[Ask] How to become a forex broker!? - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Project1972,
He don't know what he is talling about.
He want to be a broker and he don't have a money,
he is new in this business...???I know that, that's why I explained him a little, he will go backward after find how much money he need to spend.
currently I have had about $150k, certainly I will become a small broker via a Clearing house, but I want to understand about them firstly ( Clearing house)
Example no re-trade (no deal desk) for a broker (clearing house) :
=> Customers --(1)---> Brokers (clearing house) --(2)---> Bank ( in interbank).
I want to ask about (2):
-How to Broker contact with bank to transfer customer's deals? They open an account in bank then use flatform server (software) to transfer customer's deals to bank automatically?
- How to broker (clearing house) contact with bank so that they can supply to customers any LEVERAGE?
Thank you for replying to me!.
currently I have had about $150k, certainly I will become a small broker via a Clearing house, but I want to understand about them firstly ( Clearing house)
Example no re-trade (no deal desk) for a broker (clearing house) :
=> Customers --(1)---> Brokers (clearing house) --(2)---> Bank ( in interbank).
I want to ask about (2):
-How to Broker contact with bank to transfer customer's deals? They open an account in bank then use flatform server (software) to transfer customer's deals to bank automatically?
- How to broker (clearing house) contact with bank so that they can supply to customers any LEVERAGE?
Thank you for replying to me!.Forget about to transfer deals to banks and leverage, that's not exist on MT clearing houses, they are basically a casino house, they take the other side of the trade, when a customer win they lose, when a customer lose they win, basically from thousand of customers, the position get canceled, 95% of the new customers lose their money in the first 12 months.
Now, when the position sizing of customers get out of balance, and there is a strong trend, the clearing house can lose big, that's the reason why ALL of them have a dealing desk to monitoring customers positions, if suddenly there is a big difference, example 1000 customers are long EURUSD on a total of 150 standard lots and only 100 customers are short on a total of 23 standard lots, the dealing desk specialist can hedge the house exposure buying 127 lots through a Currenex ECN account. If they provide customers with 500 leverage, but on the ECN they have only 50 leverage, they will use their own money to hedge customers positions. That's why they enforce limits on leverage depending account size, to hedge a customer $100K account with 500 leverage they will need a 1 million of available margin at the ECN account.
But this procedure is irrelevant to you, as a White Label IB you will not know anything about this, You only need to do customer service, the Clearing house will do everything, even they can do the handling of customers deposits and withdrawals.
Be sure to start your company outside of US and UK as unregistered brokerage because $150K is a low amount of money and not enough to register at the NFA or FSA authorities, as a white label IB they can ask you for the same requirements as a regular broker.
Contact the clearing house do you like and ask for all the details. but they will ask one thing, VOLUME, how many customers you will bring to the table and how many lots they can trade each month?
Basically you fee schedule and trading conditions will depend of the volume you can bring to the clearing house.
Now, please don't ask what is the best clearing house, although there are not many choices, but I don't know each one in detail, check around, I don't endorse or work for anyone and I don't recommend anyone.
Trading comapany or brokers are not the same as HYIPS where you can pay the members frok the new members' money. be carefull...
Hi there
I put these question in my mind long time ago but i never ask and now i can say Thanks to all for this info.
thank you for replying to me!. Plz explain to me a little;
mean of "White Label" and "Clearing House". Thank you.
thank you for replying to me!. Plz explain to me a little; mean of "White Label" and "Clearing House". Thank you.
White label is when an existing brokerage company set you a server with YOUR COMPANY NAME for your customers
That way you can open a brokerage company like "Linhchiter FX"
This is an example: White Label | Currency Trading | IBFX
You receive all the forms from your customers and forward it to Interbank FX and they will open an account for your customers.
Your customers will think that they are trading at "Linhchiter FX" but in reality, they are trading at Interbank FX without know it.
The same happen in all aspects of the life, you can go to the supermarket and buy the same product under different brands and even different price. but it's the same product.
In a white label you also can set a different trading condition if you want, like raise the spread 1 pip and earn 1 pip more in your commissions.
The above was only an example, I don't endorse or recommend InterbankFX, and for sure I don't work for that company. If you want to go this route check carefully for the best option, and the best commission for you, of course, but without risking your customers.
Some companies offer white label and they already are white label of other clearing houses or brokers, they offer white label because they want to appear like a "big clearing house" but they are only a small office with a old salesman, a phone, and a laptop in the desk. That's all.
We define clearing houses as the last part of the string, the point when the trades really go to the market or the liquidity provider, the one who will take the risk of accept your trades if don't clear in the real market, in others words, the owner of the dealing desk.
well said, i guess be a millionaire and start thinking big. having like usd150k, better roll in fx, the only way i know it can make you a fortune or leave you nothing......
oh I understood about this problem, but I don't know that its called "white Label", Thank you, Now I knew.
May I discuss Clearing House a little?. I think that forex Broker include: Market Maker and ECN ( Electronic Communication Network), I am still no understand why anybody do call them " Clearing house"
, plz explain to me thanks, however, I want to say about them.
I want to discuss Clearing House.
As nickname "Project1972" reply, Mean: 40% money of traders put BUY orders, and 60% money of traders put SELL orders (ex GBP/USD), therefore LEVERAGE of 40% money with BUY orders annul LEVERAGE of 40% money with SELL orders. So Clearing House only re-trade leftover 20% money (60% - 40% = 20%) and Clearing House have to use own money for LEVERAGE of this 20%. When Clearing House want to re-trade, have to they open an account in a bank?
this is a description from oanda.com ( oanda is a market maker).
traders ---> market maker ----> a bank in interbank.
So a Clearing House only transfer to a bank leftover "% money" ?
Well...
larceny in your heart would begin from childhood.
basically your mother may place you in the position that you feel inadequete...this could be one way you might build up the pattern...there are several ways to reach this condition...
ESAbsolutely wonderful