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Forming my own Broker Company

  • #1
  • First Post: Mar 22, 2007 3:06am Mar 22, 2007 3:06am
I've been trading for a year now with a company that charges commission ($XX.x) on every lot I trade. After looking at my account statement and computing the total commissions I've paid the past year, I realized how much potential this business has especially on my country where forex trading is quite unpopular and only starting to grow.

1. How much capital do you think I need for this business?

2. How do I get to use MT4 as my trading platform? I know you pay the developers of the software but does any one of you know how much brokers pay for their MT4 rights?

3. Do you think being an introducing broker of a bigger brokerage company is better than putting up my own with my own brand?


I'll appreciate all your inputs. Thanks.
  • #2
  • Mar 22, 2007 3:50am Mar 22, 2007 3:50am
Quoting jbgee
I've been trading for a year now with a company that charges commission ($XX.x) on every lot I trade. After looking at my account statement and computing the total commissions I've paid the past year, I realized how much potential this business has especially on my country where forex trading is quite unpopular and only starting to grow.

1. How much capital do you think I need for this business?

2. How do I get to use MT4 as my trading platform? I know you pay the developers of the software but does any one of you know how much brokers pay for their MT4 rights?

3. Do you think being an introducing broker of a bigger brokerage company is better than putting up my own with my own brand?


I'll appreciate all your inputs. Thanks.
If I were you, I will just set-up a company that functions as introducing broker. No need to think about keeping accounts, applying for licenses, deal with data providers etc etc
  • #3
  • Mar 22, 2007 4:18am Mar 22, 2007 4:18am
Quoting luqmanz
If I were you, I will just set-up a company that functions as introducing broker. No need to think about keeping accounts, applying for licenses, deal with data providers etc etc
And no need to raise a couple million in cash to pay for it all...
  • #4
  • Mar 22, 2007 4:27am Mar 22, 2007 4:27am
Quoting Darkstar
And no need to raise a couple million in cash to pay for it all...
Exactly ... we traders love to K.I.S.S. (Keep it short and simple)
  • #5
  • Mar 22, 2007 5:08am Mar 22, 2007 5:08am
either your just asking a silly question, but if you do have the capital why aren't you trading direct with a prime broker? or a 2nd tier prime broker?
  • #6
  • Jul 11, 2007 1:09am Jul 11, 2007 1:09am
Dear friends, What amount is needed to open a brokerage account ? and which banks are offering this type account ? I donot beleave in trading with clients amount. I want that my clients can access bank price and place order direct to intermarket. I have lot of friends who are trading with different brokerage. But their is always a fear in our mind, What happend if brokerage will go to bankruptcy.Also price requto and sl hunting a problem. I didnot found a reliable brokerage so i can start as IB. Please guide me.
  • #7
  • Jul 13, 2007 4:42am Jul 13, 2007 4:42am
Quoting brazesh_active
Dear friends, What amount is needed to open a brokerage account ? and which banks are offering this type account ? I donot beleave in trading with clients amount. I want that my clients can access bank price and place order direct to intermarket. I have lot of friends who are trading with different brokerage. But their is always a fear in our mind, What happend if brokerage will go to bankruptcy.Also price requto and sl hunting a problem. I didnot found a reliable brokerage so i can start as IB. Please guide me.
I would suggest you to use some reputed brooker which have good credit history.
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  • #8
  • Jul 18, 2007 9:01pm Jul 18, 2007 9:01pm
How much money do you have...you need a lot of doe

the guy I use to work for was a stock broker who had literally thousands of accounts...a lot of the were millionare clients...

thats why he could branch out and start his own firm, because its always hard for smaller firms to get clients..
  • #9
  • Oct 11, 2007 5:14am Oct 11, 2007 5:14am
Quoting jbgee
I've been trading for a year now with a company that charges commission ($XX.x) on every lot I trade. After looking at my account statement and computing the total commissions I've paid the past year, I realized how much potential this business has especially on my country where forex trading is quite unpopular and only starting to grow.

1. How much capital do you think I need for this business?

2. How do I get to use MT4 as my trading platform? I know you pay the developers of the software but does any one of you know how much brokers pay for their MT4 rights?

3. Do you think being an introducing broker of a bigger brokerage company is better than putting up my own with my own brand?


I'll appreciate all your inputs. Thanks.
first of all to be a reputable one should be NFA regualted and to be that you need to have $5M in net adjusted capital, unless you need to be an IB you need 50,000 USD.
Trading for a living!
  • #10
  • Oct 11, 2007 12:46pm Oct 11, 2007 12:46pm
it a good ideea to be an introduction broker. you don't need big investments and no head-beating with international legislation, and not to mention that you need a smaller amount of cash.
"Abandon all hope, you who enter here" La Divina Commedia, Dante Alighieri
  • #11
  • Oct 15, 2007 3:10pm Oct 15, 2007 3:10pm
Quoting fxreport
first of all to be a reputable one should be NFA regualted and to be that you need to have $5M in net adjusted capital, unless you need to be an IB you need 50,000 USD.

$50k to be an IB? Where did you get that figure from?
  • #12
  • Oct 15, 2007 9:49pm Oct 15, 2007 9:49pm
introducing brokers should cost you only for the webhosting where you run your crappy little site on plus maybe some administrative stuff.

anyone here can start their own IB. all it is that you are a salesman.

this is more ideal as starting your own broker, would cost several million dollars.
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  • #13
  • Last Post: Oct 15, 2007 10:24pm Oct 15, 2007 10:24pm
you want to start your own broker the easy way

http://actforex.com/
If I Go Broke Trying Then I Will die happy.
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