Transition from IB to Dealer - Earn the Lions share!

Discussion in 'Forex' started by FOREXsystems, Sep 13, 2003.

  1. How you can become a Principal with very little effort.

    Transitioning from the status of an IB to that of Principal enables you to develop, grow and control your business much more effectively. Most companies encounter the same problem: how to move from the status of an IB to a Principal. This is the threshold that most IBs have a hard time crossing.

    As an IB you do not control your business, you are at the mercy of your trading house which takes the lion’s share of profits, so you can never move to a new plateau. You only get volume-based rebates back and have to pass your clients’ information and capital through to the trading house. The worst thing is that you do not have direct control of your clients’ funds and the way your clients are handled.

    ActForex is a Managed Service Provider, but we provide more than merely a hosted environment and applications. We offer professional services, by designing a business solution that enables you to enter the market rapidly, at low cost and grow. With that in mind, we have come up with an attractive strategy for you, a start-up in the forex business.

    Selling you a full license at the growth stage in your business cycle does not make sense, because presently you do not have dedicated dealers in place. What we are offering you is a Provisional License. As a Provisional Licensee, you do not operate a Dealing Desk, you do not make markets, but orders do come in to your Dealing Desk. Before the order is confirmed and accepted, the open position is offset to the clearinghouse. Once the clearinghouse confirms the order, your system confirms your client's order. Your risk is minimized, because all orders are off set. You protect your business, set your own business rules and benefit from all the components of the License that include:

    1. You have a Back Office - allowing you to control the traders' data. The benefit is that all your clients stay with you.

    2. You keep the clients’ capital and open a clearing account with the counter party. Only a portion of your clients’ funds is deposited, allowing the remainder to be on deposit with your bank, accumulating interest. We can refer you to a selective group of our licensees for clearing arrangements.

    3. You can set a tighter spread for your clearing account at the clearinghouse. This allows you to widen the spread to a desirable size on your platform.

    4. You can charge roll over interest on all open positions, whether long or short.

    5. You set your own commissions, mark ups and price shifts.

    6. You act as a Principal from day one, signing up IBs whose orders will be channeled to your system.

    You are the Principal-The ActForex Advantage.

    The ActForex Trading System has been created specifically for broker dealers and market makers in retail spot forex trading. It positions you to act as Principal, by providing complete independence in how you run your retail forex business. Because ActForex is not involved in currency trading or dealing, there is never a conflict of interest. As an MSP (Managed Service Provider), we provide you with the trading platform, host your system and offer 24/7 technical and customer support. There are other companies in the market claiming to offer similar trading solutions. In reality, they give you nothing more than a Front End and sometimes a Back Office. All your orders are processed via their dealing desk, and, as you may know, 85% of the profits in the spot currency market are made by the dealing desk, not by IBs.

    The ActForex electronic trading platform provides your IBs a white-labeled Front End with their logo and name and a BackOffice. You set your own commission structure, markups, price shifts and other functions suited for working with IBs, money managers, hedge fund managers, etc. The System identifies and segregates the customer (investor), trader, administrator, and dealer. It also sets margin levels and requirements; day, night and group trading and floating P&L. With the click of a button you can change prices and spreads, step away from the price feed or disconnect it completely. The list of features and functions is very extensive. The System permits you to change the default settings by individual account. Its Report Section generates over 30 reports for customer, trader, administrator, dealer and auditor.

    The ActForex Platform comes with a complimentary indicative feed generated by the dealing desks of our licensees, which include the largest retail online forex houses, as well as FCMs and banks. You have a choice of using our feed or subscribing to a feed of your choice, and/or we can integrate them both. ActForex supports any soft currency and foreign language. You also get a demo system, which indisputably is the best marketing tool, collecting the data on prospective traders. This demo system can be white labeled and offered to your IBs as well.

    I would like to give you an online presentation of the System. It's an interactive session, where you will not only see the screen, but also be able to explore the System's functions and features on your own. Please let me know if you have any additional questions or concerns.

    Kind regards,

    Charles C. Burch - E-mail

    954-563-9296 - USA telephone