Research from the forex market has shown that it generates a whopping sum of $5 trillion per day, thus, making one of the largest markets (by volume) in the world. With this amount still on the increase, a lot of people have ventured into the forex market and a lot have also shown their interest in the market. This and many more reasons have led several people to ask "how can I open a forex company?"
To open a forex company or start your own Brokerage, there are several things that need to be put in place for a good and smooth running of your company. These factors and much more will be discussed on how to open a forex company.
HOW TO OPEN A FOREX COMPANY
1. KNOW YOUR MARKET
One of the very first steps in opening a forex brokerage or opening a forex company is to have a general idea of the market. The potential broker needs to know how the currencies are traded in the market, be familiar with currency quotes.
2. OBTAIN THE NECESSARY PERMITS AND LICENSES AND PERMITS
Just like any other form of business, running a forex company requires a license or permit(s). These licenses and permits are needed to protect you and your customers. It should, however, be noted that these licenses required for the opening and running of a forex company may vary from region to region, it is therefore advised that the prospective forex broker should visit the local authority office to obtain a list of all permits and licenses required.
3. OPEN AND ORGANISE YOUR FOREX COMPANY
To open a forex company, there is a need for registering the company with a professional body to help with the regulation of taxes and the protection of the buyer and sellers’ integrity. You can also organize the company by knowing the total number of staff needed before the company can be run successfully. You also need to get a good location for your business, will it be online or offline?
4. KNOW YOUR CLIENTS
No market can strive well without clients, in order for your forex brokerage company to survive, the forex broker will need to know his potential clients and be able to make a choice from them.
Typical Clients Include but are not limited to the following groups of individuals; Banks looking to start their own FX operations, employees of existing Forex brokerages, entrepreneurs looking to untapped potential of the world's biggest financial market, Introducing Brokers, Investors, and Professional Traders.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.