Welcome to the article, don’t worry we had the same first impressions when we read the disturbing news about Chinese government officials kicking some Forex brokers out of the mainland. However, there is no need to be worried at all, because it all accounted to these brokerages not playing by the rules and not to some conspiracy theories about a trade war.
Remember one thing when it comes to opening your business, being it Forex or any other industry. If you do not play by the rules the government is going to crack down on you no matter how much money you are making. Even if you’re the main source of income public opinion will still make the government get rid of you. Therefore follow the regulations and you’ll be just fine and able to reap the benefits of your labor. All of the commotion that has been happening wad because the sheer number of retail brokers popping up around China, and after some time the government noticed.
Broker in China, how do they do it?
As mentioned on ForexNewsNow.com – when applying for the position of a broker in China, you may get overwhelmed by how many regulations you need to follow, therefore you may have a newfound respect for the brokers you will be dealing with. But remember that the brokers who are based in China are no more experts or gurus of the industry than any other nationality of brokers. Remember that they just took the time to familiarize themselves with the regulations and started their brokerage clean.
If you are going to make a completely Western-based Forex brokerage in mainland China, we have some bad news for you. It’s impossible unless you break the law. Breaking the law in China or pretty much anywhere else is the last thing you want to be doing. So our advice would be to just follow the format! accept the rules don’t fight them, it will make life easier for you and everyone else.
Brokerages with large amounts of domestic market influence and a loyal domestic market client base with their own Chinese-owned offices within mainland China are absolutely safe from any kind of danger, because the government’s concerns with ‘social stability’ for retail clients are cooled down when a retail brokerage has a public listing on a stock exchange in London, or a large domestic audience and provides liquidity to global brokerages as well as has its own trading infrastructure.
Thinking of outsourcing to China? you’ll need this
Accessibility & Communication
Brokes always need to be accessible to their client 24/5 if they ever dream of going global. having an immaculate customer service is something that can make or break you. Therefore having telephone lines that can have a great connection with the mainland is pretty much a must for you. The most important part has already been mentioned but we’ve identified it as accessibility, however, I’m sure you know that it’s impossible to be accessible without knowing the language of your customers. China may have evolved and developed to the point where one would think that everyone can speak English to a certain point. But on the contrary, the larger part almost 90% of the population cannot formulate a sentence. So if you’re outsourcing, better find good Chinese speaking brokers.
Trust and Licence
If you want to be able to attract at least some sort of a customer, you need to have licensing and trust of the Chinese government. Receiving that is no easy feat, what we can suggest is to just go to this link and check out what type of documentation you will need.