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From IB to personal business: a step-by-step guide on how to start a Forex brokerage firm. Pros and cons of being a broker.


From IB to personal business: a step-by-step guide on how to start a Forex brokerage firm. Pros and cons of being a broker.

Starting a brokerage firm is widely believed to be expensive and time-consuming. Because of this common misconception, people often choose to become an IB (Introducing Broker) instead of taking a chance and trying their luck at achieving genuine success. We want to dispel your prejudices and give you a step-by-step guide on how to start a forex brokerage firm easily with UpTrader.  

Being an IB and getting about half of a broker’s revenue seems like a great deal: after all, you are only looking for new clients, and the broker is doing all the heavy lifting, like trade execution and payment processing, right? Wrong. 

You can get all of that at UpTrader just for a small monthly fee (from €1,000 per month) and keep all the profits to yourself. We can offer you a white label of a trading platform bundled with our award-winning UpTrader CRM and Backoffice system and will help you sort out your other worries like establishing a company and signing up with payment system providers. 

However, do not forget that a bigger income comes with a bigger responsibility. With White Label all the actual customer service is your job: you will need to think through your branding, marketing campaigns and sales strategy. 

Previously, brokerage business required deep technical knowledge – you had to go deep into both trading and IT. However, things have become much simpler in recent years: to start a broker that will be ready to receive customers a couple of weeks later is no longer a dream. IT-services and products can be outsourced, infrastructure can be built in cloud, and what is left to you is only sales process. Too good to be true? But not with UpTrader.  

In 2020 you do not need to have considerable knowledge in brokerage business. Many entrepreneurs coming to UpTrader are far from being experts. And that is absolutely fine for a broker now. There are 5 important steps that should be followed. 


  1. Work out your corporate framework 


First you need to register your company. The registration process is quite clear and simple, although it has its pitfalls. 

When it comes to launching new ventures, one of the key points is the choice of jurisdiction of your company. Before settling upon a particular region, you need to consider which jurisdictions offer you the best conditions for doing business.  

The most common choice is offshore. You can have a legal entity registered in, say, Saint Vincent and the Grenadines. The main advantages of having offshore companies are no taxation, flexible legislation, and support of foreign businesspeople at all levels. Rather good opportunities for doing business, right? 

However, running an offshore company has its own drawbacks, such as certain difficulties with signing up for bank accounts and payment system providers. To avoid such problems, you can open a company in a regulated jurisdiction (for example Labuan region of Malaysia), it will be much more expensive, but will show clients and business partners that you are a serious company that can be trusted.  

UpTrader provides a full range of legal serices both as a standalone package, and as part of White Label Meta Trader 4 and Meta Trader 5 offerings.


  1. Get a trading platform  


That is an easy one! For sure you are already familiar with MetaTrader, the world's most popular trading platform, used by the vast majority of brokers. MetaTrader's popularity is due to its reliability, comprehensive trading conditions settings, tools for technical analysis and familiarity to traders from all over the world. 

There are two versions of MetaTrader: MT4 and MT5. Both platforms are designed for Forex trading, financial market analysis and use of expert advisors.  

With the help of UpTrader you can buy White Label of any of them. Actually, getting a White Label is the only way for a new company to get the more popular MetaTrader version 4, because new copies are not being sold for quite some time now. 

UpTrader White Label MT4/MT5 solution:   

— Provides access to financial markets both from desktop and mobile.  

— Gives a wide range of trading instruments in real time: popular and exotic currency pairs, CFD shares, futures, indices, metals.  

— Provides statistics: analytics, charts, indicators.  


  1. Connect to a liquidity provider 


Next you need to think about your liquidity provider. What is liquidity and why is it important? A broker’s income is the difference between the spread of their liquidity provider and the end spread for traders. That is why it is important to find a stable liquidity provider with the tightest spreads. It allows you as a broker to hedge your risks.  

There are also brokers who themselves act as the counterparties in trades of their clients without the participation of large market makers. In this case, a broker profits from traders who “blow” their deposits, which sometimes disturbs clients as the broker seems to be interested in their failure. And there is a risk of professional traders bankrupting the broker with large earnings.  

The best of both worlds is a balanced risk management strategy. For example, passing high-volume clients to a bigger liquidity provider, while acting as a market maker for those who trade small volumes. 

Brokers usually combine sources of profit from the trading activity of their clients and rarely work exclusively with one model. On the average, a small broker deals with a monthly volume of about $100 million. 

You can choose your own liquidity aggregation model with UpTrader.  


