For Sale: FX broker company

[KWU]

We are selling FX Margin Broker Company.
We just set up the company and didn't start it yet. The reason that we are selling is our investor have financial issues so we decided to close our business for now.

It's not a white label company, it is connected to directly LP.
we are offered EUDUSD 0.8~0.9pips from LP and above spread will be your income.

Whoever want to have a own FX broker company, this will be great chance.
The company is completed with paper works, licences, and its website.
Also it's ready to change the owner.

Currently we are offering all of FXs, and Gold.
You can add indices and Oil if you pay extra money.
But All of FXs and Gold should be enough.


We are selling it at $55000 which is a lot lower than what we spent to set up.


For more details, please contact me.
Also you can email me at...
[email protected]

 

[f2calv]

Sounds like an amazing opportunity to me :whistling

 

[highbury fx]

We are selling FX Margin Broker Company.
We just set up the company and didn't start it yet. The reason that we are selling is our investor have financial issues so we decided to close our business for now.

It's not a white label company, it is connected to directly LP.
we are offered EUDUSD 0.8~0.9pips from LP and above spread will be your income.

Whoever want to have a own FX broker company, this will be great chance.
The company is completed with paper works, licences, and its website.
Also it's ready to change the owner.

Currently we are offering all of FXs, and Gold.
You can add indices and Oil if you pay extra money.
But All of FXs and Gold should be enough.


We are selling it at $55000 which is a lot lower than what we spent to set up.


For more details, please contact me.
Also you can email me at...
[email protected]

Some questions interested parties may want to ask:

1. Who is 'the broker' licensed with? Are you a 125k firm or a 730k firm?
2. Are you an Appointed Rep (A.R) or Corporate Authorised Rep (C.A.R) of a regulated brokerage?
3. What are the fixed over head costs for regulatory purposes?
4. What are the Pillar 1 capital requirements?
5. What KYC procedures for account opening are in place?
6. 0.8 pips is quite wide. What LP's are you using?
7. Have you a completed ICAAP?

This sounds like its a company set up to IB clients to an established brokerage at a high spread in return for client flow. The established brokerage will provide a branded platform and the in-house compliance, back office and finance functions. This doesn't sound like a brokerage that someone would go to the expense ($1m++) and time (9 months to 1 year of no income) of setting up to sell for $55k. It sounds like someone thought it would be easy to open an FX Broker and got a surprise when they realised actually its very hard, very difficult to stay the right side of the rules and very very very expensive to set up and run and stay in business.

You need at least 1,000 active clients per day dealing at least 7,000 times per day executing volume of at least $200m per day to even begin to think about making money. Once you spend the $55,000 on buying this brokerage consider where you'll get these 1,000 active clients per day. BTW to get 1,000 clients per day you'll need a live pool of about 10,000 clients. Each client acquisition will cost circa £650, so to get those 10,000 clients you'll need a bit more than $55k.

Good luck, competition is good.

 

[sminicooper]

Some questions interested parties may want to ask:

1. Who is 'the broker' licensed with? Are you a 125k firm or a 730k firm?
2. Are you an Appointed Rep (A.R) or Corporate Authorised Rep (C.A.R) of a regulated brokerage?
3. What are the fixed over head costs for regulatory purposes?
4. What are the Pillar 1 capital requirements?
5. What KYC procedures for account opening are in place?
6. 0.8 pips is quite wide. What LP's are you using?
7. Have you a completed ICAAP?

This sounds like its a company set up to IB clients to an established brokerage at a high spread in return for client flow. The established brokerage will provide a branded platform and the in-house compliance, back office and finance functions. This doesn't sound like a brokerage that someone would go to the expense ($1m++) and time (9 months to 1 year of no income) of setting up to sell for $55k. It sounds like someone thought it would be easy to open an FX Broker and got a surprise when they realised actually its very hard, very difficult to stay the right side of the rules and very very very expensive to set up and run and stay in business.

You need at least 1,000 active clients per day dealing at least 7,000 times per day executing volume of at least $200m per day to even begin to think about making money. Once you spend the $55,000 on buying this brokerage consider where you'll get these 1,000 active clients per day. BTW to get 1,000 clients per day you'll need a live pool of about 10,000 clients. Each client acquisition will cost circa £650, so to get those 10,000 clients you'll need a bit more than $55k.

Good luck, competition is good.

Hmmm!! :idea: I think I'll stick to trend following.

 

[KWU]

Sounds like an amazing opportunity to me :whistling

thx

 

[KWU]

Some questions interested parties may want to ask:

1. Who is 'the broker' licensed with? Are you a 125k firm or a 730k firm?
2. Are you an Appointed Rep (A.R) or Corporate Authorised Rep (C.A.R) of a regulated brokerage?
3. What are the fixed over head costs for regulatory purposes?
4. What are the Pillar 1 capital requirements?
5. What KYC procedures for account opening are in place?
6. 0.8 pips is quite wide. What LP's are you using?
7. Have you a completed ICAAP?

