The decision to create a broker is a significant leap that can transform your financial position and propel you towards the elite of international financial companies. This article delves into the crucial technical and strategic elements you must consider when making this momentous decision.
1. Trading Volume per Million: The Essential Pillar
Trading volume per million stands as the fundamental pillar for the broker’s sustainability. Two paths emerge: being a fund manager with a trading volume exceeding 10 million dollars monthly or 2 billion monthly. The second option involves building a solid network of retail clients, supported by a strong sales force and a robust IB affiliate program.
2. Initial Costs and Investment Time
Starting a financial company entails fixed costs and an initial non-operational period. Minimums of $240,000 USD are required to cover the first three months, which include installation, configuration, and system testing. Investment and patience are key; as full operability is achieved after this period.
3. Regulations and Means: Implications and Requirements
Despite their restrictive nature, regulations are inevitable in the financial world. The representative and CEO must possess solid financial knowledge backed by degrees, as well as a clean record. Depth in technological knowledge and relationships with suppliers is essential to navigate regulatory and technological challenges.
4. Depth of Knowledge and Strategic Relationships
Creating a broker requires deep knowledge and strategic relationships with technological providers. The proper choice of suppliers is crucial to avoid slowdowns and complications in the broker’s internal processes. Erroneous decision-making in this aspect can result in failures before launching to the market.
5. Monthly Fixed Operating Costs: Financial Reality
Monthly fixed operating costs are not trivial; their magnitude requires constant generation of volume, underscoring the importance of the first point. These costs, which will not be less than $50,000 USD, cover technology, banking relationships, personnel, and legal expenses.
6. Office and Public Presence: Key Visual Elements
A visual representation of an executive, as described in point 3, and a functional office are essential. Although not necessarily intended for public attention, the office serves as a tangible reference for clients who trust their broker or financial company.
