Starting a forex website that charges 0.1 pip per trade - a good idea?

So...I happen to have some amount to invest (a little over $200k) and I think that's the minimum to start a small forex dealing desk/brokerage website. My major idea is to charge 0.1 pips on eur/usd and majors and charge 1 pip on all others. Do you think this will be a shocker??? Or...people will rather bet on known names - such as fxcm, forex.com, etc? Personally, I will rather pass and play with established names...but can't speak on the behalf of others - so i am interested to hear alternative opinions. thanks a lot, howard!

I think you can use smaller part of its amount to start your ideas. I will share such ideas here if would like.

I think you will be shocked when you realise how much money you are really going to need, just to compete.

Otherwise, your business model would work great in India! its a growing market for them and the majority are looking for a cheap broker who takes small money deposits for next to nothing spreads.

$200K? is this the marketing budget for the year? which countries were you thinking of targeting?

I think that is a really good idea but it takes much more then small commissions to be a successful FX broker. Example, what regulation would you have? without safety of funds .1 doesn't do much good....

forexproptrader said:

I think that is a really good idea but it takes much more then small commissions to be a successful FX broker. Example, what regulation would you have? without safety of funds .1 doesn't do much good....

Click to expand...

With that kind of money, it is better to go for a white label option.