Investopedia states that the foreign exchange market (Forex) is the largest global asset marketplace in terms of trading volume and liquidity. This is why it has grown in popularity over the years. You need to be an expert in the forex market and have the ability to make quick decisions. If you have trading experience (especially as an Introducing Broker, IB), are familiar with the rules of forex trading and understand the needs of traders then you might consider becoming a broker.
We will be presenting selected solutions to help you start your FX brokerage company the quickest and easiest way possible without needing to make huge financial outlays.
Locate a reliable FX technology provider
First, time is money. You don’t want overpay. No matter how experienced you are in the forex industry, it is important to find a partner. Companies that offer FX services such as consulting, technology support and turnkey solutions can help you get customers. Future costs will impact your FX brokerage business.
Learn more about the services that are essential to create and maintain a profitable FX or Crypto businessy
Register a Forex company
You must register a company in order to conduct forex business in accordance with all legal requirements. There are three types legal jurisdictions that provide forex services: unregulated, semi-regulated, and regulated. Each has a different license cost and scope.
Unregulated jurisdictions Countries like Saint Vincent and Grenadines and the Marshall Islands do not have any special regulations for forex services, so registration is a matter of course. This option is used by 9 out 10 Forex brokers. It’s hassle-free and the easiest to obtain. However, it does not allow you to trade on the largest markets such as. European, and can lead to some problems in banking relations.
Regulated jurisdictions These are the countries of the European Union, with the UK and Cyprus the most popular. It takes at least 6 months to register a forex company and it costs more than $100k. It doesn’t include legal fees and high-qualified staff to complete complicated reporting. There are many benefits to paying a high price. Brokers that are regulated can work in all major markets, without having to deal with banks or other financial institutions. A license like this can also improve the reputation of the broker and increase their trust. It’s not possible for large businesses.
Find the best FX trading platform
There are many trading platforms available on the market. The most well-known ones include MetaTrader4 and MT5 as well as cTrader. However, there are also less-known but equally effective platforms like xStation and Utip. Match-Trader is the newest platform. A White Label solution is the best option for those who don’t have a lot of money to invest in forex brokers. MT4WL is the most affordable. While you can be your own company as a White Label Broker, MetaTrader White Label only allows for limited branding options and a shared mobile app. MT4 is the preferred platform for traders because it offers a wide range of EA (Expert Advisor), trading bots.
You need to choose the right trading platform for you. You should also estimate ongoing costs, as they can impact your profits. A solution provider that charges a flat monthly fee and doesn’t charge a turnover fees should be considered. In-house technology is a great option as it guarantees flexibility. It is important to work with a trusted advisor to help you create a customized solution that meets your specific needs.
Hosting and maintenance are also important aspects of a white label brokerage. It is cheaper to have your MT4/MT5 server hosted by your FX technology provider. This ensures that the broker is always available and minimizes the chance of the server going down.
How to select the best White Label solution for brokers
Convert Forex leads into traders
A website and social media accounts are equally important as choosing a trading platform. To acquire customers, marketing activities are essential. Even basic social media activities can increase traffic to your broker’s website. You can also increase your reach by establishing a network with Introducing Brokers (IBs).
Traffic is not enough. You must convert these leads into traders to make your FX brokerage a success. How can you keep your customers engaged? Automate onboarding and payments to improve your customers’ flow. Locate a Client Office, also known as Trader’s Room. This will allow your customers to seamlessly integrate with your chosen WL.
- Open a demo account or a live account instantly.
- transfer money between accounts,
- Send deposits or request withdrawals
- Proceed with KYC Onboarding
Multi-Account Management (MAM), Percentage Allocation Money Management(PAMM), and any other feature that supports Social trading can all help you grow your FX business.
Payment methods to your FX brokerage
Last but not least, every FX Broker must provide customers with efficient and cost-effective payment options. You can use standard methods such as bank transfers, card payments or popular ewallets (e.g. Due to tightening industry regulations, PayPal won’t work with brokers who have offshore licenses.
How to manage clients’ payments following tightening FX industry regulations
This problem can be solved by using the payment aggregator system. You can offer your customers instant withdrawals and deposits by choosing a solution that offers extended payment options. Integrate a Client Office/ Forex CRM system with a PPS aggregator, e.g. PRAXIS Cashier. It supports 300 PSPs and over 1000 payment methods including tier-1 acquiring bank, e-wallets and APM’s. This tool will solve all your payments problems.
