Your easy-to-follow guide on how to start your own forex brokerage

As a $5 trillion-a-day market, foreign exchange is like the world’s most powerful magnet for investors and brokerages. Where there is big money, there are businesses led by assertive go-getters. And if you’re looking to get your foot in the door, too, you better know how to start a forex brokerage right.

First, you need to choose your way to go. Your best options include launching your own firm to vie for a spot in the crowded forex market or take advantage of a white-label program. Each of these ways has its pros and cons, so choose wisely.

How to start your own brokerage company to conquer the forex world?

Those who want to grind on their own should brace themselves for hard work from the get-go. Launching a brokerage this way implies obtaining a myriad of licenses, opening business bank accounts, building a team, etc. A DIY start also calls for massive investments, but being the only one who is in the driver’s seat proves that the juice is worth the squeeze.

If you’re all set to start your own brokerage firm, here’s what you will have to do to expedite the process and avoid unnecessary hassles:

  • Decide on a regulatory jurisdiction
  • The place of your company’s registration determines what forex licenses you have to apply for, how much you have to pay in taxes, what regulations you have to comply with, etc. Before fixing upon a jurisdiction, scrutinize several options that meet your target market needs best.

  • Prepare a clear-cut business plan
  • With a well-thought-out business plan, you know what to expect after launching your new firm and what milestones you need to reach. When mapping it out, factor in initial/ongoing costs, business objectives, marketing, profits, etc.

  • Raise money
  • How much money you need to start your own brokerage depends on where your company is registered. Don’t forget to allow for office and equipment rental fees, salaries for your team, and other expenses to cover to keep things up and running.

  • Partner up
  • To get the upper hand in the forex industry, you can’t go without partners. Specifically, you need to team up with those who can ensure fast payment processing and error-free transaction experience for traders that you serve.

  • Build a website
  • It’s crucial to make sure your customers can easily avail themselves of your brokerage services online. This is when you will need to have a well-designed website and a reliable trading platform. You can take it even further with some advanced apps and tools.

  • Open an office and hire employees
  • When starting your own brokerage firm, think of the best locations to open your office in. Once you establish your company’s headquarters, be sure to initiate talent hunting (IT experts, PR professionals, customer support specialists, etc.).

  • Test the waters
  • You can’t afford to mess up on the launch day. That is why it won’t hurt to give your website, trading platform, tools, or anything else a test run before luring your customers. Make sure everything works like a charm so that they fall in love with your brokerage at first sight.

  • Launch it
  • When everything is ready, bring your brokerage into the forex world. After making it accessible for traders, be sure to keep working on follow-up marketing, improving your customer service, and sprucing up your website functionality.

How to start a forex brokerage as a white label?

A white-label partnership is an alternative to a DIY start. It’s a much more affordable and faster way of becoming a forex broker while having an established firm to do the grunt work for you. In a nutshell, it saves you the troubles of raising a lot of start-up money, developing a trading platform, and even providing technical support.

Read on to get clued up on how to start your own forex brokerage as a white label and how the process differs from opening a firm:

  • Decide on a regulatory jurisdiction
  • The place of your company’s registration determines what forex licenses you have to apply for, how much you have to pay in taxes, what regulations you have to comply with, etc. Before fixing upon a jurisdiction, scrutinize several options that meet your target market needs best.

  • Find an established broker
  • This is where reputation matters like nothing else. To start a successful white-label business, team up with a trustworthy company that offers favorable partnership terms and is touted by traders.

  • Choose a jurisdiction
  • Even if you’re operating as a white label, you still need a forex license. Explore all available options to find the best jurisdiction to incorporate your business.

  • Plan it down to the tiniest detail
  • A clearly defined business plan is a must-have, whether you’re starting your own brokerage firm or entering the market as a white label. Take your time to map your growth.

  • Make your business unique
  • Being a white-label broker doesn’t mean you can’t be easily distinguished. Enhance your business identity by developing your brand, content, etc.

  • Provide your customers with more value
  • Using a standard set of products from your partner broker is never enough. Be ahead of the competition by fine-tuning your customers’ experience with more tools and services.

  • Test and launch it
  • After getting access to a fully functional platform from your provider, make sure it runs smoothly. If it does, go ahead to start serving your first customers.

The takeaway

If you’re a rookie in the industry who doesn’t have millions under the mattress, taking a white-label way is likely to be your top choice. It’s a perfect opportunity to acquire expertise and advance in your target market without making heavy investments.

Once your white-label business begins to develop, you may consider getting rid of the dependence on an established firm. Bookmark our guide on how to start your own brokerage company to make that switch right.