When looking for a solution to a challenge, there are so many variables to consider and so many options to choose from!

We all think we know what’s best in theory but when the dreaded time comes to make a final decision, everything we thought we knew become a 5x5x1.2 pool of blurry mushed information. To make things worse we realise that people close to us supporting our decision making process are not enough to give us clarity, maybe because they really don’t know enough or maybe because they’re biased (any future decisions affect them directly). It doesn’t really matter why because we still need to make a decision and therefore forced to look elsewhere for answers. Is it time to maybe say hello to our friendly neighbourhood consultant? Or… not?

What constitutes a friendly neighbourhood consultant?

From most consultants’ perspective, if you’re reaching out with a specific question you must have thought about it enough to lean towards a certain direction. So what’s wrong with giving a direct answer to your inquiry, discussing pricing that works and giving you what you want? At the end of the day, a consultant needs to make money too and complicating things might not result in cashie cash-cash.

Staying within our comfort zone, spending the least amount of time/cost and getting the most return out of each case is a dream come true and to each their own… If the person placing the inquiry doesn’t ask for more, why would you step up and complicate things?

Hmmm… Consulting in its core is neither coaching nor decision making. Due to the number of options one can choose for a specific case, consulting is more like an amazing journey of research/evaluation passed the limitations of the consultant’s network (since that’s where the proposed solutions will be derived from). Now if we can agree that this “limitation” presents a valid argument, how can one assume that the right decision is made only because it follows the direction of the one asking? Especially without considering what else could be done and adding value through the collection of more information and proper due diligence?

But there’s so many solutions/providers – when do we know it’s enough?

Irrespective of how many people/providers you talk to or how many solutions you note down, at some point your notes will become repetitive and present some very obvious characteristics:

1. Most solutions you noted down are of the same nature

When you browse through your notes, you will come to realise that the solutions (even though offered by different providers with minor differences) are the same in nature. So by giving them a definition or a name, you basically merge them under a specific category, a targeted solution. Once you realise this repetition, it’s time to take a step back and look into the following two traits.

2. The solutions complement each other

Although solutions are straight forward on their own, depending on the case’s requirements/limitations, when combined can form a better structure that fixes a short term challenge and at the same time offer a long term advantage that you wouldn’t have seen otherwise. So not having enough options, limits your perspective into what else you might be able to pull off with minor tweaks or combos. Once you have a more complete picture, you’re almost done.

3. You’re able to identify the white noise (all “quick fix” options that would eventually lead in problems during actual operations)

There are so many cowboys in the crowd, presenting and selling and pitching stuff (some of them quite good at it actually) and if you’re not careful, you might make emotional decisions (rushing to fix your current problem by adding another one). You tend to forget the rationale of narrowing down, eliminating, choosing the lesser of few evils (because no business decision is actually perfect). Talking to a few people about the same issue, many times results in different answers that allow you to read between the lines.

Why do people give different answers, you may ask? Well like we said before, not everyone’s the same. Some will take your project face value and give a direct but still good service to what you want (so you’re limited by your own inquiry), some will take on your project and give temporary solutions to fix your current issue (knowing it’s a short term fix, in many cases with potentially irreparable future damages) and some will look into the overall picture and give side options that make sense. In the end what matters is, whoever’s collecting this information (whether yourself or your friendly neighbourhood consultant), to be experienced enough to read between these lines.

Understood!  Then what?

Once these three characteristics are in place, the first step is to identify from the bunch which solutions can actually work on the specific case. As we said above, the correct solutions are the same in nature, so even though you noted down 10 solutions, narrowing them down can result in only 2-3 defined options.

Now that you’ve identified the solutions that can actually work, you can start matching the information derived from the providers and begin the process of eliminating the “white noise”. If you carefully collected the information, you should be able to cross reference the questions/answers of different providers and identify question marks (???), future problems within the solutions they offer.

So where one provider pitched a solution as the answer to your prayers, another might have a different opinion on the matter, for his/her own reasons. The more questions/answers and the more providers you approach for the same option, the better the elimination process of this “white noise” will be. You now have a clearer path as to what can actually cause headaches down the line, even though it might fix a short term problem.

Important note: there’s no right or wrong in choosing a short term fix, as long as you are aware that it’s not going to last. What’s wrong is when a provider pitches this quick fix as a permanent solution. At the same time, if the provider is adamant about this solution (you now know otherwise), it tells you something about this provider as well and whether your interests are actually aligned.

