Does anyone want to be a broker? The commission is very high.
haoyunlai posted:
Does anyone want to be a broker? The commission is very high.
what broker are you doing?
Oct 31 2019 at 15:42
Lol; my trading capital is below 5K! Are you a trader or anything else?
Nov 02 2019 at 07:43
No. We are happy to be traders.
Never thought of being one. But I am curious to know what are the requirements for those who want to be a broker?
Nov 16 2019 at 17:09
Lots of work and need a liquidity provider to get you started, then regulation, dealing with customers, etc.. seems like a lot of hassle. Though having said that it’s always possible as anything is :)
Winning...
ForexViking69 posted:
Lots of work and need a liquidity provider to get you started, then regulation, dealing with customers, etc.. seems like a lot of hassle. Though having said that it’s always possible as anything is :)
You seem to have good knowledge. Well said.
Not many people actually want it cause it's damn a lot of hassle anyway for many reasons, assuming how much money does it really need and fierce competition in that space from already established brokers, so no thanks please.
Apr 18 2020 at 18:55
Well there a lot more these days , there is a forex insurance as well now a days I hope you enjoy that.
yes ;because there is a lot of services and information all brokers dont provide.also trust levels with brokers are low and they are all faceless corporations more or less to some degree.if they take you money they should be totally honest and transparent.there is always room for excellent forex brokers who are different and understand clients.
Apr 19 2020 at 08:50
Yes how do I?
i love the broker which always ensure security of funds with a wide range of trading of trading technology, and doesnt restrict any kinds of trading techniques with scalping and hedging. regulation is not a big deal to me.
Apr 21 2020 at 11:05
Honestly, I feel like it is time consuming to be one...but I wish them best of luck...boa sorte!
The fact is that in the broker's work there are not only big commissions, but also a big responsibility. To become a normal broker, you first need to promote yourself (and spend the money on it). You'll also need to support your clients in various ways, and this can be very exhausting (or you can hire someone and spend your money again). And there are many such little examples. Maybe in the future it will all pay off. But for me it is much easier to be just a trader with a stable income and a good broker, which will help you make it possible.
Of course I'd like to try my hand at being a broker. I think that this business is certainly related to a lot of stress, but it is very interesting. Maybe not even so profitable, especially at the beginning, but how much knowledge and experience you'll receive. So without thinking too much about the opportunity, I'll agree. I hope that I would make an adequate broker, who would help people to become successful traders and not take a huge commission for everything...
May 09 2020 at 10:15
I actually know a trader who have become broker in Austrialia, I was also ask to apply, but I declined, I'm ok being a trader and don't want more hassel than the one I do searching and analysing pairs daily for good trading.
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May 09 2020 at 10:25
The best would be to create a new kind of broker. A broker designed by retail traders for retail traders.
It means that it could be supported by community traders really involved into it.
We would be our own support. No stupid questions, only designed for experienced traders.
The idea would be that the cost to run such enterprise would be really low as it is created for ourselves only. So the idea would be to trade like banking conditions, => No spreads, no commissions!
I would prefer to pay one time 100€ to join the community and then trade with zero spread. (Trade 20 trades from 1 Lot and you are refunded).
Let's imagine 10 000 traders experienced worldwilde traders wants to join and don't ask silly questions to the support team. All we want is open 1 account and trade it.
That's already $1M to run broker. Cost for website/interface/community, connect to liquidy provider, Open firms,... +++
Think different into very competitive markets as the business model for broker is join me, I will grab your money!
It means that it could be supported by community traders really involved into it.
We would be our own support. No stupid questions, only designed for experienced traders.
The idea would be that the cost to run such enterprise would be really low as it is created for ourselves only. So the idea would be to trade like banking conditions, => No spreads, no commissions!
I would prefer to pay one time 100€ to join the community and then trade with zero spread. (Trade 20 trades from 1 Lot and you are refunded).
Let's imagine 10 000 traders experienced worldwilde traders wants to join and don't ask silly questions to the support team. All we want is open 1 account and trade it.
That's already $1M to run broker. Cost for website/interface/community, connect to liquidy provider, Open firms,... +++
Think different into very competitive markets as the business model for broker is join me, I will grab your money!
