Starting a brokerage business means you will have access to one of the most promising and lucrative markets. It seems that during the pandemic, users began to invest more actively in Forex trading.
If you plan to start your high-margin brokerage, now it’s the right time. Setting up a brokerage is a simple process unless you’ll draw into a professional’s orbit.
Features of Starting a Brokerage
Like any business, a company offering Forex trading services has its specifics. Today, we will consider the stages of launching a turnkey brokerage project and the cost and scope schedule.
However, before considering the stages of launching a company, it is worth making a strategic decision. The owner must choose among the two most common solutions:
⚪ Creating your own business from scratch
⚪ Choosing a White Label solution – using the name and capabilities of a well-known brokerage brand
Both solutions have their strengths and weaknesses. Launching a brand from scratch means the project investment cost will be a bit higher. On the other hand, choosing a White Label means that you have to share the profit with the parent company. What’s more, a broker will have to fulfill all the requirements of the head office.
Step by Step Guide on How to Start a Brokerage
The launch of a high-margin brokerage can be divided into the following stages:
⚪ Composing a business plan
⚪ Analyzing the target audience
⚪ Selecting of Liquidity Providers (LPs)
⚪ Integration of payment services
⚪ Testing of the software
⚪ Launch of the company
A business plan of a brokerage company is a crucial component. This way, a broker can understand the size of investments for launching a project. In addition, it will allow a broker to:
⚪ Understand and analyze all internal processes of business
⚪ Create a competent organizational structure
⚪ Select all the necessary components of the software package
⚪ Analyze operating expenses and so on
Target Audience Analysis
To ensure a constant stream of leads, a broker needs to understand who is the buyer persona. The company must conduct an in-depth analysis of the target audience, which includes:
⚪ Area of residence
⚪ Interests and so on
This is crucial information. It will directly affect the choice of jurisdiction, advertising tools, and positioning of brokerage services.
Keep in mind that choosing the area is a significant step. Each jurisdiction has its specifics, as well as the cost of obtaining a license. Moreover, in some countries, you will need to open an office to obtain a license to provide brokerage services.
On the other hand, there is a list of offshore zones where the requirements for the licensee are minimal. In some cases, it will be enough for you to spend several thousand dollars to submit the necessary documents and obtain permission. All these nuances should be considered even when drawing up a business plan for a brokerage company.
Sometimes brokers take more drastic steps and start their activities without obtaining a license. However, this decision is very risky.
If you plan to launch an international brokerage business, it is better to attract professional lawyers. They will help you collect the necessary package of documents and open bank accounts ASAP.
Choice of LPs
Working with trusted LPs means your brand will provide customers with the best market prices. However, choosing and connecting LPs can be a daunting task for a novice broker. That is why it is recommended to use a turnkey solution from professional software providers.
For example, Profit Center FX offers its clients a clear list of reliable and trusted LPs. There is no point in wasting time and looking for unverified providers on your own.
By contacting the Profit Center FX, you can be sure that the company will help you integrate LPs into the brokerage business in the shortest time possible.
Integration of Payment Services
The maximum number of payment services means that you can significantly increase the percentage of conversion to deposit. Users have their preferences for choosing a service to deposit funds online.
Therefore, the more diverse the set of payment solutions, the more comfortable the conditions for your customers will be. Subsequently, this factor will positively affect the reputation of the brokerage and the loyalty of registered users.
Test Run of the Software Package
At this stage, you need to make sure that each of the software components performs its function. If you are not ready to run software integration and testing, then it is better to entrust this work to experienced professionals from Profit Center FX.
Currently, the software integrator offers its clients top-quality and high-speed software for the brokerage business, including:
⚪ Trading platform
⚪ Trading server
⚪ ECN server
⚪ Client’s area
⚪ Liquidity aggregator
⚪ Quotation server
⚪ Report server
⚪ Proxy and balancing server
⚪ Server for copying deals
The average price tag of a turnkey broker solution is about $2,500 – $5,000. The exact amount will always depend on the list of software solutions, goals, and objectives of the company.
As a part of a turnkey solution, Profit Center FX develops a high-quality and user-friendly website, considering the specifics of a business brokerage. Professionals offer a truly unique solution for business people looking to launch a brokerage business ASAP.
We are talking about the so-called turnkey broker solution, which allows you to start with your high-margin project in a few weeks!