HOW TO SETUP FOREX BROKER
Forex broker is an intermediary between the 'Trader' and 'Liquiditor Provider'. Definiton of brokerAnd if you have decided to invest time and money to set up Forex Broker, the following information below will help you.
If you are interested to start creating your own forex broker, Contact us now: rajabroker@outlook.com
THE STEPS
Since 2012, we have the experience in forex brokers industry, from consultation and cooperation with several brokers tech solution for the working of forex broker startup, white label, or branded IB.Here are 5 simple steps to open your own forex broker:
1. CHOOSING A BUSINESS MODEL FOR YOUR FOREX BROKER:
There are three (3) business model that can be applied to your forex broker:- Market Maker / B-book / Dealing Desk Broker
Creating your own market without any liquiditor provider and counter client`s trading activities - STP Model / A-book / Straight Through Process
Re-direct client`s transaction to liquiditor provider (market) - Hybrid Model
The combination of a Market maker and STP Model (A-book and B-book)
You must define the business model of the broker you want, and besides is to have a marketing idea which is fresh and different from other existing forex broker. So the products and services can compete with other brokers.
Estimated costs: None
2. COMPANY BUILDING:
The next step for the new broker is to establish the company and the legal framework, establish banking relationships and develop workflow and processes of the company. Here are some of the most important steps when setting up your own broker:- Registering your company in jurisdiction that is conducive to your business needs
- Opening a bank account for client`s deposit and the company's operations (Segregated Account)
- Establishing an office, buying office equipment, etc. (Optional)
- Hiring the staffs (Staff Recruitment)
3. WEBSITE:
Website is the major requirement if you want to start this business, this requirement is absolute because all interactions between company and clients / traders through the company website. You must have a website that can explain your company, products, and the features. You can use the services of a third party or start recruiting employees who are experts in this field.
4. TRADING PLATFORM:
Trading platform or a bridge software between the client, broker and liquiditor Provider (price feed) to do the transaction. Until today there are many trading platform available, but we take the most popular for example: MetaTrader 4.
Most brokers now have a MT4 trading platform (MetaTrader 4). You can contact them directly metaquotes to start asking the subscription price for their platform.
Estimated costs: relative
5. LICENSE AND REGULATIONS
Like all financial instruments, Forex trading requires proper regulation and each country has its own financial institutions and regulator that control the Forex industry and to protect the investors/traders.Not all Forex brokers are currently licensed by the appropriate financial regulators in their countries. It is important to pay attention to the regulatory status of your broker, because it will determine the level of security and protection of your investment. For the cost itself depends on the destination of your forex broker country, fees range from thousands of dollars in offshore countries to millions of dollars in major countries (including guarantees broker)
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