In our previous post, we reached the point where you applied for the license. Here, we’ll pick up where we left off, reviewing the process of building your forex broker.
You’ve Got the License. What Now?
Now, the most challenging and exciting part begins. It won’t be easy, but getting things up and running is gratifying.
As discussed in the previous article, you must assemble your team and make other preparations during the research phase.
Forex business relies heavily on technology, so you’ll need several tech-savvy individuals on your team. Let’s review the things you must address right from the start to gauge how many people you’ll need.
Payment providers
Building your forex broker starts with selecting payment providers. As soon as you receive confirmation that the regulatory authority has issued your license, it’s time to open a bank account — or better yet, several. Banks can be unpredictable and might close your account unexpectedly and for reasons not immediately apparent to you. Hence, having at least a couple of accounts is strongly recommended for security.
You’ll need an account to pay for various things and services, so securing one is a must. Remember, however, that this was a challenging process even ten years ago when we obtained our license, and it hasn’t become easier over the years. That said, banks in different jurisdictions will still accept you as a client, even though forex is considered a high-risk activity.
In addition, you’ll need a credit card processing company and as many local payment systems as you can find. The more payment systems you integrate, the easier it will be for your clients to deposit funds.
If you’re specifically targeting a particular country or region with your marketing efforts, try to incorporate as many local payment systems as possible.
Your Broker’s Website. Clients’ and Managers’ Back Office
Your business will require a website, which begins with choosing a domain name. Can you think of a catchy one? There are strategies for selecting a domain name to maximize its potential, so thoroughly research this topic.
Building your forex broker is akin to creating your website. It’s the face of your business and the first impression clients will have. Unless you have the resources and time, you don’t necessarily need to build the website yourself. In this era, you can outsource it to a third-party contractor. However, if you choose this route, it’s essential to have a clear understanding of your website’s desired look, functionality, etc., and be able to convey your requirements to the contractor. Failing to do this could result in a less-than-ideal outcome and waste precious time. At this stage, you should also consider who in your team will manage your website, update content, and add or remove features.
When creating your website, develop the client’s back-office/profile system. We can’t overstate the importance of this component. You should invest significant time into designing it, adding features beneficial to your clients (e.g., a client should be able to change all their passwords or leverage on their own without contacting support), and ensuring it’s as user-friendly as possible.
Which Trading Platform to Choose?
Before registering your company, you need to decide on the trading platform you’ll use. The go-to choice is often MetaTrader 4 or 5, budget permitting. We started with a single MT4 license and later added MT5.
MetaQuotes no longer sells MT4 licenses, but there are still ways to acquire one. If you’re on a tight budget, you might also want to consider an MT4/MT5 white label*. It offers less flexibility but remains a viable option.
NOTE!* When writing this article, the white label option is unavailable.
There are other trading platforms (e.g., cTrader, NinjaTrader), but since we haven’t used them, we can’t provide an opinion on their quality or functionality.
For the purposes of this discussion, we’ll assume that you’ll use MT4 or MT5. Once you’ve secured the trading platform license, it’s time to consider your liquidity (LP) and bridge providers. We began with just one LP and gradually added a few more over the years.
