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. :eek:
$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.
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.
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?
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.