The Forex market now generates more than $5 trillion a day and the figures are still on the increase, thus making it one of the biggest markets in the world thus surpassing any other market in the world. Recently, the opportunities which are available in the Forex market have successfully attracted several investors. The recent increase in the number of forex brokers over the last few decades is evidence that the market is a fruitful ground for investment.
Starting a Forex trading company can be very lucrative if only you can play your cards well. Many traders end up losing money and thus, make it a very challenging money-making venture. If you must be a successful Forex trader, it is important that you view it as a business that requires your total and undivided attention, treat it the same way you will treat other businesses.
To successfully set up a Forex trading company, there are factors that need to be kept under consideration and this article will be addressing them accordingly. Make sure you take note of the following when starting a Forex trading company.
1. GAIN EXPERIENCE:
Every business (Forex trading inclusive) requires you to have a general idea of what you are going up against. You can learn the basics by searching for information online or taking some Forex related courses from a certified institution. You can also sign up for a good training account on a Forex trading site. You can also enroll for an apprenticeship. This stage also involves gathering information on the necessary licenses and permits you will need for the business.
2. START YOUR BUSINESS
After gathering the necessary information, the next step is to start your business. Depending on your choice, it can either be from home or by visiting some trading platforms. Starting your business includes the following steps.
i. Registration and licensing of your Forex Company. This should be done in a way that suits your recommendations.
ii. The opening of a corporate bank account(s) for your client’s deposits and company’s operations.
iii. Establishing an office, buying office equipment, etc.
iv. Hiring staff
3. SET YOUR RISK MANAGEMENT SKILLS
Starting a Forex trading company requires a lot of risk management skills because there is every possibility of being enticed or too excited about the trading opportunities. Make sure you put strategies in place to manage risks. Create a regulation plan and stick to it. Setting management requires you to choose which type of business model you will use in your start up Forex Company. Some of the business models are;
i. Market Maker or Principal Model
ii. Agency or STP model
iii. Hybrid model
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.