0 Hype

You might have thought of this, what’s so hot about the FX Market? Why should I consider an FX Brokerage when there are hundreds or even thousands of other businesses I can start?

How can I start one?

 

The following facts should give you the best answer without any further explanation: 

 

1. The trading volume of the Forex market is 4X the global GDP. 


2. $5.3 trillion dollars are traded every day in the forex market. 


3. Forex trading daily volume is about 53 times more than the New York stock exchange. 

 

4. The Forex market is 12X larger than the futures market and 27X larger than the equities (stock) market.



Ready to start?

So, let’s talk about how to start your own Forex brokerage firm. Follow these steps & emerge your brokerage business from paper to reality.

 

Fundamental steps for starting a Forex Brokerage –


Step 1 – Company Incorporation & Brokerage Licensing

First of all, incorporating your business is the initial step. Then you have to obtain a license for running your business in preferred jurisdiction. Keep it in mind that not all countries allow a forex brokerage to be registered in their soil. You will need to do the legal setup offshore or onshore. You have 2 options for company setup –


a. Regulated 

 

b. Unregulated


A regulated setup means a dedicated license to operate a Forex brokerage under the financial regulatory authority in a country.

An unregulated setup does not offer a dedicated license. You will be running the brokerage business under an international business company, which is accepted globally.


Step 2 – Choosing the Right Business Model

Later on, the most important part is choosing the right type of business model. Three most popular brokerage type on the Forex market –

 

Market Maker (MM)


Electronic Communication Network. (ECN) 

 

Straight-through Processing. (STP) 


Step 3 – Developing a Forex Brokerage Website

The mandatory requirement before stepping into the next step is to get yourself a Forex brokerage website. Here, you will be making your first online presence & develop the website in a way so that clients get attracted to your offerings.


Step 4 – Choosing a Trading Platform 


 

The trading platform is the core element is where the trades happen. There are a few trading platforms – MetaTrader 4/5, UTIP, cTrader & more. You can either get a full level or white label trading platform license,


Step 5 – Connect with a Liquidity Provider

It is most obvious to connect with Forex liquidity provider who has the direct market access to all Tier-1 level forex liquidity. So that you can offer stable & reliable price feeds & quick execution to your clients


Step 6Choosing a Forex CRM


 

Proper management is the essence of a successful business. Proper management ensures increased client satisfaction with a higher profitability chance. That’s why modern brokers are using Forex CRM (client relationship management) tool to manage clients & handle limitless operations of the brokerage.


Step 7 – Get a Payment Service Provider (PSP)

Later on, you will need a payment gateway to manage the deposits and withdrawals as per your client’s convenience. Payment gateway like Credit Card, Debit Card, Bank Transfer, PayPal, Neteller, Skrill, etc.

 

Step 8 – Start Your Brokerage

 

Time to go live & start with as many traders as you can. Start with whatever number of clients you could get after all the marketing efforts and build your business on that.