How to Create a Forex Broker Website
90% of Forex traders go bankrupt in the first few months. The rest receive a steady income, but they constantly pay for market access and servicing operations. Most of this money goes to brokerage sites. In this article, you will learn how to create such an Internet site and get your share of the profits on one of the largest financial markets.
The moments associated with market research and the formation of startup capital do not need an additional description, since they are typical of any type of business. The rest of the things (in the case of the launch of the Forex trading platform) are unique and require close attention.
Recognized financial centers include the United States, United Kingdom, Malaysia and Belize. They are followed by Hong Kong, Singapore and Japan. In these countries, there are no problems with government regulation and control of financial activities; therefore, trading platforms with such registration are trusted.
Offshore. A broker's license costs a lot of money, and its design takes a long time (from a month to a year). To speed up this process and reduce costs, you can register an offshore company. For this fit:
If you decide to register in the offshore zone, please note that this may adversely affect the reputation, as traders, banks and investors do not trust brokers with unknown owners. In addition, since the early 2000s, developed countries have begun to fight offshore companies, passing laws that impose restrictions on offshore companies and their partners.
Market makers generate profits from the difference between the purchase and sale price of an asset. Or, to put it simply, the loss of a trader in a transaction is the broker's profit. For this reason, such trading platforms are treated with caution, as there are concerns (and confirmed precedents) of possible exchange rate manipulation from the site to the damage of traders.
This type of Forex trading platform generates profits through commissions and spreads. Commissions are calculated for an order or a traded lot, and the value of spreads usually depends on the liquidity of each market.
Brokers do not guarantee the execution of orders precisely at the price that the trader indicated in the trading order, since orders are placed on the interbank market where there are no “guaranteed orders” (only dealing centers guarantee such).
White label. You can also use someone else's software to run your trading platform by putting your brand name on it. Thanks to this approach, you can save a lot, but at the same time lose individuality in many things. As a rule, a stock trading app development company provides solutions with a wide range of functions. The cheapest option will cost $5,000 plus $1,000-1,500 per month (the most expensive options cost hundreds of thousands of dollars). If you refuse the service, it will be even cheaper.
Platform rental. Here prices can range from $1 to $20,000 per month. the approach allows saving at the start, but in the long run it is much more expensive than other options.
Forex Client Area. A set of tools by which traders manage assets. They can range from back office management systems to mobile applications. Typically, client zone development includes such areas:
Website Design. The interface of the site should be simple and clear, so that traders on an intuitive level understand what and where to do. In addition, the design should provide a platform among competitors. In this direction, you need to pay attention to:
Online Marketing. Promotion is just as important as the technological side, excellent design and monetization, because it doesn’t matter how cool your site is, if nobody knows about it. Therefore you need to do:
Forex CRM. A customer relationship management system must support a complete process for selling and storing assets. It is best to integrate it with MT4, giving the project team access to all information about traders. That is, in the CRM need to do:
In addition, it is important to take care of the quality content of the site, which will help with attracting customers and increasing the loyalty of the community as a whole. For example, you can run a news feed or create training lectures, courses, webinars. Both users and search engines like this.
Another thing to think about introducing a demo account. With it, traders will learn to use your platform without risking losing real money. In addition, a demo account can be used in training courses, but in this case access to it should be free, that is, do not require deposit replenishment.
Forex platforms are fundamentally different from binary options, but integrating an affiliate program into the site will be useful for attracting new users. If your collaborations are profitable, then you can attract many new customers by working with influencers or famous bloggers in your niche.
If the site is under the jurisdiction of one of these departments, traders and financial partners will trust it more. Consequently, there will be more users and better conditions for cooperation. Conversely, being in a jurisdiction with a disreputable reputation scares people.
In addition, it is important to make a site in the main listings of Forex trading platforms. Such resources check the reputation of brokerage companies and look for reviews about them. If your site is not listed, traders may find it unpopular, untrustworthy or just scam.
For example, if the rate of the EUR / USD currency pair falls from 1.14009 to 1.4008, this will be a one point change (pip). If the price of a currency is indicated with only three decimal places, it means that changes in the third decimal place are one price point. Examples of the size of spreads on various sites:
Spreads can be fixed and variable. In the case of variable spreads, their size, as a rule, depends on market liquidity - the more liquidity, the lower the spreads. Commissions are trading expenses that are determined in advance and depend on the volume of trading (the larger the volume, the smaller the commission).
In addition to spreads and commissions, some sites also charge various additional fees. For example, for using trading software, providing real-time asset prices, availability of indicators and other functions. Some companies go even further and charge for help desk calls, use of a securities account or set monthly fixed fees.
Second. Do not overdo it with monetization, especially at the start. Ideally, in the first year of launch, your commission should be minimal, and so much so that you will work at a loss or zero. So, Kyivstar made a mobile operator in Ukraine when it introduced the youth-oriented brand djuice in 2014. For the first six months, everyone could connect to djuice and communicate within the network absolutely free. The result - millions of attracted users in a very short time.
Third. To conquer the market can not only low prices, but standing out from the competition. In the world of cryptocurrency, this can be done, for example, by making a business completely transparent (as opposed to anonymity for a trena). To do this, you can reveal almost all the information about the company, present developers with the owners and even conduct excursions to the office.
