The complete steps to establish and launch a forex broker from 0 to 100
Forex is the most liquid and largest financial market in the world. Although the main players in this market are banks and large corporations, retail clients (individual traders) are joining the forex world at an exponential rate.
The fact that the forex market is not limited by time, place or even language, the low minimum capital required to start, and the economic crises affecting traditional businesses around the world are among the reasons that have made people inclined to trade in the vast forex market.
Therefore, it is expected that in the near future, broker activity — as a gateway for people to enter the forex world — will flourish more than traditional financial businesses.
Establishing a forex broker comes with its own challenges. To overcome the seemingly complex challenges, one must never look at broker setup one-dimensionally; with mastery over all technical, legal and marketing matters, the path to launching and establishing a broker can be shortened and duplicated effort in time and cost can be avoided.
In what follows, we examine the details of establishing a forex broker as a white label and main label broker. The cost of establishing a forex broker is directly related to the type of broker.
Introductory video on the forex broker launch path
In this video we explain the overall path to launching a broker, the main infrastructure components, and the key decisions to make before starting the project.
Two main paths for establishing a forex broker
Choosing between white label and main label determines your broker's path in terms of cost, time, control and reputation.
White Label Broker
White label
The nature of white label is that you negotiate with another broker, receive their services and offer them to your clients under your own brand name and logo.
Many of today's well-known brokers started their activity as white label and later transitioned to main label.
Main Label Broker
Main label
In the main-label model, you must own your own servers and negotiate directly with trading software vendors such as MetaTrader, cTrader and others. After obtaining the license, you configure and integrate them on your own servers.
You must also sign contracts with a liquidity provider and a payment gateway so that your clients can obtain leverage quickly and have their orders confirmed in a fraction of a second.
White-label pros and cons
Pros
Economic viability
Depends on the main broker you negotiate with; choosing the right main broker secures the economic viability of the project.
Competitiveness
Spread and commission can be tuned so that close competition with today's best brokers becomes possible.
Cost
Establishing a white-label broker is significantly cheaper than a main-label broker.
Time to market
The time to launch a white-label broker is typically much shorter.
Customization
Automated configuration, logo design and brand-level visual changes are available according to your needs.
Cons
Control
You will have minimal control over the technical performance of the servers and execution systems.
Reputation
Some business partners may attribute more credibility to main-label brokers.
Dependency
Any change at the main broker can have serious impact on your business.
Main-label pros and cons
Pros
Control
You hold full responsibility and can fully customize the platform.
Reputation
You gain higher credibility and greater trust among business partners.
Service innovation
As a main-label broker, you can easily introduce and innovate new services.
Revenue
Main-label brokers earn higher revenue than white-label brokers.
Cons
Setup cost
Launching and managing a main-label broker naturally has a higher cost.
Design & execution complexity
More complex structures and processes have to be managed.
Time to launch
Several parts require custom coding and configuration, which makes the setup process time-consuming.
Choosing a platform to launch your forex broker
Your platform choice determines whether your broker can be a white-label or must be a main-label broker.
Since 2022, MetaQuotes (the maker of MetaTrader 4 and 5) announced that it no longer provides services to white-label brokers, and anyone wishing to use this platform must start operating as a main label.
This caused many brokers to exit the white-label model and start operating as main label.
Very important:
If you intend to choose MetaTrader as your broker's platform, you must enter the market as a Main Label broker. But if you plan to use cTrader or Match Trader, you can operate as a White Label.
MetaTrader 4 / 5
Main label only
cTrader
White label allowed
Match Trader
White label allowed
Requirements for establishing a broker
The legal and administrative backbone of a forex broker — from company and office registration to shareholder documents and corporate banking.
Company registration
Company registration is one of the most sensitive parts of launching a forex broker. The three main jurisdictions approved by MetaQuotes experts for obtaining a license are Comoros, Dominica and Saint Lucia. The scope of activity in the articles of association must be forex brokerage and online forex services.
Office registration
The office address must be registered in the same jurisdiction or in approved countries and must be listed in the company's name in the documents submitted to MetaQuotes. On phone calls to that number, the broker's name must be announced at the start of the call.
Obtaining the forex license
The forex license is obtained based on the regulations of each jurisdiction. Costs and bank deposit requirements differ for each jurisdiction; this is examined in detail during the consultation phase based on the project model.
