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Can you make money on forex without risk? The truth is that nowadays, to become a forex broker, you do not need a lot of effort or a significant financial outlay, you need the right solution.

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Sometimes, if you are using an older platform that requires a bridge to connect your liquidity provider, you’ll also need to pay the bridging technology provider fees.

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What are the costs you should expect when starting your forex business?

It is difficult not to see that during the current crisis, most companies are struggling with financial problems. There are, however, industries such as forex, which, on the contrary, are booming in times of crisis. Many forex brokers are already reporting higher revenues than last year. It is therefore not surprising that more and more people are wondering how to become a forex broker.

Are you curious if a forex broker business is for everyone?

Can you make money on forex without risk? The truth is that nowadays, to become a forex broker, you do not need a lot of effort or a significant financial outlay, you need the right solution.

Where does such a forex trading phenomenon come from? In theory, the behaviour of the markets can be predicted during a crisis. That is why there are more and more traders ready to invest. However, no markets are fixed, and no one can predict their volatility. Therefore, a more sensible and much more reliable solution is to invest in starting your forex broker.

If you want to open your forex broker, but you are concerned about unforeseen costs, the following article will explain to you what fees you will have to bear and what their amount depends on.

What you need to start your forex business, and what is the cost?

Registered company
- Offshore registration is not only fast and relatively cheap, but it’s also obtainable for everyone, that’s why 9 out of 10 brokers choose to register offshore. In just one week you can become the owner of a forex company for a cost of $1600. If you wish to add a corporate bank account to ease financial settlements the cost will grow up to $4500.

Forex white label trading platform
- There are at least a few technology providers on the forex market who’s proprietary trading platforms are worth considering and going beyond the most popular ones can bring you serious savings. For example, our proprietary match-trader platform with CRM cost starts at $2000 for setup and $1000 in monthly fees (contact us for a special offer & don’t pay monthly fees) where a basic MT4 WL setup will cost $5000 plus $2000 per month (including metaquotes charges).

Client office forex CRM
- It helps to manage your business and guarantees smooth service for your investors. Without it, it’s impossible to provide instant deposits to trading accounts or automatic registration to your platform and fast onboarding – everything investors are looking for. Giving the advantages it brings to your business it’s priceless… but match-trade’s client office cost $1500 + monthly fee when added to MT4 WL. But if you decide to choose match-trader WL it’s already included!

Crypto payment gateway
- Integrated with client office guarantees effective payment methods regardless of the region your investors operate. It provides convenient transfers without any risk of chargeback. We made sure to integrate reliable and cost-effective crypto exchangers, therefore clients can buy cryptos via wire transfers and credit cards, without the broker having to sign additional agreements. And the cost starts as low as 1% per transaction.

Liquidity for forex brokers
- Meaning the way you will provide liquidity for transactions made by clients on your trading platform and the liquidity provider, you’ll be taking it from. At match-trade we focus on providing the all-in-one solutions for forex brokers, therefore, we offer special conditions and free connection to our liquidity pool for our white label clients.

What type of fees to expect for forex business?

The prices on the market vary so much that it is difficult even to average them because many factors affect them. I will try to explain what the types of costs are for a forex broker.

Setup fee
- Regardless of whether you are buying a white label platform, client office, or just liquidity: there are always some fees for configuring a service to suit the client’s requirements.

Monthly fee
- It’s kind of like a subscription fee to the technology provider for using its solution.

Volume based fee
- This is the commission you pay to the liquidity provider for each transaction made – always charged per volume.

Sometimes, if you are using an older platform that requires a bridge to connect your liquidity provider, you’ll also need to pay the bridging technology provider fees.

This is the standard cost. However, even if you manage to collect the cheapest solutions on the market, it does not mean that you will incur lower charges. If you buy each item from a different supplier, then you will bear the cost of maintaining several providers. Besides, there is the issue of complaints and solving customer problems. With different suppliers, their responsibility is blurred, and it can be hard to find out who is responsible for errors.

What are the benefits of the all-in-one or an instant broker solution?

First of all, it is a reduction in fees. One provider who makes money on several elements, such as the platform and liquidity, can always offer lower prices than the sum of the costs you will have to incur for several providers.

One team that supports you and takes responsibility for the functioning of the entire system. The main advantage of the all-in-one solution from one technology provider is a seamless integration that mitigates the risk of any technical problems.

And last but not least, choosing an all-in-one solution will not only save you money but also a lot of time. The sooner you start operating as a forex broker, the sooner you start earning money and the money invested will be returned to you.

If you are still afraid of risk, contact our business consultant and ask for a forex broker set up in which you do not bear any risk (A-book brokers only) and for calculating the estimated income and the time in which the investment will pay off.

