Setting up as a forex broker can be pretty challenging and time-consuming so in order to be successful, brokers need to get the basics right first.
While a currency trading broker usually handles a very small portion of the foreign exchange market – typically the market is made up of banks, management firms, institutions – increasingly individual investors, powered by the internet are playing a greater role in the global network FX brokers from around the world.
Forex brokers have the power to connect retail forex traders to the forex market, who are constantly posting bids and asking for the value of a currency pair that may differ from the most competitive bid in the market.
To become respected, forex brokers need to ensure that they create and maintain an outstanding reputation and operate to high ethical standards.
As well having the prerequisite approval from the relevant authority like the FCA or CYSEC, for example, having the following will also help:
- A fully functioning website: The website itself must explain the offerings and features of your company and it should have web applications such as CRM and CSM available.
- Trading platform: The platform should meet client’s requirements and should include features such as real-time trading, built in SMS system for alerts and notifications, back office multi-level management and auto trading capabilities.
- Margin Account: This is a master account of the brokerage, where all clients’ trades are processed, with a good liquidity provider who will accept client’s trades.
- Business model: There is an abundance of brokers in the market, so in order to stand out brokers need to offer some genuine points of difference from the competition
- Traders dashboard: This create a professional outlook and can help enhance clients trading experience as well as making it easier to organise client’s data, trading history, financial data, etc.
Overall, the FX industry continues to be one of the fastest growing markets with plenty of profitable opportunities, but it is worth investing time and resources to establishing a trusted and successful brokerage.