Looking to Start a Forex Brokerage? Here are our key considerations to take into account when launching your venture! Our step-by-step guide will take all the guesswork out of starting your Trading business today!
Here we are going to plan a Forex Brokerage in the same way one plans any web-powered business, with an intricate and carefully thought out plan. Don’t let this intimidate you, however! Building a successful Brokerage is easier than you might think.
So, to get started, first you need to actually:
Make a Plan
As mundane as it sounds, you will need some kind of plan. There are companies that will offer you a complete Forex brokerage business plan if you choose them as one of the vendors. However, it’s just a gimmick really intended to generate clicks. Don’t get lured in by flashy advertising!
The good thing is that we can show you a way to avoid this. Read on to find out how. Spend some time on your plan, but not so much that you lose focus – put a hard limit. Here is what your plan should begin with:
Make a website
When making a website, first you need to:
- Make a sitemap (Website Menu tree)
- Come up with Page Titles
- Start Writing Content
- Make a draft website (key here: ‘draft’)
This part is important because only once you start putting together your main marketing material will you realize what you’ll need to do in order to make your business work. We’ve been in the business of building websites for many years, and so many times we had requests like: “I want a website like FxPro, how much?” We started answering: “About 10 million”, just to see the raised eyebrows.
As you come up with menu items and page titles, you will naturally research the competition and will determine if you want to focus on money management, IBs, or some kind of gamification such as Forex competitions or Leaderboards.
Select a Trading Platform
Usually, Brokers tend to go with MT4 or MT5, but we do see some niches with cTrader or X Open Hub. Normally we don’t see startups with multiple trading platforms. Focusing on one and making it work won’t divert your attention in too many directions and should give you even more insight on how the trading platform works.
Make a list of vendors
Surely, most people starting a Forex brokerage have some experience working for a Brokerage, trading, or being an IB. This is where your experience will come in handy. Knowing and having experience with the vendors is undoubtedly an asset.
Select your Vendors and Get Quotes
This one is self-explanatory, and it’s just good for business. For a fully automated and intuitive Forex CRM, check out our packages.
Become a Project Manager or Hire one
Now, this is where the real work starts. If we were to do this, we would definitely want to have a qualified project manager on hand in this stage. We would manage vendors day to day, making sure clear progress was being made: The website design phase, then development, then content population.
At the same time, you need to oversee:
- Incorporation of the business
- Getting a license
- Getting a bank account
We would save the setup of the trading platform and liquidity till a later stage – at the same time as the CRM. The CRM setup takes more time than sometimes anticipated if you want it done right.
You may want to implement all kinds of logic in the CRM: Different Payment Solutions for different geographical regions, different access levels, some translation and email template optimization work. Also: integration with your website, terms and conditions, KYC workflows.
Finally, Become a Salesperson or Hire One
Once again, I would really want to become a salesman before I could hire one. It would definitely allow you to make the process more flexible, leading to better sales.
In our experience it takes 2-3 months to get everything set up properly given that there are no bureaucratic snags anywhere along the line.
From this point on it’s more planning, marketing, expanding to new markets, retention, customer support, automation, insights reporting and so on.
So that’s it! You’re ready to start your Brokerage! If you still have any lingering doubts or questions, feel free to reach out if you need a consultation. Good luck out there!
With our help and guidance, you will be able to quickly gain a solid client base and develop an excellent reputation.
Kenmore Design has representation worldwide and we are looking forward to seeing more of you in 2022!
Get started with a demo now!