How Forex and CFD Brokers Make Money?
There are 2 kinds of method to make money in this business. First, the Straight Through Process (STP) forex brokers, where they make money through commission rebates. The second method, we call them B book forex brokers, where they make money by taking the risk. STP brokers typically hedge their positions to their liquidity providers, while B book brokers may use professional risk management systems to increase their revenues. There is another business model in the market, where we call it the ‘hybrid’ where risk control and rebate income is made in the same place.
Which Trading Platform Is The Best?
With today’s advancements in trading technology, enhanced user experience, customization capabilities, availability in the native language, the ability to facilitate the use of Expert Advisors (EA) are most needed for a trading platform. Easy-to-use charts, taking low computer resources, real-time support is what traders most sought after. Apply for a demo on our platforms to understand the best platform you should offer to your traders.
How to Get Forex License?
Once you have decided to start a forex brokerage business, the next step is to obtain an offshore forex license before taking the step into getting regulated by a high-cost jurisdiction. To obtain an offshore forex license, you could easily do it with low investment capital, low cost on maintenance, and through a simple, expedited process.
Can Forex Make You A Fortune?
Trading like any skill acquired, is an art where the trader has to gain experience, and equipped with the right tools to attain success; making money on trading is never easy. Being a forex broker however offer potentially stable returns should good risk management tools is in place. Start a Forex broker with our customized solutions and make more profits.
Do Brokers Trade Against You?
There are two types of business models for Forex brokers. There are B-book forex brokers whom trade against traders. Another kind would be the STP Forex brokers whom pass trades of the traders directly to their liquidity providers. For traders who dislike any trade disputes or arguments with any broker, tend to establish their own white label or grey label STP forex platform so they can offer themselves a clean trading environment that does not conflict any interest on their trade positions. A broker operating without any risk taking on clients positions tend to have better credibility with their clients.