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How do I open a brokerage? Your questions answered!

Helpful advices | 15 December 2020

Almost daily, we are contacted by IBs and investors asking how they should go about opening their own brokerage. 

While there are multiple ways to open a brokerage (white label, grey label etc) in this article we will be focusing more on the option of having a complete solution. 

Let’s look at the 5 main things you should concentrate and do your research on before opening your brokerage. 

 1. Trading Platform 

Your trading platform is one of the biggest decisions you’ll make. The most popular options today are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Key points to remember:

  • MT4 servers are no longer sold directly by Metaquotes. You'll need to buy MT5 directly or acquire an existing MT4 brokerage (we can help with this).

  • FX BACK OFFICE integrates with both MT4 and MT5—and many other platforms. If your chosen platform isn't already integrated, we can easily set it up for you.

2. CRM  

Picking the right Forex CRM is critical. Choosing the wrong one can cause financial losses, wasted time, and significant stress.

Here’s why selecting the correct CRM is vital:

  • Switching CRMs later is costly and time-consuming.

  • Migrating data, retraining staff, and adjusting systems cause significant disruption.

  • Seek recommendations from industry experts and ask current users about their experience.

FX BACK OFFICE CRM highlights:

  • Trusted by over 150 FX companies globally.

  • Offers a fully customizable Client Area, Back Office, IB/Affiliate Area, and PAMM system.

  • Connects with 80+ payment service providers (PSPs) and numerous trading platforms.

  • Enables multiple entity management from one CRM.

  • Provides detailed financial, marketing, and sales reports.

  • Highly automated and user-friendly.

3. Liquidity 

A good multi-asset liquidity provider is the backbone of your operation - and it’s imperative to compare and contrast every provider out there before making the decision of who to go with. 

Choosing a reliable multi-asset liquidity provider is crucial. Here’s what to look for:

  • Average execution speed of 3-4ms or less.

  • At least 99.5% of trades executed within 5ms.

  • High uptime and sustained processing capabilities.

  • Transparent and competitive historical spreads.

  • Reputable regulatory standing and trusted banking/non-bank partners.

Always verify that quoted conditions match real-time performance.

4. Website 

It goes without saying that it’s imperative to get your website up and running as soon as possible. You should set-up your site in parallel with your back office/platform/liquidity and bridge to ensure you don’t lose time. If this is the first time you’re setting up a brokerage, we’d advise you to use a professional marketing/advertising company with Fx experience. Your website should launch simultaneously with your back office, liquidity, and platform setup.

Key website considerations:

  • Hire a professional marketing agency experienced in FX regulations.

  • Ensure strategic placement of risk warnings and compliant KYC processes.

  • Outsource professionals to manage updates, compliance, and social media.

Recommended FX-focused marketing firms include:

  • 120 Advertising

  • Contentworks

A small retainer fee ensures regulatory compliance and timely website updates—it's an investment well worth making.

5. Third Party Solutions 

Ever heard the phrase ‘jack of all trades, master of none’? This is where third party solutions come in. Always be weary of any provider who can give you everything at one set fee. Although financially it might look attractive, more often than not, the tech won’t hold up and you’ll have significant problems down the line.Third party solution providers usually deal with 2-3 products max, which have been developed properly and on a deeper level over time.

Consider specialized third-party providers for services like:

  • Copy trading: Tools for Brokers, Brokeree.

  • Payment solutions (cashiers): BridgerPay, Praxis (reduce decline rates, access over 200 PSPs).

  • Forex education: TRAIN YOUR TRADERS (helps attract and retain clients).

  • Dialers: Did Logic (boosts response time and call management).

  • Live chat services: LiveChatInc (enhances customer support).

FX BACK OFFICE integrates smoothly with all these providers and more. We’re happy to advise on suitable third-party solutions for your brokerage.

Final Thoughts: Why Not Choose FXBO CRM?

Once you’ve done the research and decided on the providers you’ll use for the basic five steps of how to set up your brokerage, we can help you with the rest! But why go through all that trouble and extensive headache of a research instead of choosing a Forex CRM with a solid team to do all of that and more for you? Fx Back Office is an ISO-certified CRM with over years of professional experience. So, if you're looking for a better solution for starting your brokerage, request a demo today and weigh your options!