Finally, once you’ve specified the solutions and eliminated the “white noise” (and potentially providers), with this research you allowed yourself to think outside the box and go a step further. All that is left is choosing to move ahead with the solution that fixes your current challenge correctly or combining some of the options and target a long term milestone that you didn’t even think of before this process.

So is your consultant a friendly neighbourhood Spiderman or a nameless villain?

The best consultants – where applicable – won’t give you direct answers/solutions to your challenges. They will provide options according to experience and collect information based on these options. They will not be afraid to add or even remove options they suggested in the first place as more information comes forward, thoroughly evaluate and narrow everything down. The final output will be an educated, researched process to work with and not wishful thinking or pulling emotional tantrums.

Some people are more knowledgeable than others but we’ve come to realise that no one is an “expert” in anything. We’ve seen a lot of “experts” over the years that opened/closed shops taking with them some of the integrity of the consulting business. Surely you must have crossed path with a few yourself.

Making the right choice is almost never (at least in the years that we’ve been consulting) the answer to the direct question you asked in the beginning. It’s very difficult for a good consultant to take on your project as is, knowing there could be better solutions to your case. Walking with such a partner down the path of deciding the future of your business, is most definitely a win because where everyone else keeps failing with inadequate information, you will always come on top with solid structures, targeted milestones and a stronger base to work with.

Food for thought (mostly for us) – Still not sure if we’re doing the right thing by being business oriented and not money-hungry hyenas like a lot of our peers but let’s face it, a leopard can’t change its spots and these are the cards we’ve been dealt with.

What cards are you dealing nowadays and what cards have you been dealt with?

#leopard #LeopardWithSpots #HyenasThatEatMoney #SpidermanSpidermanDoesWhateverASpiderCan

If you found this information useful, you might also like:

Understanding the nature of a Forex IB

Forex White Label – should you go for it?

What is a Tied Agent | Definitions and requirements  

About allFX-Consult:

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections take place, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

What is a Tied Agent?

A Tied Agent is a person (natural or legal) established in a Member State, who, acting under the full and unconditional responsibility of only one Investment Firm (the “IF”) of a Member State, on whose behalf it acts, promotes investment or/and ancillary services, attracts Clients or prospective Clients, receives and transmits Client orders in respect of investment services or financial instruments, places financial instruments or/and provides advice to Clients or prospective Clients in respect of those financial instruments or services.

To avoid confusion we are copying below Article 29 of MiFID2, directly from the ESMA website (link provided below):

1. Member States shall allow an investment firm to appoint tied agents for the purposes of promoting the services of the investment firm, soliciting business or receiving orders from clients or potential clients and transmitting them, placing financial instruments and providing advice in respect of such financial instruments and services offered by that investment firm.

2. Member States shall require that where an investment firm decides to appoint a tied agent it remains fully and unconditionally responsible for any action or omission on the part of the tied agent when acting on behalf of the investment firm. Member States shall require the investment firm to ensure that a tied agent discloses the capacity in which he is acting and the investment firm which he is representing when contacting or before dealing with any client or potential client.

Member States may allow, in accordance with Article 16(6), (8) and (9), tied agents registered in their territory to hold money and/or financial instruments of clients on behalf and under the full responsibility of the investment firm for which they are acting within their territory or, in the case of a cross border operation, in the territory of a Member State which allows a tied agent to hold client money.

Member States shall require the investment firms to monitor the activities of their tied agents so as to ensure that they continue to comply with this Directive when acting through tied agents.

3. Tied agents shall be registered in the public register in the Member State where they are established. ESMA shall publish on its website references or hyperlinks to the public registers established under this Article by the Member States that decide to allow investment firms to appoint tied agents.

Member States shall ensure that tied agents are only admitted to the public register if it has been established that they are of sufficiently good repute and that they possess the appropriate general, commercial and professional knowledge and competence so as to be able to deliver the investment service or ancillary service and to communicate accurately all relevant information regarding the proposed service to the client or potential client.

Member States may decide that, subject to appropriate control, investment firms can verify whether the tied agents which they have appointed are of sufficiently good repute and possess the knowledge and competence referred to in the second subparagraph.

The register shall be updated on a regular basis. It shall be publicly available for consultation.

4. Member States shall require that investment firms appointing tied agents take adequate measures in order to avoid any negative impact that the activities of the tied agent not covered by the scope of this Directive could have on the activities carried out by the tied agent on behalf of the investment firm.

