Forex world currency market – a brief review
Forex (Foreign Exchange) is a system of foreign economic relations between banks of all countries and smaller players participating through banks. The Forex market is constantly buying/selling currencies, securities, precious metals, and other resources, which makes it an important part of the global economy.
Forex doesn’t have a center nor an official website. It is not an organization but the totality of all organizations that somehow enter the international economic arena. These are banks, multinational corporations, holdings, large brokers, etc.
The main operations carried out in the Forex brokerage business are the purchase and sale of the currency or something that is backed by currency. The main types of transactions in the Forex market are speculative transactions — this is when you gain income on the difference in price between buying and selling.
Features of the Forex brokerage market
The Forex market has its own unique features, which makes it a separate component of the global financial system. It has the following parameters:
- free conversion of all world currencies online;
- guarantee of one hundred percent liquidity of each transaction — there is always a demand for it;
- the ability to continuously perform operations during the day in all corners of the planet;
- unified nature of currency transactions;
- the possibility of high-profit margin trading for individuals;
- the possibility of margin trading, which does not always depend on typical economic factors.
Forex Market Participants
To clearly understand what Forex is, you need to understand the three main types of its participants: a trader, a broker, and a liquidity provider.
This is an individual who trades on the Forex market. Absolutely anyone can become a trader, including you. The only limitation is that a trader cannot enter Forex on his own, only through a certain company – a Forex broker.
This is exactly the Forex brokerage business that gives the trader the opportunity to trade Forex. In fact, a broker is an intermediary between a trader and the interbank market. The broker provides the trader with trading instruments, a trading terminal, and other conditions necessary for trading.
Liquidity provider (or quote provider)
These are organizations whose activities determine the current indicators of currency pairs. First of all, these are international banks and large multinational corporations.
Advantages of the Forex market
We have figured out what Forex is out in general. Now let’s take a closer look at why this market attracts hundreds of thousands of people around the world.
Forex works around the clock
This makes it possible to earn money anytime. Many traders work at their main job, and in the evenings, they trade on the Forex market. As we have already said, while in one part of the world it is night and the markets are “sleeping”, in the other hemisphere, it is the day, and the markets are active. This means that a Forex brokerage business can work any moment, even in the middle of the night.
It is the most liquid market in the world
Every day there are millions of transactions on the Forex market, each of which is backed by a currency. There is always demand, and there are always offers. The market turnover is measured in trillions of dollars.
Since Forex allows trading on a margin system, a trader can get huge leverage. For example, 1:1000. And the profit in case of success will be enormous, and she/he risks only the available capital. This means that by depositing $ 1,000, you will be able to conduct transactions for a million.
The most developed investment system
Forex offers a huge selection of systems for passive earnings: PAMM, LAMM, MAM, RAMM accounts, trust management, auto trading (copying transactions), etc. You can read more about investments and their types in this article.
Minimum entry threshold
The initial deposit can be $ 1-10, and some brokers do not require it at all. You do not need economic or special knowledge. You can even not trade on Forex personally and use only the investment opportunities of the market.
There are many solutions for risk diversification
The distribution of capital, the use of portfolios instead of specific accounts, and trust management are only a small part of the opportunities through which a trader can reduce the risk of unsuccessful trades to a minimum.
But the main thing is the level of possible profitability: the percentage of deposits that stock market participants receive in a year, a Forex trader can receive in a day.
What is Forex trading?
Trading is the process of trading on the Forex market. To understand how it happens, let’s take the euro/dollar currency pair. As in the exchange office, each pair on the Forex market has two prices – BID, this is the price at which the broker is ready to buy currency from the trader, and ASK – the price at which he is ready to sell it.
The difference between the bid and ask indicators is called the spread. It can be fixed or floating, depending on the type of currency pair. The broker takes the spread for himself, just as the exchanger takes the difference between the sale and purchase price. The trader takes the immediate difference between buying/selling a currency.
The EURO/DOLLAR pair means that when determining the price of one EURO, we assume that we will buy it for DOLLARS.