This sounds like its a company set up to IB clients to an established brokerage at a high spread in return for client flow. The established brokerage will provide a branded platform and the in-house compliance, back office and finance functions. This doesn't sound like a brokerage that someone would go to the expense ($1m++) and time (9 months to 1 year of no income) of setting up to sell for $55k. It sounds like someone thought it would be easy to open an FX Broker and got a surprise when they realised actually its very hard, very difficult to stay the right side of the rules and very very very expensive to set up and run and stay in business.

You need at least 1,000 active clients per day dealing at least 7,000 times per day executing volume of at least $200m per day to even begin to think about making money. Once you spend the $55,000 on buying this brokerage consider where you'll get these 1,000 active clients per day. BTW to get 1,000 clients per day you'll need a live pool of about 10,000 clients. Each client acquisition will cost circa £650, so to get those 10,000 clients you'll need a bit more than $55k.

Good luck, competition is good.

Thanks for your interest.
If you have at leave 1000 active clients per day dealing at least around 1000 lots per day, you can make around $3000 profit just from the spreads that the clients pay. Most of FDM's EURUSD spread is around 1.3~1.8 pips. We offer our VIP account's EURUSD 1.2~1.3 pips spread without commisions.
If we already have around 1000 active clients and are planning to sell it, then we might ask you to pay over $100,000. If you make $3000 per day and 20 business days per month, you can make $60,000 per month which you make more than what you've paid to buy. If there are any business that pays off in a month, everyone will buy it no matter what..

Also we are "the broker" who is connected to directly LP. We are not IB, and we are not looking for IB either. We are a starting forex company and we just set up our company's and other paper works.

Anyway! Thxs for your interest!

 

[highbury fx]

Thanks for your interest.
If you have at leave 1000 active clients per day dealing at least around 1000 lots per day, you can make around $3000 profit just from the spreads that the clients pay. Most of FDM's EURUSD spread is around 1.3~1.8 pips. We offer our VIP account's EURUSD 1.2~1.3 pips spread without commisions.
If we already have around 1000 active clients and are planning to sell it, then we might ask you to pay over $100,000. If you make $3000 per day and 20 business days per month, you can make $60,000 per month which you make more than what you've paid to buy. If there are any business that pays off in a month, everyone will buy it no matter what..

Also we are "the broker" who is connected to directly LP. We are not IB, and we are not looking for IB either. We are a starting forex company and we just set up our company's and other paper works.

Anyway! Thxs for your interest!

you haven't 'made' $3,000 per day, you've taken $3,000 per day. Now subtract costs such as:

1. premises
2. finance staff
3. back office staff
4. traders
5. compliance staff
6. I.T staff
7. sales traders
8. sales people
9. client services staff
10. insurance such as P.I
11. marketing staff

It doesnt leave you much from the $3,000 you've taken. Take a look at some brokers who have revenue of >$30m ($120k per day) and yet have net profit <$2m ($8k per day).

If you have 1,000 clients dealing per day you're going to take half a pip in about £5 per point 7,000 times per day. You're going to have an income of about £85k to £100k per week. You're going to have costs that if you keep them under control will be about £60k to £70k per week. Looks good just make sure you keep that 1,000 client number in mind because they need replacing and that takes plenty of spending.

A good home trader takes $3,000 a day not a regulated brokerage.

you couldn't sell me a brokerage with 1,000 clients for $100,000 because you don't have it. If you did it would be worth a lot more than $100,000. You have nothing to sell.

 

[barjon]

Great opportunity I think. And the article is good as well.

You mean you haven't read what Highbury had to say - he does know what he's talking about y'know.

 

[KWU]

you haven't 'made' $3,000 per day, you've taken $3,000 per day. Now subtract costs such as:

1. premises
2. finance staff
3. back office staff
4. traders
5. compliance staff
6. I.T staff
7. sales traders
8. sales people
9. client services staff
10. insurance such as P.I
11. marketing staff

It doesnt leave you much from the $3,000 you've taken. Take a look at some brokers who have revenue of >$30m ($120k per day) and yet have net profit <$2m ($8k per day).

If you have 1,000 clients dealing per day you're going to take half a pip in about £5 per point 7,000 times per day. You're going to have an income of about £85k to £100k per week. You're going to have costs that if you keep them under control will be about £60k to £70k per week. Looks good just make sure you keep that 1,000 client number in mind because they need replacing and that takes plenty of spending.

A good home trader takes $3,000 a day not a regulated brokerage.

you couldn't sell me a brokerage with 1,000 clients for $100,000 because you don't have it. If you did it would be worth a lot more than $100,000. You have nothing to sell.

First of all, you don't need that many staffs when you just started your business.
If you have enough capital to invest it, then that would be fine. However, most of fx broker (not major) starts with couple of staffs. If you spend too much expences, of course 1000 active trader will not be enough.
As a starting company, human resource cost will be one of the biggest expences.
Also to open a fx broker company, set up cost will be at least $60,000.
Have you ever tried to open a fx broker company? If you didn't, then try it. Then you will understand $55,000 will be good price.

