Forex Brokerage Setup & Consultancy

The foreign exchange (FX) market now generates an impressive $4 trillion a day in volume, surpassing any other market in the world. Over the past few years the opportunities in the foreign exchange trading have caught the eyes of many investors and traders. This growing interest can be attributed to the ability to trade around the clock, lower transaction costs compared to other instruments, and generous leverage.

If you have ever thought of starting your own brokerage business (especially the most popular MetaTrader 4), the FX market holds a treasure chest of opportunities. When compared to long-established trading instruments such as stocks and bonds, the ability to speculating in foreign exchange is still in its infant stages. This provides a unique opportunity for entrepreneurs to potentially profit from the fastest growing market in the world.

Forex Asia is able to assist you to start your FX Brokerage with:

• Conceptualization and Setup of a Robust Brokerage Business Plan
• MT4 Outsourcing & Licensing
• Full Brokerage Setup
• White Label Platform
• Risk Management
• Website Design and Development
• Operational Planning
• Linking with Liquidity Partners
• Company Formation & Banking Advisory
• Legal, Compliance, AML, KYC & Regulatory Setup
• Additional Platform APIs, Plugins & Bridges Setup

Forex Asia has been servicing a wide range of services specifically aimed at start-up and existing forex brokerages. These services include forex company formation, merchant accounts for forex brokers, bank accounts for forex brokers, legal support, tax advisory, forex software and data feeds tools, risk management for brokers and other essential services that are required for forex brokerage operations.

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Trading Forex with a US-based Broker?

As some of you already know, the CFTC announced the publication in the Federal Register of proposed regulations concerning FX retail transactions on 13 January 2010. The rules include change in minimum capital, record keeping, financial reporting, the amount of leverage allowed, among other operational standards. Most importantly, the plan is to set the maximum leverage in US retail forex transactions to 10:1 - that's 10 times lower than the 100:1 cap set by the NFA a short while back.

10:1 Proposed Leverage 

Forex brokers currently extend leverage to their customers at ratios of between 25:1 to 400:1 or higher, depending on the currency pairs being traded and the size of their accounts. Their reason for limiting forex leverage to 10 times is that “the extreme volatility of the foreign currency markets exposes retail customers to substantial risk.”

Why CFTC is doing this?

The reason why the CFTC wishes to limit leverage is understandable if you think of forex trading as a long-term investment like stocks. However, most forex traders trade very short term and need the leverage to give them meaningful profits. If forex traders were looking at a long-term currency investment, they would be putting their money in a foreign exchange bank deposit instead of with a forex broker.

Please note: The proposed rule has yet to become effective, as it is in public comment seeking phase right now.

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