Significance Of A Good Website For Your Forex Brokerage

Are you aware of why the websites act as a driving force behind all businesses? Your target audience is most likely to come across optimized resources that show them through an online route to your website. In an age of digital marketing, business revolves around its web presence to be able to edge past the stiff competition.

Few Crucial Points that Make It Inevitable For Your Business to Launch a Website:

Pose Your Website as the Face of Your Organization

The owner of a business needs to lay much emphasis on his website. Your website represents your entire business regardless of the operational volume and efficiency.

The website reflects your vision vividly when it has appropriate content and optimized design and features. Almost half of the work gets done right there!

Let Your Visitors Identify with the Cause

You must inform your customers about the nature and outcomes of using your website. The platform that your website offers to all trading participants deserves a crystal-clear description. All the features ought to be explained with examples.

Like every other trading platform, it should value time. Don’t forget that your trading direction can change in a whisker of time. It can help you reap huge profits or inflict heavy losses.

Display the Market Updates

A website is the ultimate source of market commentary, reviews, and news. Trading experts and coaches provide for genuine reviews on the market scenarios and trends. 

Focusing on the market news and updates are of great help to the participants. Besides promoting all fundamental and technical analysis, a website conveys information concerning specific tradable assets and currencies to traders of varying levels.

Become a Brokerage Firm that Leads the Market

In our attempt to choose a forex brokerage firm, we usually look for one that is well-established. Your website proclaims your authority. Besides giving an insight into your trading platforms, it reflects your experience in the field. 

The visitors are more likely to come in touch with you when your website has quality information about the market and placement of orders.

Consult Your Analytics before Putting in Your Best Efforts

If you wish to know the internet from all angles, then you have to know where you are and where you came from. All of your efforts will go in vain if you don’t present the right information through your website. 

Your website will provide you with quality information concerning your prospects, their inclinations, market conditions, trading trends and demographics. All you need to do is to make good use of Google Analytics and other analytical tools. Tracking such vital information won’t be possible unless you build a website.

Develop a Simple and Updated Website

You must keep all information published on your business website up to date. You can make effective use of your Laptop by updating your website information. For making simple edits, you will not need to hire a coder

Be it about changing description or a date, a few clicks of the mouse is all you need. You can invest your savings over redesigning or acquiring big projects. Don’t give your customers a chance to point out flaws on your site

Get a User-friendly Design

Not very long ago, you could see your business website only on your desktop. Then you saw the phase of developing responsive websites for all types of businesses. These days, you may develop a mobile app or may even create your website in a manner that matches a smart format.

Creating responsive websites has become a norm with most online businesses of late. This way, your information can be presented to your audience via any smart device. Reading your business information over a tablet or smart phone is easy as it shrinks appropriately. You must opt for a responsive design while building a new website.

Educate Your Prospective Users

A website extends quality advice on trading services and products for free. The information gets conveyed in a uniform and well-conceived manner. Few of the visitors may not have much time to place orders.

However, some visitors would analyze and review every detail of trading in advance. It serves their purpose when you update the pages of your website with quality trading information.

Improving customer service is often the key advantage of maintaining a Forex website. It yields a swift electronic medium for processing information furnished by the trading aspirants very easily and quickly. You may utilize text and email messages for broadcasting bonuses and deals besides placing them on the site. Once you can collect the concerns and views of customers over an online platform, it becomes easier for you to execute your plans accordingly.

Why Are The Brokers Still Using MT4 When They Have MT5?

The monopoly of the MetaQuotes Software doesn’t work anymore since the MT4 platform set the milestone for the entire industry. New brokers are no more in a position to offer MT4 since MetaQuotes withdrew vanilla MT4 from the marketplace. MetaQuotes has conveyed its message clearly: MT5 holds the key to your trading future

How It Feels to Explore MT5

The brokers that are currently operating in the market won’t find it tough to offer both MT4 and MT5 simultaneously. However, a large section of the clients is currently dependent on MT4. You may even explore the option of switching over to MT5 at your free will. You must have noticed a substantial hike in market demand for this platform. A large section of the new buyers prefers investing their time and efforts over MT5 rather than the earlier versions.

Using MT5 often becomes mandatory for some market participants that experience new-age trading challenges. The new brokers have to deal with some unknown software and dynamic industry that sets new trends every day. It helps them in dropping the anchor for a new brand. White-labeling and other solutions may seem attractive to new players at a time when the market reflects a high potential for client rejection and financial risks.