Success in the Forex brokerage business depends only on the trading strategy, which each trader has his own. There can potentially be an infinite number of trading strategies, while all traders are divided into two groups:
These are traders who predict an increase in the price of a currency and actively buy it in order to sell it more expensive in the future;
These are traders who specialize in price drop forecasts and, accordingly, sell off their assets in order to buy them back later at a lower cost.
Naturally, no one forbids the bull to work according to a bearish strategy. This is a conditional gradation in the Forex trading business. Nevertheless, every professional trader sooner or later begins to conduct the bulk of transactions in one of these strategic groups.
What is traded on Forex?
Having understood what Forex is, a novice trader needs to decide which assets he will work with. In fact, there are no restrictions here, and experienced traders work with several tools at once. But it’s better to start with one thing in order to understand the mechanisms and principles of the market. Now we will take a closer look at the main Forex tools.
Everything is simple here — there are major currency pairs (the US dollar is present in them), and there are cross-pairs (there is no US dollar in them). The trader chooses a pair, say, US dollar / Canadian dollar, and makes a bet, predicting the growth of the Canadian dollar against the US dollar. Here you can set various parameters, up to the exact number of points that will make up the difference between currencies. If the forecast is successful, the trader receives his profit. If unsuccessful, the trader loses the bet.
Major ones (majors):
- Euro/US dollar
- British Pound/US Dollar
- Australian dollar/US Dollar
- New Zealand Dollar/US dollar
- US Dollar/Japanese Yen
- US Dollar/Swiss Franc
- US dollar/Canadian Dollar
The list of cross-pairs is much larger, but novice traders are not recommended to use them because they differ in complicated forecasting. It is also better not to start with the so-called exotic pairs (for example, the US dollar/ruble): they are either very difficult to predict or give very little profit at high risk.
Indexes and stocks
The stock index is an indicator of the effectiveness of industry leaders. Indexes were invented to display the efficiency of the stock market and the economy of specific countries, but with the development of Forex, traders have the opportunity to bet on index changes.
The most popular stock indexes are:
- Dow Jones Ind.
- S&P 500
- NASDAQ Composite Index
- Euro Stoxx 50
- Nikkei 225
The index can be “weighted” by market capitalization, by price, or by equal weight. Stock indexes have a lot of their own nuances, but they all relate to forecasting.
Cryptocurrency is a fully automated digital currency that uses a decentralized payment system to implement transactions. Technically, the cryptocurrency does not have not only material but even a digital expression — it is just a number indicating the number of units of account.
With the growing popularity of cryptocurrencies, they could not help but integrate into the Forex trading business market, and today some traders professionally trade cryptocurrency pairs. This segment is not recommended for beginners since, unlike classic currencies, forecasting is complicated here.
We’ll talk about cryptocurrency trading on Forex below in this article.
A trading platform is a software that a broker provides to a trader for trading on the Forex market.
Types of trading platforms:
- Web versions
It is impossible to say unequivocally which platform is better. But we can single out the most popular platforms — these are MT4 and MT5, which in addition to the classic desktop version, have a mobile version for iOS and Android. From the point of view of choosing a trading platform, if a trader does not have any specific preferences, it makes sense to focus on the recommendations of the broker with whom he plans to work.
Forex Trading Company Business Regulation
The Forex business as a whole, as well as the activities of individual brokers, is regulated by law in many countries of the world. This is necessary, among other things, in order to reduce the likelihood of fraud on the part of a Forex broker and protect the capital of traders.
Today, Forex brokerage activity is allowed in most countries. At the same time, technically, to enter the interbank market, a broker only needs to register as an organization offering financial services.
That is, licensing of Forex brokers is not necessary. But brokers who plan to work honestly seek to obtain a license because its availability provides traders with a guarantee of reliability and protection. After all, in order to obtain a license, a broker needs to fulfill a number of difficult conditions: pass proper checks, organize a compensation fund, conduct transparent reporting, etc. Broker licenses are divided into several levels.
The first level
The US Futures Trading Commission (CFTC) and the US National Futures Association (NFA). These are the most demanding organizations. They strictly regulate the work of their brokers, so brokers with such licenses are the most reliable.
The second level
The UK Financial Conduct Authority (FSA) and the Australian Securities and Investments Commission (ASIC). Here the requirements for issuing a license are a little simpler, but in general, it is also very difficult to get it.
