As a leading Forex technology provider, Leverate has been watching with interest as the number of IBs and affiliates looking to open a Forex brokerage skyrockets. Over the past few years, I’ve talked to lots of potential brokers, and while some of them come to us with a complete acceptance of the effort involved in building a Forex brokerage, others are intimidated by the sheer scale of the undertaking. Leverate recently began looking for a way to help people checking out new opportunities in the Forex industry who are coming from other specialties, and we think we’ve created the perfect strategy for IBs and affiliates to start on the path to Forex brokerage success.
Why Is Opening a Forex Brokerage so Tough?
New brokers face lots of obstacles when breaking into the Forex industry. Depending on where your traders are based, you may need to become locally licensed, and you will need to familiarize yourself with a set of complex regulations. This licensing procedure is expensive, and can take months to complete. After setting up your regulation, you’ll also need to set aside time to remain compliant with all of the frequently changing laws.
Once your Forex brokerage is ready to accept client funds, you will also need to manage banking concerns related to client funds and payment processing. Reputable brokerages keep trader funds separated from operating expenses. This can create a burdensome level of reporting activity for the uninitiated. And how do you gain access to deposits from your traders in the first place? You’re going to have to find and negotiate services from a payment processor. But how can you find someone trustworthy and reliable who works in the regions you need?
Finally, if you do not have a financial services background, do you have the time to learn the ins and outs of exposure, including risk management, market fluctuations, and high frequency trading? A misstep in any of these crucial places can bleed your brokerage dry.
Easing into Your Own Forex Brokerage
For years, the Binary Options industry has relied upon suppliers to provide licensing and payment processors for new brokers. Leverate decided to carry over this process to help you start your own Forex brokerage. With LXLite, brokers receive reputable regulation, and are assured of ongoing compliance oversight. We bundled these services together with award-winning trading platforms and back end systems, alongside professional risk management to provide a one stop solution for people who are looking for a quick and painless entry into owning a Forex business.
The original method for launching a Forex brokerage involved jumping in feet first, and immediately taking on multiple roles at once. New brokers were required to tackle licensing, risk management, and banking immediately, and often made costly mistakes that resulted in delayed profitability.
With LXLite, Forex brokers not only have a much quicker entry window, but also are required to make fewer big decisions before gaining critical experience in all aspects of the Forex industry. By lowering the levels of uncertainty and taking the pressure out of those first uncertain steps, we allow you to focus on what you do best: marketing, sales, and retention.
The Forex Solutions Provider Who Grows with You
Leverate isn’t concerned solely with making it simple to open a new brokerage. We also want to help you plan for future growth. We are the only tech company in the Forex industry with a two-pronged approach, with which allows you to remain in total control of your business model. While you are still learning the ropes, we can assist you with regulation and payment processing through LXLite. When you are ready for full ownership, we hand you the reins and migrate your brokerage to LXSuite, our flagship turn-key brokerage solution. Both LXLite and LXSuite come backed by a powerful social trading platform, dedicated Account Managers, and 24 hour customer service. I invite you to talk to us today and find out more about starting your own Forex brokerage.