Do you think a “Forex exchange” website is a good idea?
So…do you think it’s a good business if a website acts as a forex broker that matches orders between its customers? Something like an ECN or a DMA broker…but without offering the orders on some intranet of other banks, hedge funds – but just its own customers? Like…on the fictional website “exforex.com” someone wants to buy 100,000 eur with usd and another customer wants to sell 100,000 eur. The website makes money of the spread – which here can be just one pip fixed. Because there are no middlemen and middlemen of middlemen and middlemen of middlemen of middlemen…etc. I guess this could be a very profitable idea…but there’s one problem. In order for such orders to be matched, one will need say 100,000 customers or more. So if I start such website, I don’t see how I will get thousands of customers so that the orders are easily matched, or at least some serious % of them. Even big stock exchanges like ASX have problems with liquidity, let alone a new website. I guess if I had one million in my bank account it would be much easier, but I can start such website with as low as just $50-$70k of my own money which won’t be enough even for leverage. Would you use such a broker anyway?
10x and happy new year!