So, it’s official: you’ve decided to up your game and start your own Brokerage. We’re assuming that you’ve done some trading already and realize that if learning to trade was tough, becoming a broker is going to be tougher. In fact, it’s going to be a major pain in the butt - it’s cumbersome, it’s risky, it’s a bit of a legal nightmare and it’s expensive. You may now start to worry but don’t despair. If your decision is solid and serious, ForexOfficials will help you plot your way to the top. Here is what you need to know:
1. Choosing between White Label and your own Brokerage, it’s definitely worth going the latter rout
While label is relatively less expensive but much less flexible. The power of decision on spreads, prices and generally ways to compete is limited and the company that gives you the WL may very well go after your clients, leaving you out of the loop.
2. You probably don’t need the NFA, but then again...
No law of no land (indeed, there are some laws and lands but we’re talking about the civilized world here) will dare telling you what to do with the money from your own pocket. That is, if you’ve satisfied the tax man first, of course. However, if for any reason you would prefer to be regulated by the NFA (or SEC, or FINRA for that matter), know that the costs (depending on your jurisdiction) may be in the millions (in the US over $20 million).
3. Select the right platform with the right spread
There are many trading platforms out there offering variety of options on spreads, liquidity, risk management etc.. We at ForexOfficials would like to make it official by offering you ours with spreads as low as 0.8-0.9 pips and a feed between 0 and 3 pips on EUR/USD and many other goodies. Please, go to our website for more detailed information on our beginner’s package.
4. Pay attention to the legality and confidentiality of your future Brokerage
How to handle your future clients’ funds is a very sensitive legal issue, which requires serious legal attention, whether or not you’re registered with any of the financial regulators or just planted the flag off-shore. Be meticulous, careful and vigilant. It pays.
5. Set up your future back office properly
The best platforms will provide you with enough back office tools, that either yourself or just a single employee of your future powerhouse will be able to handle all the reports, all the risk management tools, the market watch and all the customer accounts.