Start you own e-currency exchange

pendelton · 02-23-2008, 07:49 PM

This one can be pricey to start, but once it is going, and you have proven to be trustworthy business will flow in.

Out of the multitude of payment processors you would need to figure out which ones you want to service. Starting with paypal, e-gold, c-gold, v-money, and maybe liberty reserve would be a good selection.

How much to start with is a good question, but I do believe that e-gold requires a minimum of US$1,000.00 to start, plus fees from the company that you 'buy' the gold from.
We will say that it comes to $1,250.00 jst for a general number. With the 5 e-currencies/exchangers, you would need US$6,250.00 to start out with.

Advertising is easy enough to do on the various forums putting the link in your sig and posting to get the link out. Make sure your posts are on topic though. Most of the forums have an advertising section you can buy space in.

How much to charge. I would need to find out what all the fees are from each business, so that when you find out how much the other companies are charging you can subtract the fees from that percent to find out what their 'profit' is. You can adjust to being lower than their price, or, using another marketing ploy, price slightly higher and offer a superior service.

ErnieB · 03-27-2008, 05:46 AM

interesting concept.... would require more financial research i would think

pendelton · 03-27-2008, 06:46 PM

You are right Earnie, I just suggest and give rough ideas and let people run with them.

emasaa · 03-31-2008, 01:55 PM

Is it not true that paypal will actually ban your account if they find that you are exchanging money. Is it not risky too for your account. Supposing you pay someone through say egold, after they have paid you through paypal, would they not then still claim fraud on your part for non delivery of services?

pendelton · 03-31-2008, 03:21 PM

You are correct there, to the best of my knowledge. I have seen some trades go sour with a charge back being done on paypal. The concept of paypal was good, but it is another corporation that has gotten to big. Starting your own money transmitter though is a very costly endeavor.

Pffeffer · 10-20-2008, 08:57 PM

Do you need to get a license to become an online exchanger? Is this business regulated?