movement of capital and services within the EU.

Get in touch with us to learn more about Heaving a FX CFD license in Bulgaria

Jurisdiction: Bulgaria
Regulator: Bulgarian Financial Supervision Commission
License Name: Investment Firm
Products Allowed (CFD on all/certain assets): FX and CFDs
Activities Allowed (Broker/MM): Market Maker & Broker
Passporting: To all EU member states
Leverage Limitations: In place, per ESMA's rules
Structure requirements (#shareholders / director/officers, MLRO): 1 shareholder; 2 managers, broker, investment consultant, accountant, head of internal control department, head of internal audit department;
Basic requirements (business plan, website. demands from UBO, professional background: Detailed business plan incl. 3 years financial forecast; UBO to have several years of industry experience (or equivalent), relevant education and solid financial soundess and source of funds (must be able to show he can sustain the business for its initial years of operation); Executive Directors managers must have substantial experience in FX/CFDs and relevant education. Experience and education requirements for both shareholders and managers are strict as the Bulgarian regulator follow the EU level requirements for the banking sector and applies them on investment firms.
Local Physical Presence (Local Office and Local Staff): Local Company; Local Office; 2 Executive Directors (Local, Full-Time, Experienced); AML Compliance Officer (Local, Full Time, Experienced); Head of Operations/ Back Office; An additional employee might be required by the Regulator depending on the perceived Risk; Accounting/Payroll/Financial Audit (Can be Outsourced).
Insurance: Professional liability insurance is mandatory
Clients' Funds Segregation: Mandatory (must open 2 bank accounts - 1 Corporate and 1 for clients' funds)
Corporate Income Tax Rate: 10%
Minimum Capital Requirement: Broker – 150,000 EUR; Market Maker – 750,000 EUR
Time Frame for License Issuance (as of submission): 6-10 Months
Regulatory leniency level (basic, intermediate, complex): Complex
License Validity: No expiry date
Reporting Frequency (Monthly/Quarterly/Annualy): Periodic reports; AML and Compliance Reports; Annual Audited Financial Statements;

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