How to Build a Winning Forex Trading System and 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.
With this license you can:
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:
Market makers perform three tasks:
Key feature. STP stands for Straight Through Processing. Such trading platforms send customer orders to liquidity providers (banks or liquidity pools) and thus avoid conflicts of interest. Ideally, the order is sent to several suppliers who place an order on the interbank market with different conditions, after which the order is executed with the best available price.
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.
Key feature. ECN stands for Electronic Communications Network. These sites send traders orders directly to the Forex market, as a rule, without any intermediaries. Due to this, trade orders are executed with minimal delays, therefore, traders can respond to market dynamics with maximum efficiency.
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).
Buying a platform. Forex trading platform can be purchased for a fixed price, to which you usually also need to add a relatively small monthly fee.
The cheapest option will cost $ 5,000 plus $ 1-1500 per month (the most expensive options cost hundreds of thousands of dollars.). If you refuse maintenance, 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.
Website development of the Forex trading platform can be divided into two areas of mandatory and optional elements. The following areas of development are usually considered mandatory.
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:
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.
Safety and reputation, from the point of view of the trader, is determined by the information footprint on the network and by the regulatory authorities that control the activities of the brokerage company.
The latter include:
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.
Most platforms earn on spreads and commissions. Spread is the difference between the purchase and sale price calculated in pips. Under the pips imply the smallest price change in the price of an asset - a price percentage point or just a percentage point.
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.
First. When creating a website for the Forex trading platform, remember that this is a very competitive market. The optimal strategy for starting a business in these conditions is to start small and gradually expand. So, you can start with a certain region (country), become a monopolist in this territory and then move on to global markets.
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.