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Your must-read guide on how to start forex brokerage firm

Trillions of dollars swirl in the forex market every day and this massive profit potential vortex is gripping more and more investors and startups into the industry. So it‘s a small wonder why many business enthusiasts start forex brokerage today. However, before turning a great business opportunity into a profitable brokerage firm it’s essential to do thorough research. You need to be fully prepared and know everything: from the best location of your business entity registration to foreseeing the first-year operation costs.

We will try to enter the topic smoothly and highlight the most important steps that should be taken before opening a firm.

Basically, you have 2 options to start forex brokerage business:

To build it from the ground up

To run it with white label solution

We are going to check the steps each option of starting brokerage a firm includes, challenges and approximate costs. Let’s go!

How to start your own forex brokerage from zero

The major benefit of running a brokerage from scratch is that you – the owner – keep all the profit and have full control over the business. And still, it requires a lot of time, patience and, of course, money (well, every business setting up process demands pretty same ingredients).

So, what steps do you need to take in the first instance?

Research on your target audience location

Having a well-defined target market is more important than ever. Once you have made an analysis of who are your potential customers and where they come from, it will be much easier to choose the best jurisdiction to register your brokerage firm. Licensing requirements for this type of business are a far cry from one country to another and sometimes it’s much easier to start brokerage business in a place that is not your origin country. Cyprus, for example, is a top location for forex brokerages due to tax and legal terms.

So, before making a final decision about the local or offshore jurisdiction of your brokerage company, screen carefully through several jurisdictions and choose which suits your business needs best.

Apply for a forex broker license

Prepare for providing with a set of documents at every stage of opening brokerage as well as for passing qualifications. For example, if you plan to operate in the US, apply at the U.S. Security and exchange commission (SEC). In case you going to do business somewhere across the world, you’d need to obtain an information kit from local financial institutions.

Ensure you have enough startup capital

Money is a bloodline of every organization and business. Without sufficient capital, no company is able to manage initial operating costs. That is why you need to check with your jurisdiction minimal initial capital amount and make sure you are financially strong enough to cover expenses for at least the first year of work.

Cooperate with reliable payment partners

It is essential for a brokerage firm to choose the right payment service providers for your clients to make different deposits and withdrawals in the most convenient way. After defining your target market select payment methods that are the most popular and typical among the customers. In order to avoid the payment processor’s failure that can happen anytime, consider a fallback option choosing several payment systems to cooperate with.

Find liquidity partners

It is vital to connect with leading liquidity providers to make transactions flow easier and pricing more competitive for your customers. Therefore, you need to find a trusted forex liquidity provider giving instant access to all tier-1 FX liquidity spots.

Also, your clients will need leverage for a successful forex trading experience so it’s important to arrange a line of credit. Note, that this process might take time due to banks’ complicated verification & approval procedures.

Find a trusted technological partner

To build a FX trading platform and broker ecosystem integration from scratch you got to hire a team of technological experts with strong programming and designing skills.

It’s essential to contact a company that has relevant experience building similar software for your target market, a proven track record of successful products, and client reviews.

You can drastically minimize the expenses and, possibly, improve the software quality by hiring out-staff teams from eastern europe (countries like ukraine) while keeping the management in-house.

For backend development of your project, search for specialists familiar with main server technologies, and knowledge of ruby, python, net, java, or PHP.

Front-end developers are involved in creating design and web interfaces. They’re responsible for increased user experience – everything the client interacts with on the site. HTML, CSS, and javascript are among the top skills in front-end development. Specialists who’re able to work with different frameworks (like bootstrap, angularjs) and libraries like jquery will be also a great finding.

For example, for mobile development, you’d need ios and android devs that must know swift / java (ios) and kotlin or C# (android).

Build a website

Your website is your trademark promoting you 24/7. It must be well structured and guide your customers to the main services or platforms you offer. So when looking for a web development company for your website, make sure you obtain a good quality of work performed by skilled web engineers. Getting a really good website will help you to stand out in the overcrowded market. Consider it rather an investment than expenses.

Form an office

At the beginning of an operational way of your brokerage company, you will need to hire a few specialists per each of the following departments: IT, PR & marketing, compliance, and customer support. Therefore, it would be really awesome if you could place them all in one place to achieve great results together, that is, in the physical office. If you cannot afford it, you can replace this step with a virtual office, as this commonly accepted in a modern forex broker startup culture.

Test before going live

Everything needs to be tested several times before you let your brokerage be used by customers. Spare no time on checking your software by professional testers or a focus group of your potential customers. This step will let you fix all the bugs in time, and avoid unnecessary surprises and unhappy customers.

Once all these stages are completed and your marketing campaign is effective enough, you are set to go live.

How to start a forex brokerage with a white label solution

If all said above is a bit of a hassle for you, there’s another option to start your own forex brokerage company. Many larger brokerages today provide forex white label software which means it’s already adequately tested and is ready to be put on the market. This way you save yourself time and are not responsible for technical requirements, implementation and trading operations processing.

