becoming a broker ?

How can a firm enter the FX broker business (become a broker)? either MM or ECN ?

UP...

well, i'm not sure but i think u gonna need some form of agreement with clearing houses, a bank to keep funds and the NFA will have to know about you too.

you

Go to the NFA website it will explain what you need to do and the cost involved not a cheap process, in order to be registered with them. That does not include the cost of employees, computer systems and the like. Good luck

If you are to be a reputable broker and not some kind of metatrader garbage bucketshop, you can expect the startup cost to run into the millions.

Thanks,

I am not looking to be NFA registered broker, just regular broker.

here is the thing...

a friend of mine is planning to enter FOREX business with huge equity (more than a million dollar). Also, he is planning to open managed accounts, and with his connections, he can get more than 10 million dollars.
the problem with the current brokers are:
- big spread, widening spread, slippage....etc
- saftey of the funds (current solution is segregated accounts under the client name)

so, he is not planning to become a public broker, but the idea is why trading through intermediate, but trade with the source directly.

So, what is the best way to do this ?

I do not quite understand why you want to become a broker when you want to trade OPM.

With 10 MM Usd you qualify for a prime brokerage agreement. I know to trade FX on Barcaps Barx platform they expect you to deposit at least 1 mio USD and meet their monthly volume requierements. They will also grant you access to various ECNs (lava, fxall, etc.). Banks will do background checks on you.

could you elaborate more on this subject? some links will be useful.

Thanks

www.barx.com for barkleys FX portal. Other banks have simmilar offerings, i.e. AutobahnFX from DB. Just contact their sales representatives, it will be soon obvious whats possible and what not.