Starting your own Forex MM

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.

 

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.

 

The NFA has a ton of info on registration. They are one of the only helpful regulatory agencies out there.

 

Thanks, Brandon.

 

I agree, the NFA is the only helpful reg org I've ever come across.


Some webinars and seminars:
http://www.nfa.futures.org/member/indexArchive.asp

Disclosure Doc info: http://www.nfa.futures.org/compliance/dd2001.asp

 

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.

 

Interesting idea, any suggestions of which firms do things like that?

 

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.

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.