Forex trading is a serious business, period! How do Forex brokers create their business? Where brokers register a forex company.
After a person has tried Forex trading and determined for himself what it is, whether he can make money or not, whether he will stay in Forex.
After this, trading continues and some of the traders begin to perceive and think that Forex is not just trading, but a kind of business.
Not everyone supports this point of view, believing that business is when you produce something or become an intermediary in the sale of various services.
However, trading can be viewed as a business. What are the reasons for this?
In a traditional business, an entrepreneur must carry out a series of preparatory work, find funds, invest them in this project, calculate income, expenses, and begin work. Forex also has such actions. You need to work on earning opportunities, decide on trading systems, possible losses and income, find and invest funds, and get to work.
Opponents of the approach of considering Forex as a business in relation to another business are something like this:
- Forex is unpredictable. Income is not determined, there is no consistency. It is impossible to create a stable fund wages, always on any day, you can lose money.
- Forex is under pressure from events in the world independent of the trader, psychological attitude, mood, the need for stable communications and working equipment.
- Forex is still poorly regulated by laws and there is a lot of fraud in payments.
- It is impossible to create a structure in which working in Forex can look like working in a company with the appropriate staff, wages and hence, as a consequence, social package, pensions.
However, upon careful analysis of these issues, it becomes clear.
The first point is controversial. good trading system can roughly show in which cases you can lose money, and this case must be excluded.
It is not necessary to receive income daily; it is enough to determine the required amount per month, which can be constantly increased indefinitely, or even per quarter, thus creating a wage fund.
Regarding the second question, psychological moments and crisis situations in the world also affect work in ordinary business, and there it is necessary that all equipment works stably. And in Forex it is much easier to reduce this impact on work than in other businesses.
Regarding the third question, everything is changing, and there will be laws, and it is in the hands of the trader to reduce the risks of fraud.
Regarding the fourth question, everything is also not so clear. With enough experience, active and smart thoughts, you can also create a structure that will pay salaries and hire employees. However, the trader is individual worker, and there is no need to develop this structure at all, except for sporting interest.
I believe that one of the advantages that a trader receives as a businessman occurs later, during work. The fact is that an ordinary business, throughout its entire period of activity, is subject to fixed costs. It is necessary to constantly generate income to cover these costs, completely dependent on clients who bring in income. If there are no clients, there is no income. From here it is not far to bankruptcy, that is, complete loss of money.
Accordingly, tension constantly increases and the need arises to expand the business so that some negative aspects affect profitability as little as possible. Which in turn increases costs and dependence on the team.
There are a dozen more problems in traditional business.
Working on Forex requires almost no more investment in this business, except for the first, one-time investment. All other work brings only income, which is many times higher than the income from a traditional business for every ruble invested.
This raises the question of loans.
Despite the fact that a traditional business is more expensive and less profitable on investments, it is believed that taking a loan to develop a business is normal, but taking a loan to trade forex is an almost dangerous decision.
This happens because the borrower initially believes that the loan will be lost and there will be nothing to pay later. If a traditional business can somehow pay for goods, equipment and other supplies, then a trader who loses credit will not be able to pay anything.
This is only true if the loan is lost. In all other respects, a loan is quite suitable for Forex and it is much more profitable to use it in Forex than in other business. Therefore, when deciding to take out a loan, it is necessary to eliminate all chances that this loan will be lost and take steps on how to act if events get out of control.
The danger of losing credit in a traditional business is imposed on the demand, on the clientele, who may simply stop using your services and will lead to the loss of this credit. In Forex this circumstance does not exist. There, only the trader uses credit and he is completely independent of purchasing demand.
Any financial market, as a rule, means a lot of money, and everyone makes money here, both those who trade and those who help them trade. Therefore, you should consider all options for making money on Forex at once, and not just standard trading.
The average person simply has no idea how wide the range is for making a profit, so in this article I want to talk about all possible options earnings.
Forex business almost always requires some financial costs, and the more you want to get in the end, the more significant your financial investments should be.
Trade big only with a leading broker
First, you should list all the available opportunities - independent trading, opening brokerage company, selling advisors, providing signals, paid training.
2. Opening your own DC– as in any other Forex game, the owner earns the most playground, in order to become one you should become a Forex broker. This option is attractive because not everyone who has heard about Forex trading knows how to use the Internet and payment systems; many want to come to the office on their own and deposit money in person.
Therefore, this is a great option if there are no similar companies in your city yet. There are several ways to solve this issue.
Representation– in order to start a Forex business as a representative of one of large companies you need to rent office space and contact one of the major brokers.
The costs will depend on such factors as the cost of renting an office, the amount of funds for advertising. It is quite possible to invest in the amount of 2 to 5 thousand dollars. To reduce costs, you can open an online representative office.
