A consultant’s journey | Your friendly neighbourhood Spiderman? Or… (sorry couldn’t choose between villains)


When looking for a solution to a challenge, there are so many variables to consider and so many options to choose from!

We all think we know what’s best in theory but when the dreaded time comes to make a final decision, everything we thought we knew become a 5x5x1.2 pool of blurry mushed information. To make things worse we realise that people close to us supporting our decision making process are not enough to give us clarity, maybe because they really don’t know enough or maybe because they’re biased (any future decisions affect them directly). It doesn’t really matter why because we still need to make a decision and therefore forced to look elsewhere for answers. Is it time to maybe say hello to our friendly neighbourhood consultant? Or… not?

 

What constitutes a friendly neighbourhood consultant?

From most consultants’ perspective, if you’re reaching out with a specific question you must have thought about it enough to lean towards a certain direction. So what’s wrong with giving a direct answer to your inquiry, discussing pricing that works and giving you what you want? At the end of the day, a consultant needs to make money too and complicating things might not result in cashie cash-cash.

Staying within our comfort zone, spending the least amount of time/cost and getting the most return out of each case is a dream come true and to each their own… If the person placing the inquiry doesn’t ask for more, why would you step up and complicate things?

Hmmm… Consulting in its core is neither coaching nor decision making. Due to the number of options one can choose for a specific case, consulting is more like an amazing journey of research/evaluation passed the limitations of the consultant’s network (since that’s where the proposed solutions will be derived from). Now if we can agree that this “limitation” presents a valid argument, how can one assume that the right decision is made only because it follows the direction of the one asking? Especially without considering what else could be done and adding value through the collection of more information and proper due diligence?

 

But there’s so many solutions/providers – when do we know it’s enough?

Irrespective of how many people/providers you talk to or how many solutions you note down, at some point your notes will become repetitive and present some very obvious characteristics:

  1. Most solutions you noted down are of the same nature

When you browse through your notes, you will come to realise that the solutions (even though offered by different providers with minor differences) are the same in nature. So by giving them a definition or a name, you basically merge them under a specific category, a targeted solution. Once you realise this repetition, it’s time to take a step back and look into the following two traits.

  1. The solutions complement each other

Although solutions are straight forward on their own, depending on the case’s requirements/limitations, when combined can form a better structure that fixes a short term challenge and at the same time offer a long term advantage that you wouldn’t have seen otherwise. So not having enough options, limits your perspective into what else you might be able to pull off with minor tweaks or combos. Once you have a more complete picture, you’re almost done.

  1. You’re able to identify the white noise (all “quick fix” options that would eventually lead in problems during actual operations)

There are so many cowboys in the crowd, presenting and selling and pitching stuff (some of them quite good at it actually) and if you’re not careful, you might make emotional decisions (rushing to fix your current problem by adding another one). You tend to forget the rationale of narrowing down, eliminating, choosing the lesser of few evils (because no business decision is actually perfect). Talking to a few people about the same issue, many times results in different answers that allow you to read between the lines.

Why do people give different answers, you may ask? Well like we said before, not everyone’s the same. Some will take your project face value and give a direct but still good service to what you want (so you’re limited by your own inquiry), some will take on your project and give temporary solutions to fix your current issue (knowing it’s a short term fix, in many cases with potentially irreparable future damages) and some will look into the overall picture and give side options that make sense. In the end what matters is, whoever’s collecting this information (whether yourself or your friendly neighbourhood consultant), to be experienced enough to read between these lines.

 

Understood!  Then what?

Once these three characteristics are in place, the first step is to identify from the bunch which solutions can actually work on the specific case. As we said above, the correct solutions are the same in nature, so even though you noted down 10 solutions, narrowing them down can result in only 2-3 defined options.

Now that you’ve identified the solutions that can actually work, you can start matching the information derived from the providers and begin the process of eliminating the “white noise”. If you carefully collected the information, you should be able to cross reference the questions/answers of different providers and identify question marks (???), future problems within the solutions they offer.

So where one provider pitched a solution as the answer to your prayers, another might have a different opinion on the matter, for his/her own reasons. The more questions/answers and the more providers you approach for the same option, the better the elimination process of this “white noise” will be. You now have a clearer path as to what can actually cause headaches down the line, even though it might fix a short term problem.

Important note: there’s no right or wrong in choosing a short term fix, as long as you are aware that it’s not going to last. What’s wrong is when a provider pitches this quick fix as a permanent solution. At the same time, if the provider is adamant about this solution (you now know otherwise), it tells you something about this provider as well and whether your interests are actually aligned.

