How to become a Forex Broker
6 steps to opening a company
To become a Forex broker, 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 requirements of doing business and the cost of registration.
Unregulated jurisdictions – are the countries where Forex services are not regulated. These include Saint Vincent and the Grenadines and Marshall Islands. Company registration takes 2 weeks and costs from 1500 USD. It is a right decision to register a company this country to start a business. 9 out of 10 Forex brokers use this option.
Semi-regulated jurisdictions - are the countries where there is a regulation of Forex brokers, and low requirements for doing business. These include Vanuatu, Malaysia, Belize or the Seychelles. The option is doubtful, since there is no advantage to work with registration costs from 20,000 USD.
Regulated jurisdictions – are the European Union countries such as UK, Cyprus, Bulgaria and others. These are the countries where Mifid requirements work. Registration costs 50 000 USD, plus the payment of the share capital of 125 000 EUR. The establishment of the company must have at least 6 months. After registration you will become a Forex broker with a license. Taking into account the high costs of creation and, later, the maintenance of the company, this option is suitable for large businesses with a customer base of 100 000 accounts. The company in the European Union gets full access to work with clients from Europe and favorable conditions from payment systems.
Time: from 2 weeks Cost: from $1500
The site for Forex companies has distinctive features, we list them.
Six criteria of a good Forex broker website:
Availability of financial and analytical services, such as quotes flow, economic calendar and others.
The presence of a transition to the Trader's Room and trading terminal.
Live site. It is important for regular visitors to see the update of the company's news and information about promotions.
Convincing history of the company. A technology company with attractive terms looks more advantageous than a company with a fictitious 100-year history and licenses.
Site without errors. All pages of the site are opening, contact forms are working.
The site must adapt to mobile devices, as half of traders trade on the market from mobile phones and tablets.
According to statistics, every second site submitted to the work of freelancers, is not being done. Therefore, order a website in a proven studio or a company that creates Forex brokers on a turnkey basis.
Time: from 2 weeks up to 3 months Cost: from $0 to $30 000
The trading platform is a set of programs for the broker's employees and traders.
There are platforms from 10 development companies on the market. These are Metatrader, UTIP and dubious quality products of Israeli developers.
We recommend using the UTIP platform at the start. UTIP platform is a complete set of necessary programs and the most profitable solution on the market.
Your customers will be able to trade Forex and cryptocurrency at the same time. The platform has web and mobile terminals. You will not need to develop a Trader's Room: it is already designed and ready to use. The platform developer also provides a special CRM-system for your employees.
Time: 1 week Cost: from $9000
There are many ways to accept payments from customers: Bank transfers, plastic cards, e-wallets and cryptocurrencies. Some methods of acceptance are easier to organize, while others are more difficult.
E-wallet. These include Webmoney, Qiwi, Paypal, Skrill, Neteller, Yandex and others. The broker needs to open a wallet in the selected payment system and place it on the website and in the Trader's Room.
Bitcoins acceptance. Over the past 2 years, the amount of funds accepted in bitcoins has grown and is 30% of all transfers. Manual acceptance of funds can be organized through the Localbitcoins service. You can automate acceptance using solutions from OrangePay or Cryptonator companies.
VISA / Mastercard. To receive funds by Bank cards you need to open a company in Europe and a Bank account. Payment systems do not work with companies from Saint Vincent and the Grenadines or the Marshall Islands. The European company will act as a payment agent to receive funds. The cost of such a solution is about 5000 USD.Time: from 1 day up to 1 month Cost: from $0 - to $5000
Creating a call center
Brokers attract customers by advertising on the Internet, participating in exhibitions, conducting free seminars and dealing with "cold" calls through call centers. Of all these methods, the most effective is a call center.
Creating a call center is the first thing a Forex startup needs to do in terms of attracting traders.
For the productive work of call centers, you need:
- prepare sales scripts;
- install CRM system and ip telephony;
- purchase a database of potential customers;
- hire and train employees.
Time: 1 month Cost: from $0 to $10 000
The first customer
The logical conclusion 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 deposit, are correct. With a team of professionals and a competent approach to business organization and development you will succeed!
If you want dreams to become a reality – make the first step and we will help you.
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From 2008 we had helped more than 200 clients to become Forex brokers. After 1-2 months you’ll get your own Forex business.
What is manual and automatic depositing of funds?
Manual deposit is as follows. You inform the client of the details or data of the wallet, then the client sends you the funds, you see the deposit and manually increase the balance of the client’s trading account. Automatic deposit, unlike manual, occurs without your participation and, as a result, faster: usually less than 1 minute. The client enters the card or wallet data, the payment system transfers his funds to you, automatically replenishing the balance of the client’s trading account.
Who is a payment aggregator?
Payment aggregator is a service that assembles several payment systems into a single solution for a Forex broker. A broker enters into a contract only with a payment aggregator company, instead of several, and receives one software gateway for integration, instead of connecting to different payment systems. The payment aggregator receives money from the Forex broker for the connection and the percentage of each transfer of funds from traders. Winpay, OrangePay, Interkassa are payment aggregator companies.