Looking for partners for starting Forex Brokerage Firm

[FXGiant]

1.2 bln comes from india, in the form of business transactions.

Hello, its better if you do your analysis and then come up this assumptions and conclusions. India's daily fx volume is 40 bln, of which 1.2 bln is made of retail spot fx.

Your retail bucketshop will not be able to 'tap' that market.

We will be providing liquidity from second tier prime brokers. Indirectly, our clients will have access to liquidity from top 12 ecommerce banks. There will not be any requotes, however there could be slippage (that is always possibly based on level of liquidity available). Spreads for EurUsd will be 0 pips to 1.1 pips 95% of the times. If you call such a structure as bucketshop, then it's upto you.

Thne you can apply whatever spread you want to their trade.

Our spreads will be arguably best. We will have 4 second tier prime brokers whose feeds will be aggregated.

Otherwise, you need to do ALOT more research and realise that speculating in india is extremely difficult to do legally. And promoting that is probably going to be even harder with corrupt industry.

Research is done already, that's why I am here.
If any interested individual has any doubt what so ever with the scope of this business in terms of regulations and law of the land here, I have sufficient proofs and working examples to substantiate my claims.

If there are big local players, you will simply be removed out. I dare say it would only cost them 20k to get you shut down by authorities.

Again, Avafx was started in 2006 when FXCM, Saxobank were big players. However, Avafx was able to capture 1/10th of FXCM's volume and client account in 3 years.
There is nothing called "shut down by authorities" when our activities are compliant with every regulation. Our consultants also include a senior official of Central bank of India (RBI).

Your best bet is to open up offshore, have realistic goals, and start small. If you are planning to do it locally, you'll just hurt yourself until laws etc change.

Thanks for suggestion.

 

[TaKiii]

AVAFX are not running out of india, nor is FXCM or saxobank. They accept clients from that country, but do not take legal liability for the financing of client accounts. Thus you're wrong.

Secondly, the 1.2 bln retail spot fx. Is OTC transactions. I.E The exchange for Rupees for USD or vice versa. This is not SPECULATION. You will not be able to find out how much of the market is retail speculation because of currency speculation laws and anti money laundering laws in India. The market doesn't exist according to the national laws, and moving funds in FX on a personal account which is more than 10 000 USD at a time, is against the financial laws.
I worked as a broker for some time and we sent funds to india and encountered problems every 10 seconds with it because of the govt.

But if you want to live pie in the sky, good luck to you. But you won't make it in business with such unrealistic expectations and lack of knowledge on financial laws and statistics.

Best of luck, and sorry for trying to help.

 

[FXGiant]

AVAFX are not running out of india, nor is FXCM or saxobank.

It was just an example.

Secondly, the 1.2 bln retail spot fx. Is OTC transactions. I.E The exchange for Rupees for USD or vice versa. This is not SPECULATION.

Again misunderstanding. 1.2 bln daily is the retail spot fx volume (which involves majors and crosses trades) and not the INR USD transactions.

You will not be able to find out how much of the market is retail speculation because of currency speculation laws and anti money laundering laws in India.

Incorrect again. I will not disclose the sources to you, however, I do have satisfactory proofs for my claims and will be produced to those who are interested.

The market doesn't exist according to the national laws, and moving funds in FX on a personal account which is more than 10 000 USD at a time, is against the financial laws.

Hello, it's $200,000 annual limit for individuals. For transferring higher amounts, you need to get RBI approval.

But if you want to live pie in the sky, good luck to you. But you won't make it in business with such unrealistic expectations and lack of knowledge on financial laws and statistics.

Best of luck, and sorry for trying to help.

Doesn't it sounds great to prove other person wrong, without even knowing the exact situation

Thanks to you as well.

 

[adilfx]

FX Brokers success or fail

the dream to operate a forex brokerage was one that all business people aspired to due to the way people would perceive the high risk trading business. yes, brokerages do make money, and yes there is profit but in a fragmented market place where technological innovations are the only talking point, its hard to set up something unique that the big boys dont have at the moment, my advice, set up a strong IB with additional service

 

[freevestor]

the dream to operate a forex brokerage was one that all business people aspired to due to the way people would perceive the high risk trading business. yes, brokerages do make money, and yes there is profit but in a fragmented market place where technological innovations are the only talking point, its hard to set up something unique that the big boys dont have at the moment, my advice, set up a strong IB with additional service

Forex is a very tough business considering the increased and still largely uncertain regulation in the US leading to consolidation of competition. It is also difficult because there are hundreds of firms out there outside the United States and none of them stand out in any way.

 

[Pnty]

Forex is a very tough business considering the increased and still largely uncertain regulation in the US leading to consolidation of competition. It is also difficult because there are hundreds of firms out there outside the United States and none of them stand out in any way.

I would actually disagree with you.

Over the last couple of years there's a new breed of FX brokers that are actually providing pretty good service for their clients. You just have to find them!

 

[freevestor]

I would actually disagree with you.

Over the last couple of years there's a new breed of FX brokers that are actually providing pretty good service for their clients. You just have to find them!

Didn't say anything about the quality of service. Just saying that there is so much competition that is similar. No firm can distinguish itself in the marketplace.