Finally, once you’ve specified the solutions and eliminated the “white noise” (and potentially providers), with this research you allowed yourself to think outside the box and go a step further. All that is left is choosing to move ahead with the solution that fixes your current challenge correctly or combining some of the options and target a long term milestone that you didn’t even think of before this process.

 

So is your consultant a friendly neighbourhood Spiderman or a nameless villain?

The best consultants – where applicable – won’t give you direct answers/solutions to your challenges. They will provide options according to experience and collect information based on these options. They will not be afraid to add or even remove options they suggested in the first place as more information comes forward, thoroughly evaluate and narrow everything down. The final output will be an educated, researched process to work with and not wishful thinking or pulling emotional tantrums.

Some people are more knowledgeable than others but we’ve come to realise that no one is an “expert” in anything. We’ve seen a lot of “experts” over the years that opened/closed shops taking with them some of the integrity of the consulting business. Surely you must have crossed path with a few yourself.

Making the right choice is almost never (at least in the years that we’ve been consulting) the answer to the direct question you asked in the beginning. It’s very difficult for a good consultant to take on your project as is, knowing there could be better solutions to your case. Walking with such a partner down the path of deciding the future of your business, is most definitely a win because where everyone else keeps failing with inadequate information, you will always come on top with solid structures, targeted milestones and a stronger base to work with.

Food for thought (mostly for us) – Still not sure if we’re doing the right thing by being business oriented and not money-hungry hyenas like a lot of our peers but let’s face it, a leopard can’t change its spots and these are the cards we’ve been dealt with.

 

What cards are you dealing nowadays and what cards have you been dealt with?

#leopard #LeopardWithSpots #HyenasThatEatMoney #SpidermanSpidermanDoesWhateverASpiderCan


If you found this information useful, you might also like:

Understanding the nature of a Forex IB

Forex White Label – should you go for it?

What is a Tied Agent | Definitions and requirements  


About allFX-Consult:

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections take place, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.compartners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

 

Tied agent | Definitions and registration requirements

 


 

 

What is a Tied Agent?

A Tied Agent is a person (natural or legal) established in a Member State, who, acting under the full and unconditional responsibility of only one Investment Firm (the “IF”) of a Member State, on whose behalf it acts, promotes investment or/and ancillary services, attracts Clients or prospective Clients, receives and transmits Client orders in respect of investment services or financial instruments, places financial instruments or/and provides advice to Clients or prospective Clients in respect of those financial instruments or services.

 

To avoid confusion we are copying below Article 29 of MiFID2, directly from the ESMA website (link provided below):
  1. Member States shall allow an investment firm to appoint tied agents for the purposes of promoting the services of the investment firm, soliciting business or receiving orders from clients or potential clients and transmitting them, placing financial instruments and providing advice in respect of such financial instruments and services offered by that investment firm.

 

  1. Member States shall require that where an investment firm decides to appoint a tied agent it remains fully and unconditionally responsible for any action or omission on the part of the tied agent when acting on behalf of the investment firm. Member States shall require the investment firm to ensure that a tied agent discloses the capacity in which he is acting and the investment firm which he is representing when contacting or before dealing with any client or potential client.

 

Member States may allow, in accordance with Article 16(6), (8) and (9), tied agents registered in their territory to hold money and/or financial instruments of clients on behalf and under the full responsibility of the investment firm for which they are acting within their territory or, in the case of a cross border operation, in the territory of a Member State which allows a tied agent to hold client money.

 

Member States shall require the investment firms to monitor the activities of their tied agents so as to ensure that they continue to comply with this Directive when acting through tied agents.

 

  1. Tied agents shall be registered in the public register in the Member State where they are established. ESMA shall publish on its website references or hyperlinks to the public registers established under this Article by the Member States that decide to allow investment firms to appoint tied agents.

 

Member States shall ensure that tied agents are only admitted to the public register if it has been established that they are of sufficiently good repute and that they possess the appropriate general, commercial and professional knowledge and competence so as to be able to deliver the investment service or ancillary service and to communicate accurately all relevant information regarding the proposed service to the client or potential client.

 

Member States may decide that, subject to appropriate control, investment firms can verify whether the tied agents which they have appointed are of sufficiently good repute and possess the knowledge and competence referred to in the second subparagraph.

The register shall be updated on a regular basis. It shall be publicly available for consultation.

 

  1. Member States shall require that investment firms appointing tied agents take adequate measures in order to avoid any negative impact that the activities of the tied agent not covered by the scope of this Directive could have on the activities carried out by the tied agent on behalf of the investment firm.

