Starting own forex brokerage

fxgood

Well-Known Member
#1
Hello Every one,

If you are a potential investor to start own forex brokerage operations and have $ 500k investment size, i have a team to manage full operation with 10+ years of experience in managing entire setup professionally.
 
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fxgood

Well-Known Member
#3
The basic operation will be an international forex brokerage as service for OTC, CFDs and binary options products, with focus towards pure STP and ECN model but market making and hybrid book is doable subject to some measurable risk elements.
 

Tejas Khoday

Co-Founder & CEO, FYERS
#4
The basic operation will be an international forex brokerage as service for OTC, CFDs and binary options products, with focus towards pure STP and ECN model but market making and hybrid book is doable subject to some measurable risk elements.
1. CFDs are illegal.

2. OTC market for cross currencies is not feasible for retail business or legal as the RBI wants to control the flow of money.

3. Binary options are illegal too.

I have written a post about it on Brainstorm. The only legal way of trading cross currencies is through NSE at the moment.

https://fyers.in/nse-introducing-forex-trading-in-cross-currency-pairs/
 

fxgood

Well-Known Member
#5
1. CFDs are illegal.

2. OTC market for cross currencies is not feasible for retail business or legal as the RBI wants to control the flow of money.

3. Binary options are illegal too.

I have written a post about it on Brainstorm. The only legal way of trading cross currencies is through NSE at the moment.

https://fyers.in/nse-introducing-forex-trading-in-cross-currency-pairs/
CFDs are not illegal world wide, there are many jurisdictions were it is perfectly legal. So we focus and sign up clients world wide were it is legal and a permissible activity and we incorporate the business prefectly were is allowed or regulated, and focus on world wide clients not India or Indian specifically

Again we not focus India or Indian traders, were it is not permitted activity and same story for binary options too :)


It is not crime under any law even under RBI norms, that i can run a business outside India and operates a overseas business
 
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Tejas Khoday

Co-Founder & CEO, FYERS
#7
@fxgood,

I am not aware of laws regarding CFDs and Binary options in international jurisdictions as of now. I'm just not comfortable with CFD platforms because conceptually, they are unregulated casinos. Unlike an order-driven exchange where there are buyers and sellers who are doing deals, in a CFD, there are no counterparties except the platform itself. So, if you win they lose and if you lose, they win. It's the same as betting against a casino in a game of BlackJack or the Slot Machine. The biggest rule in gambling is, never bet against the house! But if you are the House, then well it could be profitable.

I'm out.

P.S - So far, the regulators have not taken any action on CFDs operating within India or by Indian Origin. After cross-currency derivative contracts were launched by NSE, it's anyone's guess when they will crack down on CFD platforms.
 
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fxgood

Well-Known Member
#8
Your outlook about CFDs are traditional, not 100% correct as far as in ECN models of prime brokerages were banks or a institutional liquidity meets or takes the counter party risk with deep pockets :)

P.S : operating a brokerage in international jurisdictions wont counts under Indian laws and nor my plan to to operate from India :)
 

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