Even though many people feel that retail FX sector is over saturated, we still see new brokers popping out every day. The reason for this is simple. FX still remains an over profitable industry. Nevertheless, the competition is severe and today it is as hard as never before to actually start your brokerage up.
Needless to say, starting with your own brokerage is much more lucrative than going for a white-labelled solution. Yet there are many costs involved and today we will take a look at the three items that save your money when opening a company in the retail FX sector.
Locating your headquarters
The personnel will majorly contribute towards the success of your brokerage. However, it is important to consider that brains also come at a high price. Not only you need to account for the wages, but it is also vital to consider all of the possible overheads associated with the personnel.
It is obvious that the majority of the brokers are headquartered in either Cyprus or England. Even though the chances of finding proper staff at these locations are higher, you may expect to spend quite a lot to hire even mediocre specialists. Next to this, the overheads at such locations are actually going to be sky high.
Hence, the tip here is to actually look for moderately priced locations that are still able to satisfy your staffing needs while you can keep just a small office with a couple of employees for the regulative purposes. It might be a good idea to locate your headquarters at one of the Balkan states as the level of expertise in these countries keeps on growing while the costs still stay on a communistic level.
Alternatively, it is actually possible to operate with no or off-shore regulation, by incorporating your company in Belize, Seychelles, Marshal Islands, British Virgin Islands or similar territories. Even though your company might be less trusted, it is certainly a cost effective solution. Apart from that, if you plan to market the markets outside of EU and Australia, having a regulatory body backing your company up may not be the best investment. If you decide to go for an off-shore incorporation, you will also need a foreign bank account in place.
There are actually quite a few things to consider when establishing your operations, hence sometimes it is might be a better choice to actually let the professionals handle the whole setup for you. There are a few companies available, but I personally found NewBroker company to offer an outstanding value for money. The guys from NewBroker specialize in establishing both Forex and binary brokers.
Choosing your software