Corona Virus/Covid-19 Pandemic: Right time to start your own Forex

Forex Solutions

Forex Solutions

March 27, 2020

The world as we know is in doldrums primarily due to Corona Virus or COVID-19 which has been declared Pandemic by WHO. Almost all the securities markets are falling world over. This is probably the first time when even Gold is falling when stock market is falling. Crude has nosedived. Bitcoin which has been touted as “safe” investment same as Gold has depleted its value sharply contrary popular belief of it should have been gone up.

There is no vaccine or medication available for Corona Virus. Moreover, it may take while before we see any substantial results. So, the only solution to the Corona Virus or COVID-19 is physical distancing by social distancing. Many people have gone into “Self Quarantine” and staying home.

Now is a good time to start forex brokerage business that you have been planning for so long. Here is the reasoning:

  • Stock Markets are in turmoil and Liquidity is fast eroding. The liquidity is the life blood of all the securities markets be it stocks, bonds, crude, gold, commodities or FOREX. Without liquidity, markets are worthless.
  • Many countries have either implemented restrictions like ban on short selling or are planning to put these restrictions. Short selling is not the only restrictions; there could be many more going forward if the conditions don’t improve. China kept its market almost closed and has been controlling it vigorously.
  • Many businesses are either shut or partially closed. Large Corporates are bailed out by stimulus packages. Small businesses are not going to get much benefit. What are they and their employees going to do to make living?
  • Since Forex Market is decentralized, Liquidity doesn’t depend on just one market or government. No one agency can control or stop trading in Forex.
  • It doesn’t cost much to start a Forex Brokerage Business. One can start a fully branded MT4/MT5 White Label Brokerage for less than USD 10,000 in first month charges and USD 3500 in monthly charges depending on what jurisdiction they operate in.
  • A co-branded Forex Brokerage also known as Forex Grey Label (MT4/MT5 Grey Label) would cost much less. You can start Forex Grey Label Business for as low as USD 2000 in first month charges and USD 1500 in monthly charges.
  • Forex Brokerage Business is largely run on technology only. A good Turnkey Forex Solution Provider or Forex Brokerage Technology provider would set you completely free.
  • What kind of operational set up is needed?

The core function of a Forex Broker is to help traders discover the best prices. Moreover, let them trade at best prices. Forex Brokers can be broadly divided into two categories on the basis of how trade orders are filled:

All you would need is to on-board and serve the traders/clients to start and run your won forex brokerage business.

  • Since you are just starting up your brokerage, you should target both seasoned and first time traders.
  • You may offer promotional packages to seasoned traders to open account and trade with you.
  • First Timers should be offered with DEMO Account to learn the ropes of Forex Trading. It takes a while to understand what is a currency pair, lot sizes, brokerage charges, and spread, swap charges, etc.
  • DEMO Forex Trading Account would give them confidence. The conversion rate of DEMO account to Live Trading Account is very high.

All you need is here

Why wait? Start now!