Starting your own Forex MM

I

Ivanovich

An odd question, and I'm not sure anyone here will actually have the answer, but I'm looking to start a forex market maker.

The thing is, I won't open it to the public. It'll only be for clients that I agree to take on, and it will only be managed accounts.

My question as far as requirements go is two fold...

1. What do I, personally, need as a qualification (ie, series 7,etc) in order to manage other accounts (from a regulatory standpoint)?

2. How do market makers like Oanda or IB get their forex quotes - ie, do they connect through an intermediary bank? Is there anywhere online I can go to see what access like that would cost?

Thanks in advance.
 
Quote from Ivanovich:

An odd question, and I'm not sure anyone here will actually have the answer, but I'm looking to start a forex market maker.

The thing is, I won't open it to the public. It'll only be for clients that I agree to take on, and it will only be managed accounts.

My question as far as requirements go is two fold...

1. What do I, personally, need as a qualification (ie, series 7,etc) in order to manage other accounts (from a regulatory standpoint)?

2. How do market makers like Oanda or IB get their forex quotes - ie, do they connect through an intermediary bank? Is there anywhere online I can go to see what access like that would cost?

Thanks in advance.
More...

Sounds like you would be well-suited to become an Introducing Broker for an existing market maker.

If you want to be registered as a money manager, you would need to take the Series 3 and become a registered CTA.
 
I am not going to work for an existing broker, nor do I need to. I would be doing this for clients in my personal network who have shown an interest in me handling a forex account for them, personally.

But thank you for some of the info. Series 3 you say? And is there any information on how to register as a CTA?

Thank you in advance.
 
Quote from Ivanovich:

I am not going to work for an existing broker, nor do I need to. I would be doing this for clients in my personal network who have shown an interest in me handling a forex account for them, personally.

But thank you for some of the info. Series 3 you say? And is there any information on how to register as a CTA?

Thank you in advance.
More...

The NFA has a ton of info on registration. They are one of the only helpful regulatory agencies out there.
 
What you might consider is becoming a White Label for an existing firm? IE you use their platform and pay a one time fee (or bring a certain number of assets) and use them as the liquidity provider. Otherwise, I'm not really sure. I know it's not exactly what you asked though. :)
 
Oh, well what platform do you like to use? Or, who are you trading with now?

I know all the MT4 dealers allow this, the reputable ones at least. If that's not an oxymoron, rather. :D

I think FXSOL does also.

So who do you currently trade with and/or who are you comfortable dealing with?
 
Oanda at the moment. I've got a low-mid level 6 figure account with them and have had no problems for the 4-5 years or so I've been a customer.
 
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