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03.09.2021

Brokerage from a Scratch or a White Label: Expert’s Thoughts

Since its inception in the 70s and until today, the Forex has deeply evolved into a global financial structure with over seven trillion dollars daily turnover. Every year, millions of newcomers enter the retail sector to try their hands as traders and make it their primary source of income.

Anyway, the first thing all clients are looking for is a trusted brokerage. They need a reliable financial intermediary who ensures fast and gainful trading.

Today, experts from Profit Center FX will share how to start your own Forex brokerage company using a White Label solution.

STEP.1 Analyze Geography and Target Audience

The first step to launching your brokerage project is defining the region (where you will provide services) and target audience. According to stats, the retail segment of the Forex market traders are people of 25 – 35 age. They devote approximately 3-5 hours a day to trading and have less than four years of market experience.

The region also matters. Different countries and areas of the world have various legislative features for regulating online trading and cultural differences that must be considered when drawing up a business plan for a project.

STEP.2 Calculate the Project Budget

The five essential cost items for starting a brokerage company are:

🔵 A legal entity and obtaining permits. The price of the license depends on the country of registration and the chosen jurisdiction of the project

🔵 Advanced software complex for Forex brokers

🔵 A user-friendly website that considers brokerage business peculiarities

🔵 A customer support service and a technical department

🔵 Carefully calibrated marketing strategy

STEP. 3 Choice of Payment Methods

A brokerage company that wants to engage clients effectively should offer a wide range of deposit and withdrawal methods for “every taste and budget.” Pay attention to reliable providers with a good reputation and a transparent commission system.

STEP. 4 Choose the Trading Instruments

Trading instruments is a product range of a brokerage company. Therefore, it is better to choose a reliable trading platform that can satisfy the needs of both experienced and novice clients.

For example, the Profit Center FX trading terminal has over 3000 trading instruments! Moreover, the software provider and integrator can help choose reliable and proven liquidity providers to offer your clients the best prices.

The Profit Center FX platform has the following features:

🔵 Modern design and intuitive interface

🔵 3000+ trading instruments

🔵 A set of professional tools for advanced traders

🔵 Organic integration of a client account in the trading platform

🔵 Demo mode for preliminary acquaintance with the terminal functions

🔵 A trader can use multiple accounts in different currencies without loss on conversion

🔵 The platform can be integrated with any payment system

🔵 A trader can manage a trade directly from the charts

Why Choose a White Label Option?

If you do not want to spend time and effort implementing all the above stages, there is an easier way to launch your brokerage now. We are talking about White Label – legal use of products and services of a well-known brokerage brand.

A parent company will provide a trading platform and a complete set of software while you have to pay a commission of a fixed amount or as a percentage of turnover. Anyway, it’s a great chance to represent a big-name brand under your trademark.

Summary

Starting a brokerage from scratch on your own or using the White Label solution are two alternative ways to enter the financial market. Anyway, you must carefully consider the choice of specialized software.

It must comply with the business model, have a block structure with phased implementation, be reliable even under the most peak loads, and has 24/7 technical support.

Profit Center FX is a professional software integrator with 200+ successful brokerage projects in 9 countries. The company has been actively developing reliable and highly efficient software for huge financial companies, banks, Forex/Crypto/CFD brokers worldwide.

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