MT4 Owes Its Success to EAs

The monopoly that MetaQuotes enjoys doesn’t work in its favor ever since MT4 succeeded in establishing its presence as the new trading standard. The fact that we humans feel uncomfortable to accept changes prevails all over the industry. MT4 was always there and it is still pretty much stable and effective. Computers worth millions have it installed all over the globe.

The retail shift has primarily slackened due to the long row of add-ons that come with MT4. MT4 is the main pillar of support for Copy trading solutions. It has a great many electronic advisors (EAs) in its vicinity.

Most of the community boards and trading forums have littered due to the MT4 custom indicators. You can evade the challenges posed by the add-ons since you won’t be able to take them off the MT4 charts and stick them on MT5. You have to acquire them at your fingertips and right from scratch.

Brokers have to deal with this issue alongside other things. Compared to MT4, it yields further challenges concerning the absence of genuine plug-ins or third-party solutions. Brokers ought to develop their services based on these extras.

MetaQuotes finds comparison in Microsoft. With the release of the latest version of windows, the latest version of MetaTrader grew higher on demand. MT5 helped the stores keep up with the market demand. The individual participants can use it for free, but most traders were happy to pay for the latest Windows version.

MetaQuotes has been struggling to offer MT5 over retail trading platforms. The brokers are middlemen that can benefit from the design of MT5. However, the latest Windows version suits the customers with more security and speed, which is why they prefer to pay for it. MT5 is an upgrade that is aimed at the brokers. Its primary objective is not to help brokers by increasing the flow of trading volume while helping millions of parent traders simultaneously.

MT4 Still Looks Futuristic

For quite some time, a group of experts are considering MT4 to be ineffective. However, they haven’t succeeded in barring the use of the platform. The community continues to use it even today. You must remember that the deployment of MT4 still causes you to meet a monthly charge towards MetaQuotes.

MT4 still extends a sound trading base to millions of traders all over the globe. If the plug is pulled off all of a sudden, it would lead the global market through a phase of chaos and mismanagement. It might prove to be a suicidal move as the damage is deemed irrecoverable.

The move from MT4 to MT5 could happen at a slower pace unless the retail traders accept the latter as a more favorable option. Relying on business becomes difficult for a broker when the retail clients reject it.

It often seems an uphill task for the new players to ask their clients to sign up for a global trading software platform and then fail to live up to their expectations. The more seasoned players gain out of such a situation as it restricts the scope of new competition.

Pros & Cons of Forex Whitelabel

The trading platforms depict some differences with each other. That is one reason why the traders ought to do detailed research while picking a trading platform over others. It is natural for you to have some questions in mind while starting your career as a broker. Also, you must identify a few of the easiest and quickest means of starting your own forex brokerage. It will help you reach out to your audience in no time.

You may reach out to an organization that delivers such services and enables you to rent a portion of their server besides pulling off your headache. In simple terms, for starting brokerage with a White Label provider, you must find a service provider that offers WL Forex brokerage.

How Significant Is White Label for a Business?

The process that one firm follows while buying the product of another firm and marketing it under its brand name is called White Label. Such an act is performed by a notable organization that possesses expertise worth years in handling the MetaTrader 4/5 with all its technical aspects. Besides all admissions, it will even give you access to the client terminal.

It will keep you from making any high-level initial investment while settling the buying process of your trading firm entirely. By opting for an MT4 Forex WL, you may accept the terms of a monthly pay off as you hire their services. Even for a server-side configuration and installation, it is likely to be a minimal setup fee as compared to other services.

Few Key Facts Concerning the White Label

Most traders are already aware of the fact that the trading devices and MetaTrader 4/5 platforms come with their specific advantages and disadvantages. You will even come across a few benefits and restrictions associated with the WL Forex programs.

Pros of the White Label

Low Initial Investment: Putting all your efforts towards buying the entire server could be risky, expensive, and challenging. You ought to get all issues concerning the trading market on your fingertips right at the very beginning. Only then it will be easier for you to set up your feature-laden trading platform while initiating your brokerage firm. However, the initial costs are much lower even when you acquire the same position as the WL model. You may easily avail the MT4 services and achieve the WL by meeting the monthly charge.

Easy Maintenance:  You won’t need to cope with server rents if you hire the WL services. Before initiating the White Label, you won’t need to acquire the configurations of a trading platform. Also, you don’t need to penetrate through the specifications of trade deals. Most of the things are carried out by your White Label service provider.

