How to become a forex broker

Detailed information about opening a brokerage business and how much you can earn on it. How to get a Forex dealer license and open your Call Center. Buy lead and payment solution for a forex broker.

A series of articles on the topic of brokerage business. The budget is $ 100,000 and how to distribute it correctly.

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So how to become a forex broker?

Well, the task is quite difficult, provided that you have to understand what broker we will open? With such money, no regulation in the world will shine for us. They simply will not be enough, since the minimum license level for the European region will cost from 75,000 euros, which is practically our entire budget for opening a forex broker.

  1. Our proposal - we will go from small to large. We open a forex broker without a license, and we will move towards regulation, so we recommend that you conduct an honest business. In addition, we will explain the differences between them and what difficulties Forex companies have to face in different jurisdictions.

Brokerage software prices range from $ 10,000 to $ 20,000. But keep in mind that we are mainly talking about renting. This means that the purchased broker itself will be posted on the website of the software developers. Therefore, at this stage, becoming a forex broker will turn out to be rather arbitrary, but there are big and fat pluses here. This is a cost savings. You do not need to maintain your servers, system administrator, enter into contracts for the supply of quotes and liquidity. At this stage, we avoid all these problems, but for their solution we usually pay up to 5% of your turnover. (do not confuse about the IB system, which we will talk about another time). We can recommend BilTypeFX to you, which will provide quality brokerage software . The set will also include a payment solution and some extras that you will appreciate.

So, you have a forex broker. So far in the form of a clean site and zero clients. If you are lucky and you buy a forex broker from a quality company, then you also have a payment solution and you can accept deposits from clients. How ? you say, we don’t even have a company, but here the most interesting part begins and one more line of expenses.

Buying a company for a forex broker

In which jurisdiction to buy a company, provided that you are not going to obtain a license for forex activities at this stage, depends on you, but what is the company itself for? So that you can receive payments from payment companies to your bank account. Although you do not have it, since no bank will open an account for you for your activities and without a license, so you need a company more nominally to indicate on the site, and you will receive payment in cryptocurrency.

You don't need a bank account for that. But is it really that simple? not really, most likely the payment company will ask you for documents for the company, and it would be better for you to have them, otherwise the percentage for the transaction will go up to 30%. Yes, it was not sealed. You will give 30 percent, because you work without a license and without anything, and there is no trust in you.

So, we are a good and decent broker and we have a company, so our percentage will be about 10. This is the market, at least at this stage in the development of the forex industry.

Office for a forex broker - at your discretion. I do not recommend shooting a very cool one right away, since you will need funds in the next 2 points.

Managers for the brokerage business

Who makes a profit to a forex broker? They are not programmers, not an accountant or a company lawyer. Clients bring profit, and the first one who enters into a dialogue with them is the forex broker's manager. And the quality of his work will determine whether the client will become yours, or will go to another company in order to bring profit to them.

Maxim Batyrev's statement is very relevant (I am transmitting it in free form): “You can spend millions of dollars on marketing, on programmers and you will have the coolest office, but if the client is met by the manager Klava, who is not interested in selling the service, then she will cross out the rest work ”. Yes, that is right. The choice of managers should be taken very seriously, their experience or terms of learning and interest should be assessed. And if a client came from another company, then it is necessary to find out why he left, and for this they often resort to the services of a lie detector. Yes, I was not joking, as there are cases of stealing of managers from the company, especially in the unregulated sector.

Forex client lead generation.

These expenses should take up approximately 65-70% of your budget. that's about $ 70,000 you will spend on marketing. Of course, you can buy Forex leads from professionals in this business and all the problems with passing advertising bans, and Forex topics are prohibited in advertising (if you have there is no license, and you do not have one) they will take over.

Yes, buying forex leads is the most expensive and most valuable thing you have. They are the ones that determine the success of your forex brokerage business. How to become a forex broker you can answer on your own after 3 months of work, so you should calculate your forex company budget for 3 months. That's 30,000 a month and about 20,000 for advertising, marketing or buying forex leads .

By the way, why exactly buying leads? Everything is very simple, since there are many prohibitions and restrictions, you can quickly resolve all issues for me. And regulated forex brokers are not allowed to call clients. This is their limitation. So keep in mind that if a broker calls you, then he does not have a license in your region, and they can call only if you yourself have registered on their platform. But this is a topic for another article.

  1. In numbers. If you did everything correctly, then you spent your 20,000 on buying leads, then at an average price of $ 20 for a lead, you will receive 1,000 leads. Average conversion is 5% (this is a very good conversion).

That is, you will receive 50 deposits with an average check of $ 400. This is $ 20,000. But you also have salaries for managers and programmers. Ie, you have a minus of about 10,000. But! This is the first deposit, and with the help of managers, you will soon receive a second deposit from the client. Here, the client's trust and the speed with which funds are withdrawn to their account are important. Thus, in the first 3 months you can go to zero and this is provided that you are doing everything correctly and we did not take into account the commission of payment systems. So, if you have $ 100,000 and you sleep and see how to become a forex broker , then contact the professionals of this business, they will help you not only to earn, but also not to lose, which is also important.

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