Discussion in ' Forex Brokers ' started by mikelkenneth , Nov 24, Log in or Sign up. I mean, how do you become a broker yourself? My idea is to have a plus What kind of licences do you need? Where do you apply? I do some research, but searching "dont know what" and "dont know where" is such a waste of time Any ideas? Looks super easy, good luck!! No wonder there are soooo many FX dealers poping up, anyone can do it.
Start Your Own BrokerageProducts for Starting Below is a list of some of the products that will help you start your brokerage: As a financial company, you would like to start offering Forex? We couple the immensely popular MetaTrader4 Platform, our extensive partner network, and our own innovative technology to start organizations off with the right foundation needed to succeed in retail forex.
If your organization is looking to diversify company assets, there is no better time then now to begin looking at the forex market. By becoming your own brokerage house and starting relationships with liquidity providers, you will be able to lower the operational costs associated with such activities.
Here is a model to consider: To run such a company you need about employees. Smaller brokers on the other hand can manage up to customers with just 10 employees. What can Boston Technologies offer you? Boston technologies can offer any subset of the following services and products and much more. You are the owner of your own brokerage and as such you decide what you want to do and we are here to deliver it to you.
Together with our in-house lawyers and compliance department we can create your brokerage as an US entity, a UK FSA regulated entity, a European Union regulated entity or an Off-Shore Regulated entity Together with our business banking relations we can provide you with an US or off-shore business banking solution in one of the top 10 banks in the world We can provide you with a complete trading platform bearing your company logo and name We can provide you with the hardware to run the platform.
We can provide you with price feeds, news feeds and other platform inputs. We can install, configure, maintain and support your trading platform. We can provide you with a complete website with research, charting, automatic account opening, price feed, market news and other features.
Together with our marketing partners we can provide you with customer leads Together with our partners we can manage your dealing desk following your risk parameters. We can provide you with a list of more than 25 banks and liquidity providers for FX Spot, FX Options, CFDs and Commodities Provide you with the software connections to the liquidity provider We can advise you and consult you on how to setup your business and why What would it take to setup a brokerage from an idea to a fully operational business?
Setup of a legal entity: You'll want to first talk to our compliance and legal specialist. We have experience with most popular FX jurisdictions in the world and we can advise you on what you can do and how much it would cost. Liquidity partners and other such relationships need to be built as early as possible. Boston Technologies, together with our partners can offer such existing relationships already established. In today's market you need an electronic trading platform Boston Technologies can also provide.
Depending on the platform you chose you need a minimum of 1 server, but 3 is recommended. We encourage you to host them in a safe, redundant, data center we can also provide you with. Installation of the software and configuration: We would provide this with the trading platform, the installation, the documentation, and the training videos.
As well as the installation of the STP software if needed. Our in-house web programmers can assist you to build you're your own website and online marketing solution. We will construct and host a website with automatic demo downloads, direct deposit, legal forms, live charts, quotes, news and everything your online forex brokerage needs.
We can help you design your trade process flow and then we can implement it for you: You need to be able to answer the following questions: Where will you unload your risk?
What types of accounts will you create for your clients? If you chose to be a dealing desk broker we can help you create your dealing desk, and acquire information sources. As described by our partner: The market risk we carry for this client is extremely conservative compared to their balance sheet and we will be able to further improve this number as we complete some studies of their client base and are given permission to increase VAR.
Boston Technologies can provide you with the contacts and the software to clear your trades and your risk with more then 20 liquidity providers in FX Spot, CFD , Commodities and other markets. BT can provide training to: Managers on how a brokerage makes money and how it can lose money IT personnel to manage MetraTrader 4 and Forex systems.
Sales and Marketing departments. To Managers about offering a managed accounts solution. We can help set up a program extension to manage multiple accounts at once. You will need to determine who does what for trading, deposits, reports, account management, and dispute resolution. AML and Know your Customer compliance employee. Boston Technologies can also help you locally in your own town by helping you Setup your own office trading and dealing desk office, phone system, internet, hiring assistance, and everything else you need How long will it take?
Total setup time from the first phone call to the first live trade in a regulated brokerage is normally 1 month. Once the contract is signed and the first payment is received we typically deliver the basic brokerage services in about 1 week. This includes company establishment, operations setup, trading platform setup, and setup of process flow.
Actual times may vary based on a number of factors. Here are a few timelines: If you chose to be registered the following registration times guidelines can apply: Here are the time-lines: Trading flow setup 1 week Beta Testing and Training 1 week Establish FX Spot liquidity from our existing providers 2 days Platform delivery 1 week Construction of the company client forms and procedures 2 days We are offering a free 1 hour consultation in our office in the Boston Stock Exchange Building, in our office in Copenhagen in Denmark, or in our office in Midtown in Manhattan, New York.
During that 1 hour we will evaluate the feasibility of your project, setup a project timeline, and work out the details of getting started. For more information on starting your own brokerage please contact us at sales BostonTechnologies.
This was a fantastic thread for me I got to read something really nice in their "sample business plan" The second business model is to take more of the risk: The customer buys from the broker and sells to the broker. If the customer makes money, trader loses money, and the contrary. This model is simpler, but riskier. They take small profits, and let losses run. Ongoing customer acquisition is thus very important.
In this model, some of the more experienced customers will grow frustrated that they are not dealing with Straight Through Processing.
Segmenting these customers out and dealing with them through a Straight Through Processing model is usually a good idea. Below we discuss such hybrid models. It is quite easy to start trading forex. There are a great many forex brokers available and opening an account is pretty straightforward. Some things you should consider as you look to identify the one best suited to you are: Be sure, though, to make note of any differences there are between the real platform and the demo one. Some brokers' platforms are both the same across the board, but some have noticeable differences in things like execution speeds.
It wouldn't hurt to check around the discussion boards to see what others are saying. Actually, if you are new to forex trading it is well worth it to spend a while trading via a demo platform first. It will help you develop and understanding of how it all works. That way, when you do go live, you will be more confident and ready for action. It's called white labeling. You must log in or sign up to reply here.
Your name or email address: Do you already have an account? No, create an account now. Yes, my password is:More...