Simplified Platform: A rookie trader finds it comfortable to step into the trading world when he finds a simple platform. The MetaTrader 4/5 is neither complicated nor is it equipped with features. Most beginners require more time to learn the facets of a sophisticated platform. The WL ensures a comfortable and accessible platform for the rookies. All that you require initially are for practicing and utilizing the MetaTrader 4/5 tools. Once you start using the platform, you won’t need much time to gain control.

Online Branding: Online Branding is all about helping the visitors identify with the presence of a business. By opting for MT4, you will enable your visitors to show the platform on their logo. This, in turn, will help in promoting their brand among the target audience. Remember that your clients would remain loyal to you once you succeed in winning over their trust. Associating the trading platform with a brand while starting brokerage will create more chances of popularizing it going forward. 

Cons of the White Label

Reliance on Platform Creator: You will use the brokerage of new services while renting the server. It will not be possible for you to configure a vast majority of the MT4 server settings that are accessible. Besides, it might not even be possible for you to use the add-ons or plug-ins developed by third parties as it might slacken the whole MT4 server performance. While renting a server, the capacity of your work gets restricted.

Conclusion:

To some extent, you can fulfill the gap of reliance and control, which are amongst the most crucial downsides of the White Label. During the initial phases of your business, you will need to make small investments. You can make it happen by renting the platform through the initial stages.

It will become much easier for you to improve your MetaTrader 4/5 platform as your business acquires more clients while expanding. Tasting success with the newly-launched business gets easy when you hire a reliable and renowned service provider.

How to Compare Trading Platforms like MT4, MT5 and Ctrader

In Forex, the trading software integrates multiple indicators and plug-ins that render assistance in trading of currency pairs. The cTrader, MetaTrader5, and MetaTrader4 are amongst the most frequently used platforms used in the Forex market.

MetaQuotes had developed MetaTrader platform bearing MetaTrader5 and MetaTrader4. MT4 is a trading platform that has grown in multiple folds since its launch in 2010. Its successor MT5 has also become quite popular of late, but it still hasn’t got rid of the older version.

Both the versions show some common and rare features. For instance, MT4 as a software platform has some restrictions and looks pretty simplistic. While starting your forex brokerage you will be able to pick one of the 21 timeframes associated with MT5 or up to 9 timeframes associated with MT4. MQL5 and MQL4 are coding scripts that develop the technical scripts and pointers of MT5 and MT4 respectively.

Besides having an identical interface, MT4 and MT5 help traders in setting up their trades over an automated platform using expert advisors. The candlestick, bar, and line are the most popular form of charts that the three support. Similar steps have to be followed while choosing a specific type of chart.

The Spotware Company has rightly launched trading software like cTrader. In 2011, the cTrader was launched alongside MT5. Both of these have come up with pointers and plug-ins of a complex nature for their users. However, the cTrader even enables the users to make use of a dot chart and appears modern.

An Overview of cTrader, MT5, and MT4

Different trading plug-ins and instruments can be availed with Forex brokers. It is crucial for a trader to choose his broker carefully while trading in Forex securities.

The brokers deliver codes that can make it simpler for a trader to consider various trading asses and open positions. The cTrader, MetaTrader5, and MetaTrader4 are among software that is most frequently used for trading purposes. Most traders have used these trading platforms and have known their similarities and differences.

A Small Programming Background

Before you take the plunge in doing a fair platform comparison, check out the idea and reasons behind their creation.

In 2005, MetaQuotes had launched their newest trading software in the form of MT4. The software was primarily responsible for altering the whole trading scenario by replacing all other MetaTrader programs that ruled the time. Besides offering an improved platform, the main objective of the platform was to improve the stability of the server. It was a platform that sufficed the needs of both the rookie and experienced players.  MetaQuotes  had launched the latest MetaTrader version (MT5) in 2010. A few add-ons have been introduced for the software with the latest version.

The new programming source equips traders with features that help them trade in various commodities, known stocks, and other instruments. The year 2011 saw the introduction of major trading software called cTrader. A few unique tools and securities were introduced with cTrader as it happened with MT5. However, the cTrader interface and layout seemed more advanced in comparison to the MetaTrader programs. The C# language involved in it is quite common and enables developers to innovate different tools and   programming scripts.

