Traders’ Room and CRM for Your FX Brokerage: 101

Posted by Anya Aratovskaya on Jun 13, 2018 7:28:00 AM

As with most businesses, the operation of a Retail FX Brokerage involves a lot of moving parts that must be synced together to create an efficient and viable business.
These would include Legal (KYC, trading agreements, dispute management, regulatory reporting), Trading Platform Administration and Management, Liquidity and Risk Management Provisions, IB Management, Client Support, and, of course, Sales and Marketing.

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Topics: SYOB, Start Your Own Forex Brokerage, FX Broker Startup, Know Your Client (KYC), Thought Leadership, Forex Marketing

How to Get an LEI Number if You Don’t Have a LOU (Local Operating Unit) in Your Country

Posted by Natallia Hunik on Apr 10, 2018 8:20:55 AM

The global push for greater transparency in financial markets continues to gain traction with top tier regulators now requiring that all entities, engaged in trading financial markets, report their LEI (Legal Entity Identifier) number to regulatory repositories.
In the European Union, this process started as of January 3rd, 2018 as per MIFID 2. In Australia, in accordance with ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844, relief from the requirement to report the entity Identifiers ends on September 30, 2018, which means that starting from September 30, 2018, entities regulated in Australia will need to report LEI numbers for their corporate clients.

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Topics: MiFID2, MiFID, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Regulation, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage, Traders, Forex Brokerage

5 Ways To Hack FX Advertising in China

Posted by Yuhan Mo on Nov 8, 2017 7:07:39 AM

From social media strategy to content creation, what are the steps to take to reach the 1.4 billion-people Chinese market?

Penguin Intelligence, a research agency subsidy of Tencent, recently reported that as of Q4 2016, there were 889 million active users monthly. People are spending, on average, 66 minutes each day on WeChat with 57.22% of new WeChat contacts added for work-related matters and 6.04% service providers. Over 80% of users used WeChat group for work-related purposes with WeChat group becoming an important venue for business communications.
These statistics clearly indicate that WeChat is the potentially the most powerful platform through which to reach new leads and clients for your business.

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Topics: Forex Marketing, Know Your Client (KYC), Forex B2B, Brokerage, SYOB, Start Your Own Forex Brokerage, Forex Brokerage, Thought Leadership, Company

What is the Best MAM System for MT4 / MT5?

Posted by Anya Aratovskaya on Sep 26, 2017 8:50:43 AM

MAM is an acronym for Multi Account Manager, a plugin originally designed for the Meta Trader 4 Platform to allow the proportional (or any set) profit and loss distribution from Fund Manager (or Master) to Investors (or Sub Accounts).

The Master Account serves as the primary (and the only real) trading account, and sub accounts receive the results of the actions performed on the Master Account (only proportional COPIES of the original trades).

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Topics: MT4, MT5, MetaTrader, Institutional Broker, Institutional Trader, Forex B2B, Brokerage, SYOB, Start Your Own Forex Brokerage, FX Broker Startup, Traders, Forex Brokerage

What is an LEI Number and Where to Get One?

Posted by Natallia Hunik on Aug 1, 2017 8:19:40 AM

Welcome to a financial world, full of mysterious acronyms. LEI, CASS, ECP, EMIR, MiFIR, MTF, OTF… This industry just loves acronyms and MiFID II just gave us a whole lot of new ones to work with.
One that I have started hearing more often is the LEI number and it relates directly to the requirements embedded in the upcoming MiFID II directive. The following article will hopefully give answers to these much-asked questions, what is an LEI? Who needs one? Why it is required? How do I get one?

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Topics: MiFID2, MiFID, Regulation, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, UK FCA Registry, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage

MiFID II: Will You Finally Know Who Is On The Other Side Of Your Trade?

Posted by Natallia Hunik on Jul 19, 2017 7:00:00 AM

MiFID II, the “Markets in Financial Instruments Directive”, is legislation that is set to be implemented across the European Union on January 3rd, 2018.
As this due date approaches, many market participants are scrambling to implement changes to hopefully comply with the new rules. Some, on the other hand, prefer to procrastinate as long as possible in the hope of getting further clarity on this pending regulation.

Regardless, what is clear at this point is that there are a number of significant changes that are coming down the pipe for the FX brokerages.

