What Software is Required to Run a Forex & CFD Prop Trading Firm?

If you are looking to start your own forex & CFD prop trading firm, then the first thing you need to think about is the software. While the business plan, funding, and trading system are also important, the software is essentially the engine of the entire business, without it, you simply cannot properly run a prop trading firm.

Today we’d like to outline what is required from a software perspective to operate a forex & CFD prop trading firm.

#1. Trading Platform

It goes without saying that a trading platform is needed to execute trades. You should also consider whether the firm will rely on algorithmic or manual trading. The reason it is important, is that not all technology supports algorithms and one of the more popular platforms, MT4/MT5 is making it much more difficult to now launch a prop firm, something to consider.

#2. MAMM / PAMM Technology

The next component is the technology required to manage both the funds itself and the traders, which falls under the category of MAM/PAMM. All that MAM/PAMM stand for is an asset management technology.

This is important because you’ll need some way to manage the fund itself and distribute profits to the investors. Secondly, you’ll need a way to monitor the traders and set equity circuit breakers for those who don’t generate the necessary returns or drop below a certain level.

#3 CRM for Clients

Finally, if you intend on targeting investors, you’ll need a place for them to both register their accounts and monitor activity. CRM is a catchall type of term that means many things to many people.

For the purpose of today’s post, it is referring to the online portal where clients can set up an account for investment, upload their documents to have their account approved, request withdrawals, and then monitor performance.

#4. A Final Thought – Do you Really Need MT4 or MT5?

This is an important sub point. For some, MT4 or MT5 is a must have, either due to an algo that has already been developed or one introduced by the traders. If this is the case, your only option may be to partner with an existing broker offering MT4 / MT5.

Why is that the case? MetaQuotes is now raising the barriers for their white labels, making it very difficult for non-licensed prop firms to obtain their software. Currently, the requirements are not clear so if you don’t need MT4 or MT5, we’d suggest exploring alternative platforms. If, however, MT4 and MT5 are a must, we can help you to either obtain a license or work with an existing provider.

Contact us for a Price Quote

If you want to know more about the software we spoke about in this post, please don’t hesitate to contact us. We are happy to get you a demo of our technology and also provide a price quote for everything offered above.

We look forward to hearing from you!

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