Getting the right Forex trading instruments
It’s important that you open a brokerage firm with the best possible offering when you first startup. In particular, it’s recommended to have a wide range of low-risk trading instruments to offer your clients. While you can easily open a brokerage firm without registering with regulatory bodies, this may be a necessary step if you plan to offer your services to clients across multiple jurisdictions, as you will need to have a legitimate banking relationship to back your trading activities. Check whether you need to register in the jurisdiction where you will have most of your clients.
Registering your Forex brokerage
If you are just starting out in forex trading and don’t have a team already in place you can register your own trading firm in the UK by setting up your own broker account with a discount broker such as IG, for example. The process is fairly easy with the broker software and a one-click installation. You will also need to register your business name and relevant VAT number (VAT936) online and then pay a deposit of around £550. This is refundable, so make sure you register early in the year and the deposit needs to be in by the end of the year. Note: There are some non-disclosure clauses in the agreement which means you won’t be able to speak publicly about your trading platform. Once you have your broker account all you need to do is buy a few pairs of the currency you will be trading.
Setting up your Forex brokerage office
Finding the right place to set up your Forex brokerage office is perhaps one of the most important stages in the launch of a forex brokerage firm. To get your own retail brokerage operation going, you will want to find a prime, well-located location within a variety of high street locations in your local town and city where it is easy for customers to walk to and visit the office. Ideally, the ideal location for you to set up your office is in the center of town, and as a forex broker, you need to ensure that the site is accessible and easily accessible for both traders and clients. Ideally, you will need to find a secure and easily accessible space, but you also need to find somewhere with high footfall and a high turnover of customers.
Summary
Becoming a Forex broker requires a great deal of work and, until you get up and running, you will be vulnerable to losing your shirt. A good broker should have a high-level degree of expertise and the ability to provide a high level of customer service, maintain relationships with their top clients, and even make handsome profits.
