Help needed about broker

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Let me say is just as it is. I want to open a brokerage house. In my country there is only two brokers, one is a bank that has a java based platform that sucks and people can open only standart accounts (no minis), and the other one is based on North Finance data feed but people do not like them cause they do not even have a physical address and some persons had problems withdrawing their money.

So , please understand me and help me.

Every advice and info is valuable.

Would appreciatesome inside information!

Thank you in advance!

 

New FX Broker.

Meriakre:
Let me say is just as it is. I want to open a brokerage house. In my country there is only two brokers, one is a bank that has a java based platform that sucks and people can open only standart accounts (no minis), and the other one is based on North Finance data feed but people do not like them cause they do not even have a physical address and some persons had problems withdrawing their money.

So , please understand me and help me.

Every advice and info is valuable.

Would appreciatesome inside information!

Thank you in advance!

Hello Meriakre,

I tried opening a FX firm a few years ago, Perhaps I can give you some guidance and tell you about the possible obstacles you will face.

Firstly tell me the following:

1. Which country are you in?

2. How Much Capital do you have?

3. How may people you have in your company?

4. Where do you want to have your offices?

5. What is the regulation in trading FX in your county of business?

6. What is the Country's policy and Limitations in transferring Foreign Currency out of the country?

5. Do you wish to be just a broker and make the spread? Or do you want be a market maker?

There are a few other issues you should be aware of. You can discuss them openly here on the forum, or you can send me your skype messenger ID in Private message and I will Add you to my skype.

This way we can have a voice chat about the issues.

Get ready for the challenge of an Enterprise

Best regards.

 

Excellent post, FX-Hedger!

moneyline

 

FX-Hedger thank you very much for the quick response. Ok! Let me answer the same way as the questions were put.

1.Easter Europe (I will PM you with the countris name).

2.Right now I have 200K cash.

3.There 4 Million people in my country.

4.The offices are going to be in the center of the capital, I already do have the space(rooms for the office).

5.The regulation about trading forex is being taken care of right now. There are going to be made some changes about it so I have to wait a little.

6.About transferring funds overseas I really do not know, so I have to find out about it.

7.If its possible I would really like to become a MM. I do not really like those MM are hunting for peoples money. I want to become a honest, people-helper Money Maker. But I do not know if it is in my powers to do that.

So, every info is very important to me right now.

Thanks in advance for everything!

 

Lecture 1

Meriakre:
FX-Hedger thank you very much for the quick response. Ok! Let me answer the same way as the questions were put.

1.Easter Europe (I will PM you with the countris name).

2.Right now I have 200K cash.

3.There 4 Million people in my country.

4.The offices are going to be in the center of the capital, I already do have the space(rooms for the office).

5.The regulation about trading forex is being taken care of right now. There are going to be made some changes about it so I have to wait a little.

6.About transferring funds overseas I really do not know, so I have to find out about it.

7.If its possible I would really like to become a MM. I do not really like those MM are hunting for peoples money. I want to become a honest, people-helper Money Maker. But I do not know if it is in my powers to do that.

So, every info is very important to me right now.

Thanks in advance for everything!

Dear Meriakre,

If you are not an honest person and want be a honest MM, Then that is your first challenge. Take up any religion righteously other than a certain religion that has overtaken the banking industry No offence to any one. and follow it's guidelines strictly.

Firstly Don't tell Lies. Don't Spin lies or truths, Don't charge interest, Never think you are the only one chosen by the all mighty and the rest of creation is at your disposal. Take responsibility for your actions, Admit your fault and take the punishment.

I'm sorry I don't mean to lecture you. I've had my experiences with brokers.

If you want to be a money manager then don't be a broker. It's easier to be a MM. Just show your trading results to your prospects and you will get more customers.

Don't be a IB for a Broker from Eastern Europe. Most people around the world don't trust them and you will not get many customers.

Make sure you are an IB for a regulated Broker. Other than Swiss Brokers.

Make sure your Broker has been in business for at least 8 years.

If they are a publicly traded company, then look up their shares and stock prices. And performance.

Request information about their company to the stock exchange and you will receive a package that will tell you about them and their growth.

You don't want to join a company that will take your customers money and go bankrupt.

Make sure your broker has insurance to cover client accounts. In case of unforeseeable disasters.

There are other things you should know. Regulations of each county where the broker is in. What they can and cannot do and so on...

But I'll stop now. typing is not my pleasure.

