As you put together your Forex brokerage, you will need to decide upon which Forex trading platforms you will offer to your clients, as well as how you will pay for the selected Forex trading platform.
METATRADER 4 FOREX TRADING PLATFORM
Metatrader 4, commonly referred to as MT4, is the most popular Forex trading platform. It is designed to work with automated trading software systems called Expert Advisors, or EAs. Offering access to the MT4 trading platform increases the number of traders you can attract, since most traders are familiar with how to use this platform. However, fees associated with using MT4 can significantly increase your operating costs.
ALTERNATIVE FOREX TRADING PLATFORMS
Your Forex brokerage can also offer a different Forex trading platform, based on your budget, and on the needs of your traders. Alternative Forex trading platforms may be better suited for traders who wish to trade using the mobile and tablet devices, or who want access to a web-based platform for use with multiple computers. Alternative Forex trading platforms may also offer improved customization options, and are typically less expensive.
PAYMENT MODELS FOR FOREX TRADING PLATFORMS
There are three common methods for obtaining a Forex trading platform.
Buying a Forex trading platform offers you full control, and grants you the right to add, remove, or edit components of the platform as needed. While this route requires the largest initial financial investment, over the life of a successful brokerage, this is usually the least costly option.
With a White Label arrangement, you use a Forex trading platform that has been provided by a third party, and simply change the branding to that of your own Forex brokerage. This is the least expensive choice; however, you would have little control over the underlying trading platform, and would need to share revenues with the Forex platform provider.
Leasing a Forex trading platform provides you with a customizable Forex trading platform with a lower initial fee. While this may be a good short term option to reduce the costs of starting a brokerage, as your business grows, leasing fees may eventually add up to a higher total than that of a purchase arrangement.