The third level
The Securities and Exchange Commission of the Republic of Cyprus (CySEC) and the Malta Financial Services Authority (MFSA). For these organizations, reporting is simpler, and control is generally weaker. However, their licenses are also issued only to reliable brokers.
The fourth level
The British Virgin Islands Financial Services Commission (FSC BVI) and the Belize International Financial Services Commission (IFSC). These organizations do not require their own representation from the broker but conduct regular audits.
Fifth and sixth levels
Seychelles Financial Services Authority (SFSA) and Saint Vincent and the Grenadines Financial Regulatory Authority (SVG FSA). They are distinguished by a simplified license issuance system and a reduced level of control.
Forex trading business is carried out by margin type. This means that a broker can provide a trader with high leverage so that he can get super-profits by disposing of an amount hundreds of times greater than the amount of the deposit.
But it is important to keep in mind:
Leverage has a second side of the coin — it increases the risk of losing your capital. That is, you need to clearly understand that Forex is always a risk and quite high if it is not properly diversified.
According to statistics, only 10% of novice traders become professionals. However, in reality, the majority lost at the start because they did not approach trading seriously enough. After all, the Forex market offers a huge amount of opportunities for risk diversification. For example, you can invest in different currency pairs by opening several transactions at once.
There is always a risk in the Forex market, and it is impossible to completely exclude it. Without this risk, there would be no possibility of high earnings in the foreign exchange market in a short period. However, risks can be successfully reduced if we approach the issue in detail and use all available opportunities for diversification. These risks should be considered by those who own a Forex brokerage firm, service providers, existing clients, and to-be brokers.
What is the difference between Forex brokers?
So that you can choose the best Forex broker or Forex brokerage platform that is ideally suited for you, we advise you to pay attention to the following criteria:
- Reliability is the most important criterion. Choosing a Forex brokerage company, a trader should find out everything about the experience of an intermediary on the stock exchange, the availability of a license, authority among other market participants, customer reviews
- The amount of the commission. It is worth paying special attention to the size of swaps and spreads, as this is the broker’s earnings
- The amount of the initial deposit. Different Forex brokers on the stock exchange have different conditions for opening an account, so it is better for a novice trader to open a deposit with a broker who has a minimum down payment;
- The speed of order execution. This is an important criterion that will determine how quickly your deal will be closed in the market
- Capitalization of a Forex broker. It depends on how financially stable the brokerage company is and, in the event of force majeure, is able to pay profits to its clients
How to distinguish a reliable Forex broker from a fraudster?
When choosing a Forex broker or Forex brokerage platform, it is important not to become a victim of a fraudster, a so-called “kitchen,” or a company “without an address.”
In order to help you figure out how an unscrupulous brokerage company differs from a reliable one, we have identified several signs of a reliable brokerage company:
- The information about the company indicates all the pros and cons; the broker works with both beginners and experienced traders
- Commissions and spreads are clearly indicated
- There are no slips and malfunctions
- The support service responds quickly. The consultants are quite qualified
- Withdrawal of funds is carried out promptly
- A company with a long history, large capitalization, license availability, and a huge number of positive reviews
An obvious advantage of working on Forex is that you can earn money not only on the growth but also on the fall of the market. It may not matter at all whether the price of this or that asset is rising or falling.
We would like to pay special attention and analyze in detail the advantages, disadvantages, and features of trading cryptocurrency on Forex.
Advantages of trading cryptocurrency on Forex
- The first advantage, of course, is the outstanding volatility of cryptocurrencies. Some coins make movements of 30%-50% of their value per day!
The same bitcoin was worth $19,253 at the end of 2017, but only six months later, its price fell by more than 50% to $8566. It’s been 2 years, and Bitcoin is at the same level. This once again demonstrates that long-term investment in cryptocurrencies does not justify itself yet.
At the same time, some crypto traders have made +1000% to their capital by trading pairs of cryptocurrencies to the US dollar. And some exchanges offer a wide set of cryptocurrency pairs (for example, BTC/ETH, BTC/RPL, and others).
