# Reception and transmission of orders Source page: https://protegra.io/licensing/activities/order-reception-transmission/ Receiving orders to buy or sell securities and passing them to third-party brokers for execution requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(1). Authorised introducing brokers benefit from European passporting rights, allowing them to market services and aggregate client orders across all EEA member states. ## Definition Receiving client orders in financial instruments and passing them to another firm for execution. - MiFID II, Annex I, Section A(1): [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 Agent or Matched Principal (Category 3A)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat3a/) - [IF · Abu Dhabi Global Market (ADGM)Financial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat4/) - [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 Agent or Operating an Alternative Trading System (Category 3A)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/) - [IF · Dubai International Financial Centre (DIFC)Financial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat4/) - [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 Business Firm Authorisation (Section 10 IIA 1995)CBI](https://protegra.io/licensing/licences/investment-firm/ireland-iia/) - [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 AfricaFinancial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets)FSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat1/) - [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 Agent or Matched Principal (Category 3A)](https://protegra.io/licensing/licences/investment-firm/adgm-cat3a/) | | ✓ | | [Abu Dhabi Global Market (ADGM): Financial Services Permission for Advising on Investments or Arranging Deals in Investments (Category 4)](https://protegra.io/licensing/licences/investment-firm/adgm-cat4/) | | ✓ | | [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 Agent or Operating an Alternative Trading System (Category 3A)](https://protegra.io/licensing/licences/investment-firm/difc-cat3a/) | | ✓ | | [Dubai International Financial Centre (DIFC): Financial Services Permission for Advising on Financial Products or Arranging Deals in Investments (Category 4)](https://protegra.io/licensing/licences/investment-firm/difc-cat4/) | | ✓ | | [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 Business Firm Authorisation (Section 10 IIA 1995)](https://protegra.io/licensing/licences/investment-firm/ireland-iia/) | ✓ | | | [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: Financial Services Provider licence - Category I (advice and/or intermediary services, non-discretionary, incl. crypto assets)](https://protegra.io/licensing/licences/investment-firm/south-africa-fsp-cat1/) | | ✓ | | [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 ### Can an order reception and transmission broker hold client money? An investment firm authorised solely for order reception and transmission may hold client money only if it holds the relevant ancillary permission under MiFID II Section B(1). Without that permission, all client funds and securities must flow directly to the executing broker. ### What disclosure rules apply when receiving payment for order flow? MiFID II strictly restricts payment for order flow. Firms transmitting client orders must demonstrate that any routing arrangements or venue fees enhance execution quality for the client and do not create conflicts of interest or undermine best execution obligations. ## Sources 1. [MiFID II Annex I, Section A(1)](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.