Are you pondering on how to start your very own Forex brokerage company? Well you’ve come to the right place! Hopefully with the guidelines stated below you’ll have a clearer image of how to successfully open your forex brokerage company from scratch.
Here are the 8 steps outlined below:
Choose your target group
First off, you need to research which target country (or countries) you want to focus on that suits you and your business best. Once you find out where your customers will be coming from, you can start studying the licensing requirements needed to register your company. Keep in mind, usually opening your forex company outside your country is more conducive because tax and legal regulations are simplified for the short and long term run of your business. For instance, the Caribbean Island is well known for registering forex brokerage firms because its tax free and has minimal regulatory demands. Therefore, research which jurisdiction could benefit you the most and when you’re ready take the first vital step.
Formulate a business plan
Generating a business plan will give you a good idea of what steps you need to take to reach success. You should study and outline the short-term and long-term strategies you want to implement in your business as well as your mission and vision statements, list of competitors, capital needed, expenses, targeted markets, etc.
Sufficient startup capital
For a project of this magnitude a large initial capital is needed. In your jurisdiction you can speak to a financial supervisor to know what the least starting capital demands are. However, you need to take into consideration that initiating a forex brokerage firm is expensive and you will need to have a big enough capital to cover expenses of a time period between 6 months to a year.
Select reliable payment service providers
It’s very important you speak to a variety of payment service providers and choose the most reliable ones. You need a range of well-established payment processing systems so your potential clients won’t experience any trouble depositing and withdrawing money. Even if one payment processing software fails there will be a substitute option up and running.
Website and platforms
Here you’re going to have to focus on making your own website (the earlier the better because its time consuming), pick a trading platform(s), select an efficient CRM system, and apply all the necessary integrations.
In your startup office (virtual or physical depending on which is more convenient for you) you will need at least the following personnel: an IT group, financial staff, customer support group, marketing and sales team, and a compliance manager. Keep in mind, in the beginning the profit will be low and expenses will be high so try to recruit the right employees who are qualified to conduct more than one role since reducing your initial expenditures is key.
Before you launch
After you have accomplished all the necessary requirements mentioned above, it’s time to make sure everything is in place and ready for launch. However, you need to give yourself time to test everything out making sure you’re 100% ready to start. You need to check your integrated payment software, platform(s), the terminal, CRM system, and your entire staff are completely prepared to go live.
Launching your business
This is the exciting moment for your brokerage firm to go live. Certainly supporting your launch with a fully-fledged marketing campaign would be a great idea to start your business with a bang.
To conclude, opening a forex brokerage company is not easy. You need to take all the essential steps one by one to reach this goal. This investment needs a lot of time, effort, research, and capital to get to the top. Once you have everything ready from selecting your prospects to launching your fully established corporation, you can go ahead and enter into the world