Eternity Law International News Opening a brokerage company

Opening a brokerage company

Published:
June 8, 2020

Opening a brokerage company is a good option with the possibility of impressive earnings for a confident and progressive person. For successful work, it is worth getting acquainted with all the requirements in detail.

First of all, determine the type of launch: resort to the help of White Label or solve all issues from the very beginning.

Below in the text a description of two methods will be offered, which will make it possible to choose the most suitable.

BROKERAGE COMPANY: REGISTRATION FEATURES

It’s worth starting with the choice of jurisdiction. Without this information, opening a bank account and registering a company will not work. The solution to the problem depends on the place of the main activity of the entrepreneur.

Expert advice: pay close attention to the choice of jurisdiction, because not all banks open accounts for brokers. And without an open account, you won’t be able to accept or send payments.

An important point: it’s worth understanding that starting a brokerage company from the very beginning will require a lot of time, money and patience.

Step-by-step instruction.

  1. Attention to the target audience. It is very important not to make a mistake with the choice. Now there are a large number of jurisdictions, each of which sets its own requirements for forex brokers. In particular, we are talking about start-up capital.
  2. Solve the issue of payments. The more options for cash transactions will be offered to customers, the more confident the company will develop. An important condition: cooperation only with reliable suppliers.
  3. Deal with broker tools. There are many nuances. Starting from creating your own website and ending with an expanded range of services and choosing a platform for work.
  4. “Commissioning works”. Testing your system, checking its performance (a vivid example: technical issues), fixing possible flaws or errors.

As soon as all the “roughness” is eliminated, you can begin full-fledged work.

GETTING STARTED WITH WHITE LABEL

This is an easier way to start a forex project. In this case, all organizational issues (in particular, trading) will be decided by a larger broker.

Such an approach will require significantly less funds for implementation than in the case of development from scratch. No one says that a major broker will work for free.

There is a certain amount of commission that will have to be paid regularly. The answer to the question regarding the availability of a license depends on the jurisdiction.

Starting a brokerage company from the very beginning will be a more profitable solution from an economic point of view. In this case, the entrepreneur manages his project.

And the profit from successful transactions is credited to the account in full, and not with a deduction of commission, as in the case of the White Label decision.

The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.

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