Heather McLean
Heather McLean

Avoiding the pitfalls of launching a forex brokerage

Heather McLean discovers that starting up a new electronic foreign exchange brokerage is a task littered with pitfalls, bear traps and electronic fences. However, approaching this entrepreneurial mission well researched means you will be well armed to overcome the problems and take the strategic decisions that lie ahead.

When asked to identify some of the main hurdles associated with starting an FX brokerage Lior Shmuely, vice president for business development at Leverate, notes: “Many aspiring brokers would like to start their own independent online forex brokerages, but it can be difficult to anticipate the full extent of what is involved in the process of starting this type of venture.  The first most challenging aspect of starting a forex brokerage is the legal requirement. Obtaining the appropriate legal structure for a forex firm, such as meeting regulatory requirements, opening the corporate bank account, and company incorporation, all present an obstacle for new brokers. This, coupled with proper configuration of the platform, accessing liquidity providers and partnering with fast, accurate feed sources, can cause delays for firms as they start their own operations.” Shmuely adds that apart from the technological and legal hurdles, many new brokers spend countless hours and resources looking for...continued

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