As we are about to go through in just a moment, you need to write down and plan out every part of your trading. This includes everything from the markets you trade, the times you trade them, how you trade them and what exactly your trading strategy looks like. The more clear-cut and simple your trading plan is, the more you will benefit from it. Also keep in mind that your trading plan is not something that will be set in stone. As you continue to get better as a trader and learn new strategies you will continue to update it.

As the markets change and your personal style changes so will your plan continue to evolve. The first thing you will need to think about when creating your trading plan is your overall trading outline.

What are your trading goals? What are you trying to achieve? And what is the main focus? The reason these types of questions are important is because it will help you create a trading plan that is personalized for you and your trading style.

For example, are you a conservative trader who only wants to make the best trades and is happy with smaller profits? Or, do you want to look for higher risk trades and are more suited to scalping the markets on the smaller time frames looking for bigger gains? Below I have gone through an example Forex trading plan template that you can use to help create your own trading plan.

This template will help you think about the sort of questions and rules you need to create in your own trading plan. You can also download a PDF of the trading plan template below. Here are some of the things you will want to think about and add into your own trading plan;. Whilst a trading plan covers your whole trading strategy and the rules you will use overall, a trading checklist can make sure you stay within these rules on each individual trade.

You can use a quick trading checklist beside your computer to make sure each trade you take fits the rules you have created. These checklists can be incredibly useful and act as a very quick way to make sure you are staying on track. And it's absolutely free! To figure out which trading strategies fit your personality and trading goals, it helps to see examples of trading plans. You will find actual plans for each of our veteran trading mentors in their trader profiles - including John Carter.

Check it out it's all in the template! Bottom line, your plan is uniquely yours. It's a living document, and it should grow and develop as you progress as a trader. If you have a plan in place and want to expand it - or if you're creating a new plan altogether - working alongside veteran traders in live trading rooms is the way to do it.

We have a variety of courses and chatrooms, depending on your style and needs. Our Options Gold is where it all started and our most popular.

edu no longer supports Internet Explorer. To browse Academia. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser.

Dagfinn Rime. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Forex Business Plan. Abhishek Singh. Continue Reading Download Free PDF. Related Papers. Foreign Exchange Market Structure, Players and Evolution. Download Free PDF View PDF.

New electronic trading systems in foreign exchange markets. Introduction The following document is intended to serve as a guide for our customers who want to start their own Foreign Exchange Forex brokerage. This document will provide a roadmap to help you start your brokerage business using the Boston Technologies framework.

The Role of Boston Technologies Boston Technologies builds, installs, maintains and supports foreign exchange software. Boston Technologies also works with our partners to help provide our customers with other related services to augment their foreign exchange businesses.

Boston Technologies is neither a broker nor a trading company. We will assist our customers with any relevant technology needs but we will neither hold end-user money nor initiate trades in any way. Boston Technologies is NOT a trading counterparty. Starting Up Every brokerage is regulated in a variety of ways and can be started in a variety of locations. Assuming you want to start in a thoughtful, methodical way, here are the recommended steps to take: 1.

Scope - Deciding on the scope of your brokerage business startup is important. We will discuss a recommendation for the scope of your startup in the sections that follow and the reasons behind the recommendation.

Incorporation — You will need to incorporate your company in a location where there is a solid background in financial services and where it will be fairly simple, inexpensive and legal. Registration - Registration brings legitimacy and credibility. Even where registration is optional, your company will benefit from being registered. Where registration is required, your company will need to be registered as a financial body in order to market in these locations.

You should start by looking at all the markets where you plan to accept client funds. Capital Requirements - In general, being registered means that the local authorities will go through a due diligence process on the owner and the credibility of the project. In addition, to secure the customer funds, many authorities will require that the owner of the entity deposit some capital in the brokerage.

This capital is called Net Capital or Net Cap. These requirements will be more described below. This means starting with securities and a set of regulations that are manageable and establishing your brokerage where you will be able to legitimately trade and compete without the danger of overstepping legal or regulatory bounds. Because of this, we recommend starting as a spot Forex company, trading over the counter, in order to become familiar with how the process works.

However, the regulatory requirements and environment for these products is significantly more complex. To jump into these right away would ultimately delay the process of creating a workable business model, in an industry — Forex — that is already early-stage and in many ways, ambiguous. Essentially, there are many different parts of the value chain to sort through — even with simple spot Forex, and thus many different ways to take on risk and achieve margin.

Given your assumed desire to be light- footed and your lack of a need for being able to market in Western Europe, we recommend starting your Forex brokerage in a less complex environment. London has an established set of regulatory hurdles and FX is therefore more difficult there. htm Offshore Financial Centers There are a number of islands such as the Cayman Islands and the Bahamas that are experienced financial services centers, though they may be less established Forex centers.

