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How much does Forex trading dealer business cost?

  • #1
  • First Post: Sep 3, 2007 8:57am Sep 3, 2007 8:57am
I was just wondering, does anyone here have no idea about how big budget does it take to start your own Forex trading dealer business?

I'm not seriously thinking about starting myself, because I'm sure I don't have that much money or neither knowledge. However, I was just interested about this number of money needed.

1) I guess first you should invest money to develop (or maybe buy) the whole system (online trading only). How much could this cost? It could be MetaTrader based only, so own web based system would not be necessary. Clients would download MetaTrader and place orders via your company spread.

2) Secondly you should have enough money to keep you in safe - not going into bankgroup against your clients. This is propably something impossible to say even closely as it depends about how big portfolios are your clients trading against you.
  • #2
  • Sep 3, 2007 9:08am Sep 3, 2007 9:08am
Quoting SomedayIwill
I was just wondering, does anyone here have no idea about how big budget does it take to start your own Forex trading dealer business?

I'm not seriously thinking about starting myself, because I'm sure I don't have that much money or neither knowledge. However, I was just interested about this number of money needed.

1) I guess first you should invest money to develop (or maybe buy) the whole system (online trading only). How much could this cost? It could be MetaTrader based only, so own web based system would not be necessary. Clients would download MetaTrader and place orders via your company spread.

2) Secondly you should have enough money to keep you in safe - not going into bankgroup against your clients. This is propably something impossible to say even closely as it depends about how big portfolios are your clients trading against you.

Starting a US trading firm will require mucho cash.
- initial reserve fund, at least $5 to $10 million
- starting captial for operations, at least $4 to $12 million
- marketing for the first 6 months, at least $5.5 million
- personnel and support, possibly $3 million
- unknowns such as other NFA stipulations, at least $?? million


Offshore firms can get away with much less I suppose.

Another way to get into it with little cost is to white label. Most cost in this scenario will be marketing.



.
  • #3
  • Sep 3, 2007 9:48am Sep 3, 2007 9:48am
How much would a white label cost
  • #4
  • Sep 3, 2007 10:19am Sep 3, 2007 10:19am
Quoting KudzuFX
Starting a US trading firm will require mucho cash.
- initial reserve fund, at least $5 to $10 million
- starting captial for operations, at least $4 to $12 million
- marketing for the first 6 months, at least $5.5 million
- personnel and support, possibly $3 million
- unknowns such as other NFA stipulations, at least $?? million


Offshore firms can get away with much less I suppose.

Another way to get into it with little cost is to white label. Most cost in this scenario will be marketing.



.
As I said, I was just wondering about money needed to develope a technical system that allows people to trade using MetaTrader only.

I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread.

I didn't mention anything about to which country it would be registered (but for sure not US).

All the numbers you have listed are completely random, there's no way someone can say how much marketing or personnel will cost if you don't even know about how big company we are taking about.

I only care how much it costs to do the following technically:
"I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread." = $ ?
  • #5
  • Sep 3, 2007 10:32am Sep 3, 2007 10:32am
Well, someone could start up a forex dealer company with one employee. In this scenario going "white label" I suppose is the best option. Cost? It depends on how much you would advertise.
  • #6
  • Sep 3, 2007 10:40am Sep 3, 2007 10:40am
Quoting SomedayIwill
As I said, I was just wondering about money needed to develope a technical system that allows people to trade using MetaTrader only. ...........
I didn't mention anything about to which country it would be registered (but for sure not US). .................. .
I only care how much it costs to do the following technically:
"I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread." = $ ?
maybe its just me, it quite annoying with all the reds and attitude.

-----------------------------

KudzuFX - How much would a white label cost without taking into consideration of the advertisement.?
  • #7
  • Edited 11:46am Sep 3, 2007 10:52am | Edited 11:46am
Quoting SomedayIwill
As I said, I was just wondering about money needed to develope a technical system that allows people to trade using MetaTrader only.

I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread.

I didn't mention anything about to which country it would be registered (but for sure not US).

All the numbers you have listed are completely random, there's no way someone can say how much marketing or personnel will cost if you don't even know about how big company we are taking about.

I only care how much it costs to do the following technically:
"I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread." = $ ?

Damn Guy,

You ask a RANDOM Question, and someone takes the time to attempt to give you some "ballpark" numbers......and you spit in his face!!!

Me thinks you'd make a great offshore "broker" with that attitude....you just want that SPREAD!

If you really want to know,,,, pick up the phone and call Metatrader!!!
Proper Prior Planning Prevents Piss Poor Performance
  • #8
  • Sep 3, 2007 10:57am Sep 3, 2007 10:57am
Quoting FxJarhead
Damn Guy,

You ask a RANDOM Question, and someone takes the time to attempt to give you some "ballpark" numbers......and you spit in his face!!!

Me thinks you'd make a great offshore "broker" with that attitude....you just want that SPREAD!

I you really want to know,,,, pick up the phone and call Metatrader!!!

He is cheap and he don't understand what white label mean...
  • #9
  • Sep 3, 2007 11:11am Sep 3, 2007 11:11am
Quoting Syafi
How much would a white label cost
It depends from the company, 2000$ - 10000$.
  • #10
  • Sep 3, 2007 11:25am Sep 3, 2007 11:25am
Quoting SomedayIwill
Forex trading dealer business
Funny.
  • #11
  • Sep 3, 2007 11:26am Sep 3, 2007 11:26am
arn't the NFA increasing the capitalisation requirements for the brokers they regulate? but yeah.. I think you would need many millions of dollars
  • #12
  • Sep 3, 2007 12:16pm Sep 3, 2007 12:16pm
Quoting peterM
arn't the NFA increasing the capitalisation requirements for the brokers they regulate? but yeah.. I think you would need many millions of dollars

$5mil to go up in the future I believe.

http://www.elitetrader.com/vb/showth...threadid=97890
  • #13
  • Sep 3, 2007 12:19pm Sep 3, 2007 12:19pm
NFA is just an association .......... Its not a government agency ...
  • #14
  • Sep 3, 2007 1:12pm Sep 3, 2007 1:12pm
Quoting SomedayIwill
I was just wondering, does anyone here have no idea about how big budget does it take to start your own Forex trading dealer business?

I'm not seriously thinking about starting myself, because I'm sure I don't have that much money or neither knowledge. However, I was just interested about this number of money needed.

1) I guess first you should invest money to develop (or maybe buy) the whole system (online trading only). How much could this cost? It could be MetaTrader based only, so own web based system would not be necessary. Clients would download MetaTrader and place orders via your company spread.

2) Secondly you should have enough money to keep you in safe - not going into bankgroup against your clients. This is propably something impossible to say even closely as it depends about how big portfolios are your clients trading against you.
actforex.com
If I Go Broke Trying Then I Will die happy.
  • #15
  • Sep 4, 2007 4:28am Sep 4, 2007 4:28am
Quoting KudzuFX
$5mil to go up in the future I believe.

http://www.elitetrader.com/vb/showth...threadid=97890
Thanks, I thought I read somewhere about that. If that happens, maybe it will make brokers a bit safer. I'm not sure.
  • #16
  • Last Post: Sep 4, 2007 3:34pm Sep 4, 2007 3:34pm
This question has been asked numerous times on this forum. Do a search and you will see the answer your looking for.

Good Luck
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