The ability to trade using leverage is one of the key advantages associated with “retail” forex trading. This unique factor tends to attract more investors to forex, rather than to equities or other financial instruments, as there is the perceived opportunity to generate profits with little money down.
A money broking license offered by the LFSA (Labuan Financial Services) Malaysia, is fast becoming a sought after license in the Asian region. LFSA, which is an offshore financial regulatory authority for Malaysia, has been in operation since 1996. The region includes over 6500 offshore companies and more than 300 licensed financial institutions including some of the world’s leading banks.
Topics: Forex Brokerage
Over the past few years the opportunities and successes in the foreign exchange market have attracted a significant number of investors and traders. The growth in the number of Forex brokers during this time is attributable to the fact that they have realized the tremendous revenue opportunity that is there for them when they own a brokerage rather than simply introducing clients. The increased number of start-up Forex brokers over the last decade is evidence that more and more FX entrepreneurs are finding it more profitable to run their own businesses rather than continuing to funnel business to larger brokers via traditional IB arrangements.
The FX market presents tremendous opportunities for entrepreneurs looking to enter the largest financial market in the world with daily trading turnover of 5.3 trillion.*
Advanced Markets and Fortex are pleased to announce their Start Your Own Brokerage program that includes a number of packages with different service bundles to accommodate any business model.
Topics: Forex Brokerage
Over the past few years the traditional FX Prime Broker industry has been thinning out, creating a demand for the types of services they provided. The loss of the institutional big bank Prime Brokerage services has occurred due to credit risk, small profit margin, risk aversion and new regulation. This reaction by those larger prime brokers has been clearing the way for specialized FX Prime of Prime (PoP) firms to gain market share. A Prime of Prime brokerage is a one stop shop for retail brokerages, hedge funds, money managers and wholesale traders to access top tiered global bank liquidity, cutting edge technology, cost effective rollover rates and clearing services.
On January 15, 2015, the SNB (Swiss National Bank) caused a massive upheaval in the FX industry when they manipulated the exchange rate of the franc and unpegged their currency against the euro.
This action threw the markets into complete panic, ultimately producing capitulation with the CHF pairs and creating catastrophic losses throughout the industry. Market participants were affected across the entire spectrum, all the way from the top tiered global banks down to individual investors.
The large banks and market makers were able to absorb the losses (or major gains if B Book), but the smaller, more vulnerable, participants could not.
Some brokerages were forced to close their doors due to negative balances as a result of the losses sustained from their client’s positions. A multitude of firms such as Alpari UK, Boston Prime, Excel Markets and Liquid Markets became insolvent, just to name a few.
Topics: Traders, Thought Leadership, Forex Brokerage, Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup, Forex B2B, Retail Trader, Retail Broker, Institutional Trader, Institutional Broker