Member States may allow competent authorities to collaborate with investment firms and credit institutions, their associations and other entities in registering tied agents and in monitoring compliance of tied agents with the requirements of paragraph 3. In particular, tied agents may be registered by an investment firm, credit institution or their associations and other entities under the supervision of the competent authority.

5. Member States shall require that investment firms appoint only tied agents entered in the public registers referred to in paragraph 3.

6. Member States may adopt or retain provisions that are more stringent than those set out in this Article or add further requirements for tied agents registered within their jurisdiction.

See the complete article directly on the ESMA website.

Should you become a tied agent?

To answer this question, like with any evaluation on what to do next or how to get bigger, you need to evaluate your current standing. What drove you into thinking that tied agent is indeed an option? Maybe you are a White Label or large forex IB that wants to expand. Or maybe you tried to get regulated and found difficulties to be approved or even worse, got rejected and you need to identify plausible and feasible next steps.

We’re mentioning the above scenarios because allFX-Consult dealt with them in the past. But no matter what the reasoning, becoming a tied agent requires minimal cost, hassle free registration process and it’s a great stepping stone, in order to evaluate if it’s worth it to go for a full EU license on your own. You probably know better than we do, that targeting a European client base is not an easy task today.

Tied Agent under MiFID2 means you are obliged to offer trading conditions like the rest of European regulated brokers and therefore, you should have a solid plan and a European client base before looking into such a concept. No regulated broker will accept to connect if it doesn’t make sense, not only compliance wise (to have a clear standing with your operations) but relative to the income you will produce with them.

What is the process to become a Tied Agent?

Firstly you will seek registration with the national regulator to be appointed as a Tied Agent of a specific Investment Firm and be registered in the Register of Tied Agents.

Some of the details you will provide in this regard will include the following:

• – Name of the Tied Agent and/or Trading name(s)
• – Notarised company documents and contact information
• – Your agreement with the Investment Firm with estimated revenues
• – Personal questionnaires and documentation for shareholders, directors and employees of the Tied Agent who will provide Investment Services

The complete list of needed documents will be provided on a case by case basis and depending on the status of the company applying to become a Tied Agent.

It’s then in the discretion of the national regulator to ask further questions, documents and clarifications. It’s usually a fast procedure, taking just a few months to finalise but if your operations fit in this scenario, it’s definitely worth considering moving ahead. As a Tied Agent, you will learn a lot about the target audience, the regulatory framework and if it makes sense to invest and do this on your own (get your own license).

What does it cost to apply for a Tied Agent registration?

Firstly you need to find the Investment Firm willing to tie itself with your operations. Not all licensed brokers will want to do this, especially if they don’t have enough information regarding who they are tying with and that of course that this new partnership, will not jeopardise/burn their license.

So it is typical that exchange of information will take place, several calls and meetings before any actual costs are brought forward and reviewed.

When it’s all said and done, the cost for the application to the regulator is quite small. From experience, what matters the most is the final arrangement on P&L sharing agreement that depending on the size of the licensed broker, can vary significantly. It would be irresponsible to throw here actual percentages of P&L sharing, because really each case is different.

Lastly, the Tied agent will need to employ a Head of Reception and Transmission that needs to be a certified professional (in the case of Cyprus, the employee needs to be registered in CySEC’s Public Register of Certified Persons (the “Public Register”) which has a salary cost as well as a small application cost, for the regulator to approve the person.

How allFX-Consult can step into this picture:

We have done extensive research on the topic and brokered quite a few deals concerning Tied Agents. In many cases we recommended alternative solutions because as mentioned above, not all cases fit the scenario of a Tied Agent. But almost all deals brokered by allFX-Consult, eventually resulted in obtaining a full license (either in Cyprus or abroad) or remained successful partnerships (Tied Agent partnerships or other) that still benefit everyone involved.

About allFX-Consult

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

Because of this, allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

#tiedagent #forextiedagent #forexlicense #offshorelicense #euforexlicense #forexib #whitelabel

Useful links

Check our comprehensive list of worldwide supervising authority bodies

(includes all member states of the EU)

What is a Forex ECN?

Straight forward definition, not very different from what you will find online, ECN stands for Electronic Communication Network. Simply put a forex ECN is a type of execution that allows a trader to place orders through the Interbank Market, in a more transparent and direct manner than trading against a single forex broker. As we all know, trading against a single broker can have disastrous results in a trader’s account, with so many of them running clandestine dealing rooms in a dark corner of the world.