Uniqueness of Designs

Both programs share some unique properties and similarities in between. The designing aspect of MT5 and MT4 has been the same as these platforms owe their release to the same organization. Alongside the interface, there are a few other elements like a market-watch and chart forms wherein the platforms depict similar programming features. Considering Forex pairs of the most popular type, there are four live charts occupying most of the screen. The user can alter the stock layout as per the need. The screen even has its bottom and left segments showing different indicators and plug-ins for use.

The cTrader comes with an advanced and yet simple design. The fact that it enables the interface to change its theme is one of the program’s key advantages. You may choose any of its dark and light shades while choosing a theme. Although it appears to be very clean, the interface brings froth numerous charts, indicators, instruments, and tools that are favorable for trading.

The cTrader even has a unique layout for its chart as compared to MetaTrader4/5. The central position of its interface holds a single chart that can now accommodate four distinguishable charts. That is why cTrader holds more room at the lower end for containing the position details as against the MT4/5. Likewise, cTrader even extends more space on the left for containing the trading instruments.

How To Choose a reliable MT4/MT5 Whitelabel Provider

Securing a world-class White Label platform for trading is necessary while running a Forex Brokerage. While narrowing down your choice of a Forex technology service provider you must keep this crucial point in mind.

Committing a grave mistake in forex brokerage might cost you dearly; you must think twice before picking a platform that offers its services. You must check out the background of your prospective WL technology provider and do extensive research on their technology before starting your forex brokerage.

Offering an Efficient Forex Platform Running White Label Technology

  1. You may find it necessary to acquire some knowledge on all of the platforms that you come across in the marketplace. For that, you will need to identify the views shared by Forex technology experts that created the world-class MetaTrader4/5 trading platform. An application or software that supports the trading logic helps in establishing a trading platform. The concept behind all such software follows the same principle. 

    All of the software tools are ideally designed for trading and they will enable you to explore several trading options. The fact that these platforms are developed for multiple target markets helps them provide for so many options. Picking the appropriate trading software holds the key to your brokerage success at the very beginning.

Determining the Best MetaTrader4 White Label Technology Service

The most popular forex platform is the MetaTrader 4/5, which was developed by MetaQuotes. The MT4 platform yields the most sought after solution for global traders even today. What could be the reason for you to leave a proprietary trading solution and opt for mt4 white label solutions? MT4 doesn’t restrict your trading opportunities with a proprietary design rather it gives you the much-needed freedom to trade in a specific way that you favor.

Reviewing a Plethora of Forex Trading Platforms

The technology that you use will help you determine the most appropriate mt4 white label provider. You must ensure that you pick a platform that runs a very effective and quick programming technology. You may need to use it across a plethora of smart devices and hence it has to be responsive in look and feel. That is why it is even more important for you to check the platforms and know if your favorite prospect supports them

Ascertaining All Necessary Technologies

Various systems supporting your business and its back-end demand the assistance of advanced technology. Such technologies should support the smooth integration of various tools that deliver unique functionalities. A plethora of trading facets would come with MT4 including various smart applications, an easily accessible station, web traders and few specific Windows and iOS support features. 

In an attempt to choose your MT4 white label provider, you are zeroing in on your forex technology service provider. That way, you are comparing and choosing the best provider of WL MetaTrader 4/5 for all variation that you need.

Back-End and CRM Support

Make sure you avail all crucial technology solutions from your MT4 White Label provider. It must include a simple customizable back-end support feature alongside a dynamic CRM system. Integrating all of your customer details is important and you ought to maintain things cohesively. It will help you gain access to all crucial business information based on research and development. It will help you in running all operations smoothly and accurately in the long run.

Appropriate CRM Solution for Management and Integration

For those of you that wish to fulfill the demands mentioned above, it is essential to use a CRM Management and Integration tuned with any Forex solution. Such CRM systems are designed to extend support to forex brokers and can help you manage details of a large volume of sales accurately. 

The features of CRM and back-office systems that reign the global trading arena are quite amazing as they yield unique functionalities with great insights, experience, analytics, and privacy.

Summing Things Up

Only a world-class service provider can render high-quality service like Professional consulting. Their workforce must comprise of professionals that are thoroughly experienced and dedicated. They will assist you in navigating through the various steps and options of starting a brokerage. In doing so, they will also ensure that you achieve successful outcomes with thick and thin.

What is the difference between ECN, STP & Market Maker?

There are many significant differences between Market Makers (MM), ECN (Electronic Communications Network) brokers and STP (Straight Through Processing) brokers but in order to fully understand all the differences between these types of brokers traders first need to know how they process trading orders, how they handle lot sizes and more important if they ask for dealing desks or not.