Profit - interest from trading of attracted clients and training fees for new traders.
Own dealing center- everything is much more complicated here, firstly you will need several tens of thousands of dollars for equipment, secondly you need to register entity and obtain a license, and thirdly, enter into an agreement with a bank that will be your representative on the foreign exchange market.
Profit is the difference between buying and selling currency.
Such a Forex business can give up to 100% profit per month in relation to the invested capital, but requires large material costs.
3. Selling advisors– developing and selling advisors is a pretty good business, but to get into it you will need to have a good understanding of forex trading and be able to program automatic advisors. Or simply hire the appropriate specialists, then create advertising company and sell your product.
4. Selling signals– everything is much simpler here, to start a business you will need to make a website on which you will publish analytical forecasts and at the same time create a system for paid distribution of signals for opening transactions. On the basis of what these same signals will be generated is absolutely not important, the main thing is how accurate your forecast will be.
5. Trading training– this includes everything related to learning to trade forex, this type business is the least risky and quite profitable. There are quite a few options for making a profit - creating CDs with video lessons, writing and selling books, conducting paid seminars.
As follows from what was written above, you can make money on forex not only by trading, but also by building own business, which will be less risky than trading on the stock exchange, but will also allow you to make decent profits.
The company's specialists continue to share the secrets of organizing a Forex business. In this article you will learn how large Forex brokers work.
Where do brokers register a company?
All Forex brokers register their companies abroad. And so far the most popular registration location is Saint Vincent and the Grenadines, a small independent state in the Caribbean. The largest forex brokers such as Alpari, Forex Club and TeleTrade are registered there.
The interest of brokers in this jurisdiction is explained by the simple registration procedure:
- the entire procedure takes place remotely,
- you only need to provide the name of the new company and a copy of your foreign passport,
- registration period does not exceed 2 weeks,
- registration cost is only $2,000,
- the register of beneficiaries is confidential.
There is no regulation of the Forex market in Saint Vincent and the Grenadines, so there are no legal requirements for authorized capital company, to the qualifications of employees and to the submission of financial statements.
How do brokers organize payment acceptance?
To accept payments from clients, forex brokers open their own bank account. Beginning brokers do without an account at all and simply enter into an agreement with payment system aggregators. This way they immediately get access to a minimum set of merchants: WebMoney, Qiwi, Yandex Money, etc.
What are the advantages of a bank account?
Without a bank account, you cannot count on working with large payment aggregators. And if you want to expand the range of available payment systems, you need to register an account. Also, having an account with a broker allows its clients to transfer funds via Visa, Master Card or invoice directly to the account. These payment methods are more convenient and familiar to most traders.
Where do Forex brokers open an account?
Having a company in St. Vincent, brokers most often open an account in Czech banks for financial consulting. There is another option to open an account in one of the banks in Armenia for Forex activities, but you will have to pay the bank $500 per month for service. An account is opened only with the personal presence of the company owner. Registering an account, like registering a company, costs $2,000 and takes about 2 weeks.
It is also possible to open an account remotely by registering another company, for example, in the UK, as a payment agent - an intermediary company to accept payments from traders.
How do Forex brokers build their business?
Brokers create 2 companies: one in an unregulated jurisdiction, for example, in St. Vincent, which provides Forex services, and the second in the European Union, for example, in the UK, which operates only to accept payments from clients, as a payment agent.
This business organization scheme allows brokers to use European banks and large payment systems in their work, while still saving on commissions.
– what is it and how real is it? In this article we will look at 2 options: Forex business from the point of view of a trader and a partner (the owner of the business, the person who attracts traders and other partners through a referral link). Let's start with regular trading.
Simply making money on fluctuations of currency pairs, a Forex trader is an ordinary speculator - he bought cheaper, sold more expensive and vice versa. That is, this is mental work, a game of intelligence, but in no way a business or passive income. On the other hand, there are different trading strategies - not all traders are “night owls”, waiting for hours at the monitor for the right moment to enter. There are scalpers who worked for an hour or two and closed the terminal after calculating their profits. There are long-term traders who can open a trade once a day or once a week. In other words, trading is not necessarily a job in the traditional sense. Most likely, this is an opportunity to make a profit with pleasure, devoting minimal time to trading - that is, almost a business.
The profitability and capabilities of currency dealing are equal to or higher than those of a “real” business. What are the benefits of Forex over the opportunities of, say, private enterprise?
● minimal start-up capital– even $100 will be enough to get started. For an emergency you need from $1000, and often much more.
● work from home or office - any place where there is Internet.
● no staff needed employees, who need to be controlled and who demand salary and vacation.
● reporting is not required - at least in such volumes as during an emergency.
● no physical goods, which can go bad - the trader operates with virtual currency, earning real money.
