1. Registration of your company in a local or offshore
jurisdiction.
2. Application for a Forex broker license at the U.S. Security
and Exchange Commission (SEC) if you plan to do business
in US.
(If you want to open and operate outside the US, request an
information kit from your local financial authority).
3. Opening a bank account within the jurisdiction to collect
funds from clients.
4. An application for receiving online payments, if you'll be
accepting online funding.
5. Preparation of legal documents, including dealing
manuals & agreements, anti-money laundering policies,
conflict of interest policies etc.
6. Pay registration fees and meet a minimum capital
requirements for opening a brokerage business (Broker-
dealer applicants and registrants must have and maintain
the minimum net capital required by Securities and
Exchange Commission Rule 15c3-1 and comply with SEC
Rule 15c3-3 governing customer protection, reserves and
custody of securities).
8. Find liquidity partners, clearing company(s) that will clear
your trades. (A clearing company will look for your to deliver
a certain trading volume per month: e.g. a total amount of
lots your clients will be able to trade each month).
Every step will include a set of documents to be prepared
as well as qualifications to be passed. The package of
requirements will depend on a jurisdiction where you
choose to register a company.
Registrants must be prepared to pass thorough background
investigation, pass examinations on general securities
principles and state securities laws (NASD series 7, NASD
series 63, 66). Among others, the following criteria are
considered during registration application:
- financial solvency;
- conviction of a crime;
- evidence of past inequitable or fraudulent business
practices in the sale of securities. All the best!!!
