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Forex company formation and licensing

You have found the perfect business idea  forex company formation. So, how are you going to put the idea into practice?

Starting a forex company and getting licensing requires a few steps. In this guide, we'll explain what these steps are and how you can form a forex company without any hiccup.

1. Define your audience

When it comes to targeting your Forex/CFD business, not all places will be suitable. Research and narrow down the geographic area where the majority of your audience resides. Make sure your study indicates which nations will provide you with additional traders for your brokerage.

Check for trading limitations as well. Your target market should be determined by research, purchasing power, and your capacity to promote and sell in that location.

2. Choose the right jurisdiction

It is important to register your business in the appropriate jurisdiction and to prepare the necessary documents. For example, you'll know where to register your forex brokerage once you know where the majority of your traders are located.

Remember that not only the license criteria but also the registration costs vary from nation to country. Therefore, it's not an easy procedure to follow.

If most of your traders are located in Europe, for example, you will almost certainly need to establish your brokerage in Cyprus, which covers most of Europe. On the other hand, if you are going global, you can choose FCA, ASIC, FSCA, and many others.

So how can you get a broker's license?

There are two ways to get a license. The first:

·      Register a company;

·      Prepare documents;

·      Pay taxes;

·      Get AML/KYC policies and other documents;

·      Fill out and apply for the forex license to the relevant authority;

·      Set up a corporate bank account;

The second one is to talk to Elite Markets, discuss your needs, and we'll find you the best solution.

3. Name matters

First impressions are important. It can be more difficult than you think to name your brokerage. Use more than a play on words or a connection to your parents or family name instead of relying on the standard name search tools.

To your traders, a brokerage name should convey stability, trust, and honesty. So make sure no other broker has taken your name before you register it.

4. Find a liquidity provider

Liquidity and access with the lowest spreads are the names of the game for a forex brokerage. Take your time while selecting a liquidity source for your business.

5. Payment solutions

Your brokerage firm should provide a range of payment options. Different nations have different payment methods, so you should have as many options as possible, such as credit cards, cryptocurrency, e-wallets, and so on.

To sum it up here's what you need to do

·      Define your target market.

·      Make sure you have sufficient capital.

·      Find a liquidity provider.

·      Partner with a payment processor.

·      Go live.

Elite Markets can help you in setting up a forex company without any hitch. We provide tailor-made solutions for our clients. From getting licensing to banking and payment solutions, Elite Markets can help you in all!  

Traders require a wide range of tools to support their active trading lifestyle. To do your job efficiently, day trading involves the use of a number of tools and services. Some of the tools you probably have in your trading arsenal. Some tools you might not have.

In this guide, we will break down which tools you need to accommodate yourself in the speedy world of day trading.

1. Laptop or a Computer

Since technology is continually evolving, make sure you have enough memory and a powerful processor that your computer isn't constantly lagging, crashing, or slowing. Most trading and charting applications necessitate fast and up-to-date memory and processors.

2. Charting Software

Most brokers offer various software options for traders to use to trade and track the price charts of any financial asset. Day traders prefer trading software that allows them to quickly access price charts, as well as the ability to display tick charts and timed charts (1-minute, 5-minute, hourly, and others).

Finding the best trading software for your needs and linking it to your trading service is critical to the success of your trading activities.

3. Internet

Your internet connection should be quick enough to load web pages instantly. If it is unable to do so, your internet connection can be too sluggish for day trading. As asset prices fluctuate, thousands of data points are streamed to your device each second when you day trade.

Your internet connection must be able to keep up with the constant stream of data.

4. Broker

A broker—a business that facilitates your trades—is needed to be a day trader. Not all brokers are equal, and some are better suited to day traders than others.

If you prefer to use trading software, look for brokers who allow their traders to use that software. This will reduce the number of brokers you need to study and choose from. Different brokerages have varying degrees of market access. So make sure to select the right one.

5. Market Data

Trading necessitates a steady stream of financial data produced by the movement of prices in the markets. Your broker can provide you with market data, but you must specify the type of data you need.

Forex brokers normally provide free data on all forex pairs, so all you need to do is open a chart to see the price data.

6. Trading Journal

Maintaining a trading journal is an essential task in any success or goal-oriented endeavor. The key is to have a system in place to assess, monitor, and concentrate on improving your results.

A trading journal is more than just noting the prices of your entry and exit.

The trading journal is all about improving your processes and understanding your psychology.

Bottom line

These are some of the essential tools for day trading. Don't forget about backups! Have a plan in place for everything in case your main tools fail when you're in the middle of a trade.

When talking about reliable tools, you need a reliable financial technology provider to provide you with these tools.

Configure trading commission for each individual client Multilevel IB commission structure Supports multiple payment options We support payment gateway integrations for your new white label

Elite Markets offers comprehensive solutions for brokerage companies We help brokers build their business and offer solutions that allow the existing companies to increase efficiency and optimize workflows. Our experts have worked for many years in the retail brokerage business and know it inside out. We have already run into all ramps and made all mistakes typical for beginners, to compensate for that we got invaluable experience and a clear plan how to avoid traps, while opening or optimizing a brokerage company.

Broker from scratch

Starting a brokerage business from the very beginning is a really difficult process and involves many problems. To be a successful and competitive broker in the world of forex market, it is important to create a unique product that is interesting and profitable for a potential client.

Forex traders are placing ever-higher demands to the brokers to provide them optimal trading conditions.

The main requirements of traders during the past few years are:

·      The maximum flow of liquidity of financial instruments offered by brokers.

·      The fastest time for execution of trade orders.

·      The only way to meet such demands is to develop and implement non-standard technical solutions that can only be created with significant investment. This means that in most cases, starting a brokerage business does not look profitable.

Elite Markets offers a collaboration on the basis of White Label model. This collaboration scheme looks the most interesting from the profitability point of view of when opening a Forex broker business.

Why is White Label the best solution for setting up a brokerage company?

First of all, this is a very important point, the client receives a ready-made technical solution. The White Label broker under the Elite Markets brand gets the opportunity to offer its clients truly unique trading conditions:

·      The highest level of liquidity as a result of the aggregation of quotes from the largest number of liquidity providers.

·      The shortest order execution time when using the Meta Trader 5 terminal.

The first is a license for the Meta Trader 5 trading terminal. At the moment, the development and technical support of this software has been completed. However, technical support is still available to companies licensed for this product.

Elite Markets has multiple licenses for the Meta Trader 5 terminal, so White Label broker must provide this service to its clients.

 The second point is the legal side of the business. Elite Markets provides full legal support for the registration of a brokerage company and its further activities.

The third point is all financial matters. Elite Markets takes care of all financial issues that may arise with your business. Deposits and withdrawals from your clients’ trading accounts are made through Elite Markets' bank account.

For those who want to start their own brokerage companies, we provide the opportunity to work on the White Label. You will be able to work on behalf of Elite Markets, offering clients truly beneficial trading conditions.

At the same time, you do not need to solve many technical and organizational issues. You get a ready-made operating business and simply offer it to your clients. In full compliance with the global White Label concept, our potential partners will not incur any costs for developing technologies and infrastructure.

You get a completely ready-made and working solution. You will only need to focus on marketing, for which you can successfully use, for example, the entire powerful social media resource.