● trading profitability can range from 10 to 100% per month or higher. Even a stable 10% per month is better than unprofitable months in an emergency when there are no sales of goods.
● Forex has no “holidays”, markets are liquid 5 days a week all year round. The exception is 2 weeks before the New Year and a week after, when liquidity falls and brokers raise the spread.
At the same time, a trader is not required to constantly be in the market. You can take a break, go on vacation, or spend time for yourself or your family. Self employed is often deprived of this opportunity - he must “plow” the season as much as possible so as not to starve later.
● trading can always be postponed and come back later. Yes, the markets will change a little, but the strategy will work if it was profitable before. A state of emergency does not have this option - either we work now or we close everything.
● leverage increases possible profits.
As you can see, the advantages of trading over small businesses are obvious. All that’s left to do is trade for a stable profit. This is where many people stop. The reason is the absence long-term planning, dedication, perseverance to work for results.
Now let's take a look at building a Forex business. It doesn’t matter whether you trade yourself or not. The essence is to attract traders and new partners to register in a certain (or several) Dealing Center. This is an ordinary affiliate program that has nothing to do with fraud or pyramid schemes. The broker will pay part of the spread from closed positions of trading traders or part of the reward received by your partners. At the same time, DC clients themselves do not lose anything. Everyone wins – the broker, the clients, and you. Today this is a real opportunity to build not only a Forex business, but also create a source passive income. You just need to work hard at the beginning, and then it’s a matter of technique.
We briefly looked at currency trading from the point of view Forex business. This approach is cost-effective and attractive on all counts. Think about what you like best - hard work, sleepless nights in front of the monitor, sore eyes and tense nerves? Or stable profits from attracted traders and half an hour to an hour of trading with a small but constant profit? Take off the blinders and reconsider your goals. Everything is possible - and many smart people have already created their own Forex business. This is your life. Go for it!
Those who know me well often ask: how to start making money on the Internet? On this moment It’s been almost two years since I started blogging and money-making in general, so I have a lot to remember.
I'll start my story and break it into several parts. After reading it, you will definitely understand some simple things, and I hope you will find the only right way that will help you start getting “green tugriks” from the World Wide Web.
This post will not only be a direct guide, but also instructive and motivational for many beginners.
So, the most difficult thing for a beginner is to understand how you can make money on the Internet. Here I will not give various ways of making money that may be incomprehensible to you, such as traffic arbitrage or creating doorways, but I will try to speak in an accessible way.
I started making money online on Forex. I won't say that things were going great. I didn’t like this whole financial machine at all. I didn't feel like I was where I was supposed to be. All this red tape with numbers, these graphs did NOT attract me since childhood, so even though I had an incentive in the form of money, I did not like what I was doing. But at that time I didn’t even know that you could make money on the Internet in another way.
My friend brought me to Forex. He was the first to discover that this type of income existed, went to the Forex club office and even bought a Forex cube. This is a basic package consisting of, I think, 6 books and 2 CDs with lessons. At that time, I was just guessing that you could make money on the Internet. A friend simply said that some acquaintance of his said that he knew a person who had a lot of money thanks to the Internet. But I never found out what exactly he earns from.
That’s why I was constantly wondering how I could start making money on the Internet. And when this topic with Forex came up, I immediately plunged into it headlong. I took this Forex Cube package from a friend and began to study it. I literally devoured the pages, it was very interesting. Not to say that I was fascinated by numbers, no. I was just, in general, fueled by the idea that soon I would start making money on the Internet.
I studied this course quite quickly. I opened a trading account, put about $100 into it and started trading. Of course, I traded on a virtual trading account for some time, not without it. But he quickly switched to the real one. I will not describe all the details of trading, because for those who are far from Forex, this is unlikely to be interesting. The point is that over time I lost all the money, although I was in big advantage. From this $100, I made about $2,000 in a few months, but then there was a collapse in market prices and I successfully lost all of these $2,000 in one night.
It was a hard time. I just realized that stability and risk-freeness are needed, and Forex is a constant risk. The foreign exchange market is not a place where you can just lie down and fall asleep. Everyone who knows how to trade Forex says that you need to use stop orders to limit your losses. But how, tell me, can you sleep peacefully when even if you place a stop order, so that, for example, if the price goes against me, you can stop losses at the level of -$50.
But even this fact itself kills. Maybe tomorrow it will be +50$, or maybe -50$. This, whatever one may say, is instability. But this doesn't suit me. That’s why I decided to leave the foreign exchange market, because I realized that, given my gambling habits, I could lose much more money.
In conclusion, I will simply tell you what I experienced while trading. Believe me, every trader experiences these feelings, these emotions, so using my example you will be able to draw your own conclusion whether you should start trading on the foreign exchange market or not.