- The second advantage of Forex is the provision of broker leverage to traders. This allows you to start trading with a relatively small deposit, so the Forex market opens up more opportunities for beginners or unskilled traders.
- Trading cryptocurrencies through Forex brokerage companies is almost guaranteed to be able to open and close transactions at any time of the day for any instrument. You need to understand that the liquidity of individual cryptocurrencies can become a problem if you try to exchange them without leverage using virtual exchange offices.
- Of course, it is necessary to talk about convenient professional trading terminals. Each dealership will offer you a terminal (including mobile versions for iOS and Android), here you can conduct a full-fledged technical analysis, apply additional support and resistance levels, use technical indicators, have information about trading volumes, receive current financial news, open and close transactions, replenish deposits and withdraw funds.
Negative Factors Affecting Cryptocurrency Trading
The position of some large states regarding the legality and regulation of cryptocurrencies still remains an acute issue. This creates not only tension and risks but also calls into question the legalization of profits received from cryptocurrency trading, taxation, and the status of crypto traders.
In addition, the exchange rate of cryptocurrencies is still influenced not by the usual economic laws (supply or demand, the economic state of certain countries, etc.), but by the conjuncture, some IT factors, speculative interest on the part of the “whales” (the largest holders of cryptocurrencies). This makes it difficult for technical and fundamental analysis of the market to make more informed trading decisions.
Another problem for trading cryptocurrencies is the high fees that need to be paid when exchanging, depositing, or withdrawing funds. The conditions may differ on different platforms, but, in general, the commissions are still noticeable.
Features of choosing an exchange for cryptocurrency trading
The popularity of cryptocurrencies has led to the development of the brokerage business. There are a lot of offers to open a trading account to start trading today.
This has led to the emergence of a number of unscrupulous companies that earn not on commissions for servicing the withdrawal of clients’ positions to the international Forex market, but, in fact, are ordinary financial pyramids – profit payments to successful clients are made from incoming deposit funds from new clients. As soon as the flow of new customers decreases or disappears, such companies can stop payments and even cease to exist, disappearing along with your funds.
Therefore, you will have to spend time studying the ratings and reading reviews to find really reliable companies with a name and then choose the best trading conditions for yourself from them.
Forex trading with Bitcoin
Today, you can find brokers that will not only allow you to trade bitcoin in pairs with USD and other cryptocurrencies but will give you the opportunity to open a deposit in BTC. The convenience of this type of account is that any profit or loss received from trading operations will be recorded immediately in bitcoin, without additional conversions.
The number of bitcoin brokers is constantly increasing. The bitcoin dominance index reaches 70%. This means that the capitalization of this coin alone exceeds 70% of the entire cryptocurrency market.
Bitcoin has made a real revolution in the financial world, and it is being taken more and more seriously at various levels as a “new force” and “the future of digital money.” Trading volumes and the scope of bitcoin are constantly growing, so the growth of the flow of new investors will only increase competition among brokerage companies. Which, of course, will lead to improved trading conditions and opportunities for traders.
How to trade cryptocurrency on Forex
To start trading cryptocurrency, you need:
- Choose a suitable and reliable company. To do this, use the ratings of Forex companies, register on popular forums to put together for yourself the overall picture and opinion about the company to which you will be ready to entrust not only your money but also your future profit.
- Open a trading account. The types of accounts are very different even within the same company (these can be accounts with 4- or 5-digit quotes, accounts without swaps, and profiles with different types of execution, and more), so do not be lazy to study the difference between them.
- Top up your account with the required amount. Remember that in order to open and maintain one transaction, you will need a collateral amount (margin), which can often be up to 20% of the cryptocurrency price. Many companies offer online calculators that will allow you to quickly calculate the required amount of collateral based on the type of account and the amount of leverage.
- Create your own trading system. Or use the services of signal providers that will tell you when to buy or sell cryptocurrency. It makes sense to test the input signals on a demo account.
- Open trades, earn profits, analyze losses (there is no way without them), adjust, control risks – in general, do everything that successful traders do.
90% of Forex traders go broke in the first few months. The rest receive a stable income, but at the same time, they constantly pay for access to the market and maintenance of operations. Most of this money goes to brokerage sites. In this article, we will tell you how to create such an online platform and get your share of profits in one of the largest financial markets.