That being said, not everyone’s the same – through our Sales Training service, we’ve come to get to know market makers that run amazing backend operations, big enough not to worry about specific accounts but rather decide on a daily basis the strategy they will use to handle their overall volumes. Irrespective of their size though, the term market maker still implies a fully operational dealing room in who’s discretion, trades are being executed with strategies in favour of the mothership.

Before we look deeper into the nature of a forex ECN, ponder this – a broker that attracts traders onto its ECN platform is looking for a “cleaner” relationship, since profits are derived from volumes traded and not money deposited in the trader’s account. True ECN brokers are indeed on the side of the traders, supporting their winning strategies, knowing that it will inevitably increase trading volumes.

How does a forex ECN work?

Throughout the years, technological advancements supported the development of systems that helped to facilitate dealing in OTC derivatives such as currency exchange rates. Back in the day, only a handful of companies were able to provide bridges that connected trading platforms with liquidity providers.

The Interbank Market, the market that ECN connects to, consists of Banks and large financial institutions that push their liquidity and volumes of transactions in a manner that allows transparency, anonymity and reliability to each trade that requires its liquidity.

Through a forex ECN trading platform provided by the broker, a trader gains access to deeper liquidity and an execution policy unlike any other. Once an order is placed by a trader, irrespective of buying or selling, the system will provide the best possible (best bid or best ask) price available at that instant.

So the system itself is acting as a dealer, therefore cancelling the manual dealing rooms that are normally handling trader’s quotes in a market making environment. A forex broker that does not operate a dealing room is also referred to as a No Dealing Desk or NDD broker.

Technology behind Forex ECN

What’s better than receiving orders in fractions of a second (milliseconds) as if you were placing your order standing (or sitting) with your laptop at the major data centres in New York and/or London?

The Equinix data centres with their fibre optic cables are recognised to be the fastest, most reliable price sources in the world. Low latency connections, lightning fast executions, reliable trading conditions are some of the advantages that NY4 and LD5 provide and it’s the reason that leading true forex ECN brokers use them for connections and advanced price aggregations with major liquidity providers and pools.

Trading with a Forex ECN account

All brokers that claim to offer forex ECN accounts should show order information and exchange rates in real time. This includes orders processed as well as the prices offered by banks. It ensures transparency in a world where most forex brokers used to run chop shops in dark corners of the world and profiting from the “not so known” price aggregation and price filling at their discretion.

For scalpers and traders that follow high market volatility, typically due to major fundamental announcements (like the Non-Farm Payrolls report), a forex ECN account is the best option since it basically eliminates price manipulation and the dreaded re-quotes. Re-quotes occur especially during high volatility, where the forex broker rejects a price asked from a trader (claiming the market moved) and provides a re-quote that rarely benefits the trader.

This “no-human intervention” is also what defines an STP (Straight Through Process) broker, that uses no dealing room but instead sends the quotes straight through to liquidity providers or an ECN, and only acts as an intermediary. It might be wise to ask a forex broker that claims to offer an STP model, which liquidity providers are used, in order to have a clear picture of the relationship. If looking into a forex ECN account, the term STP/ECN usually go together since the connection is done by straight through process into an ECN trading environment.

Another term introduced with forex ECN is the Direct Market Access or DMA, which refers to the connection of a trader to “a” market (not necessarily an ECN environment, but trades could also be sent directly to major liquidity providers/market makers) that would essentially fill the price. So it’s important to differentiate DMA with ECN unless specified by the broker and substantiated by the order information/real time exchange rates that normally characterise a forex ECN broker.

Spreads in a forex ECN account

A forex ECN account should actually have no spreads marked up by the broker, but instead commissions charged per single transaction (not so much the case nowadays). Since the broker does not benefit from risk management and hedging activities, these commissions serve as compensation for bridging the traders with the Interbank Market. Spreads in a forex ECN account can reach 0 and in extremely rare cases it could even go below 0 (not sure if this even happens anymore, except when ECN was first introduced) – very similar case with the Inverted Spreads (a major recession indicator) where a long term instrument yields less return than a short term instrument, resulting in an inverted scenario. In the past, our Sales Training “borrowed” the term Inverted Spreads to point out to our Sales Reps how real and non-manipulated ECN prices can be.

Disclosure

All information included in this article is for informational purposes only – it does not intend to provide advice to anyone to follow or not a specific type of broker or services.

You might also find this interesting:

All forex regulators by region

Forex White Label  – Should you go for one?

Understanding the nature of a Forex IB

About allFX-Consult

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

Tagging Forex IB and Forex White Labels, as well as individuals looking to start a Forex Brokerage.

