With no end in sight, the coronavirus pandemic is still wreaking havoc on the markets. For almost a year, the forex community has been trying to deal with the uncertainty and predict what is around the corner. Businesses are learning to come to terms with it, and some are even thriving. As the rest of the world struggles to cope, what can your brokerage do to ensure it survives? Is it even wise to Start Up Brokerage?
To start with, you already have a significant advantage as the pandemic has somewhat buoyed the FX industry. Anyone who operates in these circles will have recognised that a lot of forex related products and platforms have seen a massive surge in activity. Many platforms are reporting growth above 30%. It makes sense because when people find themselves out of work, they often turn to commodities—a safe haven to preserve their wealth. However, the rise of retail trading platforms provides a viable alternative. People are increasingly turning to trading and fx trading, in particular, to hopefully carry them through the pandemic and make up the income they have lost.
This uptick in trading activity has left many smaller brokerages struggling to cope. However, if you are starting a brokerage from scratch, there is a way you can be up and running at scale. The idea is to form a forex white label business.
White labelling is becoming vitally important. It can be staggeringly expensive to break into an ultra-competitive market. However, if you choose to go with a white label partnership, you will have access to the tools traders already currently use and be able to leverage systems of more established players in the market, and it requires significantly less capital to get started too.
To some, it sounds too good to be true. Well, if you think you can just buy a platform and hope that clients will miraculously choose your brokerage among so many other outstanding competitors, then you are in for a rude awakening.
Popcorn technology has an outstanding package for start up brokerage. They can provide an out of the box product that utilises the MT4 trading platform and mature brokerage systems such as a CRM and affiliate system. They have a start-up team who specialise in guiding new businesses to help them succeed. Working with an experienced partner such as Popcorn Technology gives a brokerage the best possible chance of succeeding as opposed to trying to market an unproven trading platform as an unknown entity in today’s market. That option has a higher likelihood of failing.
Is this heightened activity going to last?
Of course, this opportunity is a product of unprecedented events, and the data is still being evaluated. However, with further waves and outbreaks, people have continued to work from home. They have more time to trade, and therefore the popularity of trading shows no sign of slowing down. Market volatility remains high, and the current economic outlook keeps people interested in the markets. If you can find the right partner, and you have the ambition, then there is no better time to get started.