Forex is a huge financial market with a daily turnover of over $6 trillion; this is why more and more traders come into play. So it is obvious why many business owners analyze Forex broker solutions to start their platform. However, every newcomer needs to be fully prepared to start their own FX company. Let’s review the essential steps of this process.
We will cover 2 options — building a Forex broker from scratch and using White Label products.
How to Start Your Own Forex Brokerage from Zero
The primary benefit of building an FX company is total control over activities and profits from the ground up. But you need to spend a lot of money, time, and patience. Let’s look at the main steps of the setup process.
Analyze your target audience
You need to examine your potential clients. The reason is simple: it will help you select the best jurisdiction for launching your FX business. Many business owners prefer to choose Cyprus due to the reasonable tax and legal system. Analyze several countries and select the best-matching option.
Apply for a Forex broker license
Prepare a required set of documentation at every stage of creating a brokerage company and passing all qualifications. It depends on your chosen country (for example, you may apply to Cyprus Security and Exchange Commission to start operating in the EU).
Furthermore, you need to have enough money as start-up capital, and this sum must be sufficient to pay all initial costs and cover all expenses for the first time of operation.
Find reliable payment and software providers
Another critical step when deciding how to start your own Forex brokerage is looking for trustworthy partners. It is required to work with the following set of companies:
- Payment providers. They are responsible for depositing and withdrawing money on your platform. It is to integrate several processing options to offer more convenient payments.
- Liquidity providers. They help make transaction processing faster and pricing more reasonable for your customers. Therefore, you must partner with an LP that provides access to Level-1 liquidity pools.
- Technology providers. Their main task is to build first-class Forex software. You must check if the company has relevant experience in FinTech, a proven set of successful solutions, and customer reviews.
Build a website
It must have a proper structure and easy access to your main services and products. Moreover, a well-developed website helps overtake competitors and set a leading position in the Forex market. This is why you must pay due attention to a web development company for your project.
Hire a staff
First, you need to gather a core team of IT, PR, marketing, KYC, and customer support representatives. They may work in a physical or a virtual office and reach new highs at an FX company.
In this case, a team of skilled testers will do a good job for it. This approach will help you fix all the problems on time and avoid customer frustration.
How to Start Your FX Business with a White Label Solution
If launching an FX company from the ground up is challenging for you, look at White Label options. They are many times cheaper and adequately tested, and they will save your time and deliver all back-end activities to the partner company. You may also add your own branding to attract crowds of traders and set a custom fee and spread structure.
What are the essential steps to launch a White Label broker?
- Create a business plan. This way, you will manage your business correctly and generate income.
- Find a trustworthy provider. There are dozens of companies, so you need to select the right one to make your customers happy. For example, B2Broker is a leading industry company that offers top-notch FX solutions tailored to your needs.
- Investigate all legal requirements. Some countries have stricter rules, and others have not. Therefore, you have to analyze the legal side.
- Start your own brand. Add branded materials to stand out among the overcrowded market and make your FX company look reliable.
- Test your software. Check everything up to work like a Swiss watch.
Where to find a reliable provider of Forex brokerage options
No matter the way you have chosen to launch your own FX company, you may partner with a company that paves your path to success. In B2Broker, we know how to help newcomers conquer the Forex market. Contact us today and try the best Forex broker solutions in the market.