Corporate bank account opening
Opening a corporate bank account for the company registered in the chosen jurisdiction. This stage is particularly complex for Iranians and is managed by the BrokerLauncher team.
Physical office space
An office must be arranged for the team, and legal documents for the lease/ownership must be available in the name of the company or one of the shareholders/directors.
Shareholder & director documents
All company documents, shareholder and director information, office lease/ownership documents and corporate bank account information are prepared for submission to MetaQuotes experts.
The technical components of your broker's infrastructure
The core components of a forex broker's technical infrastructure — each plays a specific role and is integrated into the admin panel.
Obtaining the MetaQuotes license
Submission of company documents, shareholders, directors, office ownership/lease and corporate bank account information to MetaQuotes experts to obtain the MT5 license.
MT5 license pageServer provisioning
The server is selected based on the projected client volume. A powerful configuration is recommended for at least 1,000 initial users. The server can be physical or cloud-based from reputable providers.
Client portal & admin panel (CRM)
The broker CRM is where users sign up, open accounts, deposit, withdraw and join PAMM/copy trading/IB. A custom panel with full admin control and a modern user experience.
Broker CRM pageBridge software
Connecting the broker to the liquidity pool and controlling client funds is done through Bridge software. BrokerLauncher installs and configures top-tier Bridge technology.
Liquidity provider (LP)
Connection to an LP for direct routing of client trades in A-Book, or a hybrid model with risk control. Earn revenue from commission and additional spread on each currency pair.
Liquidity pageA-Book and B-Book
A-Book: routes the client's trades to the LP and earns revenue from commission and spread. B-Book: internal risk management of the trader. The right A/B mix is tuned based on risk model, volume and trader profile.
Payment gateway — USDT-TRC20
The best and most suitable way to receive/send funds is via Tether-TRC20. A custom low-fee gateway is set up for your broker.
Payment gateway pageAdmin & client panel integration
Connecting all components (CRM, MT5, Bridge, LP, payment gateway) to the client and admin panels, reviewing parameters and running final tests before going live.
From choosing the model to Go-Live
The condensed step-by-step path for launching a forex broker.
- 01
Model and platform selection
Deciding between white label and main label, choosing MT4/MT5/cTrader/Match Trader to match the project model.
- 02
Company registration and legal documents
Registering the company in an approved jurisdiction, office address, legal letters and shareholder documents.
- 03
MetaQuotes and MT5 setup
Submitting documents to MetaQuotes, completing the review process and obtaining the license, installing and initially configuring MT5.
- 04
Servers and infrastructure
Provisioning a server with the right configuration, network settings, security and preparing the environment for the trading platform.
- 05
CRM and client cabinet
Setting up the custom panel, connecting to MT5, KYC, Wallet, trading account, IB Tree and reports.
- 06
Bridge and Liquidity Provider
Installing Bridge, signing the LP contract, configuring Symbol Groups, Spread Markup, Commission and execution groups.
- 07
Payment gateway
Connecting USDT-TRC20 deposit/withdraw to the client cabinet and reconciliation with the corporate account.
- 08
Testing, integration and launch
Full testing of panels, MT5, CRM, payments and operational scenarios before Go-Live and post-launch monitoring.
How BrokerLauncher helps you
We design and implement the infrastructure and operations for launching a forex broker as an integrated whole.
End-to-end company registration and forex license acquisition
Coordination with MetaQuotes to issue the MT5 license
Server provisioning and configuration plus technical infrastructure
Custom CRM setup connected to MT5
Bridge installation, configuration and LP integration
USDT-TRC20 payment gateway setup
Expert consultation for choosing the White Label or Main Label path
Corporate bank account opening suited to the jurisdiction
Company legal information
- LAUNCHER EXPERT PROJECT MANAGEMENT SERVICES — License No. 1425596 — UAE, Office No. 1-141-411, Property of Al Waleed Investors (LLC), Dubai/UAE
- BL Solutions Group Ltd — Registration No. 15919941 — United Kingdom, 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ, United Kingdom
Frequently asked questions about launching a forex broker
Review your broker launch path technically
Your business model, platform, legal structure, infrastructure and operational requirements will be reviewed during the consultation.