The complete steps of establishing and setting up a forex broker from 0 to 100

Update: 09/2024

Forex is the most liquid and largest financial market in the world, although the main players of this market are banks and large companies, but the process of joining real customers (real traders) to the world of Forex is exponential.

The fact that the forex market is not limited by time, place and even language, the minimum initial capital to start, and the economic crises of traditional businesses around the world, are among the reasons why people became interested in the large forex market for business.

Therefore, it is predicted that in the near future, the activity of brokers will be more prosperous than traditional (financial) businesses as a window for people to enter the forex world.

Establishing a forex broker

Establishing a forex broker is associated with challenges, in order to overcome seemingly complex challenges, the issue of setting up a broker should never be looked at in one dimension, and with the expertise of all technical, legal and marketing matters, the path of setting up and establishing a broker should be shortened and free of redundancies. It saves time and money.

We will examine the details of establishing a forex broker in the form of white label (white label) and main label (main label)…

Definitely, the cost of establishing a forex broker is directly related to the type of broker.

White Label Broker

white label

Suppose a company’s product is welcomed by you and you plan to sell the company’s products under your own name and brand. Here you enter into negotiations with the manufacturing company and ask them to put your name, logo and address on that product.

They put a label with your name and address on their products. Now you have products that are not produced by you, but your name and address are written on them, and when the customer comes to you and buys the product, he recognizes you as the manufacturer of the product, and there is no name and address of the manufacturing company that you It does not find what you negotiated with them. This is exactly what happens in white label.

The general nature of white label is that we enter into negotiations with another broker and receive services from them and serve customers with our own brand name and logo.

You might think that this will make us weaker than our competitors in providing the price. In response, it should be said that it depends on the broker with whom the negotiation is conducted, in some cases this work may not be economically justified, and one should be careful in choosing a broker for white label. Many of the current brokers who work with Iranians started their activities as white labels, but after some time they turned their activities into main labels.

It should be mentioned that our team has already entered into negotiations with brokers and provides you with the white label under the most exceptional conditions, which has both economic justification in presenting the prices to the customer (spread) and the commissions received from The customer can compete with competitors.

Main label

Original label

The main label is exactly opposite the white label.

Specifically, if we want to adapt the example we gave in white label to the main label, it means that if you want to sell a product to your customers, you need to buy all the devices and equipment of the company, set up your own production line and Everything should be exclusive to you.

This means that more money and time must be spent to reach the final product, and of course, there is more profit in this case. In the main label mode, you must directly have your own servers and enter into negotiations with trading software such as MetaTrader and CTrader, etc., and after receiving the necessary licenses from these platforms, configure them on your servers. and integrate platforms with your services.

You should also negotiate with several payment gateway providers or build your own cryptocurrency gateway and implement it on the server.

Negotiating with the liquidity provider is also one of the things that must be done to connect to the global liquidity network, this is in order for your customers to easily get leverage and make their transactions so that the orders are confirmed in a fraction of a second. .

Advantages and disadvantages of white label broker

Stay with Broker Launcher to discover the truth.

Advantages of white label broker

Review of 5 main benefits in simple language

Economic justification

It depends on the broker with which the negotiation takes place. In some cases, this work may not be economically justified, so you should be careful in choosing the main broker for white label.

Competitiveness

It depends on the broker with which the negotiation takes place. In some cases, this work may not have an economic justification, and one should be careful in choosing a broker for white label. It should be noted that the broker’s management and marketing and the broker’s policies in terms of attracting traders can increase competitiveness. In setting the prices (spread and commission), we give suggestions so that you can have a very close competition with the best current brokers.

cost

Establishing a white label broker has much lower costs than the main label broker. It can be almost 60–80% cheaper than the original label.

time

The time it takes for a white label broker to start its activity is about 6 to 8 weeks.

Customization

The possibility of automatic settings, logo design, and brand appearance changes based on your needs.

Disadvantages of white label broker

3 basic flaws in white label model brokers

Control

You have the least control over the technical performance of servers and operating systems.

Validity

Some business partners may assign more credit to prime brokers.

dependency

Any change in the main broker may have serious effects on your business.

Advantages and disadvantages of broker main label

Make an informed decision with Broker Launcher…

Benefits of broker main label

4 main and defining advantages of the Main label broker

Control

You are in full control and can fully customize the app.

Validity

Among business partners, it may have higher credibility and be more trusted

Innovation in services

As a prime broker, you can easily introduce new services and innovate.

The amount of income

In the main label broker, a higher income will be obtained than the white label.

Disadvantages of broker main label

3 disadvantages of main label brokers

Setup cost

Setting up and managing a major label broker may be expensive for you.

Complexity in design and implementation

You have to manage more complex structures and processes.

Launch time

Normally, it takes more time to set up a major label broker. Because many parts are specially coded and configured, and this makes the setup process time-consuming.

