DANZY
New Member
I am writing this from my own experience, 13 years on FinTech side:
Through years i have seen good and bad examples, i want name any of them, but the bad examples have one thing in common, they are all undercapitalized from the beginning and cheap on staff and technology, basically one man show operation.
There are 2 paths to take :
1. Independent from the start - if you have money and experience, go for it Tiger
2. Whitelabel Path - if you are strap on cash and mostly have few clients.
Independent Path:
Before you start this hell of a ride ask your self what are your advantages in fx compered to other brokers . If you have some idea about it proceed further.
1. Start a company (offshore easiest and cheapest, not necessary bad if you know what are you doing, more flexible from trading point of view)
2. Acquire licensee for trading (offshore cheapest / STP cheapest example/ Cysec can be 225k, MM expensive- example Cysec 750k, depends on which regulation you want, these prices were in 2018 when i worked with them last time). Everyone like to see Uk licence but unless you have a huge number of clients from the beginning , its just a money burner for idiots.
3. Acquire BANK account - IMPORTANT part - quality of the bank depends on a location of the company and license
3. Buy Mt5 directly from MQ ( they are not selling MT4 any more), it could go from 125k
4. Acquire Liquidity provider,/s there are several options, but setup is 50k, depends on the quality of LP, and you will receive 0.1 spread, 1 usd commission and swap, from there you add your markup - this can be renegotiated. After setup there are ongoing fees. Plus you will need dealer to hire for the risk/regulator purpose.
You have set the bones of the company structure now its time to add meat.
6. Add CrM - rookies in industry neglect this part but this is a heart of your system, since the sales and marketing, IT will be using this like 1000000% everyday. I want name anyone, but there is best CRM for FX /Crypto/Exchange industry, 3 spaces bellow empty and the rest of the CRMs. Been using 7 of them so i know what i am talking about.
7. Add Payment methods - credit cards, Bank transfers, crypto, e-wire ( quality depends on your license and company location)
8. Add payment gateways - cards processors/cashiers ets, negotiate the price carefully since this will be either astronomically high or very cheap ( % processing fee)
9. Add Kyc platforms - this is optional, in case you want to be spotless in front of the regulators, and avoid losing bank account, being red flagged in PSP systems.
This above is easy part and you can set it up in 4 5 months, depending on your pocket, and on which doors to knock. I didnt write all the things you may need or not but for the setup of basics that will be enough.
Now you have a basic startup of the company, this is just to start,0 clients, 0 marketing, 0 staff. For everything of these 3 you need live cash, and it can scale up to a million in first year, if you want to do it right. Plus dont forget that you need to pay the winners if you are on MM license.
Now this can be challenging especially if you are not from the industry and have 0 contacts, and small amount of cash.
And yes you can cut corners and be cheap on staff, marketing and sales....if you have ready to go clients, or partner with marketing funnel which has high conversion rate.
I don't recommend anyone opening a company and starting independent path from the beginning if he is lacking the cash liquidity. I have seen like dozen companies starting fair, and then being forced to cheat clients in order to cover the operational losses. Basically this is a story of all Binary options brokerages and 60% of Fx brokerages/ there are few good examples.
There is a better way.
Whitelabel Path:
1. Start a company ( Malta, Gibraltar for example)
2. Choose a broker to piggyback on his license and infrastructure/Mt4/Mt4/Ctrader, this will cut you initial cost for 90% and save you money for marketing and sales. There are good brokers for whitelabels and bad ones....if its to good to be true it usually isn't true.
3. Develop your brand for few years to get experience and see if you are cut for this business
4. Market the brand....Market the shit out of the brand...buy the billboard on Times Square if necessary.
5. Create the team of crack wise professionals from Marketing/Sales, dont be sorry to spend money here, since these guys make you money.
If you are live after 3 4 years , its time to move on independent path but by then you will know what you are actually doing.
If anyone goes any of these paths, i can promise you this, you will meet most interesting people on earth( good/bad), get yourself in most questionable moral situations you can imagine( test for your character, know yourself), see the world, know the countries bureaucracy/banking system , and after some time you will wish to become a bee keeper and move to the country side.
