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16.08.2021

Business plan for Starting a Brokerage

Business plan for Starting a Brokerage

According to statistics, the number of companies in financial and Forex markets is growing exponentially. Therefore, many entrepreneurs strive to enter the Forex market with their own brokerage projects.

Before starting a brokerage business, you need to carefully study all the company requirements and draw up a business plan.

Business Plan: Step by Step Guide

The business plan for opening a brokerage includes the following points:

⚪ Choice of market segments (target audience)

⚪ Search for investments

⚪ Selection of Liquidity Providers

⚪ Integration of payment services

⚪ Website creation and software integration

⚪ Test launch

Choice of Target Audience

First, you need to analyze the geography of potential customers. This is important, as the requirements for obtaining a license may differ depending on the location.

Try to understand the financial boundaries of future clients:

⚪ Beginners or experienced traders

⚪Middle-income people or VIP clients

Finding Investments

The minimum amount of capital to open a brokerage business varies from country to country. The initial investment will be required for obtaining a license, opening a bank account, legal advice, etc.

Make sure there is enough start-up capital for the first year of operation. Don’t waste time and start the business if a start-up capital covers the operating costs for the 1st year.

Liquidity Providers (LPs)

By and large, LPs are large banks, hedge funds, or financial companies.

Why is it so important for a broker to pay attention to this point of the business plan?

The reputation and success of the brokerage company directly depend on the reliability of an LP. By offering the best prices from several reputable and trusted LPs, you will quickly build a reputation as a reliable broker both for newbies and pro traders.

Integration of Payment Solutions

Reliable payment services may provide a brokerage company with huge benefits. Competently selected “payment systems” always contribute to getting new clients. Advanced and trusted payment methods will allow customers to deposit and withdraw funds in a convenient and familiar way.

Website and Software Integration

For the full-fledged functioning of the brokerage company, you will need to select and install specialized software. In any case, it is better to involve professional software integrators with relevant experience.

Profit Center FX is one of the leaders in developing and integrating software for the brokerage business. The company has accumulated over 9 years of experience, assisted in launching 200+ brokerage projects, and is competent in:

⚪ Creating a modern website considering the specifics of the brokerage

⚪ Integrating reliable IT solutions as soon as possible

⚪ Providing quality technical support 24/7

Testing and Project Launch

After installing the software, test the work of:

⚪ Trading platform, CRM, client area, back-office

⚪ Payment services

⚪ Mobile version of the website and trading platform

⚪ Chatbot, etc.

After analyzing the test results and correcting the shortcomings, you can launch the project and win sales.

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