How to own a Forex brokerage platform
When people ask how to start a Forex brokerage, they should consider the following. Launching a Forex trading platform is a complex and expensive event that requires careful preliminary preparation.
This process includes such things:
- Marketing research. It is important to study competitors in advance and understand who your target audience is: age, gender, hobbies, income level, country, and so on. The place of registration of a legal entity, the approach to the promotion of the platform, the number of supported languages, and so on will largely depend on this.
- Formation of start-up capital. When launching a brokerage business, you need to plan the allocation of funds to cover current expenses for several months. To do this, you need to determine the size of the operating and trading funds and fill them.
- Registration of a brokerage company. To accept traders’ money, you need to open a bank account for a legal entity with a brokerage license to the Forex brokers.
- Contract with Payment service providers (PSP). It is advisable to establish relationships with several PSPs in order to diversify the risks associated with financial settlements.
- Choosing the type of trading platform. They come in three types: Market Maker, STP, ECN.
- The moments related to market research and the formation of start-up capital do not need additional description since they are typical for any type of business. The rest of the things (in the case of launching a Forex trading platform) are unique and require close attention.
Registration and license
Recognized Forex centers
There are a number of international companies in which it is possible to register a firm and obtain a brokerage license in accordance with the financial regulations of the host state. With this license, you can:
- provide brokerage and other financial services
- optimizing the profit due to low or zero tax
- retain and control customer assets
- get more favorable terms with banks
- work all over the world
Recognized financial centers include the United States, Great Britain, Malaysia, and Belize. They are followed by Hong Kong, Singapore, and Japan. In these countries, there are no problems with state regulation and control of financial activities, so trading platforms with such registration are trusted.
Offshore. A Forex broker’s license costs a lot of money, and its registration takes a lot of time (from a month to a year). To speed up this process and reduce costs, you can register an offshore company. Suitable for this:
- The British Virgin Islands
- Saint Vincent and the Grenadines
- The Cayman Islands
If you decide to register in an offshore zone, consider that this may negatively affect your reputation, as traders, banks, and investors do not trust some strangers that own Forex brokerage. In addition to that, since the early 2000s, developed countries have begun to fight offshore companies by adopting laws that impose restrictions on offshore companies and their partners. And this article is definitely not for the ones who ask how to start a Forex brokerage illegally or in a grey zone.
Type of Forex brokerage or trading platform
Market Makers and Trading Bots
Key feature. Market makers create dealing centers that provide “artificial” prices for certain currency pairs. When a user makes a bet on such platforms, he plays against the broker. In the case of winning, the trader receives a reward – the difference in the value of the asset. If he/she loses, the broker takes this difference for himself.
Market makers perform three tasks:
- Make available supply and demand rates for certain currency pairs
- Undertake to conduct transactions with all traders at a price indicated in the charts of the dealing center
- Assume financial risks for each position
Market makers generate profit from the difference between the purchase and sale price of an asset. Or simply put: the loss of a trader in a transaction is the broker’s profit. For this reason, such trading platforms are treated with caution, as there are fears (and confirmed precedents) of possible manipulation of the exchange rate by the platform to the detriment of traders.
Key feature. STP stands for Straight Through Processing. Such trading platforms send customer orders to liquidity providers (banks or liquidity pools) and thus avoid conflicts of interest. Ideally, the order is sent to several suppliers who place an application on the interbank market with different conditions, after which the application is executed with the best available price.
This type of Forex trading platform generates profits through commissions and spreads. Commissions are calculated for an order or a traded lot, and the size of spreads usually depends on the liquidity of each market.
Key feature. ECN stands for Electronic Communications Network. These platforms direct traders’ orders directly to the Forex market, as a rule, without any intermediaries. Due to this, trading orders are executed with minimal delays. Therefore, traders can react to market dynamics with maximum efficiency.
Brokers do not guarantee the execution of orders at exactly the price that the trader specified in the trading order since orders are placed on the interbank market, where there are no “guaranteed orders” (only dealing centers guarantee this).
