How to Start a Forex Broker

Start a Forex Broker with the TopFX All-in-One Broker Solution

Entering the CFDs industry as a broker isn’t an easy task. Most startups encounter multiple obstacles when trying to take a piece of the industry pie and establish their reputation as a trusted brand. TopFX, a Prime Brokerage with a decade-long experience in institutional liquidity solutions, has devised an all-inclusive solution that resolves common issues experienced by entrepreneurs looking to start a forex broker. In this article, we explore common startup problems and solutions to enhance your potential for success.

Introducing the All-in-One Broker Solution

The All-in-One Broker Solution contains everything a business needs to start operating a successful CFD brokerage. Let’s take a closer look at the basic and optional components that it includes to start a forex broker.

Services Supported by TopFX to Start a Forex Broker

Basic Offer:

  1. Multi-asset liquidity. TopFX offers Tier-1, aggregated liquidity for Forex, Indices, Metals, Energies and other CFDs
  2. The full cTrader platform suite which includes the trading platform, a back office for account management and a hosting solution
  3. The cTrader mobile app for Android and iOS

Premium Add ons:

Optionally, startups can add the following services for a complete package that addresses all parts of the business.

  • A ready website and website management service
  • A CRM that is fully integrated with the trading platform
  • A choice of Payment Service Providers or a Cashier service that uses the power of AI for increasing transactions’ approval ratios
  • Bank account on request via an EMI
  • Free consulting service. TopFX a) assists their clients in fleshing out a plan that suits their goals and b) connects with other service providers that can help with legal or other aspects of the business
  • Autochartist, as a signal providing service

Start a Forex Broker with Solutions, not Problems

The TopFX All-in-One Solution helps startups avoid failure and achieve success. The CEO of TopFX, Mr Alex Katsaros, mentions that “the All-in-One Broker Solution is solving the core problems of CFD brokerage startups. We provide a complete infrastructure that addresses all obstacles and allows startups to focus on their customer acquisition as opposed to liquidity and technology.”

Specifically, TopFX offers solutions to the following problems:

Problem: Unreliable price feeds. Startup brokers may not have the experience or expertise to choose a liquidity provider that offers reliable price streams. Unreliable price streams entail high slippage, downtime and other issues that affect order execution quality. Sloppy execution drives traders away from a broker, and unless this issue is addressed, it is unlikely that a startup will establish a reputable presence in the industry.

Solution: Tier-1, reliable liquidity from TopFX. TopFX have minimized latencies via their Equinix Data centers in LD4 and NY4. They offer Tier-1, aggregated liquidity without downtime, gaps or spikes. Brokers can rest assured that they will not encounter the issues arising with unreliable data streams.

Problem: Not enough tools to encourage active trading. TopFX knows that there is a big gap between a client registering an account and engaging in active trading. There are multiple reasons for that; they may not feel ready or have enough tools to help them to take the first step. They may just have registered to “check the platform out”. However, if a broker offers the exact same tools as everyone else, it is unlikely that clients will engage in active trading.

Solution: cTrader’s 3-way trading and integration with Autochartist and ClickAlgo. The TopFX All-in-One Solution offers the new cTrader, which enables manual, copy and automated trading on one interface. cTrader Trade is packed with trading tools to analyse the market with precision. cTrader Copy is ideal for both copiers and strategy providers. Copiers can rank the strategies according to performance and strategy providers can share their strategy by charging three types of fees. In addition to cTrader’s in-built functionalities, brokers can choose to add Autochartist, which is now fully integrated with the platform. The integration of Autocharist with cTrader enables traders to follow the signal and execute the order at the touch of a button. For traders who prefer to trade with bots, TopFX has established a partnership with ClickAlgo, a service that enables traders to convert their EAs to cBots.

Problem: Not having a strong mobile app. Mobile trading has been rising consistently. If startups do not offer a robust mobile app to users, they are probably losing a big number of on-the-go traders.

Solution: The cTrader mobile app for Android and iOS. TopFX includes the cTrader mobile app in the offer. Clients can monitor their trades and analyse the markets on their mobile. Additionally, charting and trading tools have been developed to be user-friendly and efficient.

Problem: Wasting time on various integrations and service provision issues. New brokers have a lot of integration issues to solve; they must a) find the right bridge software to connect the liquidity to the platform b)  look separately for CRM and integrate it to their platform and back office, c)  resolve server issues, d) and integrate payment solutions.

Solution: No separate integrations are needed. Brokers save time from sourcing their bridge software since cTrader connects directly to TopFX liquidity. All components of the business are provided and no further integrations are required.

Problem: Losing money and clients from declined transactions. As it is mentioned earlier, sourcing and integrating the best PSP may be a time-consuming process. In the meantime, brokers lose money and clients from declined transactions.

Solution: Opting for a Cashier service. TopFX has partnered with BridgerPay, an AI payments management platform and offers this service to All-in-One clients with exclusive terms. By choosing a Cashier service, brokers can enhance payment efficiency and improve the transactions’ approval ratios.

Problem: High barrier to entry. The cost of setting up a forex brokerage is high and may deter businesses from taking the first step.

Solution: Free setup and customizable pricing. TopFX offers free setup and different price models that fit different client types. Brokers can opt for tiered of fixed commissions, and customize their solution the way that is more relevant to them.

Problem: Getting to grips with the regulatory requirements under the MiFID II framework. New brokers may find the process of complying with all regulatory requirements daunting. They often need to automate a part of this process and establish standard procedures.

Solution: Automated RTS 27/28 reporting with Tradefora. TopFX has partnered with Tradefora to provide the All-in-One clients with a turnkey solution for RTS 27 (Best Execution) and RTS 28 (Top 5 Execution Venues) reporting. Clients also get access to a powerful reporting portal to manage all tables and access all data and a convenient output format for report publication.

Last but not least, TopFX has included a website and a website management service as an optional add-on that a broker can include in the solution.

Next Steps to Start a Forex Broker

As you can see above, TopFX provides a long list of solutions to the common challenges and even complete showstoppers for aspiring CFD brokers. If your next venture is to start a forex broker consider reaching out to TopFX to get a free, no-obligation consultation regarding the All-in-One Broker Solution please email [email protected].

TopFX is an international prime brokerage firm specializing in liquidity provision. Risk Warning: Your capital is at risk.

cTrader Brokers
cTrader Brokers

Best cTrader Brokers is an information portal focused on the cTrader platform and the community of brokers and traders who use the multi-award-winning platform on a daily basis.

cTrader Brokers