# Execution of orders on behalf of clients

Source page: https://protegra.io/licensing/activities/order-execution/

Concluding agreements to buy or sell financial instruments on behalf of clients requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(2). Authorised brokerages can passport across the European Economic Area, and must establish comprehensive best execution policies and transaction reporting to supervisory authorities.

## Definition

Concluding agreements to buy or sell financial instruments on behalf of clients.

- MiFID II, Annex I, Section A(2): [official text](https://eur-lex.europa.eu/eli/dir/2014/65/oj)

## Which licence you need

Licence families that typically permit this activity:

- [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/)
- [Bank / credit institution](https://protegra.io/licensing/licences/bank/)

- [IF · Abu Dhabi Global Market (ADGM)Financial Services Permission for Dealing in Investments as Principal (Category 2)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat2/)
- [IF · Abu Dhabi Global Market (ADGM)Financial Services Permission for Dealing in Investments as Agent or Matched Principal (Category 3A)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat3a/)
- [IF · AustraliaAustralian financial services licence (AFSL)ASIC](https://protegra.io/licensing/licences/investment-firm/australia/)
- [IF · BermudaInvestment Business Licence (standard licence, under the Investment Business Act 2003)BMA](https://protegra.io/licensing/licences/investment-firm/bermuda/)
- [IF · Cayman IslandsSecurities Investment Business Licence / Registered PersonCIMA](https://protegra.io/licensing/licences/investment-firm/cayman-islands/)
- [IF · CyprusCyprus Investment Firm (CIF) authorisationCySEC](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/)
- [IF · Czech RepublicInvestment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)CNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/)
- [IF · Dubai International Financial Centre (DIFC)Financial Services Permission for Dealing in Investments as Principal (Category 2)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat2/)
- [IF · Dubai International Financial Centre (DIFC)Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/)
- [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/)
- [IF · GermanyInvestment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)BaFin](https://protegra.io/licensing/licences/investment-firm/germany/)
- [IF · Hong KongType 1 Licence for Dealing in SecuritiesSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type1/)
- [IF · Hong KongType 2 Licence for Dealing in Futures ContractsSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type2/)
- [IF · IrelandInvestment Firm Authorisation (MiFID II)CBI](https://protegra.io/licensing/licences/investment-firm/ireland/)
- [IF · ItalySocietà di Intermediazione Mobiliare (SIM) investment firm licenceCONSOB](https://protegra.io/licensing/licences/investment-firm/italy-sim/)
- [IF · LatviaInvestment firm licenceLB](https://protegra.io/licensing/licences/investment-firm/latvia/)
- [IF · LithuaniaFinancial brokerage firm licenceLB](https://protegra.io/licensing/licences/investment-firm/lithuania/)
- [IF · LuxembourgInvestment firm authorisationCSSF](https://protegra.io/licensing/licences/investment-firm/luxembourg/)
- [IF · Malaysia (Labuan)Securities Licensee licence (dealing in / advising on securities)Labuan FSA](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/)
- [IF · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/)
- [IF · MauritiusInvestment Dealer LicenceFSC](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-dealer/)
- [IF · NetherlandsInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/)
- [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/)
- [IF · SeychellesSecurities Dealer's Licence (full or restricted)FSA](https://protegra.io/licensing/licences/investment-firm/seychelles/)
- [IF · SingaporeCapital Markets Services (CMS) LicenceMAS](https://protegra.io/licensing/licences/investment-firm/singapore-cms/)
- [IF · SlovakiaInvestment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)NBS](https://protegra.io/licensing/licences/investment-firm/slovakia/)
- [IF · South AfricaOver-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets ActFSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-odp/)
- [IF · SpainSociedad de Valores y Agencia de Valores (SV / AV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/)
- [IF · SwitzerlandSecurities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)FINMA](https://protegra.io/licensing/licences/investment-firm/switzerland/)
