Have you ever thought about starting a Forex brokerage? If you have done your research thoroughly, you will know that there are many components to a Forex brokerage and they all need to work together to be successful.
Usually, the first question on an enthusiastic entrepreneur’s lips will be how much is it going to cost me. Inevitably an entrepreneur is naturally inclined to start something new and unique. Still, after a few quotes from software engineers, they quickly balk at the earth-shattering costs required to start entirely from scratch.
Luckily there is a significantly cheaper option
White label service providers are in a unique position. They have already developed the systems and software required to operate a Forex business. It has been trialed, and all the glitches are fixed, and each component integrates seamlessly to form the perfect Forex brokerage ecosystem. This ecosystem is then packaged and sold on to new brokerages who are looking to getting started.
To use Forex white label solutions means using an established product but repackaged as if it was your own. All that is needed is a logo, some distinctive colors, and maybe a slogan or two. You can then sell it to your own customers as if it was you who had created. It may sound a little shifty but don’t worry it’s perfectly legal and it is becoming ever more popular.
Take Popcorn Technology, for instance, who have created all the systems needed to run a successful brokerage. Below is a list of those vital components.
- Trading platform
- Back office
- Trader room
- Affiliate System
If you were to take each of the above components and design and test them from scratch, you can start to appreciate how big an undertaking it would be. It would take months to try and cost lots of money.
Mistakes in the Forex industry can be extremely costly for you and your traders, so you must hit the ground running. Traders are incredibly fickle, and one bad experience or piece of glitchy software will put them off immediately, and they may never return.
The other vital component that an overzealous founder may overlook is the value of having a support structure or team of talented individuals to help you out. People often rush into their projects and falter when it becomes too much for one person to handle. Hiring staff is costly, which doesn’t make things any easier.
However, white label services can also help you to overcome that problem. Popcorn Technology has a dedicated start-up team that is tasked with helping new brokerages like yours establish themselves and to run more efficiently. They have a wealth of knowledge and beneficial relationships with other financial institutions that a new brokerage can leverage to get a leg up on the competition.
Now, if you were starting a new brokerage today, which option would you choose? Would you really want to go it alone or would you like a helping hand from an experienced partner?