Please don't take Offence to my words. I'm just more sceptical now a days.

Best Regards.

 

Ok. Its something I did not expect, but its good to hear it from time to time. By MM I did mean the Market Maker.

Some people adviced me to study the Introducing Broker and the White Label programs of some big brokerage houses available over the world.

And, belive me, I aint a dishonest person.

Cheers!

Thanks in advance!

P.S. I have got one problem here. I cant see my posts until I want to reply to someone. What is going on?

 

Marker Maker $$$$$$$

Meriakre:
Ok. Its something I did not expect, but its good to hear it from time to time. By MM I did mean the Market Maker.

Some people adviced me to study the Introducing Broker and the White Label programs of some big brokerage houses available over the world.

And, belive me, I aint a dishonest person.

Cheers!

Thanks in advance!

P.S. I have got one problem here. I cant see my posts until I want to reply to someone. What is going on?

My Dear Friend,

You need a lot of money to be a Market Maker! atleast over $50mil. But I'm not sure. Since Market makers must have the capacity to move the market to their advantage, they need to have big pockets. You will also need a Derivatives desk to hedge your positions. By Derivatives I mean Options, Forwards, Swaps and the rest of Exotics.

If you do not know about Derivatives then you are far behind in this game.

But if you have a degree in Macro Economics or an MBA you should have some idea.

Best Regards.

 

ok, so the MM is going down. I have never thought about that kind of money.

5. Do you wish to be just a broker and make the spread

What about this one?

What advices can you give me?

Do not understand me wrong for bothering you, but I really need all the info. And, BTW, you've been a novice sometime ago, so do not take as an offence.

Thank you in advance.

 

We all start somewhere..

Meriakre:
ok, so the MM is going down. I have never thought about that kind of money.

5. Do you wish to be just a broker and make the spread

What about this one?

What advices can you give me?

Do not understand me wrong for bothering you, but I really need all the info. And, BTW, you've been a novice sometime ago, so do not take as an offence.

Thank you in advance.

OK, in this case with your kind of capital. You can be an IB or White Label for an existing big broker. And you are at their mercy most of the time. Since most big brokers are Market Makers, They are known to take the client's positions as a counter party hence working against the client. They can see where most of the stop losses are for most of their clients and they then will then move the market to take the stops. So in a way your clients

and you are at the hands for The Broker you select.

But that will not stop anyone from trading. So you can just accept it and move on.

But Try to find a Broker who is less a MM and that will save you a lot of pain. The problem is that every broker wants to be a MM as the income is astronomical. And that is why in the end I did not want any part of it. It's deceptive and wrong for your broker to be your counter party and try to take your money.

So open an office anywhere in a western world and be a regulated IB/Whitelabel if you wish, and good luck.

 

So open an office anywhere in a western world and be a regulated IB/Whitelabel if you wish, and good luck.

First let me ask why did you advice me to open it in a western country and not in one in transition like my native one.

The point is, I'd like to know what can I do and what I cant. Are there some things I manage or I am just a middleman.?

And, do I have a profit from it?

If yes, which is it?

Thank you in advance!

 

Easten Europe !!!

Meriakre:
So open an office anywhere in a western world and be a regulated IB/Whitelabel if you wish, and good luck.

First let me ask why did you advice me to open it in a western country and not in one in transition like my native one.

The point is, I'd like to know what can I do and what I cant. Are there some things I manage or I am just a middleman.?

And, do I have a profit from it?

If yes, which is it?

Thank you in advance!

First let me ask why did you advice me to open it in a western country and not in one in transition like my native one.

Don't be an IB for a Broker from Eastern Europe. Most people around the world don't trust them and you will not get many customers.

The point is, I'd like to know what can I do and what I cant. Are there some things I manage or I am just a middleman.?

And, do I have a profit from it?

If yes, which is it?

As an IB/WL you will be a middle man and get a rebate for every trade your customer does.

You can also offer money management service, for that you can ask your broker to pay you what you agreed with your customer.

I think you need to do a lot of research i cannot Spoon feed you the insides of the FX market and workings of it's participants. Don't get me wrong, there is much to learn. It may take you a year or two to find all the information you need. and the market is Dynamic so new types of participant are always appearing to make a few bucks. Just keep learning and you will find your place in a few years. mean while manage your money and grow it if you can. Try to get more customers and make them money. it will only help your business in the long run.

Best Regards.

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