Start Your Own Brokerage
Products for Starting
Below is a list of some of the products that will help you start your brokerage:
You would like to start your own brokerage?
As a financial company you would like to start offering Forex ?
Informational Packet
Boston Technologies has worked with companies like Gain Capital to help create the most competitive Retail Forex business in the world. We couple the immensely popular MetaTrader4 Platform, our extensive partner network, and our own innovative technology to start organizations off with the right foundation needed to succeed in retail forex.
If your organization is looking to diversify company assets, there is no better time then now to begin looking at the forex market. By becoming your own brokerage house and starting relationships with liquidity providers, you will be able to lower the operational costs associated with such activities.
Here is a model to consider:
FXCM, one of the largest brokers in United States, has over 100,000 clients. To run such a company you need about 150 employees.
Smaller brokers on the other hand can manage up to 2000 customers with just 10 employees. One should expect to make at least 10$ per trade per customer every day. If each customer trades just 1 time daily, with 2000 customers, they are generating $20,000 a day for your business.
What can Boston Technologies offer you?
- Together with our partners with legal advice to create your brokerage as an NFA regulated FCM or a Broker Dealer FINRA regulated.
- Provide you with a complete trading platform.
- Provide you with the hardware to run the platform.
- Install, maintain and support the trading platform.
- Provide you with a complete website and marketing solution.
- Provide you with a complete risk management solution
- Train you and your personnel on the usage of the platform (remotely or in your office).
- Provide you with a list of 14-16 bank contacts to develop banking relationships.
- Provide you with the software connections to the banks.
What would it take to setup a brokerage from an idea to a fully operational business?
- Setup of a legal entity: You'll want to begin by looking for partners and legal services. Liquidity partners and other such relationships need to be built as early as possible. Boston Technologies, together with our partners can offer you legal services and advice.
- Technology: In today's market you need an electronic trading platform Boston Technologies can also provide. Depending on the platform you chose you need a minimum of 1 server, but 3 is recommended. We encourage you to host them in a safe, redundant, data center we can also provide you with.
- Installation of the software and configuration: We would provide this with the trading platform, the installation, the documentation, and the training videos. As well as the installation of the STP software if needed.
- Together with our partners we can also offer you an experience website and online marketing solution. We will construct and host a website with automatic demo downloads, direct deposit, legal forms, live charts, quotes, news and everything your online forex brokerage needs.
- Design your trade process flow: You need to be able to answer the following questions:
- Will you do Straight Through Processing (STP)?
- Where will you unload your risk?
- What types of accounts will you create for your clients?
- Create your dealing desk, and acquire information sources. If you decide on STP, you will need to set up STP relations with the banks. Boston Technologies can provide you with the contacts and the softare to clear your trades and your risk with 14 to 16 banks right now.
- You would like to provide some liquidity and take some risk to raise your profit margins? Boston Technologies can help you with such a system. As described by our partner : "We steadily accelerated revenue improvement since beginning with [our customer] late last year, (calculated on a per lot basis) for April revenue increased by 62% above their performance before we started. The market risk we carry for this client is extremely conservative compared to their balance sheet and we will be able to further improve this number as we complete some studies of their client base and are given permission to increase VAR."
- Training:
- IT personnel to manage MetraTrader 4 and Forex systems.
- Sales and Marketing departments.
- If you offer managed accounts, we can help set up a program extension to manage multiple accounts at once.
- You will need to determine who does what for trading, deposits, reports, account management, and dispute resolution.
- Setup the legal department, create your forms and paper work for trading, contracts for Introducing Brokers, deposits, tax, withdrawal and so on.
- Set up your office (trading and dealing desk office, phone system?)
How long will it take?
Total setup time from the first phone call to the first live trade in a regulated brokerage is normally 4-6 months. This includes company establishment, operations setup, trading platform setup, office setup, establishing a customer base, and process flow. Actual times may vary based on a number of factors.
- FINRA Registration (4-6 months)
- Trading flow setup (2 months)
- Beta Testing and Training (1 month)
- Develop Banking Relationship and Partners (2 months)
We are offering a free 1 hour consultation in our office in the Boston Stock Exchange Building, or Wall Street in New York. During that 1 hour we will evaluate the feasibility of your project, setup a project timeline, and work out the details of getting started.
For more information on starting your own brokerage please read our information PDF and contact us at sales@BostonTechnologies.com