How would one create or become a broker? Just thought in times of spreads and fees ,is it possibly to start your own brokerage company ?
Yes, it is possible if you have the funds to start. Setting up a financial company may be the smallest price you have to pay. Getting the proper licenses and regulations you need to work a bit harder. Your biggest expense could be the trading platform you want to offer, if you want to purchase a license for it or if you want to go another, cheaper route as many forex brokers do. Depending on where you set up shop you may need to have a certain amount of capital in the bank. Don’t forget fees for the trading platform and more important your liquidity providers. You can’t run a one-man brokerage so you need to hire some help, outsource or partner with others. Just a few brainstorming things that came to mind, I am sure I left out quite a few other things required.
I made a post here earlier which has been removed. Could whoever removed it please explain why?
Rambo mentioned a few very important points here. Don’t forget legal costs as well.
I would think you would need a huge bankroll.
things require to start your own brokerage business
Company Registration
Registering a company with adequate permissions is the predominant step.
Bank Account
After the registration of your company, you’d need a bank account to handle all your business transactions.
Trading Platform
Once you’re done with setting up your business bank account, you will require a trading platform for your clients that is both user-friendly and affordable.
Payment Gateway
Once you are ready with a trading platform, you’d require a payment gateway for handling your clients’ deposits and withdrawals conveniently.
Liquidity Provider
Since the whole world is currently witnessing a fragile and burdensome situation, having liquidity can lift your survival chances.
Client Office
Client office is a vital aspect of your business since it can help your clients manage their business accounts and transactions swiftly.
Branded Website
Since a website is a core in any online business, This helps you portray all your professional services globally and attract more clients.
Check out whitelabel programs that some brokers offer, might find something helpful there.