Hello Traders,
Boston Technologies has issued a report for people interested in opening their own foreign exchange brokerage firm. I have read it and found it also interesting for me as a retail trader, so I would like to share it with you. It includes information about regulation, technology and how brokers can do business with us, the traders.
The most interesting quote from the report:
So, what they are saying is: If you own a dealing desk brokerage firm, trade against the new traders, who will most likely lose, but deal with the experienced traders through STP.
Dealing desks have always the option to direct the customer order to the liquidity providers, so if they want to keep the experienced traders, they will do it for them and earn money from the spread only.
While they still trade actively against the unexperienced traders, which trading account usually don't last longer than 2-3 months.
Enjoy reading the report.
Boston Technologies has issued a report for people interested in opening their own foreign exchange brokerage firm. I have read it and found it also interesting for me as a retail trader, so I would like to share it with you. It includes information about regulation, technology and how brokers can do business with us, the traders.
The most interesting quote from the report:
QuoteDislikedIn this model, some of the more experienced or savvy customers will grow frustrated that they are not dealing with Straight Through Processing. Segmenting these customers out and dealing with them through a Straight Through Processing model is usually a good idea.
So, what they are saying is: If you own a dealing desk brokerage firm, trade against the new traders, who will most likely lose, but deal with the experienced traders through STP.
Dealing desks have always the option to direct the customer order to the liquidity providers, so if they want to keep the experienced traders, they will do it for them and earn money from the spread only.
While they still trade actively against the unexperienced traders, which trading account usually don't last longer than 2-3 months.
Enjoy reading the report.
Attached File(s)
Forex Brokerage Roadmap 4.1..2011.pdf
937 KB
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2,769 downloads