Start Your Brokerage

When starting your own Forex brokerage, there are some key things you need to consider to get started, such as selecting and setting up a trading platform, making sure you are compliant with all the regulatory requirements, and connecting with liquidity providers and payment processing services. The easiest and most efficient way to open a Forex brokerage is to select a reputable White Label Solutions Provider and purchase their product.

A white label broker is a full-service brokerage with all of the necessary infrastructure and tools. The term “white label” refers to the fact that these brokers rebrand the trading platform and tools provided to them by a white label provider. This allows brokers to offer a unique trading experience to their clients without having to develop their own technology. Simply speaking, it is a solution that allows you to open a branded brokerage business with a fully functioning platform without having to spend millions of dollars.

Prices for White Label Solutions can vary depending on the features and services you require. However, you can expect to pay approximately $30,000 for a complete White Label Solution. Choosing to go with a white label solution with save you an average of more than $90,000 on original setup expenses, as well as approximately $10,000 on various continuous monthly costs when compared to a Forex brokerage built from scratch.

If someone wants to open their own brokerage, all they need to do is purchase the white label solution and then brand it with your own company name and logo. The white label provider will take care of the rest, including the trading platform and licenses, back-office support, hosting, backups, customer service, liquidity providers, and payment processing. In the end, you will have a fully functioning Forex brokerage with a supporting infrastructure that looks and feels like your own, with the white label provider doing most of the leg work.

An Introducing Broker (IB) is a type of broker that does not take on any risk themselves but instead earns a commission for referring clients to another brokerage. IBs are typically independent contractors that work with multiple brokerages as intermediaries between a brokerage and a client. A white label brokerage is one that uses a white label solution provided by a white label provider to launch a full-scale Forex brokerage. It has complete independence and control over its operations as a stand-alone brokerage, yet the technology, infrastructure, and support are the responsibility of the white label provider.

Starting your own Forex brokerage will require some initial capital. The amount of capital you will need to start depends on the type of company you set up, with approximately $30,000 necessary if starting a white label brokerage. You will also need to obtain the proper licenses and permits required to operate a Forex brokerage, depending on which country you are opening a brokerage in. Examples are the Cyprus Securities & Exchanges Commission in Cyprus; Financial Conduct Authority in the UK; Financial Services Commission in Mauritius; and Vanuatu Financial Services Commission in Vanuatu. You can either apply for necessary licenses yourself or with the help of B2Broker.

An A-book model is when the broker sends all client trades to the real market through a liquidity provider and only makes money off commissions. The client’s order goes directly to the market through a straight Through Processing system (STP) in an A-book model. The liquidity provider then fills the order at the best available price. A B-book model is where the broker keeps some or all client trades within the company and takes the opposite side of the client’s trade. This means that the broker internally matches the client’s order. Hence, if the client wins their trade, the broker will lose money, and vice versa. This potentially leads to a conflict of interests.