Can we build a better broker?

[seravitae]

I do not believe I would be a perfect partner, nor do i believe a perfect broker exists or can exist.

But we can danm well try, right?

FTR: I don't even believe I have the required business skills to operate as a solid partner. Of course willing to provide whatever advise I can, but I think the gruntwork is better left to someone who's had at least some experience in that field. My day job is completely different to anything business management related, so.

 

[Damon]

Hi$$$t !?

Using "Hi$$$t" makes me look like I'm after peoples money, I have not taken anyones money. No need to start name calling.

Yup, I was quiet there for awhile, I had nothing to say. This a good idea, I have something to say.

Also there is no need to donate. Let's slow this down a bit. I was thinking more of keeping a running pledge, and a pledge that is not locked in, just verbal that can be withdrawn at anytime things don't look right. Before any money is taken in for the project we need at least the offshore company set up and maybe some kind of escrow service or trustworthy party to display the books (Stuff to discuss in the discussion room we don't have yet).

Maybe that will simmer things down a bit.

Back to progress! Anyone know how to create a skype room? Can you? We should list out our talents that may be called upon to get this started.

Question about servers cost: that is scalable through BT.

I have started trading live Webcasts , this is something I wanted to do when the brokerage was setup. but I found a place I can broadcast free without re-inventing the wheel. I want to offer Sive Mortens projections at the brokerage too (with a link back to FPA and his free trading course).

 

[Damon]

By the way..

Rahmen,

Partner? Your skepticism is warranted. I have never seen a group come together and work efficiently is this type of manner.

Investors will be just that. If they like the idea they can invest time or money, They will make money if the company makes money. They will lose money if the company does. Decisions will be mine to make ultimately, I think you will find that I am for the greater good of the brokerage in my decisions. I really want a good broker that is trustworthy to traders and is not tied down by arbitrary rules. If after all the planning is through, you believe me, you can invest, if you don't believe me, don't. If you don't think i can't pull it off, don't invest. If you don't like me, don't invest. I think it's pretty simple really.

We are no where near needing any money anyway. I would like you to come on board with your warranted skepticism and help with the planning. I am sure you have resources on hand that might prove useful, even if that is just a contact.

And I still mean to fund it myself, trading is looking up since the Eur/Usd break

Damon

 

[RahmanSL]

hissst...sorry if adding "$$$" to your name makes you feel uncomfortable. I thought it adds a certain flair to your name, especially as a forex broker : ).
Ok, if you don't like it, I have already removed them from this thread.

Nope, I believe nobody says your have scammed anybody;ok!

If you are serious about going through all that trouble, time, and expenses to set up a brokerage firm, beside brain storming FPA members here, also go over to 100Forex Broker. Read their article on "How to become a Forex Broker", plus all their links on how to go about doing that, and be sure to ask old Broker Guru (BG) some questions too.
BG might take a bit of time to reply, but he does get back to you.
BG has been one big help to me right from the time I got into forex and I still occasionally go there to consult with him.

All the best in your venture...though I would ask you to ponder a bit on the reasons why some Brokers scam or have to resort to scamming their clients in the first place!

 

[Pharaoh]

I wonder. Would adding $$$ to my name add flair? Pharaoh$$$

Using multiple small investors does add potential issues. A few large partners may all know each other and thus have no trust issues. On the other hand, more small investors have far less to lose individually if a project fails for any reason.

If the "small investor" route were to be used (by Hissst or anyone else) to create a brokerage, the company would need to be properly organized as a corporation. This takes us back to questions of where to organize and how to organize.

At that level, they would need to only be investors, not partners. The slightly longer version of Rahmen's story about monks and water goes something like this:

One man will carry water in two buckets.
Two men will carry one bucket between them.
Three (or more) men will argue over who is supposed to carry the water.

Shareholders should be allowed input at shareholder meetings and in electing the Board of Directors. Letting shareholders interfere in daily operations would quickly wreck most corporations.

 

[RahmanSL]

Adding "$$$" to your name doesn't look right as it's all in the "sss" and you don't have any : )

Altering "Pharaoh" to "Pha roar" might do the trick, but it still doesn't look right either!

