Currently, the Forex market is extremely volatile, which presents a unique opportunity for a startup brokerage. Significant gains can be realised if you are diligent and thoroughly prepared to provide essential services to your customer.
Following the following six steps will ensure your brokerage gets off to the best possible start.
Firstly, it is crucial to set up a legal entity to protect you as a new business owner. However, it is not quite as simple as setting up a new company online.
The location and jurisdiction of your specific country have a significant impact on who your customer base will be and who you can do business with exactly.
Licensing requirements and differ from country to country and where you choose to set up your new brokerage is an essential first step.
Capital requirements used to be the main barrier to entry. However, there are ways to cut costs while keeping all the essential business functions you will need to be successful in this space. Popcorn Technology can provide you with a Forex brokerage that is out-of-the-box and ready to go. With comparatively low start-up capital needed to get going and excellent customer service, you can be providing brokerage services within a matter of weeks.
However, in addition to your start-up costs, you will need to have enough cash reserves to allow you to operate and this will depend on several factors like overheads, employees, trading capital, insurance, etc.
Most traders will require access to leverage, and this means your company will need to be connected with a tier-one liquidity provider. A tier one liquidity provider will provide you with the best buy and sell prices with lightning quick execution speeds. That is important as it will allow your traders to buy and sell with confidence.
Your brokerage will need to form a partnership with a payment provider. Running a brokerage involves processing significant financial transactions daily, and you will need to ensure customer data and money are always kept safe and secure. By working with expert payment processing companies, you will display a superior level of professionalism and attract many more customers.
A new brokerage is a complicated machine, with many moving parts and you will need to be operating at full speed as quickly as possible. This step involves things like your website, back end set up, CRM, physical office location, customer support, etc. You will need to perform strongly in all departments to keep attracting new customers.
As mentioned earlier, all your systems must work well together, and all your employees must know their roles. You will need to give yourself and your brokerage time to test all the working parts and systems to ensure they are operating correctly. The smallest error can lead to a loss so be diligent and test out your services before you go live.
Popcorn technology has done much of this testing already, and their systems have proven reliable for many other new brokerages.
If you want the quickest route to market at the lowest cost while being guided by a dedicated team of professionals, then Popcorn Technology can provide these essential services.