As an introducing broker, you’ll only need to handle the marketing part for bringing new clients and customer support for keeping these clients.

The most significant advantage to reap : forex white label is many times cheaper than developing your own forex trading platform from scratch. You only need to cover set up fees, but in some cases, if you are skilled enough and have a great bunch of followers the offer may even come free for you.

So, with a white label solution, you can provide forex trading services under your company name.

You can also customize the platform interface and create a logo to be recognized by millions of traders. Additionally, to earn the higher income you’ll be able to set up your own fee structure and dealing spreads.

Now, let’s look at the steps on how to start a forex brokerage firm using white label solution.

Prepare a business plan.

Your way to success is the result of proper planning as it clarifies how you would manage the business and generate profits. So as in the case with starting from scratch, creating a forex brokerage business plan is your task #1.

Find a reliable partner.

It’s true that there are plenty of brokerage companies offering white label solutions. Your major purpose is to select the right partner to make your customers happy. Make sure the quality of execution is good enough as well as the safety funds.

By partnering with fintatech you eliminate your business from the possible traps that can arise while developing your own brokerage from zero. Our turnkey professional solution for forex trading is ready to be implemented within 3-4 weeks.

Contact us for a consultation and a special offer!

Investigate on the package of legal requirements.

Some countries like the USA, EU or australia require their white label partners to get forex broker licenses. Still, incorporating a company is suitable for many jurisdictions. In some instances, you may register a firm in one country and open an office in another.

The legal requirements kit will depend on a jurisdiction where you decide to register your company.

Start your own brand.
To make your brokerage business look well-trusted, make sure you have a distinctive high-quality logo, specialized content, branded materials, etc. Although any forex white label business can efficiently operate online, consider opening an office where you will be able to welcome your customers.

Extend services.

To attract more clients and be able to compete successfully on the market, think over offering additional services to your forex white-labeled platform for a more enjoyable customer experience. You can your marketing for traders and investors by adding some interactive forex trading guides or enable social trading in your software.

Pre-launch test.

Even though you get a ready-to-go trading solution it’s essential to check everything up to work properly.

And woo-hoo! After everything is settled, you can put all efforts into generating leads for your supreme forex brokerage firm.

How much does it cost to start a forex brokerage

When it comes to counting costs on starting forex brokerage business, it scares off many beginners due to significant sums. The advice here is never to invest in a business you cannot understand. That’s why it’s important to know all the stages of business development as well as get the broker’s license and qualifications.

Fintatech is open to help you with consultations regarding white label solution operations.

Let’s check out the approximate expenses you are to face during forex company formation:

Business registration – from $2,000, depending on the forex license costs. Many brokers initially opt for cheaper territories;

Setting up a corporate bank account – $500-$3,000. Note, that you may need to make a minimum deposit during the whole process (from $50,000 to $500,000);

Website development – $1,000 – $25,000. Consider contacting the company that builds websites tailored to forex brokers’ business needs. At least, you can start from the “beta version” website, gradually optimizing its functionality;

Purchasing forex trading software – $5,000 – $150,000. The prices vary due to different payment models: some third-parties require a monthly fee, some require a one-time fee while the others are volume-based. Note, that white label solutions may require $0 fees);

Opening an office (if planned to go beyond online presence) – $10,000 – $30,000. You don’t have to rent a large space with a crowd of people in it, just make sure it looks nice and professional;

Hiring a team – depends on your local salary rates. Your team is your success fuel. At first, you’d need a powerful sales team to convert visitors to your clients, then support, financial and legal departments to manage these clients smoothly. And don’t forget about the marketing manager – the guardian of your brand;

Advertising & marketing – from $20 to $200 per client registration. Being quite an expensive industry for promoting, it’s clear that without a strong marketing strategy it’s impossible to build a brand and grow your client base. So to take your brokerage to the next level, you should lead a quality marketing campaign.

Summing up

There are two things that need to be highlighted after all: 1. Forex brokerage is a very profitable industry 2. Launching your own forex brokerage can be extremely costly.

Сonspicuously, to establish a competitive brokerage business you have to complete multiple tasks as well as have enough budget. For example, to operate as a proper FCA regulated broker, you’d need some few million.

That’s why starting forex brokerage through white label solution may be a better idea in the early stages. For business beginners it means:

Loose legal requirements

No start-up capital requirements

Essentially lower operating expenses

Faster setting up process

Once you have a solid customer base and a bigger volume of trading operations, start planning your own brokerage firm with full control and 100% profit.

Like we already mentioned it may be tough to deal with all these challenges by yourself and companies like fintatech is here to help brokerage startups to skyrocket. If you would like to know how to set up a forex brokerage firm in just 3 weeks, give us a shout through the right upper “contact us” corner of our website.

