How to become a Forex Broker
7 steps to opening a company
To become a Forex broker, first of all, it is necessary to register a foreign company. We allocate 3 groups of the countries which are suitable for the organization of Forex services. They are different in the presence of the Regulator, the requirements of doing business and the cost of registration.
The first group (unregulated jurisdictions) – are the countries where Forex services are not regulated. It is the fastest and most inexpensive option. These include Saint Vincent and the Grenadines. It is a right decision to register a company this country to start a business.
The second group (semi-regulated jurisdictions) are the countries where there is a regulation of Forex services, and low requirements for doing business. These include Malaysia, Belize or the Seychelles. From our point of view this is a doubtful option, because, you don't get any significant advantages in case of considerable costs.
The third group (regulated jurisdictions) – are the European Union countries such as UK, Cyprus, Bulgaria and others. These are the countries where Mifid requirements work. It is the most expensive option and suitable only for large companies operating in the market for several years. Having a company in the European Union, you get an access to services in major European banks and low % of the commissions.
The cost and deadlines for bank account incorporation will be discussed individually.
Choosing a bank and registration of account
Choosing a bank depends on the country of your company registration.
Banks at the place of registration are up to semi-regulated jurisdictions, in Malaysia, Belize and Seychelles.
Companies with regulated jurisdictions and license have an access to the best European banks.
The cost and deadlines for bank account incorporation will be discussed individually
A website is a company’s presence on the web. A Forex company website has its specifics that are best to entrust to professionals experienced in creating websites for brokers, since people, who do not understand anything in brokerage services, are very likely to face difficulties. Developing private trader account, connecting merchants, implementing various Web services on your website are some of the things you will have to face in the process of developing a website. To save time and money we recommend having your website developed by the people who will not just deliver it, but also make it usable, functional and modern.
Time: 2 weeks — 3 months. Cost: $0 – $30,000
Choosing a trading platform
Trading platform is a set of programs for brokers and traders.
We recommend to use the UTIP platform. Currently this is modern and cost-effective solution. Your customers will be able to operate in the Forex and binary options market simultaneously in different terminals. The platform is available with prepared personal Trader's room and CRM system for your employees.
Time: 1 week. Cost: $9,000
To be a good forex broker you need to have a nice modern office. Pleasant atmosphere, polite and helpful staff will surely increase the level of trust to your company, making the customers come back more than once. If you are willing to invest into office space, find the best value for your money. If the allocated budget does not allow buying or renting a large office in the city center, pay more attention to other things such as staff training or the preparation of a marketing strategy. In any case, having a beautiful office is meaningless without a professional team.
Time: 1 month. Cost: $0 – $25,000
Great staff is half of a successful opening a forex brokerage. The importance of a strong team in the successful company is very high. The dealing center will require performance of the following tasks:
- Attract customers and open accounts
- Conduct training seminars
- Interact with customers in their work
- Maintain the website, add content
- Configure and support the work of the trading platform
- Develop promotional materials
- Credit accounts and withdraw funds
- Serve as a manager
Customers should be attracted by experienced sales managers. After the client tops up their account for the first time, working with them should be continued: promote active trading and "secondary" sales. Technical work in the company and the website can be a responsibility of an individual expert or someone else from the team. The expert should have a good understanding of how the trading platform and the website work. Advertising and marketing materials can be developed either by you and your manager, or a separate individual. All the information on attracting customers, working on tasks and control should be recorded in the CRM.
Time: 1— 2 weeks. Cost: from $0
"The first customer"
The logical conclusion of all previous steps will be the visit of your company's first client to open an account. This is an indication that all the steps of creating a company from registration up to the first transaction, are correct. With a team of professionals and a competent approach to business organization and development you will succeed, in spite of all the difficulties you may encounter in the process of company establishment. If you want to make you dreams a reality – make the first step and we will help you.
Time: 1 day. Cost: 0
Timeframes of running your own brokerage
The exact timing of starting up a forex company may vary depending on the size of the company you want to open, whether you need the office immediately or plan to start attracting customers only via the Internet, your website requirements are, etc.
A good quality website aimed at attracting customers, can be developed in an average of 3 months, so the development should begin immediately along with the opening of a foreign company.
In order to meet the specified deadlines, work must be organized based on own experience, knowledge and skills, or delegated to professionals.
How to open a forex company in a month?
Getting started in the Forex market can be done by creating a simple website, connecting the platform and a payment system. This is enough to attract customers.
We will create your turnkey forex company within 1 month
Since 2008, we've helped our clients to open more than 150 successful FOREX companies. Within 1 month
you will start up a forex business.