Market Maker

  1. The MM (Market Maker) which is also known as the DD (Dealing Desk) is a unique type of broker because it does not reflect the market in a direct way instead it just quotes prices similar to the pulse of the trading market.

    Any kind of orders entered are processed first internally and never step out towards the market.

    A very good feature of the MM is the speed of the execution without any additional re-quotes.

    The only negative side of the market maker is that any capital gain leaves the broker’s account into yours and any capital that you happen to loose ends up in the broker’s account, this translates into a serious conflict of interest.

Straight Through Processing

  1. The Straight Through Processing is also known as the STP and it represents a technology that does not require any kind of dealing desk because all types of orders are rerouted directly towards the broker’s liquidity providers. In turn, prices are directly executed on the bid or ask rate provided by the liquidity providers.

    In this specific case, the liquidity providers are the big banks, hedge funds, and investors that take the role of counterparties to each trade. In most cases, the STP broker incorporates a liquidity pool which is represented by many liquidity providers that are in competition for the best bid/ask spreads.

    In other words, STP means that the broker acts exactly like an invisible connection provider between the user (the trader) and the financial market.

    A nice feature of the STP is DMA which stands for Direct Market Access, this means that a broker is channeling the client’s orders directly to their liquidity area, therefore, orders are used at peak efficiency with the best prices with just a small mark-up spread.

    Another positive fact about the STP is that there is only a minor, insignificant, conflict of interest because of the high accuracy of the prices.

Electronic Communications Network

  1. The Electronic Communications Network is also known as the ECN and this is the place where brokers let you gain full access to the trading market, therefore a reliable ECN broker grants you the possibility to see the real prices of the trading market without any kind of filters and also presents them in the right order.

    It is here where you trade with other traders and financial institutions. An important fact worth remembering is that you never get the option to trade against your own broker.

    Some time ago the MetaTrader4 ECN seemed a bit too excessive as a matter of fact the initial reaction to this innovative concept was that it is too good to be true thus it was deemed impossible by many market participants. This type of broker is considered to be very ingenious because it provides a more direct approach.

    The STP and the ECN brokers are similar in many ways but the main difference between them is routing because the STP can pick a different liquidity provider out of their liquidity area, while the ECN behaves more like a hub. This hub acts mostly as a very efficient and dynamic liquidity source because it is backed up by banks, hedge funds, and other significant market members.

    A nice feature about this is that there is absolutely no conflict of interest, but it does guarantee fills and the smallest possible lot is 100,000 and it also involves a commission.

Ending ideas

  1. To put this into a nutshell you can make money easily and consistently with MM (DD), ECN, and STP brokers without having to be tensed about any kind of problems, but it is worth mentioning that a MM market maker broker can bring some fluctuations to the profit-making process. A reliable broker will always deploy a serious amount of effort in offering the best services for you.

What are MAM and PAMM?

MAM and PAMM are two account management methods that allow managers to directly administer several accounts at once from a single terminal without having to create an elaborate investment fund.

The profits and losses of these two methods of management are distributed evenly among the managed accounts. These accounts are connected directly to the account manager’s main account therefore all trades are made instantly by the manager and the results of the trading actions can be seen in the clients’ accounts summary.

What is a PAMM account?

  1. The Percentage Allocation Management Module, also known as PAMM, is an account that features a simple management module that splits the size of trades in accordance with an allocation percentage. This is a simple yet highly efficient solution offered by many professional Forex brokers in order to ease the access of investors and fund managers. With the help of a PAMM account, a trader picks if his account can be managed by one or more managers simultaneously.

    PAMM is considered to be a very smart method of conducting management actions over several accounts on behalf of clients by investment managers.

    This type of system is usually simplified with the help of a broker that takes a certain amount of funds from the investor and continues by enabling the account manager to deploy specific trading services: manual or automated. Combining these two methods ensures a greater chance of success for all the parties involved in the trading process.

    A PAMM account is considered to be the main account and it incorporates a monetary capital that is equal to the sum of all the sub-accounts.

    There is an option where all trades are automatically duplicated in the sub-accounts based only on a strict predefined percentage. There are, of course, some exceptions in which the managers of the accounts are not entitled to the entire array of trading actions, or they only act with only a limited number of actions. As a safety measure, there are some cases where the investors are the only ones capable of making deposits as well as withdrawals.

What is a MAM account?