How to start a forex brokerage step by step

Opening a forex brokerage from scratch

1. Define your target market

2. Ensure you have sufficient capital

3. Connect with a liquidity provider

4. Partner with a payment processor

5. Set up your brokerage operations

6. Pre-launch and going live

Setting up a forex brokerage using a white label solution

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How to start a forex brokerage company

Wondering how to start a forex brokerage? This is a very exciting business opportunity. But before opening a forex company, there are a lot of important decisions from where to register a forex broker to how you will attract new customers (for example, by offering them high quality copy trading service). There are two major ways to start a forex trading business: open a company from scratch or use a white label solution.

How to open a forex company from scratch

Opening a forex brokerage from scratch requires solid start up capital and a lot more time and effort. You will need to incorporate this business and comply with all the legal requirements, negotiate with banks, build attractive website, etc. The benefit of choosing this road is that the entrepreneur keeps 100% of profit and has full control over your business. We have outlined 8 important steps to follow in order to open a forex company.

1. Research the target market

It is a good idea to define your target region (or target regions) first. Knowing where the customers will be coming from will help you select best jurisdiction to register a brokerage. In this business, licensing requirements vary greatly from one country to another, and it is often easier to start own forex brokerage in a place different from your origin. For example, a lot of companies that serve worldwide traders are based in cyprus for tax and legal purposes. Compare legal requirements of several jurisdictions before making a decision.

2. Create forex brokerage business plan

Although a detailed business plan may seem not necessary, creating and promoting a new financial company is a long journey, and having a forex brokerage business plan helps streamline this process. A good business plan consists of description of target markets and buyer personas, start up capital, projected profits and expenses, marketing and social strategy, competitor research, etc.

3. Gather initial capital

Capital requirements are usually set by the jurisdiction, so check with the financial regulator in your jurisdiction what is the minimum initial capital size. But regardless of their requirements, cost of setting up a forex brokerage is quite high, as you will need to have enough money to cover operating expenses during at least first 6 months to 1 year period.

4. Choose right partners

First of all, a brokerage needs reliable payment services providers. There is no way to compete in this market without having stable payment processing system. Consider negotiating with more than one system, so you have a reserve option in case of the primary payment processor’s software failure. It is important to have different deposit and withdrawal options, which are convenient for your potential clients.

If you are planning to offer leverage (and who doesn’t?), you will also need to negotiate a line of credit with a bank. The banks tend to have complicated verification and approval procedures, so plan ahead and allow enough time for this process.

5. Set up your online presence

This includes creating a website, deciding on the trading platform or platforms (will you offer a standard MT4 or have additional services, such as an app or your own branded webtrader?), what additional services to integrate. Building high quality website is a slow process, so it makes sense to take care of this early.

6. Set up an office

As a minimum a brokerage needs IT-personnel, financial personnel, customer support team, marketing and sales teams, compliance officer. At the beginning when there is low trading volume some of this roles may be executed by managing partners and one employee may combine several roles, given that he or she has enough qualifications. Most likely you will need to set up a physical office location, although in the startup culture this step can be replaced with virtual office.

7. Pre-launch

Allow enough time to test everything before your brokerage goes live. The platform, payment processing systems, the terminal, the app (if you have one) – everything needs to be tested several times, preferably by professional testers as well as by focus group of your potential customers. During this time you may also choose to train your personnel, especially the customer service department.

8. Going live

Once you are ready with the first seven stages, comes the exciting moment of going live. It is important to support launch with a well-developed marketing campaign.

How to become a forex broker using white label solution

There is an easier way to start own forex brokerage company. Many larger brokers today offer forex white label solution. This means that your company will only be responsible for a ‘store front’, while all the trading operations will be handled by the large brokerage. Forex white label business has lower operating expenses and doesn’t have to comply with capital requirements, as you will not be processing trading operations. This offer may even come free if you have enough skills, followers and qualifications. For majority of people starting a forex white label business via white label solution will not be free though. A broker typically requires white label partners to cover set up fees, but these fees are still much lower than the cost of setting up a forex brokerage from scratch.

1. Select a partner broker

Many brokers offer forex white label solutions, it is important to find a reliable partner to avoid customer disappointment. While doing your research pay attention to such things as safety of funds, quality of execution and flexibility (make sure the offer is flexible enough to match your business model).

2. Research legal requirements

United states, european union, australia require forex white label partners to register and get licensed as a broker. However, there are many jurisdictions where simply incorporating a company is enough. In some cases it is possible to register a company in one region but set up the office in another location.

3. Create a business plan

Same as if you were starting a company from scratch, having a defined forex brokerage business plan will help you stay on track on the road to success.

4. Build your own brand

Prepare high quality logo, branded materials, professional content – making your brokerage look like a trustworthy business is your primary responsibility. Decide whether you want to have a physical office to meet and greet customers or not. Forex white label business doesn’t require nearly as many personnel as a forex brokerage and can exist purely online.