Through years i have seen good and bad examples, i want name any of them, but the bad examples have one thing in common, they are all undercapitalized from the beginning and cheap on staff and technology, basically one man show operation.
There are 2 paths to take :
1. Independent from the start - if you have money and experience, go for it Tiger
2. Whitelabel Path - if you are strap on cash and mostly have few clients.
Independent Path:
Before you start this hell of a ride ask your self what are your advantages in fx compered to other brokers . If you have some idea about it proceed further.
1. Start a company (offshore easiest and cheapest, not necessary bad if you know what are you doing, more flexible from trading point of view)
2. Acquire licensee for trading (offshore cheapest / STP cheapest example/ Cysec can be 225k, MM expensive- example Cysec 750k, depends on which regulation you want, these prices were in 2018 when i worked with them last time). Everyone like to see Uk licence but unless you have a huge number of clients from the beginning , its just a money burner for idiots.
3. Acquire BANK account - IMPORTANT part - quality of the bank depends on a location of the company and license
3. Buy Mt5 directly from MQ ( they are not selling MT4 any more), it could go from 125k
4. Acquire Liquidity provider,/s there are several options, but setup is 50k, depends on the quality of LP, and you will receive 0.1 spread, 1 usd commission and swap, from there you add your markup - this can be renegotiated. After setup there are ongoing fees. Plus you will need dealer to hire for the risk/regulator purpose.
You have set the bones of the company structure now its time to add meat.
6. Add CrM - rookies in industry neglect this part but this is a heart of your system, since the sales and marketing, IT will be using this like 1000000% everyday. I want name anyone, but there is best CRM for FX /Crypto/Exchange industry, 3 spaces bellow empty and the rest of the CRMs. Been using 7 of them so i know what i am talking about.
7. Add Payment methods - credit cards, Bank transfers, crypto, e-wire ( quality depends on your license and company location)
8. Add payment gateways - cards processors/cashiers ets, negotiate the price carefully since this will be either astronomically high or very cheap ( % processing fee)
9. Add Kyc platforms - this is optional, in case you want to be spotless in front of the regulators, and avoid losing bank account, being red flagged in PSP systems.
This above is easy part and you can set it up in 4 5 months, depending on your pocket, and on which doors to knock. I didnt write all the things you may need or not but for the setup of basics that will be enough.
Now you have a basic startup of the company, this is just to start,0 clients, 0 marketing, 0 staff. For everything of these 3 you need live cash, and it can scale up to a million in first year, if you want to do it right. Plus dont forget that you need to pay the winners if you are on MM license.
Now this can be challenging especially if you are not from the industry and have 0 contacts, and small amount of cash.
And yes you can cut corners and be cheap on staff, marketing and sales....if you have ready to go clients, or partner with marketing funnel which has high conversion rate.
I don't recommend anyone opening a company and starting independent path from the beginning if he is lacking the cash liquidity. I have seen like dozen companies starting fair, and then being forced to cheat clients in order to cover the operational losses. Basically this is a story of all Binary options brokerages and 60% of Fx brokerages/ there are few good examples.
There is a better way.
Whitelabel Path:
1. Start a company ( Malta, Gibraltar for example)
2. Choose a broker to piggyback on his license and infrastructure/Mt4/Mt4/Ctrader, this will cut you initial cost for 90% and save you money for marketing and sales. There are good brokers for whitelabels and bad ones....if its to good to be true it usually isn't true.
3. Develop your brand for few years to get experience and see if you are cut for this business
4. Market the brand....Market the shit out of the brand...buy the billboard on Times Square if necessary.
5. Create the team of crack wise professionals from Marketing/Sales, dont be sorry to spend money here, since these guys make you money.
If you are live after 3 4 years , its time to move on independent path but by then you will know what you are actually doing.
If anyone goes any of these paths, i can promise you this, you will meet most interesting people on earth( good/bad), get yourself in most questionable moral situations you can imagine( test for your character, know yourself), see the world, know the countries bureaucracy/banking system , and after some time you will wish to become a bee keeper and move to the country side.
