Starting Your Own Forex Brokerage

Since Forex and CFD trading came online from 2000, the number of retail online foreign exchange traders has grown many folds over the span of 20 years. Brokerages introduced the Introducing Broker scheme, thus creating and evolving into brand new careers and businesses such as social trading, follow or copy trading, and many other support services that circumference the brokerage business. Many introducing brokers who had done well within the past two decades are slowly transforming themselves into broker/dealers themselves, or into other relevant financial businesses, such as crypto-exchanges.

 

The trading platform is a crucial tool for the broker. The MT4 and MT5 trading platform are commonly used in the retail investor space. The platform was designed and maintained by MetaQuotes. For the institutional trading space, CQG, TT, Currenex, FXAll, or bank’s customized platforms still remain common for execution and data reading purposes.

 

The MT4 (MetaTrader 4) has a large market share in the retail trading space. A retail trader who learnt trading between years 2000 till now would know what an MT4 trading platform is and its functionality. The MT4 can execute orders, display charts, perform algorithm trading, support the back-office suite via a simple API, and many more. It is a trading platform that offers the retail trader a full-suite of analysis tools that would help him/her make a market decision.

 

In some areas of the world, we even hear there are pirated or cracked versions of the MT4 software. The pirated and cracked MT4 software are not only prone to infringement of intellectual property rights, they are also very prone to operational hiccups and unwanted disconnections.

 

For the owners of genuine MT4 platforms, MetaQuotes provide owners support through training, problem consultation, technical support and with other customization requests.

 

Three types of Forex & CFD trading platform owners:

1st Type: Full Software Licence

2nd Type: The White Label

3rd Type: The Grey Label

 

For the established broker/dealer, well-endowed financially, has a strong support team, and is very experienced with managing a mature Forex and CFD brokerage operation, obtaining full licence of a trading software (MT4/MT5/Condor 5.0) is greatly preferred. Ownership of the software’s full license will allow the company to have access to the trading platform in entirety. All permissions could be opened without have to seek approval from a third party.

 

For full unrestricted access to your trading platform, your initial capital required to start business will be higher than the white label and grey label. As Metaquotes has already stopped issuing new full licences of the MT4, many operators or would be Forex/CFD dealers could only obtain full licence MT4 software via acquisition, which is another tedious process.

 

So what is the difference between White Label and the Grey Label? One difference is, the white label platform uses its own Logo; this helps if you target to be in the business in the long term, and would like to promote your company’s trading services. For most start-up brokerages, as the cost to setup a white label is a small fraction of the Metaquotes software full licence’s monthly and setup fees. That is why the White Label Platform is most commonly subscribed; as this reduces the financial stress to the broker.

On applying for the MT4 white label, a registered company is needed. Typically our preferred jurisdiction is a St Vincent Company. Considering it being a new broker, it is suggested that the applying country is an offshore company, where running your foreign exchange brokerage is legal and unrestricted. Incorporation of such a company takes 15 to 30 days.

 

On setting up the MT4 white label, the owner provides Metaquotes their own trademark and brand logos. Once the sizes and logo type are correct, the MT4 Manager software and the front-end platform MT4 (mobile phone version, computer version, tablet computer, etc.) will see a change of this new logo.

 

 

Server locations are very important; customers complaining about ultra-low speed, delays in execution and having a Liquidity Provider with deep market liquidity are all crucial and basics to maintaining your reputation as a reliable broker.

 

Partners working with us have access to markets like Bitcoins, Stocks, Futures, Metals, Energy and Agricultural. Partners who apply they full licence software, white labels, grey labels through us will also have access to fund management tools like the PAMM (Percentage Allocation Management Module), MAM (Multi Account Manager), PAMM and MAM integrated to your ECN provider, and other unique fund manager execution systems. Our role in this business is to help the entrepreneur in the broker dealer business reach their business objectives. Attract more customers so they can create more transactions.

 

A good trading platform must be prescribed with a robust CRM system. A robust CRM system helps you better manage customer information, and the greatest value comes in the data collected. These data will help you in evolving your business and create opportunities for you by understanding your customer’s real needs. Create a private space where your clients can make payments to you with privacy. This is one of the pre-requisite of an ideal CRM customer support portal. We are positioned strongly to offer Asian based payment solutions to our partners. To know more about how to setup your brokerage or if you require specific solutions in one of the area above, reach us, and we will get back to you ASAP.

To find out more about Forex Brokerage information ,please contact us:

 

 

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