 

Member States may allow competent authorities to collaborate with investment firms and credit institutions, their associations and other entities in registering tied agents and in monitoring compliance of tied agents with the requirements of paragraph 3. In particular, tied agents may be registered by an investment firm, credit institution or their associations and other entities under the supervision of the competent authority.

 

  1. Member States shall require that investment firms appoint only tied agents entered in the public registers referred to in paragraph 3.

 

  1. Member States may adopt or retain provisions that are more stringent than those set out in this Article or add further requirements for tied agents registered within their jurisdiction.

 

See the complete article directly on the ESMA website.

 

Should you become a tied agent?

To answer this question, like with any evaluation on what to do next or how to get bigger, you need to evaluate your current standing. What drove you into thinking that tied agent is indeed an option? Maybe you are a White Label or large forex IB that wants to expand. Or maybe you tried to get regulated and found difficulties to be approved or even worse, got rejected and you need to identify plausible and feasible next steps.

 

We’re mentioning the above scenarios because allFX-Consult dealt with them in the past. But no matter what the reasoning, becoming a tied agent requires minimal cost, hassle free registration process and it’s a great stepping stone, in order to evaluate if it’s worth it to go for a full EU license on your own. You probably know better than we do, that targeting a European client base is not an easy task today.

 

Tied Agent under MiFID2 means you are obliged to offer trading conditions like the rest of European regulated brokers and therefore, you should have a solid plan and a European client base before looking into such a concept. No regulated broker will accept to connect if it doesn’t make sense, not only compliance wise (to have a clear standing with your operations) but relative to the income you will produce with them.

 

 

What is the process to become a Tied Agent?

Firstly you will seek registration with the national regulator to be appointed as a Tied Agent of a specific Investment Firm and be registered in the Register of Tied Agents.

 

Some of the details you will provide in this regard will include the following:

 

  • – Name of the Tied Agent and/or Trading name(s)
  • – Notarised company documents and contact information
  • – Your agreement with the Investment Firm with estimated revenues
  • – Personal questionnaires and documentation for shareholders, directors and employees of the Tied Agent who will provide Investment Services

 

The complete list of needed documents will be provided on a case by case basis and depending on the status of the company applying to become a Tied Agent.

 

It’s then in the discretion of the national regulator to ask further questions, documents and clarifications. It’s usually a fast procedure, taking just a few months to finalise but if your operations fit in this scenario, it’s definitely worth considering moving ahead. As a Tied Agent, you will learn a lot about the target audience, the regulatory framework and if it makes sense to invest and do this on your own (get your own license).

 

What does it cost to apply for a Tied Agent registration?

Firstly you need to find the Investment Firm willing to tie itself with your operations. Not all licensed brokers will want to do this, especially if they don’t have enough information regarding who they are tying with and that of course that this new partnership, will not jeopardise/burn their license.

 

So it is typical that exchange of information will take place, several calls and meetings before any actual costs are brought forward and reviewed.

 

When it’s all said and done, the cost for the application to the regulator is quite small. From experience, what matters the most is the final arrangement on P&L sharing agreement that depending on the size of the licensed broker, can vary significantly. It would be irresponsible to throw here actual percentages of P&L sharing, because really each case is different.

 

Lastly, the Tied agent will need to employ a Head of Reception and Transmission that needs to be a certified professional (in the case of Cyprus, the employee needs to be registered in CySEC’s Public Register of Certified Persons (the “Public Register”) which has a salary cost as well as a small application cost, for the regulator to approve the person.

 

How allFX-Consult can step into this picture:

We have done extensive research on the topic and brokered quite a few deals concerning Tied Agents. In many cases we recommended alternative solutions because as mentioned above, not all cases fit the scenario of a Tied Agent. But almost all deals brokered by allFX-Consult, eventually resulted in obtaining a full license (either in Cyprus or abroad) or remained successful partnerships (Tied Agent partnerships or other) that still benefit everyone involved.

 

About allFX-Consult

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

Because of this, allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

 

#tiedagent #forextiedagent #forexlicense #offshorelicense #euforexlicense #forexib #whitelabel

 

Useful links

Check our comprehensive list of worldwide supervising authority bodies

(includes all member states of the EU)

 

Forex ECN | A walk through the types of brokers


 

What is a Forex ECN?

Straight forward definition, not very different from what you will find online, ECN stands for Electronic Communication Network. Simply put a forex ECN is a type of execution that allows a trader to place orders through the Interbank Market, in a more transparent and direct manner than trading against a single forex broker. As we all know, trading against a single broker can have disastrous results in a trader’s account, with so many of them running clandestine dealing rooms in a dark corner of the world.