  1. Setup an online Backoffice and CRM 


It can be said that the key component of a successful modern brokerage business is an online Back Office system that allows clients to manage their accounts and funds, and brokers to work with their clients. It helps brokers manage the entire client relationship life cycle in one place. 

While choosing a trading platform might be easy – after all, there are not so many options to choose from – picking a Back Office and CRM system might be tricky: there are a lot of options on the market. But they are not created equal. 

A common mistake is to try to use a general-purpose CRM system. These CRMs are not really fit for brokerage companies – after all, managing goods in warehouses and their logistics is quite different from managing trading accounts. 

Then there is a variety of brokerage CRM systems on the market, but most of them were built by brokerage companies for themselves and the decision to sell them to other companies was an afterthought. This makes these CRMs really suited to only one way of doing business, customization options are lacking, and every slight change requires expensive development projects. Setup time for such CRMs may take several months. 

Thankfully, there is a new wave of modern brokerage SaaS CRMs such as UpTrader CRM. These CRMs were built with startups in mind, they include all the necessary options out of the box and can be launched in a matter of days. For example, some of our clients went from signing of an agreement to live operation in just 24 hours. 

UpTrader CRM is our flagship product that we are truly proud of. It includes a Trader's Room where a client can register and manage their own accounts and funds, an IB section for your Introducing Brokers, a Back Office panel for the staff of the company, a special section for your Sales team, and an Administrator’s panel with flexible customization of access levels and available features for staff and customers. 

UpTrader CRM helps to manage your Introducing Brokers, marketing promotions, bonuses and see all your clients and their trading results right in one place, while IB programs can be easily integrated into your brokerage website. 


  1. Create a website   


Of course, for the good brokerage business, it is necessary to create a functional website. Nowadays you can easily do it yourself or seek professional help. UpTrader has a professional team that can create a fully functional website for your company. Our services include branding, copywriting, design, and web development. Websites we build are fully integrated with our products.  

That is all! Only these five steps separate you from success in the financial market. 10 years of successful experience in Forex industry make UpTrader a trustworthy partner to help you build a new business of your own. 

Contact us at  

The whole industry already went online


The whole industry already went online

UpTrader participated in the conference and expo Virtual Vision Finance. Conducted completely online, the event’s format was perhaps unconventional. Or maybe it’s to become the convention? What happened to business processes of global companies who provide financial services to individuals and b2b fintech firms because of the COVID-19 pandemic? 

UpTrader CEO Vasily Alexeev:

“I won’t concentrate on the obvious, but let’s summarize the main points: more new clients coming in, increased trading volume. People are staying at home, they have nothing to do (in a broad sense), some are looking for new sources of income, some want thrilling experiences. Moving further. Visiting banks and other financial organizations is limited. As lockdowns are lifted, new habits can seriously impact the pre-COVID workflows. Here we have increased volume of payments in alternative finance, firstly it’s cryptocurrency, KYC services also gain in significance. We believe that all this calls for changes in regulation. The pandemic has directly fostered the growth of experience economy. Its primary features are engagement, service, entertainment.

In view of this, participants of panel discussion several times brought up a challenge faced by Forex industry—gambling sector. The latter’s product is more engaging & entertaining, has fewer intellectual barriers for new players, and adapts to new trends much quicker. Another response to the pandemic is the ‘antiviral marketing’. Thousands of marketing professionals across the world rushed to capitalize on the topic of virus and the quarantine. However, it’s gradually becoming a faux pas to exploit the pandemic, and experts even introduced new terms: ‘COVID marketing fatigue’ and ‘COVID burnout’. People really do suffer from emotional burnout, tired of constantly being reminded of the disease and the restrictive measures, so it’s clear they should be given a break.

Finally, the general logistic insight. Entrepreneurs all over the world suddenly saw that it’s not necessary to fly and spend money on trips to have productive communication with partners. People engaged in Forex industry, much like those in IT, by definition more open to remote work, find in it the same challenges as people working in other sectors do. Difficulties in communication with coworkers when solving current tasks, lack of informal communication, blurred lines between work and private life. We see how the coronavirus pandemic forces almost every worker and employer to reassess the basics of how their activity is organized. We live in a new world, with new formats, and the pandemic merely served as a catalyst for change in business processes and people’s minds.”

Learn how two launch a forex broker in two weeks


Learn how two launch a forex broker in two weeks

Don't miss your chance to learn how to launch a forex broker from scratch just in two weeks!

