May 2009 Question of the Month

[AsstModerator]

FPA's HQ gets a lot of questions by email. Most are simple questions that have fairly straightforward answers. The staff here know most of the answers or can point people to the right areas of the forums or reviews to get the answers.

One came in last week that none of the Forums Team could answer. They passed it to me and I couldn't answer it. Felix might know the answer, but he's out of the office.

I think it is such an interesting question that I decided to share it with all of you.

Chatell wrote:

I was just wondering how do a person become a forex broker? Can u perhaps tell me?

I can't believe I manage reviews for hundreds of brokers, but don't know this. Someone help me out here.
:embarrassed:

 

[forexconfidential]

Hello AsstMod! Long time lurker here has one small idea. Boston Technologies offers this as a service:

Boston Technologies - Start Your Own Brokerage

I believe - correct me if I'm wrong - FXCM UK uses their MT4 and bridge for their executions too.

It really is a great question!!

--
Scott Wang

 

[jvracing]

It's not that hard!

Basically anybody can do it, all you need is a big wad of cash. Here's a company that has pre-built packages to help you "Start Your Own Brokerage."

Boston Technologies - Start Your Own Brokerage

 

[Andy Reaume]

Your answer...use the greatest library on earth...the internet

Go to: How to Become a Highly-Paid Forex Broker

 

[Pharaoh]

Looking online, good idea.

I found a 10 steps to becoming a forex broker page.

Step 1. Sell your soul to the devil.

 

[Hahed1]

A person becomes a forex broker if that person naturally is in absolutism dishonest, a thief,fraudster, cheat, lier, blackmailer, insentive, manupulative,trust breacher, misappropriator and a grand scammer who eats,breathes, drink, smoke live and sleep all of this irregularities!

 

[Abinadi]

Well, I have been broker several times in my life and every time I did it by spending more than I should have at the time.

Being forex broker works much the same way - just bet more than you should and ignore good money management and you too can be broker.

 

[yurps]

join the scammers

There are many answers to this question, obviously it depends on the type of forex business you want to setup.

Perhaps you want to setup a scam broker, offer great fills on the news, hope you get a bunch of weapon traders to open accounts there, and
then disappear with all their money, then here is your setup, only $2k to setup:
Banking 4 Bankers.Com – Start your own Offshore Bank – Banking Software – Bank licenses

Of course this probably doesn't include the software, most fx traders are want free software, Metatrader is the best option, you save on inhouse development costs, and most of the free indicators, EA, and systems for forex trading available on the internet forums are written for Metatrader, so you leverage all that open-source development. There are other platforms available to white-label like VT-Trader, but they all lost to Metatrader in terms of the community of developers using them.

So to get your software setup, talk to these guys:
Boston Technologies - Start Your Own Brokerage

They maybe able to help you setup in a more regulated country like the UK, USA, or Hong Kong, if you plan to do more than scam little forex traders with only $500 trying to make their first million.

However you can probably just get the MetaTrader Server software from Forex Trading Software: Forex Trading Platform MetaTrader 4 and set it up on a server..so you will need to buy a decent virtual server to run it on.

Another option is to just whitelabel another broker's platform....in essence you are really acting as an introducing broker, so probably you will just earn part of the spread per trade, but it will save you having to hedge the exposure of your clients and the other admin.

You should be able to google more:
Forex White Label
White Label Solution - OANDA FXTrade

Anyhow it is an option if your trading strategy doesn't work out as planned, or you forgot to set your stoploss and blew your account....

 

[Recruit Dorell]

Well, a relative of mine is a very famous broker. Don't want to name it of course, because here a fpa we don't want to advertise anything.
His story went from working in the financial industry for many years, then together with a partner got to plan together their company. They got an angel investor who trusted in them,(the most important thing....without cash you cannot start it). They opened and they have been succesfull since then.
So the recipe is:

experience
network
clients
plan
investors

good luck!

 

[Celtic]

Are you for real

Forex what ever they call them selves asked me about posting to a question "how to become a Forex Boker"
Folks dont become Brokers unless alot of backing and knowledge case in piont how does F>>> P<<<<< A<<< know that i would have this knowledge or anybody else. and who in the right mind would ask such a stupid question if they have been involved in the Forex?????
Folks you know what I am saying here and it is this !!!!!!!!!!!!!!!!!!!