  1. A MAM is also known as a multi-account manager and it shouldn’t be mistaken for the MetaQuotes multi-terminal system, which, in comparison to a MAM account has many limitations. A MAM account enables its customers to make use of an allocation method, this method is similar in many ways to a PAMM account, but it grants a better dexterity in allocating the trades and risk adjustments based only on the type of risk profile.

    A manager can simply share trades on a predefined basis and this means that he can configure the number of traded spots by each and every individual account. This fixed allocation technique can also be done using a Lot Allocation Management Module also known as a LAMM account.

    The manager also has the ability to modify the amount of leverage value on the accounts and this comes in only when the users demand a bigger level of risk.

    The multi-account manager accounts are specifically designed for account managers and it enables them to modify the level of complexity as well as the value of potential returns. This action can be made by assigning higher leverage to some sub-accounts.

    Other efficient measures also include adjusting leverage as well as a risk-management option on various sub-accounts, this in return offers a lot more flexibility and choice on the trading markets. A lot of caution needs to be taken here because changing the risk levels can be extremely dangerous for the account, but it can also generate a significant amount of profit.

    In short, the multi-account manager is perfect for investors that use a high-risk tolerance which definitely requires great knowledge of the market fluctuations.

Ending ideas

  1. It is a well-known fact that most Forex traders often turn to the advantages of investing in a well organized managed account after failing themselves on the market.

What is a Liquidity Provider in Forex Brokerage?

One of the most significant elements in the complex world of trading is the existence of the liquid market which opens the path towards many profitable transactions. The Forex trading market falls directly in the middle of this general rule, therefore having greater liquidity in a market makes all of the transactions flow more smoothly and the prices are even more competitive.

Due to the sheer size and volume of the Forex market, the liquidity has absolutely no equal in any other capital market in the world. From only a first glance the foreign exchange market presents a daily transaction volume of over six billion USD.

The liquidity usually can be seen in the exotic, major and minor shared currency pairs, which, to a certain extent, can still experience some liquidity issues usually when unexpected news events appear or important economic data releases shake and stir the market, therefore, causing dealing spreads to widen more than anyone can anticipate.

Liquidity providers explained

  1. A Forex liquidity provider is an individual or an institution that acts exactly like a market maker in the Forex exchange market. A professional market maker is meant to act two roles: as the buyer and as the seller for an asset class or exchange rate to create and ensure equilibrium.

    A very important role is played by those who provide liquidity to the Forex market, they are often called liquidity providers and their job is to act on the trading spot as an efficient market marker that makes exchange rates quotations for others. Besides liquidity providers, other market participants are also able to take a significant role in increasing or decreasing the market liquidity by boosting and enhancing the overall trading volume with their own transactions.

What Does Liquidity Mean?

  1. Defining liquidity in the financial and investment market is very simple and it generally refers to the actual reaction speed of an investor, namely, how fast or how slow can their investments be turned into money. For instance, an acquisition or a sale of a certain stock usually takes a longer time to complete, while the usual Forex transaction takes less time to complete which, by far, is much more efficient.

    Another solid example of a trading market with a low liquidity value is the home and real estate market mainly because the normal transaction always involves more than three to five days required for the mandatory settlement period to complete, but there are some cases where the real estate transactions take entire years just to complete.

    Although there are times when some abnormal liquidity conditions may appear in the foreign exchange market these times are short and disappear fast mainly because the vast majority of transactions are brought to completion very fast.

    The huge amount of currency market liquidity enhances the competitive behavior of the participants, therefore, there is a direct influence over the spreads, and stress is placed on the market if it is able to absorb big trading orders without affecting the robustness of the market.

Who Provides Liquidity to the Forex Market?

  1. The notion of liquidity provider is generally used to make reference to a market maker, but, there are several other types of Forex market participants who provide liquidity to the trading market by increasing the volume of transactions, here are some of them:

    • Global or central banks;
    • Major commercial bank;
    • Big investment banks; 
    • Multinational corporations;
    • Hedge funds;
    • Foreign investment managers and supervisors;
    • Retail Forex Brokers;
    • Retail traders;
    • Individuals with a high net worth;

    Shared currencies and currency pairs usually include market makers, HFT (also known as high-frequency traders) as well as speculators who greatly contribute to liquidity.

    The Forex trading market also has a lot of extremely active participants.

Ending thoughts

  1. We need to make sure your clients can legally become forex traders. It is important to clear up the legal matters for each custIt is easy to conclude with the idea that the main role of the liquidity provider is very important because it ensures better price stability by taking solid positions within currency pairs which can be off-balance with another market maker, therefore creating a balance between trades and market participants.omer as soon as possible so that they can get started with the trading process and you can benefit from having multiple traders on your platform. 

