Forex ECN brokerage start-up?

Hello
I wish to speak with people interested in starting a forex ECN brokerage for small retail traders. The model would be similar to mbtrading's model, of variable low spread, commision, reputable business practice, great customer service


There are only two ECN's catering for the small forex retail trader, and deltastock is very new, Ive only seen their ads this last month. Theres is plenty of space for a third. Small retail traders are abuzz on the forums about ECN's, as they offer almost institutional spreads, which they feel levels the playing field. ECN's are indemand, and what small retail traders want.


I also wish to speak with industry professionals, as to what steps are be undertaken to complete my goal

Thanks fx for your fulsome post,
i am aware of retail ecn for accounts over $5k Usa such as lava, hotspot. However alot of small retail traders, dont even have that capital available, so efxgroup/mbtrading and deltastock are the only ecn's available for smaller traders

What you outlined, was precisely the kind of information I was interested in. The road map. I have received more guidance from an fx broker also


The interesting thing is to consider, who would the market. Tier2 prime broker, tier3 broker, a gaming/gambling company etc. At the moment, Im still on a factfinding mission, for this and other considerations

I think you may have missed a few things there. ECN technology is available from more than the ones you have mentioned. However, this is available mainly to the institutional clients.
ECN technology for trading has a drawback that charting is one of its major problems as you might have noticed with MBT or COES.
You will have to work as a broker and if you are not making money on the spreads, how do you plan to cover the costs of the setup?
Starting one for retail clients might be something very innovative but the scale of setting up such a venture is so vast that it will take a lot of planning and a very large Capital infusion to take it off ground.Not to mention legal aspects, customer service, marketing, accounting and the list never ends.

I have been involved in a small way with a brokerage firm who offer 1pip spread on all majors for retail clients. However, the costs involved make it almost impossible not to charge commissions on trades to cover the initial setup costs.

So though your goal may be very promising for retail traders, I dont think you have quite thought this through.

But yes, if you have the capital and connections in right places to put this in place, it would definitely work.
However, there is still long way to go before this becomes a reality.
Would love to hear from you how you plan to work on this.