Forex business plan template

Forex Brokerage Business Plan Sample PDF – Template Format.

FOREX BROKERAGE BUSINESS PLAN SAMPLE AND FEASIBILITY STUDY REPORT FORMAT.

Are you looking for a Forex brokerage business plan template ? Here is a sample business plan for a Forex brokerage firm and free feasibility report. Starting a forex brokerage firm is no walkover. It needs adequate preparations and planning for success to be realized. However, one of the most vital ingredients to the success of businesses and in particular a forex brokerage firm, is the availability of a sound business plan.

It is with this in view that this forex broker company plan sample was developed with the most detailed precision to guide a new brokerage firm to maturity, profitability and stability.

Because it is a brokerage firm, it means that it would have several clients under its operations and hence, the need to provide premium services to its clients is captured within this business plan sample.

For the purpose of this work, we shall be making use of Finance Dynamics LLC Brokerage Firm as the company’s name and the details of this brokerage will be anchored under the following;

Table of Contents – Forex brokerage Business Plan outline.

Finance Dynamics Brokerage firm is a licensed and registered forex broker. Intending to serve as a foreign exchange business firm serving both to individuals and businesses. This company also intends to trade currencies over the internet with well trained and certified forex traders handling this aspect of operations of the company.

Finance Dynamics forex brokerage is a client driven and client focused company which intends to serve clients at the lowest possible cost. Among the services that will be provided by Finance Dynamics is trading on behalf of clients. The goal of this brokerage firm is to provide professional and result driven services to esteemed corporate and individual clients.

To establish a world class forex brokerage that will be at par with the very best in the world in terms of client base, excellent service delivery, customer satisfaction and also the provision of financial services.

To provide high professionalism in the conduct of our business transactions with our valued customers. With the high professional service delivered, we intend to gain the absolute trust of our esteemed clients.

Finance Dynamics LLC is committed to hiring only the best and competent hands and is prepared to pay for such services. This is in a bid to get things right from inception. Among the requirements for employment of these hands are the alignment of the employees’ interests and goals with the company goals and objectives.

A profit sharing formula based on performance will be put in place to reward members of staff for loyalty. This is to bring about motivation among members of staff.

ROLES AND RESPONSIBILITIES.

The roles, responsibilities and functions of the various offices at Finance Dynamics LLC include the following;

The Chief Executive Office.

Among the roles and responsibilities of this officer are the responsibilities of managing, leading and making sure the business is running at a profit. Also, this office monitors and oversees the other offices within the brokerage. It is also responsible for the fixing of prices and the signing of business deals.

They will be responsible for the forex market trading for the company and for clients using the company’s proprietary software programs. They will also be involved in handling business (financial) transactions such as the buying and selling of currencies from leading economies, and also the provision of advisory services to clients, both corporate and individual.

Human Resources Manager.

This office will replenish office supplies, evaluation of stock and also the review of HR policies. It will also be defining possible job positions for hiring and also the management of the hiring process and procedure. It will also provide training and assessment for employees.

Marketing and Sales Executive.

This office will handle business research, marker surveys and feasibility studies for clients. It will deal with the documentation of customer information and contact and also help increase sales and growth for the company.

This office will handle all financial transactions on behalf of the company. In line with its functions, it will also perform the company’s internal audit process.

The products and services on offer by Finance Dynamics LLC include a wide variety of financial services within the scope of the forex brokerage services industry within the global arena.

Among the services to be provided by Finance Dynamics LLC are; the buying and selling of forex (especially leading currencies) from the major financial centers across the world; making available advisory services and advice on related matters and also; trading forex on behalf of our esteemed clients made up of both corporate and individuals.

Being a new entrant into the Forex brokerage services sector, the market analysis is very crucial if this business must stand the test of time. Hence, it has been noted that there has been a steady increase in the number of forex brokerage and trading firms coming into America in the last 5 years, but just a handful accepts client’s deposits in the local currency.

This is a gap that Finance Dynamics LLC intends to fill by receiving deposits in the local currency and converting same to the currency of choice for trading.

There has been a huge revenue growth in the industry engendered by an increase in client’s deposits and also leading to a drop in unemployment especially among the youths which make up a large chunk of our business.

Hence, in order to increase this, it has been analysed that through making available the skills required for trading the markets, it will create a win-win situation where clients are armed with the right knowledge and also, our brokerage firm benefits from an increase in client patronage.

SALES AND MARKETING STRATEGY.

With the stiff competition witnessed in the global forex industry, only the best hands can sustain a forex broker/trading business. It is in view of this that we have hired top-notch business developers to handle sales and marketing.