    With fewer traders on your website, it is possible to handle the KYC department on your own, but with time, you will need a professional to review legal documents as quickly and as effectively as possible.

    Customer Relation Management (CRM) is a very important part of being a Forex Broker because you are ultimately creating a platform to simplify trading for Forex traders. This is why your clients should be able to get in touch with your team, resolve issues, and get back to trading as soon as possible.

    You don’t need a physical office when you just start off but it does help to have an authentic workplace and a smooth customer management team once you start getting more customers. 

Here Are 5 Common Problems Faced By First Time Forex Brokers

It may be incredibly rewarding to become a broker. When we look at successful individuals out there. We often forget about the problems they may have faced when they started off.

Forex brokers have to face many problems when they set foot on this journey. In this article, we will look at the 5 most common problems faced by novice brokers.

Choosing The Right Forex Broker CRM

  1. If you want to take your brokerage to new levels of success, you must invest in a concrete Customer Relationship Management (CRM) system.

    Since many industries require a CRM, there are many software out there. However, we suggest using a CRM system built especially for the Forex industry. 

    The Customer Relationship Management system should maintain customer forms, grant them permission to trade as soon as possible, it should contain the number of traders, number of trades made, profit and losses. If you are working with Introducing Brokers (IBs) your CRM system must maintain records about them. The number of traders they have introduced to your brokerage, the number of trading accounts they manage etc.

    CRMs need careful consideration. We suggest you take time to build your brokerage goals and identity and choose a CRM system that best matches your brokerage requirements.

Choosing the Right Jurisdiction

  1. At the beginning of your Forex Career, you must finalise the place where you want to operate from. This is a tricky decision to make because all jurisdictions are not valued the same way.

    Though it is not compulsory for brokers to have a license, all jurisdictions do not allow you to operate without one. Without a license you have fewer opportunities and fewer banks would want to cooperate with you.

    Different jurisdictions have different sets of rules and it is not easy to set up a brokerage anywhere you want.

    In case you want to get a license before starting your brokerage you need to find the best jurisdictions for a license. Ideally, the best place to start a brokerage is one where you will get maximum trading opportunities, it is easier to set up a brokerage and requires lower upfront costs. Banking options are also important.

    Places that require lesser upfront costs often have fewer bankers and traders, while on the other hand, jurisdictions that have higher upfront costs (like getting a license, an office and a CRM) also have maximum trading and banking opportunities. So, it all depends on your budget and time.

Banking Options

  1. Due to the strict Anti-Money Laundering (AML) policies, it has become harder for new brokers to find a banker. The most prosperous places for forex have very strict banking laws. Many banks don’t allow novice brokers to open an account.

    This may pose a huge challenge because it is easier to get a license than it is to get a banker. Please don’t stop your research after you choose a jurisdiction, you must check how easy/difficult it is to open a bank account in the designated area as well.

Time

  1. The fourth thing we read about but do not anticipate is time. Yes, we know that it takes time to get a license but really how much time is too much time? And how much time do you have to spare?

    A forex license can take anywhere between 2 months to 24 months depending on where you are applying. But time is not limited to your license and setting up a brokerage. It takes time to build a forex website, integrate forex technologies, find a banker, set up an office, hire a manager.

    You may have enough resources for an expensive jurisdiction but how long can you handle the upfront costs before making any profit?

    Sometimes, as a novice broker, you may have to wait on things you didn’t expect to wait for in the first place. For instance, we discussed how banking may become a problem if you are a first time broker. There may be holdups in web design, technology integration, and even client acquisition.

Marketing

  1. Effective marketing keeps the forex industry running. Since Forex deals closely with money and other liquidities, it’s harder to gain someone’s trust. Clients won’t simply choose you because you own a brokerage.

    Many traders choose a broker because they’ve heard favourable responses from other traders. Word of mouth remains the strongest form of marketing in the forex industry. 

    Finding your first set of traders is harder because there is very little information out there about you. Traders need a good reason to trust you and with the increasing fraud cases in the brokerage industry, traders stay away from new brokers (especially those without a license).

    Marketing strategies keep changing every few years so it’s very hard to cling on to a trend and hope for the best. This is why marketing is one of the biggest problems for a new broker. Many brokers have already exhausted a lot of money by the time their brokerage is ready for traders. They just don’t have enough to invest on marketing, and that’s when the office collapses before soaring.

