1. Incorporate the Business
The first step in the process of launching your own forex brokerage is to incorporate a new company. Depending on your specific requirements, this could be an offshore incorporation. In some cases, you may opt to apply for a forex broker license.
2. Obtain a Bank Account For Your New Forex Broker
Once the new forex broker has been incorporated, you’ll need a way to both receive and make payments. This is where the bank accounts comes in, which will serve two purposes. First, you’ll need to offer your traders a way to send money to your newly formed forex brokerage. Secondly, the new broker will have to make external payments to cover basic business expenses such as technology fees, liquidity payments, staff, and other maintenance costs. For these two reasons, the bank account is a crucial step in the process of starting your own forex brokerage.
3. Build a Forex Website
Your clients will need to visit your website in order to open an account, test out a demo, and also review the terms and conditions you offer. When starting your own broker, you don’t need to have a world class website in the beginning, a simple yet well designed website will do. This is a service we are happy to help you with as we have experience in designing websites specifically for forex brokers.
4. Obtain an MT4 or MT5 White Label
A white label is the technology that will power your new broker, basically the software that your clients will use to buy and sell currencies, stocks and CFDs. MT4 and MT5 are the most common white label providers although you don’t necessarily need to choose them. Alternative white label programs trading systems such as the Condor trading platform is also a popular choice for new forex brokers.
5. Choose a Liquidity Provider
For those new to the industry, liquidity refers to the pricing and ultimately the trading execution that will power your broker. Each liquidity provider has their own set of terms, requirements, and fee structures that you’ll need to evaluate before launching the business, something we can assist you with.
We speak to new investors and entrepreneurs on a daily basis who are looking to build their own forex broker, making us an ideal partner to help your launch your own brokerage. If you are contemplating starting you own forex brokerage and require further guidance on the steps we’ve outlined, don’t hesitate to contact us today.