Sales and marketing strategies have been put in place to attract clients. Some of these strategies include;

– Creating different investment plans for different categories of clients.

– Engaging direct marketing approach.

– Leveraging on the power of the internet.

– The reliance of word-of-mouth marketing from satisfied clients.

– Advertising our business in relevant financial and business related magazines etc.

For effective take-off of a brokerage/trading business, certain things need to be put in place. Such things include; the cost fee required for incorporating the business; the capital required for the purchase or hire of a befitting office complex; the cost for purchase of necessary software; the cost of building and launching a befitting website etc.

Being well positioned to take on the available market, Finance Dynamics LLC is poised to meet set targets and generate huge profits within the first 6 months of its operations. This is possible through a sales forecast based on information gathered on the field.

This projection is done with the assumption that there would be no major economic meltdown. It starts from its first year of operations to its third year in that order;

– Second Year $500,000.

– Third Year $950,000.

Please note that these projections might be higher or lower and also depends on the fact that other competitors will not be offering as much value added services as we do.

This is what a forex brokerage business plan sample should look like, taking into account all the details necessary for its smooth take-off.

Forex Trading Plan.

Those forex traders with a trading plan and the requisite discipline to abide by it have an overall higher chance of survival in the market. In the words of Jason A. Jankovsky, “In my experience, I have to say that there was very little critical difference between the net winning traders and the net losing traders in most areas. All of them had good understanding of the basic market fundamentals, used a solid technical analysis or research of some kind, and exercised a lot of personal discipline. The one thing that stood out, the one thing that separated the net winner from the net loser, all things being equal, was that the net winner had a trading plan in addition to his other skills. The net winner knew he was up against not just the market and his competitors, but he was up against himself, too. To guard against the possibility that he (the trader) could blow himself out of the water at any time if he wasn’t careful, that trader had a plan.”

In this section of our site, we have included a few samples of forex trading plans with the view that you would find them useful and use parts of them in creating your own trading plan.

Attention: do not just blindly follow any one of our samples. Make sure your trading plan suits your personality and knowledge level.

TJS Trading Plan.

You’ll find a Trading Plan example and template (below), but first…

Your Trading Plan should be used as a guide for the type of information that you may wish to include in your own detailed trading plan. However, each of the following sections should be addressed in some form.

A trading plan can be as simple or as complex as you want (or need) it to be. Of course, if it’s too simple, you may not have enough information to successfully implement key points, rules (and/or) strategies during each trading session. Conversely, if it’s too complex, you may find it hard to adhere to and forego using it altogether.

The main point of a trading plan is to keep you calm and relaxed during a trade, as all thinking should have been done prior to your entry – not during your trade. Professional traders are relaxed and composed when trading. Amateurs are nervous before the trade and reckless during the trade.

Keep your trading plan dynamic! Modify it (only) when your experience and knowledge of the markets (grows), and your trading activities & data analysis tell you to do so… never during a trade or trading session!

Once your trading plan is complete, you’ll find that trading will become more objective, you will be less emotional, and your trades will be more selective. It will add structure and organization to each trading session. It will be your ally when dealing with unexpected moves in the market, rather than making unjustified decisions when a trade does not go as expected.

Abide by the classic market saying, “Plan Your Trade and Trade Your Plan.”

Trading Plan - example.

This is an “example”, used for illustration purposes only. Please take any ideas that you feel are a good fit for your own trading business, but know that each traders ‘plan’ should be unique and individualized based on their own future goals and past experiences.

Why am I trading:

I recognize that Trading is one of the most challenging and rewarding professions on earth. I welcome the challenge, and through: education, consistency & persistence, a specific trading plan, proper mindset and the right tools, I will overcome the challenges and succeed and prosper in the financial trading arena. This will allow me to govern my own path and destiny without having to rely on anyone else for my well-being.

What is my Approach:

My beginning approach is to take advantage of short-term trends in the Equity market, while using the daily (chart) time-frame to scan for potential “Swing” trades that will be held for one to a few days, possibly weeks or until the trend has ended or my target objective has been reached. Once I find consistency in this less frequent time-frame, I will seek to duplicate my success on the more frequent intraday time-frames.

What are my Goals :

Monthly – To never let a ‘planned’ opportunity pass. To follow my trading plan without reservation. To hit “singles & doubles”, knowing that “home-runs” will come over time. Above all else, I will be consistent! Yearly – To steadily increase my risk amount when my data tells me it is advisable to do so. To continue learning through my day-to-day activities of being in the market and through continued education. To keep trading business expenses to a minimum. To see a steadily rising equity curve! Long Term – To trade for life! I would like to have multiple accounts; One for Income, via Day trading and one for Wealth, via Swing trading. This will allow me to eventually build up a retirement account where I can trade within a Roth 401K Plan.