UpTrader hosts a live webinar on 3 July 2020 at 10:00 GMT. All participants will get a ready-to-use plan to start a forex company at minimum investment.

Register for the webinar here.  

New slogan to celebrate the 10th anniversary of UpTrader


New slogan to celebrate the 10th anniversary of UpTrader

UpTrader presents a new slogan “Change Up!” to celebrate its 10th anniversary that fits the stage of steadfast development the company is on right now.

“UpTrader continues to change for the better. Recently we have released the completely new visual and navigational design of the site, it’s now easier to examine the capabilities of our products and make important business decisions,” said the CEO of the company, Vasily Alexeev. “In the year of the company’s 10th anniversary, we can proudly say that we provide services for clients in 190 countries across the world, something that seemed like a distant goal only a few years ago. We continue to gain pace, not only in new markets, but also in regard to better product solutions, and our new slogan ‘Change Up!’ is perfect for our current stage of development as a company.”

Alexeev highlighted that there are plenty of brokerage software solutions offered on the market, but to make the right choice it’s important to pay attention to several key aspects that will become the foundation of stable business growth.

“I’d say they are three: ready-to-use software tested by dozens of companies, history, and expertise of the software provider, as well as the ease of integration into your business,” says Alexeev. “We can be proud of all three. For ten years now the company has been providing IT infrastructure for all areas and all operating cycles of brokerage business. Setup and launch of our products take only a few days. More detailed information and all our current offers can be found on the new website. We’re always happy to help!”

UpTrader is an international fintech service provider for companies operating in different areas of the financial market, founded in 2010 by a team of financial technology experts from Russia. The company is working in the B2B segment.

The main products provided by UpTrader are the services for the creation of a brokerage company from scratch, a trading ecosystem that includes websites, mobile apps, CRM, client interfaces, trading platforms, affiliation systems, a full range of cryptocurrency services.

UpTrader integrates RAMM into trader interface


UpTrader integrates RAMM into trader interface

Copy trading platform RAMM is now available in UpTrader’s personal area. The easy-to-use service with accurate order execution will allow attracting up to 40% more new clients.

UpTrader, a developer of solutions for Forex brokers, has expanded the functionality of its trader interface with a new addition: the copy trading platform RAMM (Risk Allocation Management Model) by RAMM.TECH.

Thanks to the seamless integration of RAMM into UpTrader CRM interface, a broker’s clients of all levels now have access to a stable service with extensive earning opportunities and a robust risk management system.

Other tools that allow users to copy trades are significantly inferior in terms of the flexibility of personal settings, risk management, and the transparency of the whole process. Moreover, many similar services don’t allow users to stop the copying instantly, even if they see that they are losing money. In some cases, there’s a fine for premature disconnection.

Compared to services with such limitations, RAMM is a sophisticated system that allows investors to assess and fully control the level of risk, while preserving the high effectiveness of investments. To curb the risk, users can set acceptable loss levels. This ensures the security of funds on the account, since the investor essentially determines the level of capital protection, and the process stops immediately when the preset limits are reached.

Unlike other copy trading systems, RAMM is an independent platform that guarantees 100% accuracy of copying. This prevents slippage, requotes, missing instruments, or temporal difference in trading sessions.

In the trader’s interface in UpTrader CRM, users can create a RAMM account and jump instantly to investing in the most high-performing trading strategies, or share their own investment portfolio with other traders. Strategy authors can set profit and turnover fees for investors.

User interface provides charts to examine the performance of a trader. It’s possible to invest in several using one account, with different stop loss and take profit orders for each one. This means that even if something goes wrong for the strategy’s author, the investors will be able to protect their funds up to a certain degree.

Managers can see the history of deposits and withdrawals on RAMM accounts in the back office, just like with other account types.

The integration of this user-friendly and functional platform will make attracting newcomers and professional traders who want to share their strategies easier for brokers. Even if a broker doesn’t have many professional traders, they can always add the pool of strategies from the clients of other brokers provided by RAMM. This works both ways: RAMM makes getting new clients cheaper and stimulates the existing ones to trade more actively.

About UpTrader CRM

UpTrader CRM is a software solution for efficient management of a Forex business. It includes three interconnected interfaces: admin panel for the owner, back office for managers, and client interface for traders and partners.

Setup and launch of UpTrader CRM for any broker take only a few days. UpTrader support team will remain in touch with the broker throughout the entire lifetime of the software to resolve any issues should they arise. To order a trading platform, website, or CRM, submit a request to [email protected].



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