If you’re new to the industry and know nothing about backend technology and systems, don’t worry—we’ll guide you step by step through the essentials and teach you how to quickly launch your forex platform from scratch, helping you avoid common pitfalls.
Below, we’ve selected three frequently asked questions about setting up a forex platform and will provide clear, easy-to-understand answers.
Question 1: Who is suited to build a forex platform?
Among those interested in building a forex platform, we’ve made a general classification, dividing them into four main categories:
- Large IB : Typically, these are affiliated with a brokerage firm. As the IB business continues to expand and accumulates a substantial client base and trading volume, they may consider developing into an independent brand with greater management autonomy.
- Asset Management: Driven by the need for portfolio diversification, these firms seek to transition from private equity in the stock market to the foreign exchange market.
- Domestic Commodities: Domestic commodity firms seeking to transition to the international market.
- Other Industries: Industrial companies with strong financial resources and operational capabilities seeking to transition into or expand their investment portfolios.
Question 2: What kind of broker do you want to be?
When you start your own brokerage business, the first thing you need to decide is how you want to execute orders for your clients.You can choose to operate as an STP (Straight-Through Processing) broker using the A-BOOK model ( How Do A-BOOK Forex Brokers Make a Profit? )—connecting the platform to a network of international banks and liquidity providers to earn spreads by routing orders;Of course, you can also choose to become a market maker using the B-BOOK model ( How Do B-BOOK Forex Brokers Make Money? ), where orders are not routed to the market but are instead matched directly against the trader’s position—the client’s losses become the broker’s profits. Currently, most brokers in the market offer both models.
Question 3: Three Ways to Choose Core Trading Software
- MT4 Master Account: You can choose to purchase the MT4 Master Account plan offered by MetaQuotes, but this requires a significant upfront investment and entails considerable operational and maintenance burdens. However, if you are engaged in long-term trading or operate a relatively large company, having a Master Account will grant you the highest level of access and provide you with many customized platform features.
- MT4 White Label : Built using MT4 shared server technology, it involves significantly lower costs than the main-label version. However, it offers less customization and has limited administrative privileges.
- Sirix and Other Trading Platforms: There are many other customized trading software solutions on the market that differ from MetaQuotes’ offerings and feature unique functionalities; these are gradually becoming tools for brokers to differentiate themselves in the marketplace. For example, more than 100 brokers now choose social trading systems such as Sirix.
When setting up a platform, the most critical component is forex trading software. Currently, the MT4 trading software developed by the Russian company MetaQuotes is quite popular. However, in recent years, MetaQuotes has announced that it will tighten the application review process for brokers in the Asian region and will require all brokers to undergo KYC verification to prevent illegal activities such as financial fraud and identity theft.Review MetaQuotes’ latest KYC document submission requirements and verify, item by item, whether your startup meets MetaQuotes’ requirements.
In addition, there are social trading and copy-trading platforms developed by other technology companies, such as Sirix. Emerging brokers should select a solution based on their own needs and circumstances.
