How much does forex trading dealer business cost?

[ahmed]

I was just wondering, does anyone here have no idea about how big budget does it take to start your own Forex trading dealer business?

I'm not seriously thinking about starting myself, because I'm sure I don't have that much money or neither knowledge. However, I was just interested about this number of money needed.

1) I guess first you should invest money to develop (or maybe buy) the whole system (online trading only). How much could this cost? It could be MetaTrader based only, so own web based system would not be necessary. Clients would download MetaTrader and place orders via your company spread.

2) Secondly you should have enough money to keep you in safe - not going into bankgroup against your clients. This is propably something impossible to say even closely as it depends about how big portfolios are your clients trading against you.

[pipstranger]

Starting a US trading firm will require mucho cash.
- initial reserve fund, at least $5 to $10 million
- starting captial for operations, at least $4 to $12 million
- marketing for the first 6 months, at least $5.5 million
- personnel and support, possibly $3 million
- unknowns such as other NFA stipulations, at least $?? million


Offshore firms can get away with much less I suppose.

Another way to get into it with little cost is to white label. Most cost in this scenario will be marketing.

[ahmed]

As I said, I was just wondering about money needed to develope a technical system that allows people to trade using MetaTrader only.

I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread.

I didn't mention anything about to which country it would be registered (but for sure not US).

All the numbers you have listed are completely random, there's no way someone can say how much marketing or personnel will cost if you don't even know about how big company we are taking about.

I only care how much it costs to do the following technically:
"I have seen number of companies who don't have their own platform, but allowing clients to trade via MetaTrader - and clients are paying them spread." = $ ?

[pipstranger]

Well, someone could start up a forex dealer company with one employee. In this scenario going "white label" I suppose is the best option. Cost? It depends on how much you would advertise.

[JohnsonG]

Overall it can come out to about $20,000,000
So you could just forget about it

You can always work for one of the companies as a platform developer. Once you gain all the experience you need, just simply (not a simple work) create your own platform, and sell it. Once you gained enough money from selling it, open your own trading house.

[madnites]

Forex markets trend long term, they always have and they always will as long as we have a free market and the big trends which reflect the underlying economic cycle can last for many weeks, months or even years. If you learn to trend follow correctly you can make huge long term profits in around 30 minutes a day...

[paulobona]

I was just wondering, does anyone here have no idea about how big budget does it take to start your own Forex trading dealer business?

I'm not seriously thinking about starting myself, because I'm sure I don't have that much money or neither knowledge. However, I was just interested about this number of money needed.

1) I guess first you should invest money to develop (or maybe buy) the whole system (online trading only). How much could this cost? It could be MetaTrader based only, so own web based system would not be necessary. Clients would download MetaTrader and place orders via your company spread.

2) Secondly you should have enough money to keep you in safe - not going into bankgroup against your clients. This is propably something impossible to say even closely as it depends about how big portfolios are your clients trading against you.

Why don’t you check fsifx.com. I think they're offering brokerage setup solution. From there you’ll have an idea on the cost of setting up a brokerage company.