Starting a successful forex brokerage requires a significant investment of both time and money. The first hurdle for the new broker will be the legal requirements. The brokerage will be required to be incorporated and licensed with a corporate bank account. There will be regulatory requirements which will need to be met in order for the brokerage to begin doing business as well as stay in business. The Forex firm will need to have a properly configured platform including, accessing liquidity providers and partnering with fast, accurate feed sources. The brokerage will be required to integrate the platform with their website which will also need to be designed and setup.
Next the forex merchant will want to create their marketing campaign in order to drive traffic and forex traders to their brokerage’s website. All of this is worthless if the firm does not have their forex merchant account setup. The problem facing startup forex merchants is the difficultly of being approved for a merchant account. Most payment processors especially high risk payment processors will not approve a startup business. Our company however does work with startup foreign exchange brokers. Startup brokerages are welcome to apply and will normally be approved within a couple days for a merchant account.
Forex is a very large and growing industry in China. 2/3 of the Chinese population use China UnionPay cards. Forex brokerages are able to accept China UnionPay cards and the Chinese Yuan with a Forex Merchant Account. Processing rates for China UnionPay are lower than Visa and MasterCard.