5. Connect additional services

As a new broker, you need to offer serious competitive advantages. Make it easy for your customers to work with your white labeled platform: for example add educational forex games, or white label copy trading software.

6. Pre-launch

Although a broker will provide you with the ready-made trading platform, still set aside some time to check whether everything works correctly.

7. Going live

Congratulations! Once everything is set up, you can start generating leads for your forex business.

Conclusion – if you want to start a forex trading business

If you want to start a forex trading business, forex white label might be a better idea at the beginning. For a new brokerage it means lax legal requirements, the absence of capital requirements, faster set up process. Significantly lower operational expenses are the great advantage during first months while you don’t have solid customer base. It is possible to begin as an introducing broker (or a white label partner) and then, as the number of traders and trading volume grow, start thinking hot to become a forex broker with full control over operation and profit. When a brokerage already has established brand and customer base, it is much easier to secure additional financing.

10 things you need to start a forex brokerage

Choosing a custom forex broker solution

If you’ve been successfully trading forex or working as an introducing broker for a while, you may be interested in starting your own forex trading business. Forex brokerages can be lucrative, and if you have experience with forex and connections in the community, you’re already off to a good start.

Many companies offer advice on starting your own brokerage, and most of them present two options for doing so: starting a forex brokerage from scratch or buying a turnkey forex brokerage.

If you start a brokerage from scratch you obtain a license for a trading platform, build software for your clients, obtain regulatory licensing on your own, set up a bank account, etc.

If you buy a turnkey forex brokerage, you purchase all the services you need from one company, including an MT4 platform, liquidity, payment processing, etc.

Those are both valid options, but there’s a third option that isn’t talked about as often – building your brokerage using existing services.

Think of it this way – you could build a house with your own two hands and deal with the time and work required for that much labor, or you could buy a house that someone has already built and settle for the house the way it is. Or, you could hire a few different, specialized contractors to build a new house for you to your specifications.

After all our time in the industry, we really think the last option is the best one. You can choose among all the different service providers in each category so that you get the exact services you need at the best prices.

So what do you need to start a forex trading business? These are the 10 essential tools you need to start your forex brokerage:

Business plan with a target market

Understanding of legal requirements and financial regulations

Website and branding

Bank account

Liquidity provider

Payment processor

White label or MT5 platform

Trader’s portal (trader’s room, client cabinet)

Back office software

The good news is that you don’t need to find or create all of these things by yourself. Some businesses provide each one of these separately, and you can choose from those businesses to get the best price and service for your investment firm.

Business plan with a target market

At some point during the process (probably many times), you’ll need a business plan for your brokerage. With a little internet research, you can likely write your business plan yourself.

For a forex brokerage, you should include a discussion of the start-up and operational costs, the way you will process trades, how invested money will be held and managed within your trading business, what the competition is doing, your expected profits, and a risk analysis.

You will be better prepared to write a business plan if you have decided on a target market for your forex business. In other words, think about the clients you plan to target and where they are located before you draft your plan.

If you want help with your business plan, you can hire a freelance writer from a website like upwork. You can also hire a company that offers business plan writing services; a google search for business plan writer will give you a variety of options.

Understanding of legal requirements and financial regulations

One of the first steps in starting your firm will be to establish a legal business entity. The options for your business will vary based on your location and the location where you will market your services.

If you plan to obtain a license to sell forex products, you may need to set up your business entity in the country that will issue that license. Therefore, it’s important to understand the regulatory environment for new forex brokers in the locations you are considering.

Once you’ve chosen where you want to target clients, you can look for law firms in the country that can help you set up your business and begin the licensing process. Again, google can help you find someone to help. Search for something like forex trading license south africa law firm and you’ll see lots of options. Then, you can compare services to see which firm is in the best position to help you start your forex brokerage.

Website and branding

Setting up your website and deciding on branding for your firm will also be an important task to complete early in the start-up process.

Since most forex trading happens online, you want to have a website that stands out and meets forex traders’ expectations. Companies that offer turnkey forex brokerages sometimes offer a website in their package. However, they often have the same template for all the brokerages that they work with, which means your website might be incredibly similar to many other brokers’ sites.

Text: A professional website will help establish your credibility

Look for a company that builds custom websites that also has experience working with financial professionals.

You should also consider offering your website in multiple languages if you plan to target a country where more than one language is spoken widely. Turnkey forex companies are unlikely to offer such a service.

Bank account

You will need a business bank account to operate your forex brokerage company. Unfortunately, banks are sometimes hesitant to offer bank accounts to forex businesses, especially unlicensed ones.

You may need to contact multiple banks to find one willing to work with you. Talk to your liquidity and white label providers, because they may be familiar with banks that welcome forex providers.

Those providers may also offer some kind of bank account services, and this is one area where you may want to bundle services together. It’s become increasingly difficult for financial professionals in the forex space to get a business bank account. If you can easily acquire one from your white label or liquidity provider, you’ll save yourself time and hassle.