Hmmmm, I think I should change mine to Ra'a so that you will be forced to address me as "Father" or something equally senior.
=============================================

Alright, according to "The CFTC report Oct 31, 2010, you need at least 1,000,000 USD if you're looking to open an CFTC and NFA compliant U.S. brokerage firm." (this was posted by a trader over at 100Froex Brokers' site).

And according to BOSTON TECHNOLOGIES "Forex Brokerage Roadmap":

NFA Regulated: usd25,000,000
SEC Regulated: Cost may varies
FINRA Regulated: usd300,000
Offshore Regulated: Starts from usd5,000

MT4 Platform cost usd100k payable over 12 months, with usd12k down.
ACT Forex at usd25K + usd2k maintenance costs.
Other platforms at around usd100k + few thousands per month maintenance costs.

 

[seravitae]

honest question, would the goal be to become NFA reg'd? Thought the point was to have a community regulated system, but I suppose there might be perks to getting NFA reg'd.

 

[Pharaoh]

Considering the current CFTC goal of blocking US residents from having any offshore accounts, NFA regulated would be the best way to get US clients. FINRA is an option, but they limit leverage much more than the NFA (last time I checked).

As for the rest of the world, there are other regulators that don't require $25+ million upfront.

I'm in favor of some sort of regulation. Even if everyone has the best of intentions up front, problems could develop later. There's a LOT of money that flows through a brokerage, and temptations can get pretty high.

 

[Damon]

Build it and they will come

Hey guys,

I think I am going to withdraw my enthusiasm from the pooled funds idea, it is just like getting money from a angels or other investors, it throws to much paper work and "other intention".

I am going to come up with the money on my own. If I am still interested in working my absolute nuts off for something that may or may not be appreciated or understood I will do it.

But I have been really enjoying teaching forex lately... not for money, just cuz it's fun. I have also been looking into patenting a new energy source and going down that road, also patenting a fast and easy method of separating heavy metals from dirt/gold/ore and looking at buying property and moving off grid. So I am not promising that I will still have the bee in my bonnet to give the little guy a place to trade that would be transparent.

Thank you guys for taking the time to be a part of this thread. Really, it was very educational for me, I hope it was for you. but now, it just comes down to me making the money and deciding if I still want to do it. The more I look at it the more it looks daunting, not running or creating a brokerage but the work involved to educate anyone to see that is a good idea, the more I look the more I find that people don't see that the regulation IS a not a solution and the more I look the more I see that they cannot trust this type of idea, maybe it is just an impossible Utopian idea in this day and age. But I won't be gambling my 100k away. So when I have it spare, I will take a good hard look before I leap.

Thats the end of that until I got the bucks.!!

Onto something else I wanted to run by FPA !

Would FPA like to watch over my shoulder as I trade? offer it like Sive's market previews? It's no skin off my back to throw on the cameras while I trade. I will even be covering his setups after his video in real time. I have a dialog going with myself when I trade so I kind of commentate while you watch my charts and little corner cam of me...

Regardless if FPA does not want to feature this you guys can watch me trade live and yap with me while I am doing it at http://www.livestream.com/forexlivetrader if you guys are into sive mortens stuff you may like it, I trade similar-ish I am very mumbly though as I am candidly sitting there going over charts. I have nothing to sell or anything, just inviting you.

Damon

 

[seravitae]

Sounds good, a good level of reservation is showing cautiousness, which shows good intent, and providing the funds yourself in a way is showing more responsibility perhaps.

In the meantime, good luck with your other projects! On that note, I should perhaps mention that my full time job is as a scientist (currently I am a medicinal chemist) but I also enjoy tinkering/inventing, and am working on some energy and metals related projects as well - I enjoy looking at ways to create higher levels of efficiency for processes, and also have a keen interest in metal recovery. If you want someone to bounce ideas off of, don't hesitate to ask me. I'm not really in it for the money and i'm far too busy to 'steal' your idea, plus that's not how i work. (i prefer to build my own tower of excellence rather than make mine look good by demolishing/stealing everyone elses). If you want to talk all things metal and energy, you've got my account to PM to