Obviously, many of these locations have fairly low-cost barriers to entry and certain tax benefits, although many of them require that the institutions they license appear to have some sustainability. asp compare. aspx  Cayman Islands, which has the largest value of AUM in offshore funds, and is also the strongest presence in the U.

securitization market. Regulation and supervision of the financial services industry is the responsibility of the Cayman Islands Monetary Authority CIMA. The CIMA licenses firms to conduct securities investment business, which includes market makers, broker- dealers, securities arrangers, securities advisors and securities managers. This is typically defined by country. In general the rule of thumb is that registering in multiple countries can get very expensive.

If you are an online company, it is possible that you will get online clients from a variety of countries beyond where you register. At first, you may choose just to register in the countries where you are actively marketing. If you start by incorporating in Belize, for example, then just registering in the developing countries where you will initially operate is likely the most cost effective path.

However, if you find that, say, you are getting a lot of clients from a different country — it will start to make financial and legal sense to go through the regulatory hoops of the country. Below is a discussion of two example countries, Pakistan and Bahrain and also an overview of the U. registration landscape for comparison. Currently, the SBP is not specifically regulating Forex brokerages, but a good practice would be to incorporate in an area where there is Forex licensing in order to put forth a good faith effort to follow sound regulations.

Bahrain requires that if you are selling to its citizens, you need one of their citizens to be part of your partnership, or be in partnership with a local company.

Either way, you can still own the majority of the subsidiary company that is you set up in Bahrain. asp , which is essentially synonymous with being a brokerage in the Forex arena. Two organizations police the sector and step in to protect the consumer on a regular basis. These organizations are the National Futures Association NFA and the Commodity Futures Trading Commission CFTC.

Of the two the CFTC is most heavily involved in the detection and punishment for fraud, manipulation and abusive trade practices in the retail Forex sector. The www. gov website is an excellent source of information on customer protection and on-going legal disputes against brokers and other entities. Here is a list of some of the regulating agencies:  NFA - the National Futures Association. Capital Requirements Depending on where you are registered, capital requirements will vary.

Capital requirements are a catch-all phrase for the capital that countries, regulatory agencies or the country of incorporation will require in order to feel comfortable with you as a Forex institution. In more highly regulated locations like the U. It is likely that startup brokerages will be required to have significant capital in the form of credit lines with a big bank.

This is especially true in the case you would like to offer straight through processing or you would like to have a reasonable amount of risk control. If you want to move beyond the developing country markets where you are located, you may be required to put up a higher net capital investment.

See Section 5: Business Model for further discussion. It is possible to get credit lines from multiple banks at the same time to fulfill your total capital requirement. Technolog y Problems To be prepared for the situations Have backups and a where you need to act quickly. Regulator y Existence Unknown regulatory environment which Ideally become a licensed can lead to regulatory investigation and entity where you are fines or other consequences.

incorporated and know your local markets; hire appropriate legal talent. Regulator y Update Forex is relatively new and faces Focus on simple regulations that are changing daily. securities first, and then move into more complex and highly regulated securities.

Location of Incorporation Incorporating in an offshore area The Cayman Islands has a usually means that you are in a less- strong reputation for experienced country for dealing with financial services. Belize Forex issues. has a good deal of Forex experience. Both of these locations also provide more flexibility and lower startup costs than many other countries.

Countries of Registra tion You may get customers from Start with countries where countries where you are not you are actively marketing, registered.

then move to new countries if customer concentration increases in new places Taking Risk as a Counte r - Taking the other side of trades that Hedging trading risk with Part y go against you risks your capital.

liquidity providers. Fixed Costs Not enough income to pay the Make sure that you pay operating costs. your recurring costs from your recurring revenue. Market Description Forex is an emerging market with many disaggregated players.

The diagram below provides an overview of the major players and how they interact. Currency trade values are in the multiple tens of millions of US dollars at a time. These trades are the ones that really set the price of a particular currency. They are used for speculation, hedging and currency exchange for international commerce. The prices are determined with less variability than smaller players. Regulation: These entities have similar regulations to large broker houses.

However, in some developing countries, spreads are even larger, at Pips.

To be effective, multiple ads on various sites would be  While all brokers use this source, none of them were able to quantify the revenue from needed. The Forex Brokerage Services industry is indeed a large industry and pretty much active in countries such as United States of America, United Kingdom, France, Italy, Nigeria, South Africa Japan, China, Germany, and Canada et al. SWOT Analysis 7. All FX brokers follow a similar sales model in attracting clients. they are able to take the other side of the trade. In this section, include as much information as you can, including any macro components you might be thinking about.

Categories:

• Forex
• Binary Options
• Forex Bitcoin
• Forex Brokers
• Binary Options online