    It is very important to build networks even before you become live. If you are a trader transferred broker, start networking with other traders much before you start your own brokerage. If you can create a strong impression, they are much more likely to shift to your brokerage.

  1. So, here are the most common problems faced by a novice forex broker. However, once you embark on this journey and stay on it despite the hurdles, they will be less frequent in the years to come. All the best!

Here Are 4 Must-Have Applications To Make Forex Brokerage Effective

As a Forex Broker, you must manage all client accounts, make sure they are eligible to trade, and have a favorable environment for Forex trade. Traders must have easy access to all trading facilities and liquidities available to them.

It is not possible to handle all company processes manually hence you must have a few applications in place. Here are four must-have applications to make Forex brokerage effective.

CRM

  1. The forex brokerage industry has many intricate functions. Managing registration forms, KYC forms for traders, systems, and licenses for Introducing Brokers (IB), etc. A proper customer relationship management (CRM) ap must be in place for all functions to run smoothly.

    Many companies need a CRM system, so it is always best to use a CRM system built especially for the Forex industry.

    A CRM system from Starting Brokerage, for instance, has been made especially for brokers. It has set recording systems for trading groups, trading accounts, etc. The moment you enter the backend, you’ll know the number of deposits, etc. It allows you to manage your client data better and make sure everyone is benefiting from your environment.

Trading App

  1. Brokers must integrate good trading platforms on their website/phone applications as well. After all, traders associate with brokers because they want to trade and make most of the money they must spare. A good trading app will attract more traders to your platform.

    We would suggest integrating more than one trading app on your website so that traders can pick an application of their choice. However, all applications must have some important features in common. For instance, it must teach traders the fundamentals of trading, giving traders access to resources, and, when they are ready, they must have access to the live market, spreadsheets, drawing tools, show real-time price movements, Forex news, etc.

    Many brokers provide their traders with MT4 and/or MT5 trading platforms. These platforms are perfect, not just for traders but for brokers as well as allow brokers to view and manage all trading operations.

MT4 & MT5

  1. MetaTrader or MT4 and MT5 are the most popular trading platforms out there. Even the most novice, an inexperienced trader has heard of MT4 and MT5 which is why we suggest having at least one of them, if not both.

    MT4 was developed in the year 2000 and it instantly changed the way people trade. It has become user-friendly with years of feedback and development.

    They come with interactive charts and a flexible user interface. Traders can customize their interface according to their trading needs. Traders also get many drawing tools to make their own charts.

    There is very little difference between MT4 and MT5. Since MT5 is newer it has a few extra tools, but as a trader, MT4 will work just fine.

    Brokers benefit from applications like MT4 and MT5 as well. Of course, since most traders use these applications, you can get more clients just by integrating MT4/5 on your website. However, it is more than just providing another trading option, it can extend to a CRM system just for you!

Educational App – Trading Game

  1. When you start your own brokerage, you will have many novice traders who want to exchange commodities. If you can teach a new trader how to trade, they may stick to your platform for life!

    Educational apps are helpful as they encourage people to understand the trading industry and make it fun at the same time. This is why we feel you should integrate at least one educational application on your website.

    We chose the trading game as one of the most important educational apps for novice traders. It breaks down complex concepts into simpler segments to help most inexperienced traders in the world. 

    The Trading Game quizzes you at the end of every game. Once you pass the quiz, you progress to the next level. When you pass all the levels you can enter the trading market.

MAM/PAMM

  1. Multi-Account Manager (MAM) or Percentage Allocation Management Module (PAMM) is one and the same applications. It allows brokers to give their clients a little more flexibility. 

    As we already know that some traders are more experienced than others. MAM or PAMM allows traders to attach money with an expert trader who manages one or more trading accounts.

    The experienced trader is granted a limited power of attorney which means that he/she can only use the money for trading purposes and not withdraw funds.

    MAM and PAMM allow small traders frequent success rates, and it enables large investors to make bigger investments which are the sum of smaller funds from many traders.

    As a broker, having a MAM and PAMM system in place you provide more opportunities to traders and encourage a sense of community. This increases your profits too and provides an incentive for novice traders to join in.

  1. So, here are 4 applications that we feel every broker must-have. This is apart from having a smooth website. All brokers pay a lot of attention to the website quality and speed but when we come to applications, we are at loss.

    We hope this list helps you make a better decision for your company!