I would like to open a online discount brokerage firm? like scottrade, e-trade?

Question

Who do I need to contact ? attorney? what is the process to follow? please give me a detailed list and who to contact?

Answer 1

If you have to ask here, you probably are in no position to open one.

Answer 2

It appears "the Old Guy knows" what he's talking about and gave you good directions, I also read his comments the other day and he's right on except he didn't emphasis enough the importance of net capital.  

Net capital of $250,000 is capital that is readily convertible into cash, everything else does not count.  

"The Italian Girl" and "the Old Guy" both questioned you knowledge and experience especially asking this question in this type of media.

and I agree with both.  I think you're spinning wheels and wasting everyone's time.

Answer 3

There is no such thing as an on-line brokerage firm when filing for registration with the SEC or for membership in FNRA.  

I gave you a full detailed list of what is needed to open a brokerage firm yesterday.

You have to have a corporation or a registered partnership

You need to file with the Securities & Exchange Commission, visit their website for complete details

A registered broker/dealer is a broker/dealer, so you can not file as on-line or full service, just file to be a broker.  The forms you receive from the SEC will let you denote what source of business you are apply for, on-line is not one of them.

You will need to be a member of FNRA, and once again visit their website for details, but your company will have to be registered with the SEC before you can get membership in FNRA

Once approved or filed with the regulatory agencies, you will have to file with the states in which you will be doing business and your local municipality in which your place of business is domiciled.

You will need an independent accountant, to prepare and file audited financials for both you and your company.  You should have an accounting firm that is familar with brokerage accountiing. (unless you select one of the big four, there are not too many out there)

If you are going to self clear your transactions you will need an experience support staff, and a computerized accounting and processing systems.  You will need a totally stand alone back up systems for disaster recovery.

If you are going to clear your transaction on a fully disclosed basis, you will need a clearing contract with a broker/dealer that specializes and has SEC approval for clearing transactions for other B/Ds.

Before you do any filings, you should have your capital in place (deposited in a regular bank), and your support staff prepared and committed to joining you.

You will need telecom and data connectivity using high speed data lines, although most transmission can be done by the internet, not all transmissions are sent via internet

So you will have to contact a carrier to provide such service.

If you plan on managing or running your brokerage business by yourself, you will never make.  Unless you have good experienced support staff you will have a very difficult time of making this endevour a success.

Judging by your question and the media in which it was asked, it appears that you need more knowledge about the brokerage business but this will come up in your interviews with the SEC and FNRA.  You will be notified by the agencies once you file the appropriate paper work and prior to any approvals.

Answer 4

You go to their website and open an account. At the Scottrade website there is a big yellow button at the top that says "Open An Account". You just follow the directions and fill in the requested information. It isn't rocket surgery.

Edit:

Ah, in that case you aren't going to get an answer here.