What are my Objectives:

Being a trend-trader, I will seek to attain no less than a 50% win percentage, with an overall Profit Ratio of no less than 1.5.

What Markets will I trade:

My focus will remain on the Equity markets, but I will look to duplicate successes in other market arenas when my time allows for greater trade frequency.

What Timeframes will I trade:

Daily setups (only) during my initial trading phase.

What Setups will I trade:

I will scan for the following two “trend” setups: 1) Basing/Breakout near 20ma, 2) Pullback to Minor Support or a rising 20ma.

Entry rules:

All orders will be limit orders at the Ask price once a trade confirmation has been achieved. If my full share lot was not executed, I will seek to add liquidity by buying the remaining shares at the currently displayed bid price.

Where will I place my Stops:

My stop-loss prices will always be determined prior to entry, and will be at logical major-pivot locations on the chart that I’m trading from.

Exit take profit (and/or) trail-stop rules:

Half profit will be taken nearing a predetermined point of support/resistance, which must represent a 2:1 reward/risk ratio. Final profits will be taken after a confirmation of the end of the current trend (from chart of entry), unless ultimate target has been achieved first.

Risk Management rules:

My trade risk (1R) will be 1% of current (daily adjusted) trading capital. I will not have more than 4R at risk at any one time.

Pre-market activities, or routine:

Log in to trading platform. Review index charts for short-term bias. Use my chosen finance website to review earnings reports, and then log into Trade Ideas scanner for new trade opportunities. Load potential trades into Long and Short watch lists. Set alerts near entry points.

Post-market activities, or routine:

Update TJS Journal. Take screenshots of closed trades and hyperlink to its corresponding trade journal entry. Review all open trades for possible next day action. Review any closed trades to determine whether plan was followed (or not). Mark up SPY and Q’s chart for next day bias. Clean-up trading platform.

What Tools will I use for my trading business:

Falcon Trading Computers – trading computer Super Trader Pro – charting platform Yahoo Finance, Trade Ideas – scanning software and opportunities Trading Journal Spreadsheet (TJS) Elite, for trade Analysis and Record-keeping.

Review process:

Review the notes and screenshots of each trade 5-8 days after closure and after all biases and emotions have subsided. Write notes in the journal sections of the TJS as to how future trade executions, management and exits can be improved. Bi-weekly, check TJS Analysis sheet to see what sub-categories are producing positive expectancy (with frequency). Modify ‘plan’ according to updated information.

Continuing Education:

Read one new trading book a month from my selected group of trading (mentors / authors). Attend two seminars / conferences a year when/if my chosen trading (mentors / authors / educators) will be teaching or broadcasting.

Discipline & Mindset notes:

I will abide by the (5) Fundamental Truths & “Trader” Mindset, from author Mark Douglas of “Trading in the Zone”.

“Anything” can happen I don’t need to know what is going to happen next in order to make money. There is a random distribution between wins & losses for any given variable that defines an edge. An Edge is nothing more than an indication of a higher probability of one thing happening over another. Every moment in the market is unique.

My Golden Rules (and/or) Trading Commandments:

Be disciplined every day, and in every trade. I will be my own trading “self”, never trading another’s plan. I love taking small losses. I’ll always earn the right to trade bigger. I am not addicted to trading just to see what happens. I only trade high reward setups that have the probabilities in their favor. Be a bricklayer – make the same type of trades over and over again. Once I find a setup, I do not hesitate; once in a trade, I do not over analyze. A detailed Trading Journal will be kept at all times, and I will act upon what it tells me. Everything I do will be for the success of my business.

This is a living document . . .

It may change as my experience increases, (and/or) my knowledge of the markets increase.

Trading Plan - download.

Click image to download.

this is a Microsoft Word template.

Need an expert Trading Journal?

For non-TJS users, please view the following promotional videos…

Brought to you by, Trading Journal Spreadsheet, Corp. – YouTube video Meet Doug, and his new TJS – YouTube video Watch your trades come to life, with the best Trading Journal on the planet. Visit the TJS Gallery / Info page.

TJS Trading Plan – template / example /download.

Trading Journal Spreadsheet, Corp.

Las Vegas, Nevada.

Trade Tracking and Analysis software, for all:

Stocks, Options, Futures, Forex, (UK) Spread Betting, and CFD traders.