Memory 1
With small incomes there is nothing to do with Forex. I thought that with $100, you could grow to several thousand, or even more. But this is all bullshit. There are no miracles. In order to have a real opportunity to make money on Forex, you need to have a large starting capital. Believe me, everything that they write about mini accounts, and also about the fact that with 50 bucks you can short term making a few thousand dollars is a lie. If everything was as they say, then today there would probably not be a single dealing center, because they all went bankrupt. Especially those that do not withdraw money to the interbank market. Therefore, my first mistake was that there was no point in putting little money into the Forex market. I just didn’t know how to really make money on Forex, so I wanted to try. I tried it and ended up donating my money to the dealing center.
Memory 2
Of all kinds online earnings Forex is the most complex. Difficult, first of all, because you need to be a specialist in finance and economics. And let them say that it is possible to make money on Forex without theoretical knowledge of economics, but in reality all this is bullshit. You need to know too much to always stay afloat. In addition, you need to sit in front of the monitor screen all the time and monitor positions. It won’t work any other way if you don’t have much money in your trading account.
I remember how I sat near the monitor at night waiting for a profitable trade, and when the price finally went in my direction, I opened, but in the end everything worked out in such a way that I ended up having to sit almost all night to close this position . In general, instability.
Memory 3
Forex is not for the faint of heart. Even though you know how to make money in the Forex market, it will take you more than one year to become a guru, and it is not a fact that during these years you will be able to stay afloat and be able to afford to feed your trading account with new injections of money for a long time. And when you threw away these unfortunate $100-$200 and situations arise in the market when you can lose everything, you are constantly nervous. That is, this work is directly related to risk. And there is no escape from this. But risk is not for me. The appearance of gray hair is the result of constant worries. Therefore, it is better to save yourself for more important matters, unless, of course, you don’t care about losing a thousand or two dollars.
Memory 4
Everyone is interested in whether it is possible to make money on Forex, but not everyone immediately understands that in this type of business you are constantly spinning, like a squirrel in a wheel. Not only do you need to predict the direction of price movement, you also need to get around all the obstacles that the dealing center or broker puts up. They also need to feed. And believe me, what is rumored to be important to the employees of dealing centers, first of all, is that you bring them your money. They need profit. And they make their profit at the expense of us, that is, at the expense of the clientele.
Therefore, I don’t know if it is really possible to make money on Forex when there is such pressure. Very often, dealing centers and brokers resort to various kinds of tricks. Especially when the price is falling quickly and you need to close your position. The broker does not respond to your requests and then explains all this by saying that the servers were overloaded with requests. This is all bullshit. We would like to improve the system of executing orders so that everything would be without delay. But this is not in their interests, so time passes, but everything remains the same.
Memory 5
Forex trading is risky. And quite significant. When you deposited your $500 in hard-earned money into your trading account and slowly watch how this money melts away in your trading account like oil in a frying pan, you don’t experience the most wonderful feelings. In general, well, well. I am for stability. Because in Forex today you can win $1000, and tomorrow you can lose $2000. Believe me, this happened to many. There are almost no people who quickly withdraw all their profits. And if someone wins today, then tomorrow he will lose, and will lose even more. This is reality.
Memory 6
I was trained in trading using a training package that I bought at one of the dealing centers. I’ll say right away that the package was not bad, with video materials. Only now, when it is possible to use the Internet, such educational materials are losing their relevance. All those who are interested in how to make money on the Forex market and whether it is possible to make money on Forex can find numerous materials on various sites on the Internet. Believe me, they write the same thing in print media. Why give money when you can get it for free?
Conclusion
These are the main memories of those times when I still considered myself a trader. By the way, believe me, my pessimistic moods have nothing to do with the results of my trading. I'll say even more. I even won for a while. But according to the law of meanness and due to human psychology, when you get excited, it’s already impossible to stop. Therefore, even if you win a little money, you are unlikely to find the strength to withdraw it from your trading account. You want to win even more, but in the end you lose everything you have.
By the way, if you are a webmaster and you are interested in how to make money on the Forex market, then I would like to advise you to make money by attracting new clients to dealing centers and brokerage houses. Today there are many affiliate programs where you can earn interest on each amount that the user you attract deposits into your trading account. Therefore, IMHO, it is better to go the other side and earn money the way dealing centers and brokers do - providing others with the opportunity to earn money on the Forex market. In this case, your own wallet will be more intact, and even wider, due to your attracting new traders to partnership programs on Forex.
Dear readers. One more moment of attention. I am the author of a blog about making money on the Internet “Online Mystery”. If you want to receive the latest articles about making money on the Internet and website promotion, then I recommend subscribing to free updates of my articles to your email inbox. To do this, follow this link and enter your e-mail address in the window that appears.
