If you are interested in signing up for a white label brokerage program and would like to learn more, please view our White Label Brokerage services page.

Understanding a White Label partnership

Setting up a white label partnership is a very lucrative way to enable brokers, financial institutions, and money managers to grow and expand their current business by providing them with complete online forex trading solutions.

A white label partnership is achieved by creating relations with a recognized international licensed forex brokerage firm. From here, the individual or company can enter into a suitable white label brokerage program.

Many brokers and financial institutions choose to set up a white label partnership as it enables them to save time, money and human resources that would otherwise be used on setting up a forex brokerage company from scratch.

When establishing White Label relations, you will be provided with a trading platform, market access, product expertise and internal operations. You will be able to introduce your current clients to international financial markets, without the added complications – or costs, of being a licensed and regulated forex broker.

Establishing a white label partnership is an excellent opportunity to take advantage of one of the fastest growing sectors in the world, and earn steady revenue. A white label partnership will provide you with complete technical and management support and guidance, along with a range of effective risk management tools. It is the ultimate way to enhance your profits, without the additional complications of establishing your own brokerage firm.

DeltaQuest offer professional legal advice and information relating to your forex license. To learn more, please Contact DeltaQuest.

The implications of losing a forex license

When applying for a forex license the process can be a fairly longwinded one, as regulatory bodies adhere to strict requirements. Each regulatory body has its own rules and regulations which must be fully complied with at all times, otherwise the license will not be issued. Once issued, it is fundamental that your forex company lawfully conducts its business in full compliance with the relevant regulatory body.

As money laundering and unlawful behavior is not legally permitted within the forex industry, financial regulatory authorities have tightened measures and are obliged to follow strict regulations that ensure forex companies conduct themselves in a completely lawful manner. The purpose of ensuring such conduct is to make certain that any illicit activity is limited or entirely prohibited. Companies found conducting unlawful activity or legal violations could end up losing their forex license.

Financial regulatory authorities are obliged to maintain strict regulations in relation to forex license issuing and maintenance. Any occurrence of violation could result in the loss or cancellation of your forex license. Any ill conduct relating to commodity exchanges and exchange trade, as well as any violations relating to reports, internal records and so on, could result in the loss of a forex license. It is therefore important to follow the strict requirements of the regulatory body in place within your chosen jurisdiction.

DeltaQuest offer a range of forex broker licensing solutions and can assist you with obtaining a brokerage license in the relevant jurisdiction. For further information, please Contact Us.

The process of drafting a license application

When setting up a forex company, one of the most crucial stages in the formation of your company is the acquisition of a forex company license. This process will differ depending on your selected jurisdiction; however it always involves submitting a number of documents and certificates to the relevant regulatory body.

In addition to submitting documents, you will also be required to submit an initial fee in order for your license application to be evaluated by the licensing body, which in some cases may entail further charges, depending on the fees incurred.

Before submitting your license application it is advisable to complete an initial draft that can be assessed and approved by an independent advisor. This is important as if any initial errors are found, it will reduce the time spent having to resubmit an application that may be rejected by the licensing body. This will also reduce the duration or turnaround time of registering a fully licensed forex trading company.

Acquiring a forex license is not an easy process and therefore it is important to ensure that every stage of the procedure is completed correctly in order to avoid delaying the application process.

If you are interested in establishing an investment firm and would like to learn more, please Contact DeltaQuest.

The important of forex brokerage insurance

When establishing your forex company it is important to obtain the correct type of brokerage insurance in order to effectively cover your company should the necessary circumstances arise. Brokerage insurance will cover the cost of defending any claims and damages payable that relate to a client’s financial loss as a result of alleged neglect, error or omission.

One of the most common types of insurance acquired by brokerage firms is professional indemnity insurance, which is used to cover some of the circumstances listed above. Professional indemnity insurance is the preferred choice amongst forex companies, as it gives your company thorough coverage, irrespective of whether the claims made are genuine or not. You will also be given professional, legal and monetary assistance, should your business be subject to any legal threats.

Further to the advantages listed above, a forex company that has professional coverage is likely attract a broader clientele, as this is what many investors look for when looking to trade with a brokerage firm. People visiting forums usually discuss the safety and reliability of a firm, thus insurance coverage plays a huge role in attracting more clients. Forex is an extremely competitive industry and clients want to know that their assets are protected should the company encounter any difficulties.

Having brokerage insurance also means that your company is provided with higher levels of security. Without professional indemnity or brokerage insurance, the financial security of your investment firm could be under threat.

DeltaQuest has knowledge and expertise in the field of forex company formation. To learn more, please view our Risk Management Services page.

Understanding risk management

Risk management is the process of employing a range of strategies to control or reduce financial risk occurring in a forex company. All forex companies are subject to a degree of risk as a result of movements from competitors’ prices, foreign exchange rates and interest rates. Other risks that may take place include competitors’ cost of capital and the rise and fall of raw price materials. Further still, there is also a degree of risk involved in managing and maintaining a forex company.

It is important to carry out foreign exchange risk management procedures for a number of reasons. When operating a forex company, you will encounter many kinds of customers who want to achieve different things from your forex company, and in many cases will be dealing with large sums of money, which could easily result in risk. It is therefore important to implement a number of risk management procedures in order to reduce the amount of risk being placed on your company and your clients.

An example of a risk management procedure is the employment of a stop-loss order, which is an order that is placed by a broker to sell a security when it reaches a certain price. The purpose of employing such tactics is to minimize loss to the greatest extent possible. Another example of a risk management procedure is carrying out due diligence checks on customers, to be sure that potential clients have not had any connections with any illegal financial activity.

