Starting a FX trading website

After losing a whole heap of money trading FX I’ve come to realize that it’s the brokers who are making all the money. :slight_smile:

I’m considering starting a FX trading site and wanted to find out what the process would be to do so. I’ve been a web developer for over 12 years now so creating the site is not an issue. I just need a Turn-Key route where I can start taking in clients right away.

I managed to capture a good domain name: [B][/B] (I’m selling this domain BTW)
I have the hosting, a good idea of the design and a list of leads I intend to invite over for a demo when I open up shop.

If you know of a turn-key system I can use please give your advice.

You mean you are starting a broker or just an affiliate site?

Affiliate site. Brokerages require so much red tape via the regulators. I’d ratter just skip all of that for now and resell with re-branded platforms, website etc.

Even if you were selling a rebranded platform you would need regulation, unless you opened something up in a tax haven somewhere. Most affiliate sites only get custom depending on how much traffic they can generate through their own SEM and marketing efforts.

Well I have the option of starting this offshore. I live in a tax haven.
I was just hoping that there was some turn key system other there that would mirror the master broker’s system.

I suspect that many brokers out there are just effectively ECN systems linked to a low spread brokerage based on a ‘reverse PAMM principle’ (ie: many traders get to control one account). Effectively the broker charges their clients 2 pips a trade, whereas it executes the trade for 0.5 pips on the master ECN account. However, I think you will need to set up your own custom MT4 bridges to do that.

Right. I’ve been thinking of that also. I’ve also looked at becoming an IB for a couple brokers but the issue there is that if later I decide to move away from the broker, I dont get to take my clients with me.

As I understand it, that being an IB is effectively just an affiliate and nothing to do with being a brokerage yourself. The only alternative is being white label, for which you will need to provide the administration, regulation and financing infrastructure to take on clients. Most affiliate sites are just basically advertisements.

Understood. There should be a solution out there. I guess most brokers wont have the time to offer administration, regulation and financing services along with the white labelling.

I think if you live in a tax haven, your best bet to make money would be offering US clients offshore leverage/FIFO exempt trading, along with holding tax free forex earnings in an offshore company with a Bahamas address. I don’t know the legalities or technicalities of this, but I think its more worthwhile than an IB.

Sounds like a bright idea. I’ll take note and consider that. Thanks for the advice.

Lol… Or you can just learn how to trade.

Oh for sure. But I want to make money while I’m learning. Just makes sense doesn’t it?

There are tons of IBs desperately attempting to catch novice traders so as to earn a few pips for each transaction while doing nothing.

This “job” is pretty unfair.

You should better offer a valuable service rather than the classical dirty stuff commonly seen on the web.

Nice, transitioning from being a trader to being a broker or in this case, an affiliate.It’s not often you come across someone who moves on to being a broker or close to it anyway. Good luck

Are you saying that there’s some process? From what I’ve seen so far one can choose which he once to be from the beginning.

So, you feel US citizens are so much interested in services that will enable them get free from tax. Well, in order to that, they’ll have to trade with an offshore broker, which some consider risky right?

Am sure you’ll make alot of money with this business you are about to open. However, its going to require a great deal of effort on your part and I hope you are willing to spend big money on it. Building a good website these days requires a lot of money, especially when it comes to SEO.

Putting your money anywhere is risky these days. Whether offshore, the US or Canada you can lose it. I work for an offshore brokerage as a web dev and it’s a very professional firm. However we dont take U.S. clients.

Not all of them, but some of them. I would be perfectly happy with 50:1 leverage (I don’t even use close to that) and FIFO, but I have read a lot of people are dis-satisfied with that. I also don’t think that US regulated brokerages are the most secure but thats another topic.