Mon Apr 4, 2016
Think BIG start small…
Written by Marina Pinto
As a sales and relationship specialist for almost 10 years, one of the things I have come to admire from many of the prospects I speak with is their enthusiasm. Enthusiasm, drive and passion are all characteristics that are not only needed to be successful in sales but also in any startup. While I respect this enthusiasm, I believe it is this same eagerness that leads to many unrealistic desires and expectations.
Before visions of sailing off on the yacht of your dreams and the many ways you will spend the revenue from starting your own forex broker begin to overcome you I implore you to take a few, or many, steps back and think about where you will be conducting your business. Where you will register your company and the location of your clients are major points that many prospects overlook. It is important to understand the legal requirements needed to not only start a forex broker but also in any jurisdiction you may be soliciting clients from. As an online brokerage business, the jurisdiction that you choose to operate from is of the utmost importance.
While it is very attractive to start your business in a licensed jurisdiction such as the UK, New Zealand, Cyprus, Malta and Belize it may not be feasible in the first stages of your business plan. Since I have brought up a business plan I should say that this is yet another overlooked aspect. Having a business plan is an essential part of starting any business as it will serve as your roadmap to success and help you make smart decisions. So while you may have the best intentions in wanting to offer your clients a licensed outfit you have to consider all the additional costs and requirements such as initial registration cost, monthly service fees, minimum capital requirement deposits, annual licensing renewal fee and having a physical office on the ground with staffing. It is right around here were most prospects are brought back down to Earth and suddenly a licensed broker may not be the best choice for a start up.
A start up by definition is a young company that is just beginning to develop therefore your strategy should be to find the most cost efficient ways to offer your service while earning a profit to grow your company. Once prospects understand this they are more open to begin by registering their company offshore. This will allow them to build their clientele and volume to a steady rate where moving into a regulated jurisdiction is a more attainable goal. This shouldn’t lead one to think that starting an offshore company is pennies but the requirements are much less than that of a licensed jurisdiction.
It is important to remember that there will be upfront costs that you will need to incur before you can begin to generate any profit. These costs include the company formation and technology set up. Forexware has made it so that any prospect can come to us with a plan and we help execute it. From company formation to branded trading platform and access to the market via a liquidity provider; Forexware helps set it all up. I always advise my clients to realistically analyze their financial situation and see if they can cover the costs of set up and the technology fees for the first few months while they get their business up and running and to a point where the trading volume can cover at minimum the monthly expenses.
Never one to leave any prospect discouraged, if starting your own forex broker is still your dream but just a bit out of the reach for you at the moment; there is still the option of becoming an introducing broker at no upfront or set up costs to you and this will still allow to build your book of business. At Forexware we have a solution for every stage of your business and I look forward to help you see your vision come true.
If you would like to learn more about how to start your own Forex business please feel free to reach out to Marina Pinto at mpinto(at)forexware.com for a FREE consultation!