- [IF · United KingdomMIFIDPRU Investment Firm Authorisation (Part 4A FSMA)FCA](https://protegra.io/licensing/licences/investment-firm/united-kingdom/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Abu Dhabi Global Market (ADGM): Financial Services Permission for Dealing in Investments as Principal (Category 2)](https://protegra.io/licensing/licences/investment-firm/adgm-cat2/) | | ✓ |
| [Abu Dhabi Global Market (ADGM): Financial Services Permission for Dealing in Investments as Agent or Matched Principal (Category 3A)](https://protegra.io/licensing/licences/investment-firm/adgm-cat3a/) | | ✓ |
| [Australia: Australian financial services licence (AFSL)](https://protegra.io/licensing/licences/investment-firm/australia/) | | ✓ |
| [Bermuda: Investment Business Licence (standard licence, under the Investment Business Act 2003)](https://protegra.io/licensing/licences/investment-firm/bermuda/) | | ✓ |
| [Cayman Islands: Securities Investment Business Licence / Registered Person](https://protegra.io/licensing/licences/investment-firm/cayman-islands/) | | ✓ |
| [Cyprus: Cyprus Investment Firm (CIF) authorisation](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) | ✓ | |
| [Czech Republic: Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)](https://protegra.io/licensing/licences/investment-firm/czech-republic/) | ✓ | |
| [Dubai International Financial Centre (DIFC): Financial Services Permission for Dealing in Investments as Principal (Category 2)](https://protegra.io/licensing/licences/investment-firm/difc-cat2/) | | ✓ |
| [Dubai International Financial Centre (DIFC): Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/) | | ✓ |
| [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | |
| [Germany: Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | |
| [Hong Kong: Type 1 Licence for Dealing in Securities](https://protegra.io/licensing/licences/investment-firm/hong-kong-type1/) | | ✓ |
| [Hong Kong: Type 2 Licence for Dealing in Futures Contracts](https://protegra.io/licensing/licences/investment-firm/hong-kong-type2/) | | ✓ |
| [Ireland: Investment Firm Authorisation (MiFID II)](https://protegra.io/licensing/licences/investment-firm/ireland/) | ✓ | |
| [Italy: Società di Intermediazione Mobiliare (SIM) investment firm licence](https://protegra.io/licensing/licences/investment-firm/italy-sim/) | ✓ | |
| [Latvia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/latvia/) | ✓ | |
| [Lithuania: Financial brokerage firm licence](https://protegra.io/licensing/licences/investment-firm/lithuania/) | ✓ | |
| [Luxembourg: Investment firm authorisation](https://protegra.io/licensing/licences/investment-firm/luxembourg/) | ✓ | |
| [Malaysia (Labuan): Securities Licensee licence (dealing in / advising on securities)](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/) | | ✓ |
| [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | |
| [Mauritius: Investment Dealer Licence](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-dealer/) | | ✓ |
| [Netherlands: Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | |
| [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | |
| [Seychelles: Securities Dealer's Licence (full or restricted)](https://protegra.io/licensing/licences/investment-firm/seychelles/) | | ✓ |
| [Singapore: Capital Markets Services (CMS) Licence](https://protegra.io/licensing/licences/investment-firm/singapore-cms/) | | ✓ |
| [Slovakia: Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | |
| [South Africa: Over-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act](https://protegra.io/licensing/licences/investment-firm/south-africa-odp/) | | ✓ |
| [Spain: Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | |
| [Switzerland: Securities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)](https://protegra.io/licensing/licences/investment-firm/switzerland/) | | ✓ |
| [United Kingdom: MIFIDPRU Investment Firm Authorisation (Part 4A FSMA)](https://protegra.io/licensing/licences/investment-firm/united-kingdom/) | | ✓ |

## Frequently asked questions

### What factors determine best execution under MiFID II?

Brokers must consider price, execution costs, speed, likelihood of execution and settlement, order size and market impact. For retail clients, total consideration, comprising the instrument price and all associated execution expenses, serves as the primary benchmark.

### What post-trade transaction reporting is required for executed orders?

Executing firms must report complete transaction details to their national competent authority or through an approved reporting mechanism by the close of the following working day, including trader identification, client identifiers and exact trade parameters.

## Sources

1. [MiFID II Annex I, Section A(2)](https://eur-lex.europa.eu/eli/dir/2014/65/oj): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.