DeltaQuest provide expert advice and guidance on all aspects of forex company formation. To learn more about the forex company formation process, please Contact Us.

An outline of automated forex trading

Automated forex trading is an automatic system that allows for the buying and selling of orders based on an electronic system. Once a certain set of criteria has been programmed into the system, the orders are then sent out to be executed automatically.

In order to carry out automated forex trading, a computer system is set up with a predetermined set of instructions that are created to carry out a calculated function. The purpose of such a system is to enable the programmed system to place trades on the forex market in accordance with the predetermined rules.

Automated forex trading systems are used primarily by those traders who place trades more frequently than the average trader. Their aim is to replicate human forex trading, with the elimination of the natural stress or anxiety that often comes with human forex trading.

Automated forex trading offers a number of advantages to traders, including the ability for trades to be automatically executed in accordance with the predefined instructions. In physical trading, traders often take spontaneous risks when they see a currency’s value unexpectedly rise or fall, and this can easily result in them losing vast sums of money.

Such systems are particularly advantageous for many forex companies, as forex trading is in relentless operation 24 hours a day, and therefore it is useful to have an automated system to continuously place trades.

DeltaQuest has many years of experience in forex company formation. To learn more, please view our Forex License services page.

The process of selecting a jurisdiction

When selecting a jurisdiction there are certain requirements will need to be taken into consideration, including:

Set up fees

Consideration for the set up fees is crucial, as many jurisdictions have extortionate set up fees and minimum capital requirements. Without the required fees, businesses will not be able to acquire the required license, therefore once you have selected a jurisdiction it is fundamental that you have the required capital in place in order to proceed.

Ease of set up

The process of setting up a forex company differs from one jurisdiction to the next, and in many cases the formation process is far more straightforward and convenient than in other jurisdictions. Researching this factor may influence your ultimate decision.

Regulatory body in place

The regulatory body in place within a jurisdiction is an influential factor in the jurisdiction selection process. Some regulatory bodies have a more powerful and reputable standing and in this respect, are more likely to attract a broader clientele once you are established.

Location

If you are looking to relocate for forex company formation, then the specific location of a jurisdiction may influence your eventual decision. If you reside in Europe but do not wish to relocate to a different continent, this may assist you in filtering your decision further.

There are numerous jurisdictions available for forex company formation; however the one that you select will depend on your specific requirements as a forex company owner. It is best to seek the advice of a professional consultancy firm to assist you in making your decision.

To learn more about the brokerage services DeltaQuest provides, please refer to our Broker Tools services page.

The role of a broker dealer

A brokerage company is a financial institution that offers the trade of financial services such as currency exchange, futures and other securities. The broker dealer therefore refers to the specific individual or individuals that execute all orders on behalf of its clients, as well as from the company’s account.

A broker dealer is a term predominantly used in the United States to refer to a person or firm that operates the business of buying and selling securities. The dealer operates as both a broker and a dealer, depending on the specific transactions taking place.

When acting as a broker, the individual executes trades of behalf of his client. When acting as a dealer, the individual executes trades on behalf of his firm’s own account.

In order to become a broker dealer you must first form your forex brokerage company in the jurisdiction of your choice. From here, you must set up a bank account and deposit the required share capital. At this stage the licensing and documentation can be prepared, which involve clearly outlining the specific tools and services that you wish to offer within your brokerage firm.

Once your company is fully licensed and registered, you will be able to begin your relevant broker dealer services.

DeltaQuest can assist you with all of your merchant account needs, including the formation of your forex merchant account. To learn more, please, view our Forex Merchant Accounts services page.

The role of a forex merchant account

A forex merchant account is a specific type of merchant account that is obtained by forex companies. The purpose of this particular type of account is to allow multi-currency processing by clients located across the globe. For example, many forex merchant accounts enable Chinese Yuan processing, as well as processing from Arab countries.

A forex merchant account is obtained when a forex company needs to process and fund their customers’ trading accounts. This type of merchant account is therefore designed specifically to process transactions by forex brokerage firms. It also offers customers a safe and secure environment in which to deposit their funds thus providing enhanced safety to both customers and the company.

By setting up a merchant account, your brokerage firm will be able to offer quick, easy and safe methods to process payments. In addition, forex merchant accounts give merchants the opportunity to process flexible and high per-transaction and monthly limits per credit card.

When beginning the process of acquiring a forex merchant account, the jurisdiction in which your forex company is established will affect the merchant account acquisition process. In addition, the payment solutions you wish to offer to your clients will influence the type of forex merchant account obtained, as well as the type of broker license your forex company has.

DeltaQuest has a wealth of knowledge and experience in assisting individuals and companies with acquiring a broker license. To learn more, please Contact Us.

What to consider when acquiring a broker license

In order to acquire a broker license you will first need to select which jurisdiction you wish to establish your forex company within. The process of selecting a jurisdiction can be relatively complex and will depend upon the exact features that you wish to take advantage of within a particular jurisdiction.

Once you have selected a jurisdiction you will then need to demonstrate to the regulatory body that you have the required minimum capital in place to begin forex company formation. This procedure can be fairly costly and many jurisdictions require a significant share capital deposit amount in order to proceed with the license acquisition. This amount must be placed within a corporate bank account in your selected jurisdiction.

At this stage you will then be required to prepare all licensing and other documentation for presentation. Once this stage is complete you will then need to create an internal company structure that includes an organizational chart, as well as a detailed company profile which outlines all of the objectives of the company.

Once your licensing application has been approved and your forex company is fully established, you will then need to show that you have the necessary capital to uphold your forex company, in line with capital adequacy regulations. Your forex company will be subject to regular audits and other checks, as required by the regulatory body in place.