Liquidity provider

Liquidity providers for retail forex brokers often aggregate liquidity for global banks, financial institutions, and other market makers. The liquidity provider you choose greatly affects the spreads that you can offer your clients.

You want to choose a liquidity provider that offers you the tightest spreads. The liquidity providers associated with turnkey forex solutions sometimes have larger spread markups than those you can get if you choose a liquidity provider independently.

Payment processor

In order to accept deposits from clients as quickly and efficiently as possible, you need to work with one or more payment service providers (psps).

Psps charge a flat transaction fee for each transaction as well as a fee that is a percentage of the total change. The lower these fees are, the better rates you’ll be able to offer your clients.

Because psps have access to your finds, you want to choose one that is well-established and has a good reputation.

White label or MT5 platform

You can either get a license from a trading platform or you can get a license to the trading platform from a third-party forex white label provider.

Most new brokers choose to get a white label because getting a full license from metatrader is often too expensive for small forex brokers. Additionally, metatrader no longer sells licenses for MT4 so you can only offer MT4 if you get a white label license.

When choosing a white label provider, ask about whether you can add your own branding to your white label platform so that it matches your website.

Client portal

Your client portal (sometimes called a trader’s room or client cabinet) is the software your clients will use to see their accounts, enter payment information, see forms and disclosures, upload KYC documents, retrieve important messages, and more.

This software is an essential part of how you’ll interact with clients, so you need to choose a tool that provides a friendly and professional user. It should also be available in multiple languages if your forex brokerage will operate in a region where multiple languages are spoken.

As with the white label, your client portal should offer branding options so that it seamlessly integrates with your marketing website and trading platform.

Client portal tools are often a part of CRM and forex back office software because the tools needed for a trader’s portal, a CRM, and back office software are interrelated.

Back office software

Back office software for forex brokers provides revenue calculation, fee management, compliance tools, partnership management, and other essential software for running your business.

This software should make it easier to run your business, so think about the tools you need to effectively manage your brokerage before you choose a software provider.

Back office software overlaps with CRM software in many ways, so you may see these terms used interchangeably or as tools that are sold together. In general, back office software may not include as many tools for marketing or for interacting with leads.

Text: Clients portals, back office tools, and CRMs are often bundled together

Client relationship management software (CRM) can help you track interactions with clients and leads. It usually includes messaging features and marketing tools as well as activity logs and other tracking features.

When choosing a CRM for your new forex business, make sure you carefully consider the company that will provide the technology. If you purchase a CRM from another broker, they will have access to all your lead and client data. If you purchase the tool from a company that simply makes software, you can be confident that your data is less vulnerable.

Starting a forex business may seem overwhelming in the beginning. If you break down the process of opening your own firm into smaller pieces, it can be much more manageable.

It may be tempting to buy a turnkey forex business because you won’t need to do as much research into the individual companies you’re working with. Thoroughly research the prices for all the services included and compare them to the prices you could get if you purchased the services separately.

We have software solutions for forex brokerages. Contact us to learn more about the currentbusiness CRM, back office software, and client portal.

Start your own forex broker

With nearly 4 trillion dollars in volume traded on a daily basis, the market for online foreign exchange (forex) trading and speculation is by far one of the fastest growing in the world. Due to breakthroughs in technology, it’s now easier than ever to participate in this industry’s rapid growth.

Unlike a brick and mortar business, all that’s needed to build your own forex broker is a computer and an internet connection! If you ever asked yourself how to start your own forex broker, the guidelines offered below will serve as an excellent starting point.

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How to become a forex broker
what’s the first step?

There are several components to consider when setting up a forex trading company. To start, it’s important to incorporate a new business entity and establish a bank account. This first step is crucial since it won’t be possible to either or receive payments until a bank account has been established.

Many new brokers also ask about applying for a forex broker license, a service also provided by atomiq consulting. Although it is beneficial to operate as a fully licensed brokerage, it isn’t a strict requirement when initially launching your brokerage.

Choosing the best forex white label provider

After your new forex brokerage has been incorporated, the next step is to explore the various white label solutions available in the market place. MT4 and MT5 are quite popular platforms although there are others to select from as well. As an example, the condor FX pro trading platform has grown in popularity due to its ease to use, functionality and start of the art design.

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After discussing your business model with you in further detail, we will be able to guide you to selecting both the best and cheapest white label solutions available in the marketplace. The good news is that the cost of establishing a forex white label is quite affordable, especially when considering the potential return on investment.

The next step selecting a forex liquidity provider

After a white label has been selected, you’ll need to consider the types of products your broker plans to offer. Just a few examples are: forex, stocks, metals, energies, and cryptocurrencies. The fees charged by forex liquidity providers will greatly depend on the type of products you wish to offer and the volume you expect to send to the liquidity provider. For the reason, the best approach to take when selecting a forex & CFD liquidity provider is to determine the types of products you wish to offer before officially launching the
broker.

