What are the costs of MT4 and MT5 construction and rental? What are the functions of the clearing bridge?

According to the relevant data of the bank for International Settlements (BIS), the foreign exchange market is the largest financial market in the world. In 2019, the average daily trading volume of the global foreign exchange market reached US $6.6 trillion, far exceeding the sum of stock, futures and other financial commodity markets. Now, more and more investors want to participate, and many people want to establish their own foreign exchange trading platform and become foreign exchange brokers.

Due to the existence of MT4 and MT5 clearing bridges, the positions (customer orders) in MT4 and MT5 systems can be directly put into international clearing institutions or clearing pairs. Therefore, MT4 and MT5 platforms themselves are platforms established for market makers to transfer transaction risk exposure. Together with MT4 and MT5 clearing bridges, it will help the operating company become a truly international company. Nowadays, many platform providers have realized the role of MT4 and MT5 platforms and MT4 and MT5 clearing bridges, and avoided uncontrollable risks in the market through risk control means. Some professional platform building institutions directly include the functions of MT4 and MT5 clearing bridges in the MT4 and MT5 white standard scheme provided by them. Users do not need to apply for installation separately, which can exempt the time and capital cost of installation and commissioning of clearing bridges. STP mode appears only in the liquidation bridge.

MT4 runs normally and requires at least two servers. For the MT4 platform, the more servers, the better. It is best to configure foreign disaster tolerant backup servers, which greatly improves the stability and security of the platform. The perfect platform needs analog server, real server and backup server. Whether the server is strong or not is related to the stability of transactions and the stability of the platform. It is best to have multi regional data architecture centers and remote (Hong Kong, the United States, etc.) disaster capacity backup servers to ensure the stable operation of the platform and the safety of customer data in the event of natural disasters.

1. Companies registered abroad.

According to relevant regulations, a registered company is required to carry out foreign exchange business in compliance with the regulations.

Generally, Hong Kong, the United States, Australia, offshore islands and other countries or regions that allow free exchange are selected for registration. This kind of jurisdiction can be divided into three categories, namely, non regulatory jurisdiction (Saint Vincent, Grenadines, etc.), non regulatory jurisdiction (Vanuatu, Belize, etc.) and non regulatory jurisdiction (EU countries, Britain, Cyprus, etc.).

The degree of supervision of foreign exchange business in various regions varies, and the difficulty and cost of registration are also different. Brokers can choose the place of registration according to their business needs, and the registration cost can reach thousands to tens of thousands of dollars. In addition, the establishment of the company's official website can also choose domestic teams, which can generally be completed by about 20000.

2. Establish a trading platform.

MT4 and mt5/mt5 platforms of maxtar company have the advantages of friendly interface, intuitive transaction and powerful icon analysis function. They are still the choice of most brokers, but some brokers also use their own developed trading platforms. This paper takes MT4 and MT5 platforms as examples.

Michaelda divides into main bid and white bid. The price of the main bid is relatively expensive, which may be about $100000, but michaelda will not sell the main bid after 2017.

The construction cost of the white standard platform is lower than that of the main standard, which can be borne by small and medium-sized brokers. However, brokers who choose the white standard platform need to pay attention to whether the MT4 and MT5 software provided by the Platform Builder is genuine software.

The construction cost of the white platform can be divided into initial cost and service cost, and the initial cost is generally between 10000 and 30000 US dollars. In addition, there will be a market price of $1000+$1000/ month (mobile end) charged by Maxda company every month. In addition, the Platform Builder will charge a traffic fee of $1-5 per hand.

3. Deployment of technical solutions.

After the completion of the platform construction, it needs to access CRM system, bridging, docking with suppliers, third-party payment and other functions, so that the platform can conduct normal transactions.

Customer relationship management system can coordinate the sales, marketing and service interaction between enterprises and customers, improve customer satisfaction, help enterprises attract new customers, maintain customer relations, and achieve customer retention.

An important indicator of the foreign exchange market is liquidity. The lower the liquidity, the more unstable the currency pair is. Therefore, brokers need to connect with liquidity suppliers to the platform. International investment banks, hedge funds and large foreign exchange brokers are liquidity providers, and different liquidity providers provide different quotations and services.

The clearing bridge integrates quotations with different liquidity, thus obtaining the best selling price and the lowest purchase price, helping the platform maintain stability and reliability, improve profits, and reduce risks.

Third party payment is the mainstream way of foreign exchange import and export.

The cost details of the bench are for reference only.

4. Platform operation trusteeship.

Operation and maintenance is the support of platform construction, which requires the support of professional technical teams. Because Chinese networks often restrict access to foreign services, we should pay attention to whether we can provide 24-hour technical support when choosing platform builders. When the platform is unstable and the response speed is slow, it can be solved in time.

5. Handle foreign exchange license.

As with company registration, foreign exchange licenses need to be applied overseas. The regulation is divided into offshore regulation and onshore regulation. Compared with onshore regulation, offshore regulation requires more relaxed policy system and enterprise status than onshore regulation, and the approval process is faster.

Financial regulators all over the world have their own regulatory standards, and the minimum capital requirements of licenses and annual fees are different. Generally speaking, the cost of offshore supervision is lower than that of onshore supervision.

The following is part of the regulatory agency information organized by Tiante financial technology MT4 and MT5 for your reference.

The application for overseas supervision fees is for reference only. How much does it cost? Are there also fees for the construction of brokers' foreign exchange trading platforms?

6. Platform upgrade support.

With the continuous development of enterprises' foreign exchange brokerage business, foreign exchange trading platforms need to be constantly updated and upgraded, and brokers need more product updates and brand remodeling. By choosing a Platform Builder to provide such services, you can maintain long-term and stable development of your foreign exchange brokerage business.

For example, September from the beginning of 2019 to the third quarter.

Therefore, after the establishment of the foreign exchange trading platform, brokers also need to pay attention to the impact of platform upgrading and other issues on the later development of the company.

Finally, how to choose platform operators? Comprehensively consider technology, price, service and other factors. First, the technical strength of the platform builders. Second, whether the quotation of the products they provide is reasonable. If the quotation is too low, we need to be vigilant. Finally, how about the services they can provide, which involves the daily operation of the foreign exchange trading platform and other issues.

There are many companies building foreign exchange platforms in the market. Is it time to choose the cheaper the construction fee, the better?

Finpoints introduces the steps and costs of building a foreign exchange trading platform here. If you have any questions, please contact our professional team for more professional and detailed answers!

This column will be updated continuously. Welcome to pay attention ~.

The company has an independent research and development (ir&d) technical team, with extensive, comprehensive and advanced solutions, which can significantly improve customer revenue, reduce costs and risks, provide customers with a first-class, safe and comprehensive trading environment, provide technical support for the new generation of trading system infrastructure, and achieve high-capacity, ultra-low delay trading in a safe and reliable environment.

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[risk warning and disclaimer]

This article does not intend to advertise, promote or sell any product or service without authorization, quasi authorization or license to any person or company of any nationality, place of business, residence or judicial field. You can seek relevant compliance advice from independent legal counsel.

If you encounter this kind of foreign exchange black platform, investors actually have a very simple way to identify it. After all, fake MT4 is fake. It is impossible to build all MT4 into fake ones. Investors can download MT4 from other channels. If their account can log in to MT4 downloaded from other places, it means that there is no problem with the platform they choose.

Tiante financial technology provides you with MT4, mt5/mt5 white label solutions. With rich experience, cases and technical foundation, brokers can have a completely independent brand MT4, mt5/mt5 trading platform at the minimum cost, and provide one-stop product solutions and professional follow-up technical support services.