May 10 2020 at 07:28
most of the director in fx broker have experience working in institutional firm beforehand, Goldman sachs,Merrill Lynch,barclay,ubs,etc regulator will judge, access your qualification before approve your license. getting forex license is not cheap either
USA - Forex License/ NFA
Minimum paid up capital : US$20 million
Singapore - Broker dealer/Capital market license
From $50k - $5 million
https://www.mas.gov.sg/regulation/capital-markets/Capital-Markets-Services-CMS-Licence
UK Financial Conduct Authority (FCA) - Forex license (3 types)
Dealer Licence/market maker - EUR 730,000
Intermediary Licence (i.e. Matched Principle) - EUR 125,000
Restricted Broker Licence - EUR 50,000
1) Dealer Licence – a full licence equivalent to 'Market Making' or having the option to run a B-Book as the client’s counterparty;
2) Intermediary Licence – a 'Matched Principle' licence limiting a broker’s activities to Straight-Through-Processing (STP) of orders in the case of an Agency or A-Book model; and,
3) Restricted Broker Licence - an introducer-type of licence allowing sales and marketing but not authorized to hold client funds.
Australia ASIC/AFSL - Forex license
A physical office and local directors are a strict requirement
Paid up capital is set at $1 million Australian dollars
Cyprus Securities and Exchange Commission (CySEC) - Forex license
Standard license – approx. EUR 125,000.00, broker can hold clients’ money but cannot trade on its own account
Full license - requires approx. EUR 730,000.00 – broker can deal on its own account (market maker)
USA - Forex License/ NFA
Minimum paid up capital : US$20 million
Singapore - Broker dealer/Capital market license
From $50k - $5 million
https://www.mas.gov.sg/regulation/capital-markets/Capital-Markets-Services-CMS-Licence
UK Financial Conduct Authority (FCA) - Forex license (3 types)
Dealer Licence/market maker - EUR 730,000
Intermediary Licence (i.e. Matched Principle) - EUR 125,000
Restricted Broker Licence - EUR 50,000
1) Dealer Licence – a full licence equivalent to 'Market Making' or having the option to run a B-Book as the client’s counterparty;
2) Intermediary Licence – a 'Matched Principle' licence limiting a broker’s activities to Straight-Through-Processing (STP) of orders in the case of an Agency or A-Book model; and,
3) Restricted Broker Licence - an introducer-type of licence allowing sales and marketing but not authorized to hold client funds.
Australia ASIC/AFSL - Forex license
A physical office and local directors are a strict requirement
Paid up capital is set at $1 million Australian dollars
Cyprus Securities and Exchange Commission (CySEC) - Forex license
Standard license – approx. EUR 125,000.00, broker can hold clients’ money but cannot trade on its own account
Full license - requires approx. EUR 730,000.00 – broker can deal on its own account (market maker)
May 10 2020 at 12:28
acertablet484 posted:
most of the director in fx broker have experience working in institutional firm beforehand, Goldman sachs,Merrill Lynch,barclay,ubs,etc regulator will judge, access your qualification before approve your license. getting forex license is not cheap either
USA - Forex License/ NFA
Minimum paid up capital : US$20 million
Singapore - Broker dealer/Capital market license
From $50k - $5 million
https://www.mas.gov.sg/regulation/capital-markets/Capital-Markets-Services-CMS-Licence
UK Financial Conduct Authority (FCA) - Forex license (3 types)
Dealer Licence/market maker - EUR 730,000
Intermediary Licence (i.e. Matched Principle) - EUR 125,000
Restricted Broker Licence - EUR 50,000
1) Dealer Licence – a full licence equivalent to 'Market Making' or having the option to run a B-Book as the client’s counterparty;
2) Intermediary Licence – a 'Matched Principle' licence limiting a broker’s activities to Straight-Through-Processing (STP) of orders in the case of an Agency or A-Book model; and,
3) Restricted Broker Licence - an introducer-type of licence allowing sales and marketing but not authorized to hold client funds.
Australia ASIC/AFSL - Forex license
A physical office and local directors are a strict requirement
Paid up capital is set at $1 million Australian dollars
Cyprus Securities and Exchange Commission (CySEC) - Forex license
Standard license – approx. EUR 125,000.00, broker can hold clients’ money but cannot trade on its own account
Full license - requires approx. EUR 730,000.00 – broker can deal on its own account (market maker)
You got it right.
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