Making a Forex Trading Plan.

There is one thing all professional traders have in common and that is they all have a trading plan.

The reason a trading plan is so important is because the plan is what a trader uses to make their trades, manage their trades and take profit out of the markets systematically.

A trading plan is just like a rule book that includes all the information on how a trader trades. Having a solid trading plan will ensure you are consistent in you trading and follow your rules – or not.

Trading Forex is very different from every other job in the world because there are no rules. There is no one telling you how much to trade, when to trade or how to trade. Rules are very important to a trader because without them they are just another gambler.

Another way to think about a trading plan is a business plan. The plan outlines how your business runs and operates.

What Should a Trading Plan Contain?

A trading plan and rules needs to cover every scenario you are likely to encounter when trading.

The way you need to think about your trade plan is; if a family member of yours that does not know about your trading had to step in and manage a trade for you that you already had open and all they had to go off was you trading plan, could they do it?

Would they have a clear rule set that states exactly what course of action should be taken under each different set of circumstances? That is what your plan should do. It should be clear cut. A rule set that clearly sets out your edge in the market and exactly what that edge looks like to you.

These things include what you trade, how you trade and how you manage those Forex trades. Also other super important parts of the plan you do not want to forget to include are how much you will risk per trade and what your goals are.

Trading plans can act as check lists. Whilst you have your overall larger plan, you can have smaller checklist around your trade station to ensure you stick to your trading edge. These can be to remind you and help you stick to your rules.

An example of one of these checklists may be for the pin bar. For example;

Will Only trade with the trend or in range. (I will not trade against the trend until profitable 6 months with this plan). Must form at the correct swing high or low. At a significant pullback such as logical Support or Resistance area. It must stick out away from price. It must form with open and close within previous bar. It must have nose 3x size of body. If pin formed in range it must be from extreme high or low of range and not in the middle. Must stick out and be large and obvious.

You could make one of these quick checklist for each setups or ‘trigger signals’ you enter to help ensure you stick to your overall larger plan and rule set and continue checking in regularly with your plan and rule set.

Trade Management – The Real Holy Grail.

Once you have a checklist for what signals you are going to take you will need to include in your plan how you manage your trades. This is one of the most important points. As I said above; the Forex market has no rules. When you are in a trade there is no one to tell you when to take profit or when to cut your losses. This is a must in your plan otherwise you will get into trades and have no idea how to manage them.

Whilst it is very important to have your trade check list in your trading plan, you have to make sure you don’t forget the other important things. These are the sorts of things such as:

Money management used How much you will risk per trade How will you place stops How often will you monitor trades What you are going to use to target profits Trading goals.

The basic rule when writing your trading plan is if you are going to come across it in your trading, it should be in your written plan. The more details you cover in your plan, the more consistent your results will be.

Write it Down and Follow it!

A trading plan is no use unless it is written down. Having your plan in your head is a waste of time because when it comes to the crunch and you are under pressure you will forget or go with what your gut is saying. Write out your plan and stick it beside your trading area or computer. Have it on you at all times when trading!

After you have a plan the key is to follow it. I know this sounds simple but many traders write a plan with the best intentions and then at the first hurdle they fail to follow it. An example of this is a trader has written in their plan not to trade against the trend. A Pin bar then forms but it is against the trend. The trader will take this trade thinking to themselves, “I will just take this one setup as it looks so great”. They will then watch it as it goes onto to be a loss. They will then kick themselves for not following their plan. This is a very common problem. Plan your trade and trade your plan! Always!

Give Your Plan a Chance to Work!

The other common mistake traders make is throwing their plan out at the first losing trade. What often happens is a trader will make a few winning trades and then experience a loser. They will then forget all about the plan and move on.

You need to let your plan work out over many trades. The best way to think about your plan is how a casino thinks about their business. The casino knows that they will lose money here and there. What they work on is the fact that over many gamblers playing many games, they will make more money than what they lose.

They may have a few losses in a row but by following their business plan they will come out on top, they know they have an edge built in to all of their games and that this will play out over a large sample size.

Having a sound price action trading plan is your edge and only a lack of patience and discipline are your enemies.

You need to give you plan a chance to work out. Don’t throw it away after one loss! Think like a casino.

More Trading Lessons On Forex Trading Plans.

Introduction to Forex – Course Outline.

Johnathon Fox.

Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around the world. Johnathon specialises in helping traders transform their trading with high probability Price Action trading methods and correct money management strategies.

Reader Interactions.

Copyright © 2017 Forex School Online · Sitemap · CONTACT US.