Compliance and regulation in the FX, CFD, and crypto brokerage space present intricate challenges. These complexities arise from the rapidly evolving industry, which is under increasing scrutiny by financial authorities across various jurisdictions.
You have decided to start a multi-asset brokerage to offer your services to retail traders around the world. Your enthusiasm is unbounded, and you have convinced your investors that your expertise and your team are up to the task. What next?
To widen their market reach and bolster client acquisition, affiliate marketing stands as a key strategy for white-label FX/CFD/Crypto brokers. This performance-based marketing model involves collaboration with affiliates — individuals or entities motivated to promote a broker’s services, gaining a commission for every lead or sale they initiate.
Leverate, a global technology leader serving FX, CFD, and Crypto brokers provides a wide variety of products and services for the retail trading arena including the full turnkey solution, SiRiX Venture. Among the best in trading platforms, CRM, and risk management, Leverate has partnered with the industry’s major Payment Service Providers (PSPs) to enable brokers to accept customer payments anywhere in the world.
Labuan, like many regulated financial jurisdictions, is an island. It is technically a Federal Territory of the country of Malaysia and is an independent tax haven which is quite attractive to many multinational financial enterprises including FX/CFD/Crypto brokers. The territory cannot technically be referred to as an “offshore” jurisdiction as business owners cannot take advantage of a 0% corporate tax rate. Labuan is, therefore, regarded as a “mid-shore” jurisdiction where the rate is higher than 0%.
Not long ago, a savvy entrepreneur could launch an FX/CFD/Crypto brokerage in a short period of time. All it took was a white-label trading platform, some capital, a website, a liquidity provider, a relationship with one or more banks, EMIs, and payment service providers, and a registered office in some exotic locations like Saint Vincent and the Grenadines.
It is understandable why many multinational FX/CFD/Crypto brokers would like to enter the Australian market. With a population of 26,000,000 inhabitants, and being ranked 10th in the world for GDP per capita, the financial possibilities are obvious. Its Purchasing Power Parity (PPP) is higher than that of the UK, Canada, Germany and France. Also, Australians have a higher-than-average level of disposable income.
Broker-oriented Customer Relationship Management (CRM) systems have become an integral part of today’s FX/CFD/Crypto brokerage, enabling them to manage their interactions with customers and potential clients effectively. Leverate’s LXCRM is one such solution that has gained the attention of brokers, either as a tailored CRM solution or as part of the SiRiX Venture Turnkey Solution.
Whether you are just starting up and have decided to go for a white-label multi-asset broker package, or you are an existing FX/CFD/Crypto broker already, you know that finding excellent liquidity is critical. Your clients demand a wide range of instruments to trade, from Forex to CFDs in commodities, equities, indices, and Cryptocurrencies. Not only that, but they are also looking for the best spreads and best execution.
With the number of retail traders growing globally every year, the opportunities to capitalize on this burgeoning market are still there. In fact, with the steady growth of broadband and mobile internet penetrating more and more locations on Earth, we see the number of traders increasing annually for many years to come.