How to save money when starting a forex brokerage
$5.3 trillion is traded on the currency markets every single
day. The potential for vast returns means that new brokerages are incorporated daily, and the competition continues to swell.
Launching a Forex brokerage is a huge challenge, and as with any other business, hard work will only get you part of the way. Savvy decision making can increase your chances of success, and the first question that is often asked is whether to start a brokerage from scratch or choose a white label solution.
Starting from scratch
Starting afresh is often the first inclination of budding entrepreneurs. However, this option can be fraught with danger and uncertainty and will require a massive amount of money. Turnkey platforms and proprietary client management systems are time-consuming to construct and costly to maintain. New systems always need time to test and commission and will significantly increase the time it will take to launch the business.
Most people fail to realise the investment that will be needed in acquiring the expertise to run the business. A professional will need to take care of IT infrastructure, a software design engineer will need to be hired to build the system, and unless you are particularly tech-savvy, someone else will need to run it.
Using White Label Services
Be under no illusions that regardless of starting from scratch or using a white label service, hard work and financial investment are always prerequisites when starting a brokerage. However, significant savings can be made if you choose to become a white label forex broker.
Rather than being completely alone, wouldn’t it be nice to have a helping hand from a larger, more experienced organisation? One that can help you to navigate the industry and avoid some of the more common pitfalls that trip up new founders.
Popcorn Technology provides an out of the box solution for startup brokerages. As a white-label service provider, they have created and implemented bespoke software of their own and have made it available to the open market. They also utilise the ubiquitous MT4 trading platform which integrates with their back-office, traders room, and in turn, they all seamlessly connect with their white label CRM. All that is required from a brokerage is their own unique branding guidelines which will allow them to pass off the software as their own.
The most significant advantage of leveraging a service like Popcorn Technologies is that it has been trialled, and all the systems are currently in service elsewhere. Brokerages and traders have been utilising their services and systems over several years.
Therefore, there is very little downtime, little to no maintenance and no need to hire expensive expert staff in the early days. There is very little technical know-how required and is entirely manageable within a small team.
There are two clear paths, and neither of them is easy nor free from risk. However, by becoming a white label forex broker it’s clear to see the time and cost savings your start-up could make which can be deployed to other areas of the business.