Setting up a forex corporate account is an ideal way for small and medium businesses to make money from the currency markets. Forex brokers provide corporate accounts for businesses who want to trade currencies in high volumes as well as hedging global currencies in the markets. These accounts require clients to deposit larger amounts ($10,000 and up) in their trading accounts; corporate documents like articles of incorporation, bank statements and directors and shareholders certificates are required before they are approved for an account.
The benefits a small business can get from a forex corporate account include:
- 24/7 dedicated customer support. You will enjoy not only technical support in helping you to use the trading platform, but also trading advise such as hot tips on which currencies to buy.
- No hidden fees. While forex brokers don’t charge commissions, they may enact other fees that are concealed in the fine print, such as a charge for withdrawing money from your account.
- Real time execution of market orders. This is particularly important if you are a scalper who is interested in capturing quick changes in exchange rates that can add up to substantial profits in your trading account.
- Competitive spreads. Forex brokers usually make their money from capturing the spreads of your trades, which can be on a variable or fixed basis, or as a percent share of the spread. A corporate account will usually compute the amount of spread they take in a way that is most beneficial to you.
How can a small business make money from a forex corporate account?
- By trading forex. With the support of the broker’s expert team, corporate traders have an edge in the currency markets, making it more likely that they will make money from the currency markets. They also have access to state of the art tools such as a user-friendly currency trading platform with advanced charting functionality.
- Selling trading signals. One of the most challenging parts of forex trading is detecting signals that tell you when to enter and exit trades. Once you master this skill through practice trading in the currency markets, you can then offer your signals to clients though a monthly subscription service.
- Developing forex software. With more experience in trading the currency markets, you are likely to start developing your own winning strategies that you can program into a forex robot. All you have to do is provide proof of the effectiveness of your software and you can start marketing your forex software through your own website.
- Referring clients to your broker. Forex brokers will always welcome new business and will usually reward you when you introduce new clients to them. These clients will provide you with a source of recurring income since you will make money from their spreads as long as they continue trading. A forex corporate account allows you to create a unique affiliate link. And when your referrals refer clients in turn, you can also earn a small percentage of their earnings as well.