Creating a bank and forex broker

[roger123doger]

Hi, does anyone know the process involved to create a bank and a forex broker (the bank will provide the trading processes for the broker)?

I've read that a bank takes ~$2,000,000 to start off with.

How much does a forex brokerage firm usually cost to start? How does one go about setting up the contracts between a bank and a forex broker?

any help is greatly appreciated

[uptick]

Originally Posted by roger123doger

Hi, does anyone know the process involved to create a bank and a forex broker (the bank will provide the trading processes for the broker)?

I've read that a bank takes ~$2,000,000 to start off with.

How much does a forex brokerage firm usually cost to start? How does one go about setting up the contracts between a bank and a forex broker?

any help is greatly appreciated

not sure where you got $2m from. also, forex brokers have their own financial requirements. get your checkbook ready.

anyways, i would start by contacting your state's Department of Financial Services in regards to starting a bank.

for a forex broker, i would contact the NFA/CFTC.

have fun with all the paperwork and regulations.

[Yarcofin]

$2 million is probably not enough, more like $10-$12 million to really be a substantial bank.

PERSONALLY If I had that kind of money, I would much rather build a casino. Costs will be less and the payout will be much greater.

To set up a forex brokerage/bank, in addition to large amounts of starting capital, you will need:

- a provider of realtime streaming data

- a programmer to create a customized trading platform for you (probably at least $20,000.)

- access to a large liquid market that you can trade your own money to hedge against the trades of your customers, and an automatic program (more programming fees) to impliment it.

[mytwopips]

Ok a fun thread that I will participate in that I really don't know what I am talking about.

To be a bank... You have federal guidelines (maybe laws too) and state laws. You will need around a 1,000,000 for liquid, 500,000 bond, and 500,000 fees. Around 1.5 mil for real estate and building for just a basic small local bank.

To be a broker... username forexsaviour posted some good stuff in the brokers section. If I remember around 20 - 30 mil liquid and who knows about bonds and license.

To be a casino... I think around 70 mil liquid to make Nevada GC happy. Around 400 mil just to build a hotel that people would actually come to. Or do it like they do in small rural areas of Texas. You open up a small lease building and put the sheriff's department on the take. Then fill it up with about 20 - 30k's worth of one arm bandits. Run that thing until the Rangers show up and bust you. Go to court, get slapped on the wrist, then do it again.

[roger123doger]

does anyone know how to get the provider of a data feed?

my thinking was that i own a bank so that bank will provide the feed for my forex broker

the $2 million figure was something I got for solely the bank and no ties to forex

what is the process of becoming a forex ECN?

[kagein]

I doubt your going to get any meaningful answers to your question here, basically because this website caters to complete novices at currency trading. I would suggest asking your question again over at the Trade2win forum where there's a broad range of industry professionals with years of experience and probably could point you in the right direction.