How to Start a Forex Broker?
How to Start a Forex Broker? Forex Broker is a Intermediary between the 'Traders' and 'Interbank' or 'exchange' or 'Liquidity Provider'. A Broker can make profit from his clients in different ways, the most attractive business in world is to have a Forex Broker Company. So here, You will learn how to setup a forex broker. All the questions are here, how to start a forex broker how to setup a forex broker company what I need to run a forex brokerage business what a forex broker have to run business Well, the above questions are answered clearly in this article, So to start a forex broker business, You need to get the following as a first step,
Have you business published and expressed in Online Well All the business requires a Website to have its business exposed to world in few clicks, So the Forex broker business, You must have a Website that explain your offerings and features of your company. The websites are nowadays equipped with many features where user can interact and ofcourse the most of the business activity are automated using the Website and Web Applications like CRM, CMS, etc... Hope you understand That you need a Website for your Forex Brokerage Company.
A software used by your clients to trade. Trading platform is most important software that a Broker should have. This is offered by a Forex Broker to the client to trade in the products offered. Also, those transactions need to be saved, backed and processed to the Liquidity provider using various bridging Technology. There are three most famous platform that a forex traders use, they are MetaTrader 4, cTrader and Global Trade Station(GTS). Among this, most of the broker have MT4 (MetaTrader 4) as their trading platform which is user-frindly and with more features for manual and automated trading systems. You can get this Trading platform of you own which would cost you a lot or share with another company (Whitelabel) but in your brand or even use other companies platform. It is a Software that you need to offer to your clients.
Legal Existence of a Company You can call your company in any name, but you need to give a legal existence for it by registering with any of the government in world. You can choose to register your company in any country but make sure you are aware of that countries law, financial policy and acts that are relevant to your business. To carry our day to day activity you can setup a Bank account in your company name. That's it you are almost ready to start.
A Master Account for your company where all your client trades are processed The financial part of your Forex Brokerage business is here, you have to choose a Liquidity provider who will accept your client trades and clear it with their liquidity. So this is a Company or Bank which will setup a Special account for you, Where you have to park yours and your client's money. When a Trade is executed in your platform and if you choose to clear it with LP, then it will be processed in your Margin Account. So for example, If you have $50000 in your margin account, and If all your client trades make profit of $3000, then your balance will be $53000. You will not reveal any of your client info or balance to this liquidity provider, ONly thing is You need to have Sufficient balance to cover up with Trades that you pass to LP. You have to choose a right LP to run your business for long time.
Have a Attractive Idea in this business to be Successful There are around 2000 forex brokers in world and counting everyday, So your product and service should be competitive to get business. Many people offer, Bonus, Low commission, gifts and more. Understand the business clearly and then Go ahead with offering best service to your clients. Still many clients in world looking for BEST broker, if you find you can serve them, Start your company today.