Once you have selected a liquidity provider, you are ready to launch your new forex brokerage. Of course, the guidelines offered above are just a general overview of the process. There are more specific details to discuss, especially the costs involved in starting your own brokerage. If you would like to explore these specifics considerations in more detail, our team of experts are more than happy to schedule a call with you.

Why partner with atomiq consulting to launch your forex broker?

Guidance with selecting the best white label provider for your new brokerage

Assistance with bank account establishment & payment service providers (psps & payment gateways

Professional, fully customised forex website design

Consultation pertaining to forex broker licensing

Website domains for sale & guidance in choosing a domain for your new brokerage

Marketing guidance: lead generation & sales consultation

CRM & trader cabinet technology

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Start your forex broker with atomiq consulting today!

Founded in 2014, atomiq consulting has been helping entrepreneurs and investors around the world successfully
launch their new forex brokerages. Due to our long established network of liquidity providers, legal firms, and
technology companies, we are the ideal partner to help you start your own forex trading business.

To learn more about how to create a forex brokerage, ask specific questions about the process and meet our team
of experts, don’t hesitate to contact us today!

How to open a forex trading account

What is needed and why

An assortment of foreign currencies spread out on a surface

Artifacts images / digital vision / getty images

Forex trading sounds like an exciting financial opportunity to those who hear about it for the first time. The possibility of trading large sums of leveraged money sparks the imagination, but most who find the prospects of this market attractive will soon find they are surrounded by online hype and hyperbole.

The reality of trading is quite different from the sales pitches most people hear. That's because it is hard to be consistently profitable and most traders lose money in the early stages of their experience.

What is not hard, however, is actually opening a brokerage account. Choosing a brokerage is more meaningful if a beginner has actually tried out several different forex demo accounts.

Typical requirements to get started

The first thing you'll do is set up an account with a forex broker. You'll need to provide a good deal of personal information to get your account set up, including the following:

Name

Address

Phone number

Account currency type

A password for your trading account

Date of birth

Country of citizenship

Social security number or tax ID

Employment status

You will also need to answer a few financial questions, such as:

Industry compliance

You might wonder why forex brokers want to know all of this information. The simple answer is to comply with the law. The environment surrounding forex trading has a comparatively low degree of regulation, but in recent years, more regulations have been put in place to provide some degree of protection or assurance to account holders. Additionally, forex brokers need to ask these questions to protect themselves from the risk of loss. They want to make sure customers who overleverage themselves will still be able to pay back any unexpected losses.

It's unlikely that you will find any broker willing to open your trading account without requiring these questions to be answered. If you do happen to find one that isn't asking many questions, you should be suspicious. If you are ever feeling wary about a particular broker, you can look them up through the national futures association to find out their status.

Forex trading and risk

During the final steps of opening your account, you will see risk disclosures. Please take these seriously. Forex is a difficult business for beginners. It tends to eat them for dinner if they aren't careful. There are more losers than winners on average. The broker is required to remind you of the forex risks.

Once you've turned in all of your information to be processed, the broker will verify it and typically ask you to send in some verification documents such as a government-issued ID, and maybe a utility statement to verify your name and address. The back and forth process can slow down the process by a day or two, but it's nothing to concern you.

Once your information is verified, you can fund your account and begin trading. One piece of advice that I like to give to all new traders is not to put any money in the account that you cannot afford to lose.

It seems like obvious advice, but some people start off feeling like they know more than they do, and take unnecessary risks. Start with a fair amount of money and trade small. Nothing can prepare you for the emotions that you feel when your money is truly at risk, so go slow in the beginning.

Forex should be boring

Forex seems very exciting, but in reality, it should be boring and cut and dried. If you feel a great deal of anxiety when making trades, be careful. It's common to either get too wound up from your winning trades or become a destructive trader from your losing trades.

Learning to make trades using research and systematic logic will serve you much more than relying on emotion to guide your trading. Forex should feel like simple, methodical decision-making with precautionary steps in case of failure. While that might sound boring to you, you will survive much longer if you approach that market that way.

Keep your cool

If you find yourself feeling like you are making common forex mistakes and just generally feeling frustrated, stop trading, and review the basics again. Forex trading is one of those industries where occasionally you have to re-evaluate your methods to make sure you are achieving your goals. Try not to get too frustrated and keep your approach scientific and unemotional.

The minimum capital required to start day trading forex

Martin child / getty images

It's easy to start day trading currencies because the foreign exchange (forex) market is one of the most accessible financial markets. Some forex brokers require a minimum initial deposit of only $50 to open an account and some accounts can be opened with an initial deposit of $0.

