Forex-company models

Modern technology also affected the Forex market. Today company-broker cannot be successful without the observance of current trends. It relates primarily to the fact that the broker must work with one of the schemes of doing business to create a favorable trading conditions for its customer.

Let us note that important parts in the Forex-broker creating process are the trading server and a personal cabinet integration, under the MT4 server plugins development and providing of CRM- and PAMM systems software functionality. Besides this the payment systems connection and their further adjustment are needed. We guarantee that all of the above and even more we will do for the success of your business.

To start your Forex – business prospectively you need to choose the right broker’s work scheme i.e. business model. The level of profitability depends on your choice. There are tree the most essential models:

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End-to-End Transaction Processing

In this model, a brokerage company is an intermediary between a client and a liquidity provider. Clients’ orders in the STP model are automatically forwarded to a liquidity provider, for those operations a broker receives the commission and the part of the spread. Here the broker is interested in the growth of the trading volumes, as broker’s profit is directly depended on the number of the clients’ transactions.

Marketmaker

In this model, a client buys and sells through a broker. Here the broker is actually a Forex dealer, acting as a counteragent (second participant) for a client at the conclusion of the transaction. If the client wins, the broker loses profit, and vice versa. Most beginners, started trading in the Forex market, have no experience, therefore, a large number of the clients suffer early losses of their initial investments.

Eqvola’s Hybrid Business Model

For all cent accounts, Eqvola is a dealer, that is, acts as the second party of the transaction. This is explained by the terms of the liquidity provider, who doesn’t work with transactions below a certain volume and such orders are processed inside the company.