That being said, not everyone’s the same – through our Sales Training service, we’ve come to get to know market makers that run amazing backend operations, big enough not to worry about specific accounts but rather decide on a daily basis the strategy they will use to handle their overall volumes. Irrespective of their size though, the term market maker still implies a fully operational dealing room in who’s discretion, trades are being executed with strategies in favour of the mothership.

Before we look deeper into the nature of a forex ECN, ponder this – a broker that attracts traders onto its ECN platform is looking for a “cleaner” relationship, since profits are derived from volumes traded and not money deposited in the trader’s account. True ECN brokers are indeed on the side of the traders, supporting their winning strategies, knowing that it will inevitably increase trading volumes.

 

How does a forex ECN work?

Throughout the years, technological advancements supported the development of systems that helped to facilitate dealing in OTC derivatives such as currency exchange rates. Back in the day, only a handful of companies were able to provide bridges that connected trading platforms with liquidity providers.

The Interbank Market, the market that ECN connects to, consists of Banks and large financial institutions that push their liquidity and volumes of transactions in a manner that allows transparency, anonymity and reliability to each trade that requires its liquidity.

Through a forex ECN trading platform provided by the broker, a trader gains access to deeper liquidity and an execution policy unlike any other. Once an order is placed by a trader, irrespective of buying or selling, the system will provide the best possible (best bid or best ask) price available at that instant.

So the system itself is acting as a dealer, therefore cancelling the manual dealing rooms that are normally handling trader’s quotes in a market making environment. A forex broker that does not operate a dealing room is also referred to as a No Dealing Desk or NDD broker.

 

Technology behind Forex ECN

What’s better than receiving orders in fractions of a second (milliseconds) as if you were placing your order standing (or sitting) with your laptop at the major data centres in New York and/or London?

The Equinix data centres with their fibre optic cables are recognised to be the fastest, most reliable price sources in the world. Low latency connections, lightning fast executions, reliable trading conditions are some of the advantages that NY4 and LD5 provide and it’s the reason that leading true forex ECN brokers use them for connections and advanced price aggregations with major liquidity providers and pools.

 

Trading with a Forex ECN account

All brokers that claim to offer forex ECN accounts should show order information and exchange rates in real time. This includes orders processed as well as the prices offered by banks. It ensures transparency in a world where most forex brokers used to run chop shops in dark corners of the world and profiting from the “not so known” price aggregation and price filling at their discretion.

For scalpers and traders that follow high market volatility, typically due to major fundamental announcements (like the Non-Farm Payrolls report), a forex ECN account is the best option since it basically eliminates price manipulation and the dreaded re-quotes. Re-quotes occur especially during high volatility, where the forex broker rejects a price asked from a trader (claiming the market moved) and provides a re-quote that rarely benefits the trader.

This “no-human intervention” is also what defines an STP (Straight Through Process) broker, that uses no dealing room but instead sends the quotes straight through to liquidity providers or an ECN, and only acts as an intermediary. It might be wise to ask a forex broker that claims to offer an STP model, which liquidity providers are used, in order to have a clear picture of the relationship. If looking into a forex ECN account, the term STP/ECN usually go together since the connection is done by straight through process into an ECN trading environment.

Another term introduced with forex ECN is the Direct Market Access or DMA, which refers to the connection of a trader to “a” market (not necessarily an ECN environment, but trades could also be sent directly to major liquidity providers/market makers) that would essentially fill the price. So it’s important to differentiate DMA with ECN unless specified by the broker and substantiated by the order information/real time exchange rates that normally characterise a forex ECN broker.

 

Spreads in a forex ECN account

A forex ECN account should actually have no spreads marked up by the broker, but instead commissions charged per single transaction (not so much the case nowadays). Since the broker does not benefit from risk management and hedging activities, these commissions serve as compensation for bridging the traders with the Interbank Market. Spreads in a forex ECN account can reach 0 and in extremely rare cases it could even go below 0 (not sure if this even happens anymore, except when ECN was first introduced) – very similar case with the Inverted Spreads (a major recession indicator) where a long term instrument yields less return than a short term instrument, resulting in an inverted scenario. In the past, our Sales Training “borrowed” the term Inverted Spreads to point out to our Sales Reps how real and non-manipulated ECN prices can be.

 

Disclosure

All information included in this article is for informational purposes only – it does not intend to provide advice to anyone to follow or not a specific type of broker or services.

 

You might also find this interesting:

All forex regulators by region

Forex White Label  – Should you go for one?