And unlike the stock market, for which the securities and exchange commission requires day traders to maintain an account with $25,000 in assets, there is no legal minimum amount required for forex trading.

But just because you could start with as little as $50 doesn't mean that's the amount you should start with. You may want to consider some scenarios involving the potential risks and rewards of various investment amounts before determining how much money to put in your forex trading account.

Risk management

Day traders shouldn't risk more than 1% of their forex account on a single trade. You should make that a hard and fast rule. That means, if your account contains $1,000, then the most you'll want to risk on a trade is $10. If your account contains $10,000, you shouldn't risk more than $100 per trade.

Even great traders have strings of losses; if you keep the risk on each trade small, a losing streak can't significantly deplete your capital. Risk is determined by the difference between your entry price and the price at which your stop-loss order goes into effect, multiplied by the position size and the pip value.

Illustration about starting day trading forex

Pip values and trading lots

The forex market moves in pips. Let's say the euro-U.S. Dollar (EUR/USD) currency pair is priced at 1.3025. That means the value of one euro, the first currency in the pair, which is known as the base currency, is $1.3025.

For most currency pairs, a pip is 0.0001, which is equivalent to 1/100th of a percent. If the EUR/USD price changes to 1.3026, that's a one pip move. If it changes to 1.3125, that's a 100 pip move. An exception to the pip value "rule" is made for the japanese yen. A pip for currency pairs in which is the yen is the second currency—called the quote currency—is 0.01, which is equivalent to 1 percent.

Forex pairs trade in units of 1,000, 10,000 or 100,000, called micro, mini, and standard lots.

When USD is listed second in the pair, as in EUR/USD or AUD/USD (australian dollar-U.S. Dollar), and your account is funded with U.S. Dollars, the value of the pip per type of lot is fixed. If you hold a micro lot of 1,000 units, each pip movement is worth $0.10. If you hold a mini lot of 10,000, then each pip move is $1. if you hold a standard lot of 100,000, then each pip move is $10. Pip values can vary by price and pair, so knowing the pip value of the pair you're trading is critical in determining position size and risk.

Stop-loss orders

When trading currencies, it's important to enter a stop-loss order in case the value of the base currency goes in the opposite direction of your bet. A simple stop-loss order would be 10 pips below the current price when you expect the price to rise or 10 pips above the current price when you expect the price to fall.

Capital scenarios

$100 in the account

Assume you open an account for $100. You will want to limit your risk on each trade to $1 (1% of $100).

If you place a trade in EUR/USD, buying or selling one micro lot, your stop-loss order must be within 10 pips of your entry price. Since each pip is worth $0.10, if your stop loss were 11 pips away, your risk would be $1.10 (11 x $0.10), which is more risk than you want.

You can see how opening an account with only $100 severely limits how you can trade. Also, if you are risking a very small dollar amount on each trade, by extension you're going to be making only small gains when you bet correctly. To make bigger gains—and possibly derive a reasonable amount of income from your trading activity—you will require more capital.

$500 in the account

Now assume you open an account with $500. You can risk up to $5 per trade and buy multiple lots. For example, you can set a stop loss 10 pips away from your entry price and buy five micro lots and still be within your risk limit (because 10 pips x $0.10 x 5 micro lots = $5 at risk).

Or if you choose to place a stop loss 25 pips away from the entry price, you can buy two micro lots to keep the risk on the trade below 1% of the account. You would buy only two micro lots because 25 pips x $0.10 x 2 micro lots = $5.

Starting with $500 will provide greater trading flexibility and produce more daily income than starting with $100. But most day traders will still be able to make only $5 to $15 per day off this amount with any regularity.

$5,000 in the account

If you start with $5,000, you have even more flexibility and can trade mini lots as well as micro lots. If you buy the EUR/USD at 1.3025 and place a stop loss at 1.3017 (eight pips of risk), you could buy 6 mini lots and 2 micro lots.

Your maximum risk is $50 (1% of $5,000), and you can trade in mini lots because each pip is worth $1 and you've chosen an 8 pip stop-loss. Divide the risk ($50) by (8 pips x $1) to get 6.25 for the number of mini lots you could buy without exceeding your risk. You would break up 6.25 mini lots into 6 mini lots (6 x $1 x 8 pips = $48) and 2 micro lots (2 x $0.10 x 8 pips = $1.60), which puts a total of only $49.60 at risk.

With this amount of capital and the ability to risk $50 on each trade, the income potential moves up, and traders can potentially make $50 to $150 a day, or more, depending on their forex strategy.

Recommended capital

Starting out with at least $500 gives you flexibility in how you can trade that an account with only $100 in it does not have. Starting with $5,000 or more is even better because it can help you produce a reasonable amount of income that will compensate you for the time you're spending on trading.

So, let's see, what we have: you don't have to invest a lot of money to run forex business properly. You need to find trusted technology provider. Check out what costs to expect. At start forex broker