Throughout the years allFX-Consult has been establishing and supporting Forex brokerages, it’s now more obvious than ever, that the lengths people will go to and the stories they fabricate to close business is more or less equal to the service they will actually deliver. To start a Forex Brokerage with or without an offshore forex license requires costs you’re most probably unaware of and come with limitations no one will share in full, until you’re already on-boarded on a service.

Before we continue, keep this rule of thumb in mind:

“Never go forward with the first choice presented to you. Get second/third opinions and validate the information until you finally converge everything into a feasible next step”

Choosing a jurisdiction to rest your forex brokerage operations will play a significant role in what type of business you will attract as well as how far you can go with it, so it’s important to consider the reasons you’re expanding as well as your limitations. From what your target audience will be to what trading conditions each jurisdiction allows, it’s imperative to detail your plan before you evaluate the possibilities. And if this plan doesn’t fit in any solutions currently offered in the industry, you can start by compromising certain aspects of it with short term solutions, always keeping in mind the bigger picture and working towards a medium to long term plan.

“Failing to work within a short term frame that’s part of a larger one, ensures stagnation and lack of growth. In 2-5 years, you will be exactly where you first started…”

So who is looking to start a forex brokerage?

The most successful cases we encountered, involved medium to large Forex IBs and White Labels (with consistent monthly deposit volumes between $100K to $1 million), looking to further enhance their operations by setting up their own structures. We’ve also seen smaller networks that also succeeded to start a forex brokerage with the support of external funding and a solid, down to earth business plan.

With trading conditions getting tighter in more reputable jurisdictions, offshore forex license alternatives sent everyone into a frenzy, thinking that it’s the solution to all their problems. As we all know though (or not), just by registering a company in an offshore jurisdiction does not mean you’re good to go since you will be lacking a very crucial element, the bank account. Banks will not open a bank account for an unlicensed forex brokerage, no matter how hard you try.

To put things in perspective, here are some options (with and without licenses) with their attributes:

1. Belize / Labuan / Cayman Islands / Seychelles / Mauritius / Bahamas / Vanuatu / BVI

   1. – License: Yes
   2. – Can be expensive to register and maintain, you will receive quotes from $25k-$50k
   3. – Time frames to get a license and start: minimum 1 to 2 years mostly due to bureaucratic delays
   4. – Solid banking structures and PSPs are working uninterrupted
   5. – Physical office is a requirement, except Belize, Cayman Islands
   8. Capital required:
      1. Belize – $500k
      2. Malaysia – $125k
      3. Bahamas – $120k-$300 depending on license type
      4. Cayman Islands $100k
      5. Seychelles – $50k
      6. Vanuatu – Security bond of $50k
      7. Mauritius – $30
      8. BVI – No capital requirement. Only proof of minimum 1 million in shareholder’s bank account to back up the company if needed

2. St Vincent and the Grenadines / Marshall Islands (This involves registration not a license)

   1. – License: No
   2. – Time frames to register/incorporate: less than a month
   3. – No banking, no PSPs. People/Payment “specialists” might advise to use a paying agent (in most cases another company within the EU) but as the deposits start piling up you will need a truckload of excuses and finally you will be shut down. Also keep in mind that using a paying agent only transfers the banking problem to your paying agent so essentially you’re back to where you started.
   4. – Capital required: No capital required
   5. – Cheap to run but with no working banking structures, what will you do with it? (we have solutions for this but it’s a compromise – as you’ll read later on)

3. Use another offshore forex license as an umbrella – practically acting as a forex IB but with your own brand

   1. – You can start immediately, no license required
   2. – No start-up costs, no capital required
   3. – Support from the licensed entity on the technical and banking level
   4. – Since the licensed entity will be responsible for compliance, KYC, client funds and liquidity will pass from them – so there’s no real client ownership
   5. – You will share a percentage on your P&L

4. Get a forex White Label using another offshore forex license as an umbrella

   1. – You can start as soon as the White Label is created, no license required
   2. – Start-up costs depend on the White Label providers usually between $5K-$12K
   3. – Monthly costs (technical support) also depend on the providers, usually no less than $3K
   4. – The licensed entity will still be responsible for compliance, KYC, client funds and liquidity will pass from them – so again, no real client ownership
   5. – You will share a percentage on your P&L

5. Lease an offshore forex license

   1. – Yes, this is also a possibility although rarely (almost never) offered
   2. – Expensive to operate (not disclosing amounts here because each case is different)
   3. – You need to prove you have existing flow of operations above $500K monthly
   4. – Depending on how you attract business, the only requirement would be not to burn the license so you will be going through stringent evaluation.
   5. – Could combine this with an agreement of buying into the company with each monthly payment. An expensive but excellent compromise with viable future.

6. Purchase an existing offshore forex license

   1. – Buy all the shares
   2. – Partner up and buy a shareholding percentage
   3. – Costs between $100K-$250K

From experience, a combination of the above can do wonders and the saying “two birds with one stone” is the most accurate assessment when calculating the next step.

Fact 1: you cannot wait for 2 years until you get an offshore forex license (that is IF you get a license)

Fact 2: you can’t be a forex IB for the rest of your life

When you weigh the cost of operating your own structure Vs sharing on P&L Vs not doing either, you will see that it’s all needed but at the correct timing. No need to force one over the other when you can set up milestones and basically use all of it, every tool in your disposal.

“Higher cost doesn’t necessarily mean better service, and lower cost doesn’t mean you hit the jackpot”.

How allFX-Consult can step into this picture:

As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.

• Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
• Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.

Start a Forex Brokerage by:

Connecting offshore:

With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.

Connecting in the EU:

With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.

allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

#startaforexbrokerage #ib #forex ib #white label #tied agent #regional partner #licensing

What is a forex White Label?

A full license to purchase your own forex platform is very costly and unless you have the operations to support it, then it is common practice to connect through a forex white label program of another provider (usually a forex broker or a prime broker) and market it as your own, with certain conditions.

This enables you to start your own forex brokerage operations, market your very own forex brand and access banking, technical and technological support for a fraction of the huge cost required to do this on your own.

Important note:  look into your banking structures and any regulatory obstacles before you move ahead with any deals.

Part of what brokers provide with their forex White Label solutions are:

• – Trading Platforms, Affiliate Software, CRM and in many cases a website (if the broker thinks it’s worth it)
• – Low one-off cost, with average monthly technical support fees (in most cases you only pay the cost of the platform provider so check if there are any mark-ups on these costs)
• – Access to their pool of instruments (make sure the instruments your clients trade are part of this pool)
• – Access to deep liquidity (in some cases you get access to tier 1 bank liquidity)
• – Market spreads from 0.0 pips (depending on the broker)
• – Enhanced execution of orders (even on large scale although you need to meet monthly volume criteria)
• – Bridge to LP (some offer this free of charge and some not so make sure you look into this)
• – Support with Sales – Training your sales team
• – Competitive revenue plans

Should you go for a forex White Label?

Depending on the development of your operations, maybe a forex White Label is not the immediate answer to your next steps. Like always, at allFX-Consult we tend to look into compromises that keep costs low but at the same time promote growth and reach milestones that will eventually lead to a predetermined target.

From another article we wrote on obtaining an offshore forex license

“Failing to work within a short term frame that’s part of a larger one, ensures stagnation and lack of growth. In 2-5 years, you will be exactly where you first started…”

Let’s take the case of a forex IB looking into expanding – If the number of new clients introduced and monthly deposits are not constant (or fall lower than average), maybe there are more important issues to fix before adding fixed monthly costs and attempt to operate on a larger scale through a forex White Label.

Looking into the income funnel line, we might identify weaknesses in our online/offline client acquisition, weaknesses in the product we offer to our target countries (audience), sales underperformance or language barriers, issues with our trading conditions, bad execution from our partner broker, failing reputation of our partner broker, shifts in our trader’s demands for conditions not allowed by the partner broker and much, much more.

So although it’s understandable that every networker in the industry wants to start a forex brokerage, it’s crucial to ask the right questions and give the right answers (not wishful thinking) prior to going ahead with a new arrangement, like a forex White Label.

What does a forex White Label cost?

No broker will publicise their cost (for the obvious reason of fierce competition) but the pricing ranges between $5k-$12k one-off cost for getting the platform(s), and no less than $3k monthly, for support.

These numbers are not set in stone, because of the large number of providers, the number of products they might provide within their solution and of course the different terms they require prior to partnering up with anyone.

So it also really depends a lot on the size of your forex operations as well – in many product setups allFX-Consult was consulting on, we advised our clients (forex brokers) to give a $5k worth of platform for free, by adding certain liquidity terms into their forex white label solution. And by taking this simple (but costly) step, we would gain smaller/average networks of $50k-$100k.

How allFX-Consult can step into this picture:

As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.

• Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
• Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.

Start a Forex Brokerage by:

Connecting offshore:

With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.

Connecting in the EU:

With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.

allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

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