Forex market surely offers many profitable opportunities to all keen to understand the market dynamics and navigate this space with a solid plan and tactfulness. The profitable opportunities of the global currency market are no longer confined to trading alone.
There is a huge demand for trading platform providers and brokerages due to the huge popularity of online trading. Hence, those who are confident to start their own business as a forex broker can explore the forex world on a higher level, providing more potential for profits because your potential client base as a forex broker includes millions of existing traders from all parts of the world as well as newbies who keep entering the forex world every single day.
But being a brand new broker in the forex world is not that easy unless you have enough information to start off this journey with ease. Hence, we will guide you through the simple steps to give you a clear idea of starting a forex brokerage firm from scratch. Finding the best UK forex trading platforms is incredibly important, so we’re here to help.
Simple Steps to Start Your Forex Brokerage
Opening an online forex brokerage involves a lot of steps, but we have narrowed it down to 5 simple yet essential steps that you cannot skip as a new broker.
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Research and Choose a Platform Provider
The first and foremost thing that you need to build or own as a forex broker is a fully functional and feature-rich trading platform. Hence, the first step that you need to take for opening a forex brokerage firm is choosing a platform provider. There are two ways to do this. You can either acquire a license to the popular trading software solutions like MT4 or MT5 and then start building your brokerage platform from ground zero, a complex procedure with too many technicalities. You will need an expert team of developers and continuous testing to ensure the platform’s functionality before the final launch.
This tedious process can be a turnoff for many beginner brokers due to the heavy capital requirement and technical support needed. But you have an easier way out: choosing a Forex white-label service provider. This would be a top forex broker willing to share their tech infrastructure and platform with new brokers allowing them to offer these services with their own brand name. This way, you can save a lot of time, money, and effort as this is a ready-made solution that accelerates the initial setup process in a cost-effective manner.
A Forex white-label solution will be a complete package that assists new brokers in entering the industry without any hassle. They don’t need to worry about the technical side and can fully focus on promotion and brand building instead. You just need to do some research and choose the most appropriate provider out of the available options.
Opting for a white-label solution gives you an edge in the competitive space as an experienced broker backs you and gets to leverage their tools and technology. The best thing about the white-label solution is that you won’t have to do any in-depth research to find the best liquidity providers, as white-label providers offer this as a part of their service.
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Company Registration
Registration of your Company as an online forex brokerage is a must for operating under legal boundaries. This step can also get a bit complicated if you are taking the tough route of establishing the brokerage platform yourself. You will have to consult with experts about the legal formalities and licensing procedures, which often adds up to the cost. But those who go for a white label solution can be relieved as most of the white label providers will assist you in this phase as well. We will advise you to choose a regulated forex broker as your white label provider as they are more familiar with the legality of functioning as a forex brokerage.
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Open a Call Center
A forex broker functions as an intermediary between forex traders and the international currency market. Your primary function is to connect your clients to the forex market through a software interface, allowing them to access real-time market data and place trades. Here comes the relevance of a call centre, as your clients often want to reach out to you to clear their doubts and queries.
So, you will have to open a call centre with an expert team for customer support, and they should be available to answer your clients’ questions as and when needed. The cost of hiring manpower and providing required technical support is critical for building a solid customer support system. This is actually just as important as building your brokerage platform.
The majority of clients won’t sign up or stay with a broker that disappoints them in customer support. They always look for brokers they can rely on in times of crisis, which is a key consideration for winning the trust of your potential clients. When you opt for a white label solution, you can greatly minimise the cost involved in this step, as most white label providers will share their customer support team with the new brokers for ongoing fees.
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Hire and Train Your Sales Team
Now the next step is having a team to enhance your sales which is done by bringing more clients to your platform. The forex brokerage industry is highly competitive as we already have a good number of top forex brokers, and brand new brokers also keep entering the market. So, you must face this competition head-on and constantly try to capture your potential client’s attention.
Building a loyal client base is essential for attaining long-term success as a forex broker. The competition is cutthroat, and surviving in this space is not that easy for a beginner. Those who choose white label packages are at an advantage in this aspect as they may get some training and resources from the top broker if it comes within the scope of their white label services.
Your sales team needs to be efficient and proactive as they play a key role in building your reputation as a brand-new broker. How they approach potential clients and their communication skills will eventually determine the number of clients who sign up for your platform. But making them stay with you till the end will entirely depend on the services offered and the trading experience they get on the platform.
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Drive Traffic to Your Brokerage!
This fifth step is actually the most important part of setting up your brokerage platform. Because even the platform infrastructure, sales team and customer support will be useless if you cannot bring traffic to your broker website, those who search for forex brokers online will come across hundreds of names, including your brand name, but persuading them to click on your website is not an easy task. Your brand name needs to be good enough to stand out among other brokers in a way that convinces them to check out your platform.
Marketing and promotional activities play a key role in driving traffic to your website. The very purpose of opting for a white label solution is to entrust the technical services to an expert broker while you get to pay at most attention to other key aspects of business, which include marketing and promotion. Establishing your brand image is essential to attract new clients to your platform. You can do some research on SEO tools, as they are an integral part of online marketing and promotions.
Some forex white label providers also offer some assistance in promotional planning and marketing activities which can be a great help for those who are not very clear about how to promote their brand in the best possible manner. Now, once you can bring traffic to your broker website, you need to make sure the platform is appealing enough to convince the visitors to select it as their brokerage. The best way to do this is by providing a free demo account which allows them to get a glimpse of your platform and test the trading conditions.
Final Words
Finally, I want to say that starting a forex brokerage on your own is a big decision, and you should not jump into the competitive space right away. The Forex white label solutions are a cost-effective alternative for new brokers, allowing them a quick setup. But you need to be well-prepared to meet the ongoing costs that come as a part of running an online business. Marketing and promotional activities should be planned well to find your footing as a brand-new forex broker and grow your business later on.