When Should You Start Your Own Forex Trading Business?
When is the appropriate time to start your own forex trading business? You’ll be surprised by the advice provided in our client case study.
Recently we had a conversation with a client who was interested in launching their own white label forex platform. It may come as a surprise, but our recommendation was not to pursue the white label. Instead, we suggested that they initially start off their business as an IB (Introducing Broker).
The reason we suggested this path for our client is due to the fact they weren’t ready to fully launch the brokerage. The client still hadn’t developed a website, which is one of the minimum requirements for establishing a white label. We also discovered that the client hadn’t set up any type of payment system, nor was company incorporated yet. Finally, a marketing budget still hadn’t been set. For these reasons, it didn’t seem like an appropriate time for our client to set up their white label.
When Is The Best Time To Start Your Own Forex Trading Business?
If you are wondering when is the best time to start your own forex trading business, our first suggestion is to put together a budget. By reviewing all the costs involved in starting a forex broker, you’ll have an indication as to whether it makes sense from a financial perspective. If you determine that the costs are still too high, then you can always start off as an IB, as we advised our client.
We’d also recommend forming a business plan. Note that when putting together the business plan, it should include the regions you wish to target, whether or not you wish to obtain a forex broker license in the future, the types of services that will be offered, as well as growth projections. The combination of a business plan and budget will be enough for your team to decide whether or not it makes sense to fully launch the forex brokerage.
There are many advantages to remaining as an Introducing Broker until you have the necessary revenue required to start your own forex trading business.
Introducing Broker (IB) vs Forex White Label
Although the idea of launching your entire brokerage is appealing when compared to starting off as an IB, let’s not forget that many IBs earn quite well. There are also plenty of Introducing Brokers that never intend on starting their own brokerages. One reason many IBs don’t start their own forex trading businesses is that their overhead remains limited to sales and marketing, which is viewed as an advantage to them.
It’s important to bear in mind that starting a white label has more moving parts involved than remaining an IB. First, you’ll need to incorporate a new business entity and obtain payment solutions so your clients can send funds. You’ll also need to establish the white label and be able to cover the costs associated with it. In addition to the white label technology, a relationship with a liquidity provider must also be established so that your end users will be able to place trades. Finally, because your broker will be responsible for onboarding the clients, it’s recommended that you integrate a Forex Trading Cabinet into your website to better manage the incoming account applications. Given the many components needed to launch your brokerage, it should be clear that more thought is involved before simply diving in.
Atomiq Consulting – Your Partner For Forex White Label Solutions
Because our goal at Atomiq Consulting is to build long term relationships, it made more sense for the client referenced earlier to start off as an IB. Although it’s rather easy to establish a white label partnership, the timing simply wasn’t right for our client. In fact, by recommending that our client start off as an Introducing Broker, we gave up some short term revenue. From a long term perspective though, we envisioned a much larger return on our investment of time by providing our client a path that has a more realistic chance of success.
Founded in 2014, Atomiq Consulting has a positive track record in guiding both investors and entrepreneurs with the successful launch of their forex brokerages. When it comes to launching your own forex brokerage, we find that each situation is unique. For this reason, it’s recommended that you reach out to discuss to further discuss your plans for starting a forex brokerage.
Our team of consultants are happy to guide you along each and every step of the process. Simply contact us today to receive a quote on our services, discuss your plans in further detail and ask us any questions you have in mind. We look forward to hearing from you!
