Becoming a broker

DefonDefon Posts: 1
Most people only focus on trading binary options and not on providing them. But you always hear about how the brokers are making a lot of money, and even the people who claim that binary options are a scam, insist that the brokers are the ones making the big money.

So I'm wondering, is it possible to start a binary options brokerage myself, perhaps starting a company providing binary options. And if it is, how much work will I have to put in it and perhaps even more important, will it be profitable?

I know some sites, like SpotOption, provide platforms and plugins that you can put on your own website, and then will they take care of all the the technical stuff. So all you have to do is basically just to hire some people to create/maintain the website, some people to work in customer support and some people to work in customer support. The platforms providers will even help you to get regulated. All you have to do if the brokerage is located in Cyprus is to follow the rules for the regulations and then will the platform provider help you to get regulated by the CySEC. They will also take care of all the payouts, so the only thing you have to spend money on, is to buy the software and to pay your team. At least that's how I understand it.

So now I'm asking, is it a good idea to start my own brokerage or am I better off trading binary options instead of providing them? It sounds like a good idea to become a broker, but I'm not sure how profitable it's going to be, or if it is as easy as I think.

Comments

  • lotzofbotzlotzofbotz Posts: 1,552 ✭✭✭✭
    If you become a broker I will have no choice but to ban you... JK LoL!
  • gatsby2016gatsby2016 Posts: 30
    Defon; When you start a broker similar to the foreign ones, you are essentially becoming a "market maker"; on nadex and cantor you can essentially be a "market maker" yourself, by setting contracts outside of the current price range
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