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Anatomy of a forex broker?

  • #1
  • First Post: Nov 13, 2008 11:30am Nov 13, 2008 11:30am
Hi guys, I just want to know if you know how would someone start a forex brokerage business? What are needed, around how much funds, software, etc, everything that goes with starting this kind of business. Is there like a sort of "franchise" arrangement from the known brokers we have around if you want to operate and concentrate your operations in your own country?
  • #2
  • Nov 14, 2008 8:52pm Nov 14, 2008 8:52pm
Well from what I've heard I think you should get in contact with the NFA and the CTFA to start, they regulate the brokers. The NFA is American and the CTFA is English, those are the only ones I know of, but there are sure more from what I've read so far.
  • #3
  • Nov 15, 2008 8:49am Nov 15, 2008 8:49am
Quoting Johnny Be Go
Well from what I've heard I think you should get in contact with the NFA and the CTFA to start, they regulate the brokers. The NFA is American and the CTFA is English, those are the only ones I know of, but there are sure more from what I've read so far.
CFTC (http://www.cftc.gov/) is American, not English, FSA (http://www.fsa.gov.uk/) is English.
  • #4
  • Nov 19, 2008 1:02pm Nov 19, 2008 1:02pm
i know that you need to register and get license from these organizations, any other mundane requirements, like how much is enough as a starting capital, trading software/platform, others.

any ideas guys?

thnx
  • #5
  • Nov 19, 2008 6:34pm Nov 19, 2008 6:34pm
Thanks for the correction AKforex, and as I told you before dude jsut get in contact with them, they'll let you know the exact and accurate information to start as a broker.
  • #6
  • Nov 19, 2008 7:04pm Nov 19, 2008 7:04pm
Quoting toyotoyo
i know that you need to register and get license from these organizations, any other mundane requirements, like how much is enough as a starting capital, trading software/platform, others.

any ideas guys?

thnx
the starting capital would depend on where you plan on registering the company and which regulator will regulate the entity.

offshore can be very little and within the US you would need at least 50 to 100M to be comfortable for a year or two.
  • #7
  • Nov 19, 2008 7:08pm Nov 19, 2008 7:08pm
Quoting toyotoyo
i know that you need to register and get license from these organizations, any other mundane requirements, like how much is enough as a starting capital, trading software/platform, others.

any ideas guys?

thnx
Within the mundane requirements (besides verifying the broker you chose is registered with any regulatory entity), we have the accounts and the amount of money you will be able to start with. The minimum account would be the micro account, 1.000 USD up to 10.000 USD, investments less than 1.000 USD would be a demo account for me. There are some brokers that manage to open micro accounts with 250 USD though I don’t rely on them. 10.000 USD and higher would be then a Mini account. About platforms, you can use MT4 and you can get it downloaded on tradeview, alpari and some others, as I noticed you don’t seem to be experienced I would recommend for you to get a demo account first, get yourself trained for the real trade. Have fun.
  • #8
  • Nov 19, 2008 8:47pm Nov 19, 2008 8:47pm
Quoting toyotoyo
i know that you need to register and get license from these organizations, any other mundane requirements, like how much is enough as a starting capital, trading software/platform, others.

any ideas guys?

thnx
I have an idea. You seem to need to learn a lot before you can start a brokerage firm, I suggest for you to start learning Forex from the beginning, then you'll know if Forex or even a brokerage firm is the appropriate business for you, and also for your country. Go to Babypips, there's a school where you can learn all the basic. Don't rush.
  • #9
  • Edited 4:06pm Nov 20, 2008 2:12pm | Edited 4:06pm
actually guys, someone i know who's very rich happens to know what i am doing(trading forex) became interested about putting up a currency trading business.
  • #10
  • Nov 20, 2008 5:08pm Nov 20, 2008 5:08pm
Quoting toyotoyo
What are needed, around how much funds, software, etc, everything that goes with starting this kind of business.
Funds generally depend on the country of operation, US based is in the 7 figures.

Software, there are two routes. One is Metatrader server from Metaquotes, the other is to roll your own using programmers to develop. I think FXCM may also license their software suite as DBFX uses the same software.

Quote
Is there like a sort of "franchise" arrangement from the known brokers we have around if you want to operate and concentrate your operations in your own country?
Threre are several brokers who offer "white-label" setups where they supply the software, the back-office and liquidity and you label it and provide name. This is the quickest way to get started.
  • #11
  • Nov 20, 2008 6:05pm Nov 20, 2008 6:05pm
Quoting toyotoyo
actually guys, someone i know who's very rich happens to know what i am doing(trading forex) became interested about putting up a currency trading business.
Well, you should probably recommend to your rich friend to take a look on some good sites that explain the way Forex work on simple terms, as someone above recommended there are a few good ones like babypips, tradeviewforex. There you will also find information about regulation. Forex is all about a non-stop learning strategy.
  • #12
  • Nov 21, 2008 3:59pm Nov 21, 2008 3:59pm
Quoting 4xCoder
Funds generally depend on the country of operation, US based is in the 7 figures.

Software, there are two routes. One is Metatrader server from Metaquotes, the other is to roll your own using programmers to develop. I think FXCM may also license their software suite as DBFX uses the same software.


Threre are several brokers who offer "white-label" setups where they supply the software, the back-office and liquidity and you label it and provide name. This is the quickest way to get started.
hi 4xCoder, can you name those brokers you know of? if you can not say it here in this thread, can you please p.m. the list to me?

thnx a lot.

have a nice weekend
  • #13
  • Nov 23, 2008 4:59pm Nov 23, 2008 4:59pm
Quoting toyotoyo
Hi guys, I just want to know if you know how would someone start a forex brokerage business? What are needed, around how much funds, software, etc, everything that goes with starting this kind of business. Is there like a sort of "franchise" arrangement from the known brokers we have around if you want to operate and concentrate your operations in your own country?

toyotoyo, Can’t seem to PM you over this forum.


The firm I work closly with has setup 2 USA and 4 overseas FX brokerage firms.

US based firms are very expensive $20 million in capital reserve (required by CFTC/NFA to operate in USA) and around $400k to 1 million for software/sales/support and marketing.

Overseas firms require much less to startup, around $400k to $1 million for software/sales/support/marketing

If you and your friend are serious about opening a Overseas FX broker firm I know a startup group with all software/support/track record that are looking for $partners to enhance their marketing efforts.. .

If interested in at please email me privately

[email protected]
  • #14
  • Nov 24, 2008 3:43pm Nov 24, 2008 3:43pm
Quoting Tom_C
toyotoyo, Can’t seem to PM you over this forum....
Uff, what a numbers...
  • #15
  • Nov 24, 2008 5:15pm Nov 24, 2008 5:15pm
Quoting squaw
Uff, what a numbers...
Not quite sure I understand your response here, is this question?
  • #16
  • Nov 27, 2008 8:17pm Nov 27, 2008 8:17pm
I guess it is a statement, because of the big numbers those kind of brokerage firms handle. My question is about how are they being regulated, does someone know?
  • #17
  • Last Post: May 16, 2012 9:42am May 16, 2012 9:42am
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