How to open your own brokerage business
You can earn money from stock trading, even if you do not know how to trade at all. The article details how to create your own brokerage business.
In order to open your brokerage office, it is not necessary to be able to trade on the exchange. It will be enough that you know the basics, see how it works.
Growing demand for brokerage services.
The anticipation of profit is a very powerful incentive, and therefore drives hundreds of thousands of people of a smart and intelligent look at exchange trading, for computer screens.
Statistics show that in the next few years the number of traders will increase exponentially. Therefore, someone needs to serve these customers.
So, you need to create your own brokerage company.
Benefits of a brokerage business
Very good monthly profit, almost guaranteed and growing
Confidence in the future, traders are not getting smaller
Acquaintance with the market from the inside, as well as communication with the best players
The ability to sell your business in a few years for a round sum, if everything works as it should
How to open a brokerage office
Just don’t think that you need to create a completely new company. This is not true.
3 options for developing a brokerage business
After the brokerage house gave you an affirmative answer, there are several possible options for further cooperation: from a simple one-time commission for a client, to a full-fledged large business with a large income. Consider each of the possible options.
1. Commission for customer drive
You simply recommend customers to them, and they pay you a commission of about $ 100 each. In my opinion - not the best option.
2. Introducing Broker (IB)
You fill in the papers and become their Introducing Broker (IB), i.e. representing broker. You undertake:
- execution of contracts
- transfers of client money to them
- Russian-speaking customer service
- website development
- everything else related to opening accounts for clients
This is already a good option, since you will earn a good percentage of client commissions monthly. To know the approximate figures, consider the following realistic scenario: a hundred clients with small accounts gives IB approximately $ 10 thousand of income per month (in Forex somewhere around 30-40 thousand, but we are only talking about stocks).
Or you can build your strategy only on serving several large customers with accounts from $ 10 thousand. This is more interesting, since such customers sell more shares monthly.
3. White Label Status
You get from the White Label broker, this is such a form of cooperation when the maximum possible profit is “dripping” to you.
Everything is quite simple. You must have a company registered in, say, the British Virgin Islands or Turks and Caicos Islands. Somewhere for $ 2-3 thousand. You will make it in a week. You also need to open a corporate trading account for this offshore company from $ 25 with your staff broker. You will give sub-accounts from this account to customers. You will also need to make a bank account, also in the offshore: customers will send you their money for a trade deposit to it. The complexity of the scheme is deceptive. Everything is very simple, if you understand the essence.
The broker will give you permission to use your logo and company name in the papers on the site.
The advantages of White Label status at WhiteLabelsFX are that you do not pay a commission. It is beneficial for you that traders trade within the day, that is, often (daily) and give good income to the office.
On average, for a month of trading, a trader earns in the same way as his broker. And this is a guaranteed income from your own brokerage business!
Conclusion
Having a desire, you can easily open your brokerage office, and earn money on how your customers trade on the exchange.