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Topics: MiFID2, Licensing, Regulation, MiFID, Institutional Broker, Institutional Trader, STP, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Prime of Prime, Traders, Forex Brokerage

How Does One Define “Best Execution” for FX Trading Firms Under MiFID II?

Posted by Anya Aratovskaya on Jul 12, 2017 8:41:06 AM

While some industry sources are arguing whether or not MiFID II will dramatically affect the FX industry, most FCA and CySEC licensed FX brokers are rapidly adjusting policies in order to comply with the new requirements. 

One of the key changes of MiFID II is an implementation of the term “best execution” and a directive to ensure “All Sufficient steps” (Article 64 -4) are in place to support that.

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Topics: Regulation, Licensing, MiFID2, FX Liquidity Provider, Institutional Broker, Institutional Trader, Start Your Own Forex Brokerage, SYOB, Brokerage, Forex Brokerage, FX Liquidity

FX Leverage Globally

Posted by Natallia Hunik on May 3, 2017 8:34:41 AM

FX is the most liquid market in the world with over 5 trillion USD in daily turnover, and 1.6 trillion USD in OTC spot transactions executed each day on average. Volatility makes it an attractive investment vehicle for many traders around the world, institutional and retail.
Retail FX has been around for longer than 2 decades now, but we have yet to see the industry reach a mature state.

Two decades might be just an infancy stage for an asset class, one would say, and would be right.
Regulatory frameworks in many countries are not greatly fine-tuned to deal with FX or are not encompassing FX at all.

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Topics: Thought Leadership, Leverage, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, UK FCA Broker, STP, Regulation, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, Brokerage, Forex Brokerage, Traders

Navigating the ASIC FX Brokers’ Register and, What Does it Mean to "Make a Market" in Australia?

Posted by Natallia Hunik on Apr 5, 2017 8:48:25 AM

More than a few times over the past year, I have come across instances where companies have thought that they were paying for legitimate ASIC licenses when, in reality, that was not the case. There appears to be several “light fingered” agents operating in the market (particularly, in the Asia region) who are “selling ASIC licenses” at a discounted price.

As we all know, there is no such a thing as free lunch. The use of words such as “discounted” and “fast-track”, with regard to obtaining a license in a reputable regulatory jurisdiction, should have immediately raised your eyebrows.

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Topics: Regulation, Licensing, FX Jurisdictions, Institutional Broker, Institutional Trader, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Forex Brokerage, Traders

Are You Fully Prepared to Start Your Own FX Brokerage?

Posted by Anya Aratovskaya on Mar 7, 2017 8:21:02 AM

Yesterday, I got an email from one of my old contacts thanking me for persuading him not to go into the retail FX brokerage business last year. The email was sent from the corporate domain of his new business venture, one that is apparently doing well with only a 30% involvement with the FX industry.

His experience has inspired me to write a short article that can serve as a wake-up call to anyone contemplating starting their own FX Brokerage.

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Topics: SYOB, Brokerage, Forex Brokerage, Start Your Own Forex Brokerage, FX Liquidity Provider, FX Technology Provider, Forex Marketing, FX Broker Startup, Forex B2B

FX Glossary: The Ultimate Dictionary of Forex Terms You Should Know

Posted by Advanced Markets Team on Jan 16, 2017 10:49:00 AM

There are many Forex terms a FX Professional have to know to do a great job and to be successful. In order to help Brokers and Traders to get to know the basics of the FX industry, the Advanced Markets Team created this glossary. 
Discover the Advanced Markets FX dictionary here and feel free to contact us if you want us to add further terms!

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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Topics: Forex B2B, FX Broker Startup, Forex Brokerage, Traders, Brokerage, SYOB, Thought Leadership, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Start Your Own Forex Brokerage

5 Reasons to Switch Your Liquidity Provider

Posted by Anya Aratovskaya on Dec 20, 2016 3:24:10 PM

Traditionally, December is the month when the majority of FX professionals take some well-deserved time off. Fund Managers are avoiding any major market participation that could negatively impact annual return statistics; bank employees are trying to use up their remaining vacation time, and the overall the spirit of holidays (Christmas, Hanukkah, Omisoka, Kwanzaa, and many others) makes December the perfect time to relax ahead of the January hype.

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Topics: FX Liquidity, FX Liquidity Provider, FX Technology Provider, Institutional Broker, Institutional Trader, Wholesale FX, MT4, MT5, STP, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Platforms & Technology

Why your FX brokerage's cost for top Google keywords has gotten out of control?

