How to become a Forex broker.

Many traders who understand how difficult it is to trade on the stock exchange come up with the idea of ​​becoming a broker, because unlike trading, the risk is minimal and the earnings are more stable.

How much do such companies earn? You can calculate the approximate profit using a simple example - a client opens only 20 transactions per month, each with a volume of 1 lot, the spread is 1 point per lot or 10 dollars.

It is not difficult to calculate that the profit for the month is $200. It’s easy to imagine how much 100 clients will bring. Moreover, regardless of the financial result of transactions, the main thing is that the trader opens transactions more often and in as large a volume as possible, hence the leverage of 1:1000 or even 1:2000.

So how do you become a forex broker?

There are several options for how you can make a profit by providing dealing services on the currency exchange, it all depends on what funds you have.

Broker intermediary.

It is the simplest - we register a legal entity, enter into a partnership agreement with one of the best Forex brokerage companies , create a website and attract clients.

At the same time, we do not bear the costs of software, payment of licenses and other technical issues.

You also do not need to search for liquidity providers yourself.

The only negative is the amount of earnings, it is approximately half of what a broker working directly with liquidity providers earns.

But this is exactly the path that start-up companies take, and after learning all the intricacies of the work, they set off on their own.

Independent brokerage company.

In this case, everything is much more complicated; if in the first option, $5,000 is enough to get started, then here the amount ranges from 25,000 to 50,000 thousand.

And this does not take into account the license to use the trader’s terminal, approximately another 75,000-100,000 dollars. After this, it becomes clear why most start with intermediary brokers, and only after that, having earned substantial capital, they open an independent company.

The amount of initial capital depends on the jurisdiction and some other organizational issues.

It is almost impossible to become a Forex broker on your own (registering an offshore company, opening an account, obtaining a license, concluding agreements with banks), but there are specialized companies that will do all the work for you for your money.

Probability of earning.

After opening a brokerage company, you should not think that clients will simply rush to you to register and open accounts.

Traders rarely trust new brokers, mostly preferring to cooperate with companies registered more than 5 years ago.

Therefore, investments are unlikely to pay off in the first year; in addition, they will be added to the costs of advertising and website promotion.

Despite the large earnings, brokerage activity is a rather troublesome and costly process, and the invested funds do not pay off immediately. To begin with, it is better to try your hand at affiliate programs; the most profitable of them are described in the article “ Forex Affiliates ”.