ForexCRM

It is more than just registering it with the relevant authorities to start a business. This also alludes to the establishment of a forex brokerage.

The main advantage of starting a brokerage from scratch is that the owner can keep all the profit and have complete power over the business. Like every business setup, brokerage requires abundant time, patience, and money.

In keeping with the guidelines described in this detailed and clear guiding principle for starting your company on-line, you ensure that your new business is properly prepared, registered, and regulated. This guide was compiled in this context and is intended to be a valuable reference for all possible new agents.

You can take more time if you want to start from scratch, but let us examine every move closely. Eight key steps must be taken to achieve this:

1. Research target audience location
2. Find the best business type
3. Business incorporation and registration
4. Forex Web Design & Branding
5. Trading platforms
6. Find the right Liquidity Provider
7. Partnership with a Payment Gateway Provider
8. Forex CRM Solution
9. Go online

❏ Research target audience location

It is more important than ever to have a well-structured target market. After you have analyzed who your potential customers are and where they are from, choosing the best jurisdiction to register your brokerage company will be much easier. The licensing requirements for such companies are far from being applicable in one country and it is often much easier to start a brokerage business in a place not your country of origin. For example, for Forex brokerages Cyprus is a top place because of financial and legal terms. So track carefully across different jurisdictions and choose what best fits your business needs before making any final decision on the local or offshore jurisdiction of the brokerage.

❏ Find the best business type

Deciding the company type is one of the first steps to establish a company. Where brokers are and where they wish to provide their services have an immense impact on the company type. To obtain this, you should select one of:

• General Partnership- The perfect business model for Forex trading independent businesses

• Limited Liability Company or LLC- A model that protects brokers from personal liability is multi-functioning and requires no board or group of shareholders to function.

• A sole owner - The simplest type of company. To form sole ownership there is no official list of steps and no separate tax forms.

❏ Business incorporation and registration

When brokers decide the type of forex brokerage, they have to set up their business in their preferred place that also provides legal authorization. It is very essential to acknowledge the regulative circumstances of that place they are counting on. Before starting the company, they must get to know about the jurisdiction that provides the best benefits.

Best jurisdictions are:

➔ Cyprus

➔ Saint Vincent and the Grenadines

➔ St Lucia

➔ Vanuatu

➔ Marshall Islands

➔ Seychelles.

Then brokers have to prepare required documents to obtain a license. For example: if brokers intend to run business in the US, they have to apply to the U.S Security and Exchange Commission (SEC). If they intend to run their business somewhere across the world, they would need to collect information from local regulatory authorities. Some common regulation authorities are:

· ASIC – Australian Securities and Investments Commission

· BaFin – The Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)

· CFTC – Commodities and Futures Trading Commission (United States)

· CySec – Cyprus Securities and Exchange Commission

· FCA – Financial Conduct Authority (United Kingdom)

· FFMS – Federal Financial Markets Service

· FINMA – Swiss Financial Market Supervisory Authority

· FMA – Financial Market Authority (Austria)

· FSA – Financial Services Agency

· FSB – Financial Services Board (South Africa)

· VFSC – Vanuatu Financial Services Commission

❏ Forex Web Design & Branding

An online forex brokerage must have a good website as it is the main arena to operate the business. Such a site can do wonders concerning customer leads and conversions when it is well and purposefully designed. Since user satisfaction is a key factor to any service, potential customers are encouraged to join an online brokerage that provides an eye-catcher with a well-designed website. In this context, let us examine the main characteristics of good website design:

1. Simplicity: The Fintech industry and especially the online retail forex brokerage industry are on the rise, with new brokers emerging every day. During hustle and bustle, recurring investigative results show that the best brokers are the ones with simple website designs. Potential customers decide in a division of a second and being confronted with an information surplus website is not a winning recipe. Rather, simplicity and clarity should characterize a good web design. It should only be focused on the accurate explanation of what is offered.

2. Captivating Visual Identity: The visual aspect of the forex website is as important as its content or maybe even more important as the first impressions matter and remain. Therefore top quality elements in graphic design are essential for a good website for forex. In addition to the general look, feel, and appeal of the page, the company logo and design should also be taken into account. The logo refers to the clients and the compact identity associated with the customers. As such, it must be simple, attractive and memorable, and easy to scale for future applications.

❏ Trading platforms And License

As the trading platform is directly linked to the types of trading expertise, the platform should be designed to offer the best service to customers.

Whereas all users have their preferences and specifications about how they can create an ideal trade platform, certain standard requirements need to be taken into account when choosing a trading platform and trading software.

They are:

➔ Interface

➔ Functionality

➔ Reliability/Security

➔ Performance

➔ Compatibility

Some renowned trading platforms are- MetaTrader 4, MetaTrader 5, UTIP, cTrader, Ninja Trader, ZuluTrade, and much more.

You need a brokerage license, too. You can have either a full license or a white-label license. Because of high maintenance charges, most startups cannot afford a full license. So most brokers would like to have a white-label license as it is cheaper and easier to use.

❏ Find the right Liquidity Provider

Forex Liquidity providers are the largest investment banks with vast forex departments that offer the exchange rates of various currencies traded in the forex market.

The top liquidity providers in the forex market are known as “Tier 1” liquidity providers. Some of the largest Tier 1 banks that currently provide liquidity to the forex market are Bank of America, BARCLAYS, UBS, BNP PARIBAS, NOMURA, CITADEL, etc.

The liquidity provider you choose has a huge impact on the spreads you will offer the clients. While selecting the right liquidity provider, the following factors are needed to be remembered:

• Check whether the LP is regulated or not. If yes, then go through their overall reports properly. If not, then check the reputation and client reviews thoroughly.

• Analyze whether the LP currently provides multi-asset liquidity and has a profound order book with historical data and adequate protocols. Make sure the LP does not cover only forex, but also commodities, indexes, bullions, bonds, stocks, etc., which you may need in the future.

• The execution offered by an LP must be fast (at least below 100 ms), without rejects or requotes. You should be able to ensure that your selected liquidity provider executes transactions safely, accurately, promptly, and transparently.

• Pricing of the liquidity service provider is another significant factor to remember. Chances of gaining more profits increase if LP offers tight spreads.

Connecting with the right liquidity Provider can make you benefited as a forex broker. It will also help you to stay in a profitable position against Volatile Market changes.

❏ Partnership with Payment Gateway Provider

The payment gateway acts as a connection between the trading platform and users.

Most preferred PSPs have preferred payment modes like Credit cards, Debit Card, Bank transfers, PayPal, Neteller, Skrill, etc.

❏ Forex CRM Solution

Customer Relationship Management (CRM) assures effective and efficient management of the entire spectrum of client relations. A standard brokerage CRM must have three types of platforms. They are-

➔ Admin/Back Office

➔ Client Panel

➔ Multi IB/ Partner Panel

CRM will make the withdrawal, deposits, and internal transfers easy. When clients face any kind of difficulties, they can inform their broker through a support system called ticket easily.

❏ Go live

Once you are fully ready for live operations, it is very important, in combination with the trading platform, mobile applications, and payment systems, to doubling all systems and techniques. The marketing campaign has also been started. After you have completed this step, you will be fully prepared to start the site.

A journey of ups and downs begins a forex brokerage. If you learn the procedure, a successful Forex trading company will be easy to start and run.

These Guidelines will hopefully provide a complete picture of a Forex brokerage establishment.