The sheer volume of new brokerages hitting the market right now is impressive. A Google search will return thousands of results from all over the world. Unfortunately for traders but fortunately for you, many of these firms are bogus, poorly run, and unreliable. That provides you with an opportunity to succeed.
To be in with a chance of success, you must start your brokerage correctly. Proper planning beforehand can help you to avoid many pitfalls and unnecessary pain later on.
<h2 Step One
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Once the administration and set up of your company has been done, you will need to focus on the technology that your brokerage will leverage every day to do business.
<h2 Step Two
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Step two can all be taken care of by a reputable specialist who truly has your brokerages future in their thoughts. Take Popcorn Technology a London based Fintech firm who provide expert white label services like the MT4 trading platform and a CRM for forex brokers that is specifically designed to integrate with the rest of the brokerage. They also have a dedicated start-up team on hand to talk you through the journey and what you should expect.
<h2 Hacks for success
<h3 Do not charge too much
It is easy to get excited and see your new brokerage as a cash cow. The potential for massive returns is all too alluring. However, the industry is hyper-competitive, and if you mark up the interbank rate too high, your traders will feel it, and it will be enough to send them fleeing elsewhere. Be fair with your prices. Research the competition and compete with them.
<h3 Risk management
Employ risk management tools that can identify Bots and protect your brokerage from huge losses.
<h3 Be honest and transparent
Always be clear about your business processes. Be upfront about the commission. Be attentive and communicate clearly with your clients, mostly when transfers are being made. A speedy resolution to customer queries and complaints is essential to building trust among your customer base. The word about lousy service will spread quickly online and will earmark your business as one of the unreliable firms mentioned earlier.
Trustworthiness is paramount in the forex business, and you must work hard to prove your brokerage is honest.