Approaches to Forex brokerage website development
Purchase of the platform. The Forex trading platform can be purchased for a fixed price, to which you usually also need to add a relatively small monthly fee.
To launch a Forex brokerage or trading platform, you can also use someone else’s software by specifying your brand name on it. Thanks to this approach, you can save a lot, but at the expense of losing individuality in many things. The cheapest option will cost $5,000 plus $ 1-1500 per month (the most expensive options cost hundreds of thousands of dollars.). If you refuse maintenance, it will be even cheaper.
Rent a platform. Here prices can range from $1 to $20,000 per month. The approach allows you to save money at the start, but in the long run, it turns out to be much more expensive than other options.
Elements of a Forex broker and trading platform
The development of the Forex brokerage or trading platform website can be divided into two areas of mandatory and additional elements. The following areas of development are usually considered mandatory.
Forex Brokerage Client Area. A set of tools that traders use to manage assets. They can range from back-office management systems to mobile applications. Usually, the development of the client zone includes the following areas:
- trader’s room
- back-office tools
- partner systems
- payment solutions
Website Design. The platform’s interface should be simple and clear so that traders intuitively understand what to do and where to do it. In addition, the design should distinguish the site from competitors. In this direction, you need to pay attention to:
- branding and development of Forex brokerage design solutions
- integration of a trading terminal (for example, MT4) and CRM
- development of user scenarios for the interface
- interactive hints
Online Marketing. Promotion is just as important as the technological side, excellent design, and monetization because it doesn’t matter how cool your site is if no one knows about it. Therefore, you need to do:
- create landing pages
- SEO optimization of content
- partner programs and websites
- banners and many others
Forex CRM. The customer relationship management system should support the complete process of sales and asset storage. It is best to integrate it with MT4, giving the project team access to all information about traders. That is, in the CRM panel, you need to do:
- integration with MT4
- lead management and customer requests
- management of client accounting
Additional functions. The possibilities of a good Forex brokerage firm are not limited to the purchase and sale of foreign currency assets. The best players in the market also integrate support into their websites:
- contracts for difference and options
- trading via CFD
- margin trading
It is important to take care of high-quality content of the Forex brokerage site, which will help with attracting customers and increasing the loyalty of the community as a whole. For example, you can launch a news feed or create training lectures, courses, webinars. Both users and search engines like it.
The introduction of a demo account is also worth considering. With its help, traders will learn how to use your platform without risking losing real money. In addition, the demo account can be used in training courses, but in this case, access to it should be free. It does not require a deposit.
Security and reputation
Security and reputation, from the trader’s point of view, are determined by the information trail in the network and the regulatory authorities that control the activities of the brokerage company.
The latter include:
- BaFin is the Federal Financial Supervisory Authority of Germany
- FCA and PRA — The Financial Conduct Authority and the UK Prudential Regulation Authority
- NFA and CFTC National Futures Association and the U.S. Commodity Futures Trading Commission
- CySEC – Cyprus Securities and Exchange Commission
If the Forex brokerage platform is under the jurisdiction of one of these agencies, traders and financial partners will trust it more. Consequently, there will be more users and better conditions for cooperation. On the contrary, being in the jurisdiction of agencies with a dubious reputation scares people away.
In addition to that, it is important to include the site in the main listings of Forex platforms. On such resources, they check the reputation of brokerage companies and look for reviews about them. If your site is not listed, traders may consider it unpopular, untrustworthy, or just a scam.
Platform monetization and earnings
Most platforms earn on spreads and commissions. The spread is the difference between the purchase and sale price, calculated in pips. Pips mean the smallest price change in the price of an asset — a price percentage point or just a percentage point.
For example, if the exchange rate of the EUR/USD currency pair falls from 1.14009 to 1.4008, this will be a change of one point (pips). If the currency price is indicated with only three decimal places, it means that changes in the third decimal place are one price point.
Examples of the size of spreads on various sites:
Spreads can be fixed and variable. In the case of variable spreads, their size usually depends on the liquidity of the market — the more liquidity, the lower the spreads. Commissions are trading expenses that are determined in advance and depend on the trading volume (the larger the volume, the lower the commission).
