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12.08.2021

How to open a brokerage company in Russia in 2021?

Are you a beginner entrepreneur looking for how to open a brokerage?

This article provides answers to all questions you might face in the early days. Moreover, you will learn how to save the lion’s share of your budget and launch a high-margin brokerage business in just 3 weeks!

Opening your own brokerage company is a process that requires a detailed study of various nuances, including legislative ones. The opening of a brokerage firm in Russia is regulated by the Federal Service for Financial Markets – dated March 16, 2005.

The order states that it is possible to open a brokerage in Russia only with a license permitting brokerage activities. Actually, the process of starting a brokerage is not complicated. But it will require exceptional attention when working with documents, including an application.

When choosing between an LLC or an individual entrepreneur, experts advise you to opt for the first option. It’s all about the scale of responsibility. The sole proprietor is responsible for all the debts of the firm. An LLC can only lose its authorized capital.

An entrepreneur will need to submit documents to the Federal Service for Financial Markets at the next stage. The Federal Service for Financial Markets has set the minimum authorized capital threshold of 80 million rubles for companies engaged in brokerage, dealer, or depository activities.

A novice business has three options for launching a brokerage:

⚪ Open your own brokerage firm

⚪ Open a representative office of an operating brokerage company – foreign or federal

⚪ Become a partner or agent of a reputed brokerage firm

The second option – the organization of a representative office is a hassle-free one.

Main expense items:

⚪ Renting and renovating an office or buying your own premises

⚪ Utility bills: electricity, water, internet

⚪ Advertising in the media, social networks

⚪ Remuneration of employees

Taking all the aforesaid into consideration. By opening a representative office of a well-known brokerage firm, your business will be managed by the central office. A brokerage company will have to fulfill specific requirements and follow the general brand policy.

The most optimal option is to sign an agreement as an agent. This way, one can reduce costs and get decent marketing support on the side of a famous global brand.

Choosing the Right Software Package

The choice and integration of software are the most critical aspects that should be considered initially.

Specialized software is needed to automate the routine processes and run a brokerage firm successfully.

Therefore, the first thing to do is to partner with an experienced and reliable software integrator. Profit Center FX – is a leader in the development and integration of IT solutions for brokerage companies.

If you want to know what software is required for the smooth operation of your business, prices, and terms of integration, feel free to contact Profit Center FX representatives.

Especially for novice brokers, the integrator offers a “Turnkey solution” – the best option for launching a high-margin business in 3 weeks.

A website is also a vital component for brokerage needed to find customers and win sales. It would be better if you outsource the development of a brokerage company website to Profit Center FX.

Their team of professional developers precisely knows what features of the brokerage business need to be considered when creating a website.

The advanced software package of brokerage software by Profit Center FX includes:

⚪ Trading server

⚪ ECN server

⚪ Market-making server and liquidity aggregator

⚪ Quotation server

⚪ Report server

⚪ Proxy and balancing server

⚪ Server for copying deals

⚪ Database

⚪ Modules for connecting to exchanges and liquidity providers

⚪ Application programming interface (API) for integration with third-party services (CRM, Client-bank, AML services, etc.).

Takeaway

To open a brokerage in Russia, you need to choose the appropriate format for doing business:

⚪ Opening your own company

⚪ Conclusion of an agency agreement

⚪ Opening a branch of a global company in your city

The next stage is the collection and submission of documents to the office of the regulator.

When starting a brokerage business, you are likely to face a whole host of issues, including the cost of software, customer acquisition, and retention. However, this does not mean you should waste valuable time and figure out all the nuances yourself.

A start-up brokerage can opt for a “Turnkey Solution” by Profit Center FX. In this case, you can take advantage of the experience and potential of a reliable company integrator and launch your project in 3 weeks!

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