 

[moka2]

So KWU
Which country is your Fx broker company licenced?
Which country your LP is based?
Could you please upfront about it and also you have not answers some of the other regulatory questions other's have asked particularly Highbury FX
More you evade the questions more dodgy it seems
So please be transparent
IN places like Seychelles one can open Fx Brokerage for pittance!

 

[highbury fx]

First of all, you don't need that many staffs when you just started your business.
If you have enough capital to invest it, then that would be fine. However, most of fx broker (not major) starts with couple of staffs. If you spend too much expences, of course 1000 active trader will not be enough.
As a starting company, human resource cost will be one of the biggest expences.
Also to open a fx broker company, set up cost will be at least $60,000.
Have you ever tried to open a fx broker company? If you didn't, then try it. Then you will understand $55,000 will be good price.

you only need a couple of staff?

who is going to process the deposits and withdrawals? who will deal with clients opening accounts? who will deal with complaints and questions relating to compliance? who will monitor risk? who will resolve questions from clients about stops being filled or limits not being? who will get you clients? who will run the daily regulatory capital reports? who will run the client money segregation reports? this all has to be done 24 hours per day.

$55k to buy your 'brokerage', what about the margin you have to post at your LP? remember you have to segregate all your client funds, so you cant use that money as margin. If you have 10,000 clients with accounts and 50% fund with the average £2,500 you're going to have to segregate that £25m. If 10% trade per day at an average leverage of just 5:1 you'll need to find about £250,000 in spare cash as margin for your LP. What happens if someone deposits £100,000 on a credit card with you? you wont get that money from the card provider for 3 days but the client wants it on his account now so you'll have to find that £100k from somewhere as well. Imagine then if it's fraud and the bank do a chargeback on you.. oops, that'll hurt.

Have I ever tried to open an fx brokerage? yep, done that thank you. still open for business in over 60 countries (we have more than 2 staff though ) It helps us being regulated under our own license by the FCA but that took time, resource and plenty of money.

The reason you're selling it is because it is difficult. It is 1 year of setting it up, going through pain, having 12-15 people on your payroll setting their divisions up before you can even think about getting regulated and going live and taking some money. Who is going to work at an FX start up? you'll either get rubbish staff no one else wants or you have to pay up to get good staff (remember you haven't got a single client yet, who and how will you get those??)

good luck..

 

[sminicooper]

This is fascinating stuff from highbury fx and far more interesting than the original post. It really does make you realise that life as a retail trader is very simple and straightforward. It seems to me that you've got to be pretty sharp and businesslike if you're going to run a brokerage.

 

[itspossible]

we are in bro

 

[itspossible]

im in 2

and me

 

[metrader]

It really does make you realise that life as a retail trader is very simple and straightforward. It seems to me that you've got to be pretty sharp and businesslike if you're going to run a brokerage.

Also helps you understand why some of them try to rob you blind (slippages, refused entries etc.) and kind of feel better your money helps the needy brokers

 

[nickycambo]

Very interesting stuff Highbury. Thank you very much for your input.

 

[wintergasp]

Some questions interested parties may want to ask:

1. Who is 'the broker' licensed with? Are you a 125k firm or a 730k firm?
2. Are you an Appointed Rep (A.R) or Corporate Authorised Rep (C.A.R) of a regulated brokerage?
3. What are the fixed over head costs for regulatory purposes?
4. What are the Pillar 1 capital requirements?
5. What KYC procedures for account opening are in place?
6. 0.8 pips is quite wide. What LP's are you using?
7. Have you a completed ICAAP?

This sounds like its a company set up to IB clients to an established brokerage at a high spread in return for client flow. The established brokerage will provide a branded platform and the in-house compliance, back office and finance functions. This doesn't sound like a brokerage that someone would go to the expense ($1m++) and time (9 months to 1 year of no income) of setting up to sell for $55k. It sounds like someone thought it would be easy to open an FX Broker and got a surprise when they realised actually its very hard, very difficult to stay the right side of the rules and very very very expensive to set up and run and stay in business.

You need at least 1,000 active clients per day dealing at least 7,000 times per day executing volume of at least $200m per day to even begin to think about making money. Once you spend the $55,000 on buying this brokerage consider where you'll get these 1,000 active clients per day. BTW to get 1,000 clients per day you'll need a live pool of about 10,000 clients. Each client acquisition will cost circa £650, so to get those 10,000 clients you'll need a bit more than $55k.

Good luck, competition is good.

Man forget about it. I get 0.1 pip EUR/USD with my LPs. 0.8 pip has to be whitelabel in someway.

55,000$ doesn't even cover minimum prime brokerage cost for six month, let alone technology etc. of a non-whitelabel setup.

 

[kizir007]

already sold, right?