According to the World Bank, the forex market volume is estimated at $2409 quadrillion, with market participants making daily transactions worth over $6 trillion. The demand for brokerage services is growing along with the increasing number of trading operations. Let’s see how to launch a brokerage business and start making money on the forex market.
What you need to launch a Forex broker
Like any business, a brokerage company requires a marketing plan and start-up capital. In the beginning, it will take a lot of effort and time for everything to function like clockwork.
Step 1. Understand who your target audience is. You need to analyze the market as a whole and study your competitors. For instance, you need to select the countries for trading so as to adapt your software to the corresponding language.
Step 2. Find capital. Money will be required to purchase and install software, obtain a license, and conduct promotion and maintenance. It is crucial to assess the costs and calculate the payback correctly – without these calculations, it will be difficult to engage investors.
Step 3. Deliver the technical part of the FX broker. The broker’s capabilities and its attractiveness to potential clients depend on the quality and architecture of the trading platform. The most popular trading platform today is MetaTrader. You will also need to connect external payment systems for replenishing accounts and withdrawing funds.
Step 4. Launch the promotion. In order for customers to start using your services, they need to know about you. Promotion requires a concept and financial investments.
The technical part of the Forex broker
Let’s analyze some software elements required for the proper functioning of a brokerage company.
Trader’s personal account
Part of the platform that is responsible for client functionality. Here, traders can replenish the balance and withdraw money, view transaction history, and connect leverage (if any). The key parameters of a personal account are its user-friendliness, the security of the account, and personal data.
Trading platform
The main tool for placement and execution of exchange orders. A reliable trading platform is distinguished by stability. There should be no failures or price slippages in the bidding process at the time of order execution. The platform should be accessible both from a computer and from mobile devices.
Liquidity aggregation tools
There are simpler plugins that provide a provider-specific gateway (liquidity bridge). In addition, there are advanced liquidity aggregator tools, which automatically provide market depth from all possible sources of liquidity.
Broker panel
This is essentially a control center where actual statistics about a broker’s work are displayed in real-time: the number of clients, account balance, and closed and canceled transactions.
You can link the software you need at https://takeprofittech.com. Our experts will help you set up the platform, customize the settings, install plug-ins, and teach you how to manage the system. Technical support is available to resolve any and all questions around the clock.
What to do after the launch of the platform portion of the business
There is competition among forex brokers, so it is vital to stay in the market. In order to remain attractive to traders, a broker must offer a wide range of additional services, monitor the smooth operation of all system elements, and provide a high level of customer service.
The MetaTrader trading platform is friendly to supplementary add-ons, so the broker can continuously incorporate new plug-ins and offer additional services to its clients.
For instance, reward systems and referral programs are currently very popular. You can offer your clients a bonus for connecting new traders, and the audience will begin to grow without your participation. This will optimize the cost of marketing and attracting new users.
