What is the key to success in the forex Broker business?
If you want your Forex Broker business to succeed you need to get prepared. So you either take time to educate yourself or you find someone experienced to work with. That’s the only way.
Reliable technology is crucial to make your business up and running. But you need a long-term strategy, tools and know-how to protect your business from potential problems that may arise.
In our previous article we’ve covered the most common mistakes of novice Forex Brokers. This article will show you how to avoid them and start your business with no hassle.
How to avoid problems in Forex brokerage?
- 1. Acquiring customers and converting more Forex leads to traders
You operate in a digital environment, so in addition to the trading platform itself, also create a professional website for your broker. What you need to remember is that the onboarding process starts on your website. But it’s also very important what happens next. Match-Trade’s Client Office with Forex CRM will help you optimize the entire sales and onboarding process. You will be able to track the flow of your leads and turn more leads into active investors. It enables registering new users directly through your own website using intuitive and customizable registration forms to instantly create an account. After registration, customers can provide relevant documents for immediate review and verification. This is a convenient way that will allow you to eliminate document upload problems and will significantly speed up the process. The account opening is automatic and takes no time. Even after a few minutes the customer can make a deposit and start trading.
- 2. Forex company bank account problems
Often, having a license is more a marketing matter for a broker – it increases credibility in the eyes of customers and literally allows you to conduct extensive marketing activities. Another aspect is the possibility of opening a corporate bank account – although there are also solutions that allow offshore brokers to solve this problem and function normally. One of the solutions is for example enabling the clients to pay in cryptocurrencies, which are not restricted in most of the countries. Our proprietary crypto payment processor has helped many clients solve the corporate bank account’s problem and has enabled trouble-free deposits and withdrawals from trading accounts for investors.
But crypto payments are just one way of solving this problem. Our Client Office Forex CRM has been integrated with major payment service providers, which means that investors can choose from many payment methods available and make deposits directly from the Client Portal without the need to add additional intermediaries by the Broker.
- 3. Cheapest solutions won’t lower your costs
The prices on the market vary so much that it is difficult even to average them because many factors affect them. Regardless of whether you are buying a White Label platform, Client Office, or just liquidity: there are always some fees for configuring a service to suit the client’s requirements. Let’s not forget about the monthly fee. It’s kind of like a subscription fee to the technology provider for using its solution. And then there’s a volume-based fee.
This is the commission you pay to the Liquidity Provider for each transaction made – always charged per volume. Sometimes, if you are using an older platform that requires a Bridge to connect your Liquidity Provider, you’ll also need to pay the bridging technology provider fees.
And this is all standard cost. So even if you manage to collect the cheapest solutions on the market, it does not mean that you will incur lower charges. If you buy each item from a different supplier, then you will bear the cost of maintaining several providers. Besides, there is the issue of complaints and solving customer problems. With different suppliers, their responsibility is blurred, and it can be hard to find out who is responsible for errors.
- 4. Fact-based decisions to mitigate risk
To effectively manage your risk you need to monitor your investors’ performance. In the Client Office you can track the balances of all client’s accounts, view all open positions, historical trades and ledgers on each trading account. Lately, we’ve also launched a Business Intelligence module in our Client Office and CRM, which, Thanks to our dedicated Analytics tool, Broker will be able to track the key performance indicators (KPIs) of their business such as the number of clients, number of active accounts, net deposit value. We have also included statistics of net payout value, the number of IBs, profit per day and most profitable clients. The Business Intelligence feature enables Broker to comprehensively analyse its cash flows, including commissions paid to Introducing Brokers. Take advantage of the automatic analysis of your customers and partners’ activities to better plan your business decisions.
- 5. Must have tools to succeed
How to make the startup Forex broker attract loyal traders who will stay for years? If you want your brokerage business to grow and bring more and more profits, here are the applications that will help you manage key aspects of FX brokerage business more effectively. The most important part of Forex brokerage business is choosing the right trading solution which has to combine the needs of traders and simplicity of the back-office management for a Broker. On the broker side, the platform has to offer flexibility to integrate other useful tools and features via API. That could be CRM or web forms, MAM and IB systems or plugins if it’s not already embedded in the system.
On the trader side, the majority of trades are performed ‘on-the-go’ hence the mobile version of the platform and the ability to synchronize all the user’s data and settings across all of the devices (meaning web, mobile and desktop versions of the platform) is a must. And last but not least – allow your clients to manage their trading accounts with dedicated Client Office app to increase their involvement.
For more useful information on how to run a successful Forex brokerage consult our experts via e-mail or contact request.