What Is The Best Way To Run A Brokerage Company?

With thousands of existing brokerage companies, it seems to be exceptionally challenging to enter the niche. Meanwhile, newcomer firms have good chances to reach the "title" of a top notch brokerage company, as the market undergoes significant changes and unlock numerous opportunities.

When a beginner broker is going to enter the market, two paths are possible to pave: either to run a company from scratch or to select the White Label model. Which option is the best for new entries?

Running a Brokerage Company from Scratch: Key Stages

When you are going to start your own brokerage firm, the following steps are mandatory:

• Getting a license. Top-rated brokers are in the legal field, protecting the rights of their clients. Unlicensed brokerage firms raise the suspicion and the vast majority of brokers try to sidestep those companies. To receive a license from a certain financial regulator you need to fulfill all the requirements and wait for 6 – 24 months.
• Building a platform. Once your application for a license has been approved, think over a trading platform. Industry-leading firms unlock access to a platform that combines ultimate functionality with ease of use.
• Building a high-class customer support team. Traders pay much attention to the quality of customer support; which is why never neglect this issue. Up-to-date clients are demanding enough – they expect all the problems to be solved as soon as possible.
• Working out marketing strategies. When your trading platform is ready to welcome traders, you need to understand which steps are going to be implemented to promote your brokerage firm.

At first sight, the above-mentioned stages seem to be simple and effortless; meanwhile, every step contains a wide range of pitfalls. The deeper you dive into the niche, the more blind spots you meet.

Market Research and Brand Differentiation

First and foremost, you need to have a thorough grasp of the sector. Understand the opportunities and pitfalls of your niche. Build a robust business model that takes every aspect into account.

Regulatory Requirements and Licensing

Up-to-date traders are rather demanding, and unlicensed brokers have no chance of succeeding in the sector.

Financial regulators impose diverse requirements. Offshore jurisdictions impose less stricter requirements. As for a newcomer company, it will be enough to get a license in Saint-Vincent and the Grenadines, Belize, Mauritius, and similar jurisdictions.

As an alternative, beginner business owners may apply to FintechFuel experts and get a ready-made solution.

Trading Platform

A trading platform is the engine of your business. An excellent platform combines ease of use with ultimate functionality. Furthermore, users expect to access your platform from different devices – it should be compatible with browsers and mobile devices.

Trading platforms powered by FintechFuel are available on all devices to reach as large an audience as possible.

Financial Instruments

Which assets are available for your clients? Forex, stocks, commodities? The best option is to mix different asset categories.

A FintechFuel-driven trading platform combines options (blitz, digital, and binary) with CFDs (Forex, stocks, and crypto).

Running a White Label Brokerage Company: The Best Possible Solution for Beginners

The White Label model may sound like a secondary option for newcomers; meanwhile, that is a common misconception. Many top notch brokerage companies began their way as White Labels as this solution saves much time and effort.

Furthermore, much depends on the provider. White Label platforms driven by FintechFuel make it possible to enter the market within two weeks. Let's check the core pros and cons of a turnkey brokerage solution.

Top Pros of FintechFuel White Label Solution

1. Business owners experience minimum expenses, save much time and effort. Newcomers are able to switch their focus on marketing and some additional services.
2. You get a ready-made solution. All the stages, like licensing, platform building, etc., have already been completed.
3. FintechFuel offers solutions customized to your brand and needs. Furthermore, its platform is compatible with all devices.
4. Business owners access constant setups and spend nothing on high-end server maintenance.

Top Cons of FintechFuel White Label Solutions

1. Making changes is possible after the concordance with the provider.
2. Brokers are dependent on the platform provider.

The disadvantages are rather questionable. Beginner brokers feel no discomfort when partnering through the White Label model.

FintechFuel is an award-winning provider of WL trading platforms. The solutions powered by the provider give beginner firms a head start in the niche. The launch time takes as little as two weeks. Furthermore, before signing the contract, brokers get a free demo to see the product in action and understand its competitive advantages.

Bottom Line: White Label Brokerage Company as the Best Solution for Beginners

At odds with many widespread beliefs, the White Label model sounds like the best option for newcomer business owners who are going to make their first steps in the brokerage niche. Newcomers get a functional, licensed, and easy-to-use trading platform ready to be launched within two weeks. Isn't it the perfect option to enter the market?

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice.