License for broker

#1
Hello friends,

I need little bit help from you ,How to get license for brokerage firm ??
I am going to allow clients to trade 4 legal currencies which are traded legally in india USD/INR EUr/INR GBP/INR and JPY/INR ..And i m also going to allow Comex and MCX (gold and silver).Can anybody help me on how to get official license and what is procedure to get...?? (note:the boker i am gng to open is sub-branch of foreign broker and also i am going to allow trading forex pairs under the table on basis of this license) :p.

Help would be appreciated.
 

ashu1234

Well-Known Member
#2
Hi,
If you can come to Mumbai, I can arrange the meeting with the required MCX officials which I know and have worked before for setting up commodities license. Investment required to get a card on private name is around 15 lacs.
contact me at
ashu1234comm at gmail dot com

Regards,
Ashu.
 
#3
Hello,
I just need license for trading mcx ,comex and forex pairs which are legally traded , i am opening a sub branch of foreign broker in india...So for what you said 15 lacs i dont have idea.
 

ashu1234

Well-Known Member
#4
Hello,
I just need license for trading mcx ,comex and forex pairs which are legally traded , i am opening a sub branch of foreign broker in india...So for what you said 15 lacs i dont have idea.
Official license to open forex trading(international forex) is not allowed, but still they are operating in India without any fuss in my opinion.

To trade and get a "members license" at MCX you have to apply for it, and I have mentioned the cost associated with getting that license only.

For forex pairs(indian exchange) you again have to go for license, either NSE or MCX-SX.

So the best way to do it is to get a franchisee of some reputed brokerage house which will save your cost and will allow you to trade MCX and Indian forx pairs.

Drop me mail and I will explain you in detail everything, I guess you are catering to customers who are into arbitrage business.
 

bunny

Well-Known Member
#5
Official license to open forex trading(international forex) is not allowed, but still they are operating in India without any fuss in my opinion.

To trade and get a "members license" at MCX you have to apply for it, and I have mentioned the cost associated with getting that license only.

For forex pairs(indian exchange) you again have to go for license, either NSE or MCX-SX.

So the best way to do it is to get a franchisee of some reputed brokerage house which will save your cost and will allow you to trade MCX and Indian forx pairs.

Drop me mail and I will explain you in detail everything, I guess you are catering to customers who are into arbitrage business.
I agree with the suggestion given here by ashu1234

@mb2491 - A "broker" is a member of the stock exchange. Example: Sharekhan, Anand Rathi, India Bulls, Religare, Reliance Money, etc. Unless you are financially "extremely" well-off, you cannot meet the requirements of net worth, etc. which are mandatory for grant of membership. Further details for obtaining membership can be found on websites of the respective stock exchanges.

From the impression that I gather from your above posts, I think you are not good enough at the moment to become a "broker" because your knowledge of the broking business is only primordial.

Instead, you should opt for sub-broking association with any of the big brokers such as Sharekhan, Anand Rathi, Ventura, etc. These broker will allow you to use their resources(electronic data resources, software, backoffice, customer support, advertising and marketing, goodwill, analysis, etc) in lieu of sharing the brokerage generated by your clients.

In my humble opinion, you should not venture into this, mainly because your present knowledge of this business is not deep enough. Try learning more about this business.

In good times, even the large brooking houses and their sub-broking outlets were mushrooming in hundreds. But after the crash when retail investors reduced their participation and activity, it was mainly the sub-brokers who were affected the most because unlike their big parents, they could not sell mutual funds, IPO, gold, SIP, insurance policies, etc. for their survival.
 
#6
hello,
About the resources you talking i already mention that i am opening a sub-branch of a foreign broker (just like they have Alpari india from Alpari Uk) .The Main branch of company will provide me all facilities like liquidity ,website ,support staff and also the tradeable instruments i have mention..I opening not a broker...just opening a sub-branch of a broker...So i need to open office of the sub-branch and i need to attract clients to trade with me ..
This main branch of company will add instruments like gold and silver according to indian market (mcx) and legally pairs which are traded ..as well will be added by them...In short i would having there indian branch office who would attract clients to trade forex and commodity using services of sub branch...For that i need license.
 

ashu1234

Well-Known Member
#7
hello,
About the resources you talking i already mention that i am opening a sub-branch of a foreign broker (just like they have Alpari india from Alpari Uk) .The Main branch of company will provide me all facilities like liquidity ,website ,support staff and also the tradeable instruments i have mention..I opening not a broker...just opening a sub-branch of a broker...So i need to open office of the sub-branch and i need to attract clients to trade with me ..
This main branch of company will add instruments like gold and silver according to indian market (mcx) and legally pairs which are traded ..as well will be added by them...In short i would having there indian branch office who would attract clients to trade forex and commodity using services of sub branch...For that i need license.
Let me know which forex broker you are talking about, if its not possible to reveal name, pm me or mail me. Most of the forex broking companies are fake and there are problems in India on their operation as they are not regulated by our law. So take informed decision. And you can't take license for a foreign company in India, you can take license only for Indian broking business.
 
#8
Hello,
As far as i know its not fake company and completed register and honest broker..(telling on basis on trade execution and best spreads in indsurty)if not needed license...can i operate without license..?How those other forex brokers office are working than in india.? they dont need any license ..4xp ,alpari,admiral markets etc
 

ashu1234

Well-Known Member
#9
Hello,
As far as i know its not fake company and completed register and honest broker..(telling on basis on trade execution and best spreads in indsurty)if not needed license...can i operate without license..?How those other forex brokers office are working than in india.? they dont need any license ..4xp ,alpari,admiral markets etc
Yes, you can operate without the license. About alpari india, they tried to give forex platform some years back but failed to deliver payouts to indian clients that's for sure and people faced problems in past. Now I think alpari is only into indian forex. Since I've traded forex and have seen in past many forex companies come and gone be it fxcm or alpari, nobody was able to deliver. The game here is to get peoples money as most will go for dealing desk and that's easy money. Go to site forexpeaceacademy, see your brokers repo there and read the reviews, about 4xp and admiral markets I dont know but they got bad reviews. For your information reputed forex broker really don't care to open branch in india, there's already big business out there and anyone from india can sign up online from here and do the business. So make sure its a reputed ECN broker, and still many big shots have come and gone and nobody till date had delivered a successfully working Indian branch as claimed. So no matter what if you are getting good execution and spreads, even if they are ECN, its money game and once you go on big scale, the real thing will come out.
All the Best.
 
Last edited:

Similar threads

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?