29th July 2019
Currency trading attracts millions of people interested in making money online and a percentage of them decide to trade forex full-time. Today there are close to 10 million Forex traders active all around the world, especially in the US and UK.
Professional Forex traders know it takes planning to make Forex into a full-time business. The most important consideration is to make sure you know how to manage your risk. Investing always carries risk and being realistic about probabilities can help your trading business last long term.
Starting a Forex business can take a few different forms but there are two main options. Investors and traders can choose to start their own licensed Forex trading company, often a limited liability company (LTD) or be independents who use a broker’s platform to host their trades.
Starting a company takes a talent for administration and an understanding of financial legalities. The Forex industry is regulated by financial authorities and the first step is for companies to apply for their licenses.
Hiring back office staff to handle trading and banking transactions.
Licensing a reliable and trusted brokerage software.
Renting or buying office space.
Opening Client and company bank accounts.
Hiring Account Managers and Accountants.
Hiring Compliance and Customer Support staff.
Starting a website.
Marketing and advertising to acquire Clients.
Hiring internal or outsourced financial Analysts.
Liaising with regulators and managing Client relations.
As you can imagine, starting a Forex company requires strong financial backing and a big commitment in terms of time and expertise.
The alternative to starting a limited liability company is to focus on being an independent trader and use a broker’s trading platform to place trades. Finding the right broker is the key to a successful trading career.
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Last but not least, make sure you understand the legalities and how the markets work before investing a significant amount of money in your Forex business.