In addition to spreads and commissions, some sites also set various additional fees. For example, for using software for trading, providing the asset price in real-time, the availability of indicators, and other functions. Some companies go even further and charge for support calls, use of a securities account, or set monthly fixed fees.
- First, when creating a Forex brokerage platform website, remember that this is a very competitive market. Your business model should be the optimal strategy for starting a business in these conditions is to start small and gradually expand. So, you can start with a certain region (country), become a monopolist in this territory, and then move on to global markets.
- Second. Don’t overdo monetization, especially at the start. Ideally, in the first year of launch, your commissions should be minimal, and so much so that you will work at a loss or at zero.
- Third. You can conquer the market not only by low prices but by standing out from the competition. In the world of cryptocurrencies, this can be done, for example, by making the business completely transparent (as opposed to the trend towards anonymity). To do this, you can disclose almost all information about the company, present the developers with the owners and even conduct excursions to the office. In addition, you can also make videos with managers and managers of the company. By increasing trust, you gain loyal and loyal users.
Creating own Forex brokerage company using the White Label solution
Due to the length and complexity of the processes involved in creating a Forex broker from scratch, many companies prefer to choose offers that are available for a fee. Using the right terms, it is called a Forex white label solution – in fact, this is a brokerage software that has already been thoroughly tested and proven to work.
The main advantage of using white label solution software is that you are freed from the hassle associated with technical requirements, implementation, and ongoing maintenance.
White Label Forex brokerage solutions are characterized by lower operating costs in general because you will not need to comply with the requirements for the size of the start-up capital since you will not be engaged in the processing of trading operations. In addition, you will pay significantly less for a license than for independent development.
By finding your partner on FINARM, you will be able to avoid possible pitfalls that await you when developing independently. As a result, you get the opportunity to implement a professional, ready-to-use business model solution, client data safe, and create your own firm will (company registered, fully operational, and ready to work with potential customers in a friendly regulatory environment) spending about three weeks. So MT5 of the white label solution type, for example, will cost much less than launching a Forex brokerage company from scratch.
There are two popular solutions that you can choose from:
Ready-to-use Forex brokers
Ready-made Forex brokerage solutions for the Forex market is an ideal opportunity to quickly launch a brokerage business without high costs and use the latest technologies, responding to customer requests. If you want to attract new customers and convince existing users to stay with you, it is much more cost-effective and efficient to buy a ready-made kit rather than develop new software.
In addition, Forex brokerage companies must provide customers with liquidity and offer products that meet the requirements of constantly changing market conditions and laws that are becoming stricter. Therefore, from a logical and financial point of view, it makes sense to avoid these obstacles by choosing a ready-to-use Forex broker solution from FINARM.
Ready-to-use cryptocurrency broker
Given the growing interest in cryptocurrency trading, acquiring a ready-to-use cryptocurrency broker is also an attractive option. Delivered in a ready-to-use form, the cryptocurrency broker allows trading and exchanging cryptocurrencies for fiat currencies and vice versa and also provides customers with a platform for storing their cryptocurrencies.
On FINARM, you can find ready-made Forex brokerage solutions for the cryptocurrency market. As a result, you will get a viable business that includes a comprehensive trading solution with an attractive range of offers.
Regardless of what you choose – a brokerage solution for the Forex market, cryptocurrencies, or several different assets – FINARM will provide you with all the necessary tools and connect with companies to get started.
- MT4 or MT5 of the White Label solution type
- Liquidity for seven asset classes
- A single margin account with liquidity for more than eight hundred pairs
- Multiple connection methods: PrimeXM, One Zero, AMTS, and FIX API
- “Trader’s Room” (CRM) for your clients and a service section of the site for team members
- Investment platform (PAMM/MAM/social trading/copy trading)
- Cryptocurrency payment system
- Flexible IB referral module: lots, surcharges, % commission
- Landing page
- Round-the-clock responsive support in seven languages
- Cost-effective billing (you don’t have to give away a share of the revenue – only the software fee)
FINARM is also ideal for providing information in the following areas:
- Legal issues
- Connecting to a reliable fiat financial service provider
- Opening a bank account
- Marketing strategy
- Education on all technical issues
- Product distribution strategy.