The 10 Biggest Mistakes When Starting a Forex, CFD, Crypto Brokerage

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?  Lots!  Let’s look at where you might go wrong: 

1.Not Making a Business Plan:

It is highly likely that you had a business plan at some point to convince your investors. If so, you need to follow it all the way through.  If you don’t have one…make one!  Elements included are financial projections, operational and staffing costs, expenses and plans for a trading platform, website design, client zone, KYC, and licensing. You should specify liquidity providers, payment solutions, CRM, AML/KYC policies, and risk management​. 

2. Not Taking Regulatory Requirements Seriously

Once you have decided on which customer base you want to target, you need to investigate the local financial laws.  You will need at least one license!  Investigating each jurisdiction is critical as you may be allowed to take on client funds in certain countries, but you may not be allowed to advertise. Do your homework! 

3. Not Securing Proper Banking Facilities

It is important to understand the various levels of banking and accepting client funds. There are full banks, electronic money institutions (EMIs), payment service providers (PSPs), payment agents, etc.  Your bank will insist that you are opening a corporate account for operations and another segregated account for client funds . Regardless, you will need a license (see point 2) and you will need to shop around as many banks and EMIs will tailor their fees to the perceived risk of your new brokerage​. 

4. Not Taking Regulatory Requirements Seriously

Some start-ups might not consider white-label solutions, which can save time, energy, and money. These solutions provide a ready-to-use platform that can be branded as one’s own​​ like Leverate’s SiRiX Venture turnkey solution.

5. Not Creating a Network of Introducing Brokers:

One of the most effective ways to create traffic quickly is by recruiting IBs​​. Also, communication is critical and Leverate’s LXCRM IB module will organize all this, including transparent compensation schemes and payments. 

6. Not Addressing Your Marketing Requirements to Drive Traffic

Not having a strategy to attract traders to the brokerage is a common oversight. Without traffic, even the best platforms and services will remain unused​​.  Content is king and the use of automated marketing, as built-in to Leverate’s LXCRM, can get you up and moving quickly. 

7. Not Investing in the Latest CRM Technology

Not using a CRM that integrates all your services like trading servers, marketing, sales, etc. can be a missed opportunity and you may not be compliant as well​. 

8. Not Providing Adequate Customer Support

The regulators will insist on a certain level of customer service and, of course, you are very interested in client retention.  The first port of call for many customers is Leverate’s AI Chatbot built-in to the SiRiX trading desktop and mobile trading platforms. 

9.Not Working with the Right Technology Partner

The IT expertise required for creating the infrastructure of a brokerage is immense, from the initial customer interface on the website to the client area, and many other elements. A misstep in selecting an efficient development partner can be detrimental​​ which is why Leverate offers fully customized and branded websites and client areas for your brokerage. 

10.Not Investigating your Clients’ Needs

Not Investigating your Clients’ Needs : Not understanding what traders are looking for in a platform, such as the need for a user-friendly interface, a wide array of trading instruments in Forex, CFDs, and crypto, and advanced trading tools, can result in a service that does not meet market demands. 

Unlocking Success for Multi-Asset Brokers: Leverate’s Tech Solutions

Leverate, a global technology leader serving FX, CFD, and Crypto brokers, provides all the tools that today’s multi-asset brokers need to plan and realize their dream of running a successful retail trading business.   

Leverate’s SiRiX Venture provides brokers with a cost-effective, high-end turnkey solution for launching Forex, CFD, and crypto trading services.

This comprehensive package includes SiRiX Broker, which offers tailored customization for specific client groups and integrates the powerful LXCRM tool to enhance client and IB management. It also provides access to liquidity and a competitive Crypto Exchange, all designed to offer customers favorable trading rates. SiRiX’s dedicated team ensures tailored customization for specific client groups. 

Furthermore, this bundled offering facilitates a quick business setup, often attainable within a week, and incorporates the premium SiRiX mobile app for mobile-friendly accessibility. The user-friendly SiRiX platform features an intuitive interface, one-click execution, and advanced analysis tools, catering to traders of all skill levels while delivering top-quality knowledge from industry-leading providers. 

Brokers receive industry-standard trading tools, top liquidity and cybersecurity solutions, and a tailored CRM. Leverate’s support extends to connecting with global PSPs and includes expert management guidance to ensure business growth, making SiRiX Venture an optimal solution for aspiring and established brokers alike.