1. Compliance & Legal Department
Responsibilities:
- Regulatory Compliance: Ensures the company operates within the rules set by financial regulators (e.g., FCA, CySEC, ASIC).
- Licensing & Reporting: Handles applications for new licenses and ongoing regulatory reporting.
- AML & KYC Procedures: Implements and enforces policies to prevent money laundering and fraud.
- Client & Transaction Monitoring: Monitors transactions to detect suspicious activities.
- Contract & Legal Documentation: Drafts and reviews contracts, agreements, and terms of service.
- Regulatory Communication: Acts as the point of contact between the broker and financial regulators.
2. Risk Management Department
Responsibilities:
- Trade Exposure Management: Analyzes and manages risks associated with client trades.
- Liquidity Risk Control: Ensures there is enough liquidity to meet client withdrawals and trade settlements.
- Market Risk Analysis: Assesses volatility and adjusts risk strategies accordingly.
- Leverage & Margin Management: Monitors client leverage levels to mitigate excessive risk.
- Internal Risk Policies: Develops frameworks to minimize operational and financial risks.
3. Finance & Accounting Department
Responsibilities:
- Financial Reporting: Prepares financial statements and regulatory reports.
- Client Fund Segregation: Ensures compliance with regulations requiring separation of client and company funds.
- Audit & Tax Compliance: Manages internal audits and ensures tax obligations are met.
- Payment Processing: Oversees deposits, withdrawals, and payment service provider integrations.
- Budgeting & Cost Management: Ensures operational expenses align with business goals.
4. Trading & Dealing Desk
Responsibilities:
- Trade Execution: Ensures client orders are executed efficiently with minimal slippage.
- Liquidity Provider Management: Connects with LPs to ensure competitive spreads and deep liquidity.
- Market Making: For B-book brokers, manages risk by taking the opposite side of trades.
- Hedging & Exposure Management: Monitors open positions and hedges risk when necessary.
- Price Feed Monitoring: Ensures accurate price feeds and prevents pricing errors or manipulation.
5. IT & Security Department
Responsibilities:
- Trading Platform Maintenance: Supports platforms like MT4, MT5, cTrader, and proprietary systems.
- Cybersecurity & Data Protection: Implements security measures to protect client data and funds.
- Server Management & Uptime: Ensures servers run 24/7 to maintain trading availability.
- API & Software Development: Develops and maintains APIs for integrations with third-party services.
- Disaster Recovery & Backup: Implements backup strategies in case of system failures.
6. Customer Support & Client Relations
Responsibilities:
- 24/7 Client Assistance: Provides support via email, chat, and phone in multiple languages.
- Account Verification & Onboarding: Guides clients through KYC and document submission processes.
- Technical & Trading Assistance: Helps clients with platform usage, execution issues, and withdrawals.
- Complaint Handling: Resolves disputes fairly and efficiently.
- Client Education & Training: Provides resources and training for traders.
7. Sales & Business Development
Responsibilities:
- Client Acquisition: Generates leads and converts them into active traders.
- Affiliate & IB Management: Builds relationships with Introducing Brokers and affiliates.
- Partnership Development: Expands business through institutional partnerships and liquidity providers.
- Market Expansion: Identifies and enters new markets while ensuring regulatory compliance.
8. Marketing & Branding
Responsibilities:
- Advertising & Campaigns: Runs digital and traditional marketing campaigns.
- SEO & Content Creation: Ensures website and blog content rank well in search engines.
- Social Media Management: Engages with traders through Twitter, Telegram, and other channels.
- Educational Resources: Creates webinars, eBooks, and video tutorials for traders.
- Brand Awareness: Develops a strong brand presence in the forex industry.
9. Back Office & Operations
Responsibilities:
- Account Management: Handles deposits, withdrawals, and reconciliation of funds.
- Document Processing: Reviews client documentation for compliance with KYC and AML.
- Transaction Monitoring: Detects and resolves payment and account discrepancies.
- Internal Reporting: Provides reports on operational efficiency and trading activity.
- Support for Other Departments: Assists compliance, finance, and IT teams with administrative tasks.
10. Human Resources (HR)
Responsibilities:
- Recruitment & Hiring: Finds and hires skilled employees for all departments.
- Employee Training & Development: Conducts training on compliance, trading, and customer service.
- Performance Management: Evaluates employee performance and implements retention strategies.
- Company Culture & Policies: Develops HR policies, code of conduct, and workplace ethics.
- Payroll & Benefits Management: Manages employee salaries, bonuses, and benefits.
The above company structure ensures that a forex broker operates efficiently while meeting regulatory requirements. In addition, depending on the broker's size and regulatory jurisdiction, some extra specialized departments (e.g., Liquidity Management, Institutional Sales) may be required.