Choosing a platform to start a forex broker

Choosing a platform is one of the most important parts of setting up a forex broker, because your choice determines whether it will be a white label or a main label.

From 2022, MetaQoutes, which is the manufacturer of Metatrader 4 and 5, announced that they will no longer provide services to white label brokers, and people who intend to use this trading platform should start their activities as a main label.

This caused many brokers to leave the white label mode and start their activities as a main label.

Very important: if you intend to choose the MetaTrader platform for a broker, you must enter this market as a main label. But if you intend to use cTrader or Match Trader platforms, you can operate as a white label.

Broker establishment conditions

White label or main label?

In the following, we imagine two paths:

1- Choosing the Metatrader platform and proceeding to become a main label broker.

2- Choosing the platform cTrader or Match Trader or other platforms that provide the possibility of doing transactions, proceed to become a white label broker.

If you choose option 1, i.e. the main label broker and finally reach the Metatrader platform, you should follow this path.

Company registration

Company registration is one of the most sensitive and important parts of setting up a forex broker. For this, there are two jurisdictions that are approved by Metatrader experts to give you a license. Jurisdiction of Comoros, Dominican Republic and Saint Lucia.

To get a Metatrader license, you must register in one of these three jurisdictions, and your company’s statute must include forex brokerage and online forex service provision. Also, license related to forex should be obtained from these jurisdictions.
The Broker Launcher team can do all the steps of registering a forex broker company and obtaining a forex license for you.

register office

In the same jurisdiction or countries authorized by MetaTrader, you must register your office address, and this address must be registered in the name of this company in the documents you submit to MetaTrader. Also, if the phone number provided on this address is called, someone must answer the call and tell the name of your broker at the beginning of the call.

Receive a forex license

You must obtain a forex license according to the laws of each of these jurisdictions. For example, the cost of registering in Dominican Republic is much higher than in Comoros or Saint Lucia, which is about 50,000 dollars. You should keep it in the bank account of the company until you want to have this license and do not withdraw it. If you do not want this license you can withdraw your money from the bank.

Opening a corporate bank account

To participate in one of these jurisdictions, you must open a corporate bank account. As you know, it is very difficult for Iranians to open a corporate bank account.

We are by your side to open a company account for you.

work office

You must prepare the work office where the team members will be located and have the legal documents that are registered in the name of the company or in the name of one of the shareholders or managers in the office lease.

Get a license from MetaQoutes (Metatrader)

At this stage, you must submit all the documents of the company along with the documents of the shareholders and directors of the company to Metatrader.
Also, you should provide the office ownership documents or office lease along with company bank account information to Metaquotes experts.

Preparing the server

You should choose broker servers according to the number of customers you expect to have in the first step. Rather, you should choose a powerful configuration for the server and at the beginning of the process, predict the server required for 1000 users. You can get the server physically or rent it in the cloud from reputable companies.

Customer and management panel

One of the most important parts of every forex broker is the customer panel or forex broker CRM, that is, where the user registers, opens an account, recharges, withdraws or enters the PAMM, copy trading or IB partner sections.

So, this part should have full beauty and dynamism for the user, as well as the distribution of management in a way that increases the control power of users for managers and admins. This section can be coded exclusively and can be rented from some companies related to this field.

You can get your own broker panel from Broker Launcher.

Preparation of bridge software

As a forex broker, you must connect to a liquidity pool and control your clients’ funds. Controlling customer funds and connecting to the liquidity pool is done through bridge software, which you must enter into a contract with one of the companies in this field and prepare the bridge platform.
Broker Launcher configures and installs the best bridge technology for your broker.

Liquidity Provider

You can work with your customers in two ways. A-Book and B-Book mode

What is A-Book and B-Book?

If you plan to operate as an A-Book, you must connect to the liquidity provider’s liquidity pool and transfer your customers’ transactions directly to them. In this case, your earning is through commission and additional spread that you set on each currency pair.

Payment gateways

You must enter into an agreement with a gateway provider regarding the way in which you are going to receive or pay from your customers. The best and most convenient way to receive and send money is through tether-trc20, which we can help you with by providing a personalized gateway with low fees.
Broker Launcher can launch a dedicated payment portal with the most complete facilities for you.

Integration with the management and user panel

Now it’s time to integrate all the parts that you received either privately or rented with the user panel. Here, all the parameters in the management panel and the user panel need to be checked and the final tests done to start the work.

Completion of main label and white label process.

Now all the necessary work to start the work has been done, but the topic of marketing is one of the most important parts of customer attraction and forex broker’s income, which can be implemented by various techniques.

If you choose the white label route, the only difference is in the jurisdiction of company registration. In order to be able to have a white label broker, you need to register your company as a Ltd. Our suggestion is in England, which has a lower cost than other jurisdictions accepted by contracting parties, but you can still register In the jurisdictions mentioned above, do it at a relatively higher cost.