Posted by Natallia Hunik on Feb 29, 2016 2:22:00 PM

When most FX marketers opened their Google AdWords (Google’s keyword advertising program) account last week they might have had a jaw-dropping experience. The cost per click (CPC) for the most searchable FX keywords went up significantly and, in some cases, doubled. The first reaction most likely was “is it competition?” However, there is actually a fairly reasonable explanation for this price hike, and it has to do with how Google has altered its website advertising in general.

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Topics: Forex Brokerage, SYOB, FX Broker Startup

Setting Up an office for your FX Brokerage

Posted by Shobin Mathew Simon on Jan 5, 2016 9:03:00 AM

When someone starts thinking about opening a Forex brokerage their mind immediately fills with question after question. Which regulatory jurisdiction should I choose? How much capital do I need? What kind of license do I need? How do I get pricing? Where do I base the operation? The “office” / location question is usually the last that comes to mind but the choices made here can determine whether a business succeeds or fails. The following 5 points are therefore worth considering before making any decisions on your brokerage startup: 

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Topics: SYOB, Brokerage, FX Broker Startup, Start Your Own Forex Brokerage

Trading via FIX API

Posted by Anya Aratovskaya on Nov 23, 2015 5:21:00 PM

FIX (Financial Information Exchange) API (application programming interface) is a highly scalable electronic communication protocol to facilitate the real-time exchange of information related to financial markets. It has become the de facto standard method of pre-trade, trade and post-trade communication. Market participants including banks, hedge funds, prime brokers and “prime of primes” utilize FIX for their own trading needs or to connect directly to clients.

To give you an indication as to how popular FIX is: the FIX Trader Community has around 110 000 registered members and 275 corporate members (including Goldman Sachs, Barclays, Morgan Stanley and so on).

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Topics: Thought Leadership, FX Liquidity Provider, FX Technology Provider, Institutional Broker, Institutional Trader, FIX API, Forex B2B, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Platforms & Technology

Choosing a Suitable Regulatory Jurisdiction for an FX Broker Start-Up

Posted by Anya Aratovskaya on Nov 9, 2015 3:02:00 PM

The world of online Retail FX has become increasingly competitive and congested but, regardless, the industry remains extremely attractive to investors, insiders and entrepreneurs alike. One key factor adding to the attraction is the ease by which a person can actually start their own brokerage. In past years, starting a brokerage normally required expert technology and market knowledge combined with a significant amount of free capital but today, advances in technology and an increase in the options available for regulatory licenses have greatly reduced the cost and the “time-to-market”.

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Topics: Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup

10 Things You May Be Missing When Selecting Your Liquidity Partner

Posted by Natallia Hunik on Oct 14, 2015 12:14:00 PM

I, along with my institutional FX Team at Advanced Markets and Fortex, am dealing with FX brokers who may be in search of liquidity, technology solutions of all kinds, infrastructure enhancements or sometimes just a price feed that is stable and reliable on a daily basis. We have seen it all from novice brokers that need everything explained from A to Z, medium-sized price-conscious brokers that are trying to bypass pre-qualifications and over-state their volume figures to get better deals to larger brokers asking us to fill out  lengthy RFPs (Request for Proposal)  while the work on selecting a new liquidity partner

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Topics: FX Liquidity, FX Liquidity Provider, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage

6 Points to Consider Before Starting Your Own Forex Brokerage

Posted by Shobin Mathew Simon on Aug 20, 2015 9:41:00 AM
The foreign exchange (FX) market now generates more than $5 trillion a day, making it the largest market in the world from a volume standpoint, surpassing any other market in the world.*
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.
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Topics: Forex Brokerage, Start Your Own Forex Brokerage, FX Broker Startup, FX Jurisdictions, FX Liquidity Provider, FX Technology Provider, Institutional Broker, Institutional Trader, SYOB

How to Safeguard Your Forex Funds Against Brokerage Bankruptcy

Posted by Richard Perona on May 5, 2015 9:52:00 AM

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.

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Topics: Thought Leadership, Forex Brokerage, Institutional Broker, Institutional Trader, Retail Broker, Retail Trader, Forex B2B, FX Broker Startup, Start Your Own Forex Brokerage, SYOB, Brokerage, Traders