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:
- British Virgin Islands.
- Saint Vincent and the Grenadines.
- Cayman Islands.
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.
Type of trading platform
Market makers create dealing centers that provide “artificial” prices for certain currency pairs. When the user makes a bet on such sites, he plays against the broker. In case of winning, the trader receives a reward - the difference in the value of the asset, if he loses - the broker takes this difference to himself.
Market makers perform three tasks:
- Make available supply and demand rates for certain currency pairs.
- Undertake to conduct transactions with all traders at a price that is indicated in the charts of the dealing center.
- Take financial risks for each position.
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.
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).
Site Development Approaches
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.
- MetaTrader4 (MT4) trading terminal for trading in fiat currencies, which can be connected to the site for $100,000 plus another $20,000 for 12 months or $1,500 monthly for maintenance. And you can also use MetaTrader5 (MT5) with an extended list of assets for trading: stocks, crypt, Fiat, etc.
- Such an ACT Forex. The price of this terminal is $ 25,000 plus $ 2,000 monthly for maintenance.
- Other terminals. Most can be bought for $ 100,000 plus a few thousand more per month.
. To start the trading platform
, you can also use someone else's software, indicating the name of your brand on it. Through this approach, you can save a lot, but at the expense of losing individuality in many things.
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:
- trader's room;
- back office tools;
- partner systems;
- payment solutions.
. 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:
- branding and development of design solutions;
- integration of the trading terminal (for example, MT4) and CRM;
- developing user interface scripts;
- interactive tips.
. 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:
- creating landing pages;
- SEO content optimization;
- affiliate programs and sites;
- banners and much more.
. 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
- integration with MT4;
- lead management and client requests;
- customer account management.
Opportunities for a good trading platform
are not limited to buying and selling foreign currency assets. Top market players also integrate support into their website:
- contracts for difference and options;
- CFD trading;
- margin trading.
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.
Safety and reputation
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:
- BaFin - Federal Financial Supervision Authority of Germany.
- FCA and PRA - Financial Conduct Authority and the UK Prudential Regulation Authority.
- NFA and CFTC National Futures Association and US Commodity Futures Trading Commission.
- CySec - Cyprus Securities and Exchange Commission.
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.