Understanding the nature of a Forex IB


About allFX-Consult

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

 

Offshore Forex License | Myths, truths and facts that not everyone will share


Tagging Forex IB and Forex White Labels, as well as individuals looking to start a Forex Brokerage.

Throughout the years allFX-Consult has been establishing and supporting Forex brokerages, it’s now more obvious than ever, that the lengths people will go to and the stories they fabricate to close business is more or less equal to the service they will actually deliver. To start a Forex Brokerage with or without an offshore forex license requires costs you’re most probably unaware of and come with limitations no one will share in full, until you’re already on-boarded on a service.

 

Before we continue, keep this rule of thumb in mind:

“Never go forward with the first choice presented to you. Get second/third opinions and validate the information until you finally converge everything into a feasible next step”

 

Choosing a jurisdiction to rest your forex brokerage operations will play a significant role in what type of business you will attract as well as how far you can go with it, so it’s important to consider the reasons you’re expanding as well as your limitations. From what your target audience will be to what trading conditions each jurisdiction allows, it’s imperative to detail your plan before you evaluate the possibilities. And if this plan doesn’t fit in any solutions currently offered in the industry, you can start by compromising certain aspects of it with short term solutions, always keeping in mind the bigger picture and working towards a medium to long term plan.

“Failing to work within a short term frame that’s part of a larger one, ensures stagnation and lack of growth. In 2-5 years, you will be exactly where you first started…”

 

So who is looking to start a forex brokerage?

The most successful cases we encountered, involved medium to large Forex IBs and White Labels (with consistent monthly deposit volumes between $100K to $1 million), looking to further enhance their operations by setting up their own structures. We’ve also seen smaller networks that also succeeded to start a forex brokerage with the support of external funding and a solid, down to earth business plan.

 

With trading conditions getting tighter in more reputable jurisdictions, offshore forex license alternatives sent everyone into a frenzy, thinking that it’s the solution to all their problems. As we all know though (or not), just by registering a company in an offshore jurisdiction does not mean you’re good to go since you will be lacking a very crucial element, the bank account. Banks will not open a bank account for an unlicensed forex brokerage, no matter how hard you try.

 

To put things in perspective, here are some options (with and without licenses) with their attributes:

 

  1. Belize / Labuan / Cayman Islands / Seychelles / Mauritius / Bahamas / Vanuatu / BVI
    1. – License: Yes
    2. – Can be expensive to register and maintain, you will receive quotes from $25k-$50k
    3. – Time frames to get a license and start: minimum 1 to 2 years mostly due to bureaucratic delays
    4. – Solid banking structures and PSPs are working uninterrupted
    5. – Physical office is a requirement, except Belize, Cayman Islands
    6. Capital required:
      1. Belize – $500k
      2. Malaysia – $125k
      3. Bahamas – $120k-$300 depending on license type
      4. Cayman Islands $100k
      5. Seychelles – $50k
      6. Vanuatu – Security bond of $50k
      7. Mauritius – $30
      8. BVI – No capital requirement. Only proof of minimum 1 million in shareholder’s bank account to back up the company if needed
  1. St Vincent and the Grenadines / Marshall Islands (This involves registration not a license)
    1. – License: No
    2. – Time frames to register/incorporate: less than a month
    3. – No banking, no PSPs. People/Payment “specialists” might advise to use a paying agent (in most cases another company within the EU) but as the deposits start piling up you will need a truckload of excuses and finally you will be shut down. Also keep in mind that using a paying agent only transfers the banking problem to your paying agent so essentially you’re back to where you started.
    4. – Capital required: No capital required
    5. – Cheap to run but with no working banking structures, what will you do with it? (we have solutions for this but it’s a compromise – as you’ll read later on)
  2. Use another offshore forex license as an umbrella – practically acting as a forex IB but with your own brand
    1. – You can start immediately, no license required
    2. – No start-up costs, no capital required
    3. – Support from the licensed entity on the technical and banking level
    4. – Since the licensed entity will be responsible for compliance, KYC, client funds and liquidity will pass from them – so there’s no real client ownership
    5. – You will share a percentage on your P&L
  3. Get a forex White Label using another offshore forex license as an umbrella
    1. – You can start as soon as the White Label is created, no license required
    2. – Start-up costs depend on the White Label providers usually between $5K-$12K
    3. – Monthly costs (technical support) also depend on the providers, usually no less than $3K
    4. – The licensed entity will still be responsible for compliance, KYC, client funds and liquidity will pass from them – so again, no real client ownership
    5. – You will share a percentage on your P&L
  4. Lease an offshore forex license
    1. – Yes, this is also a possibility although rarely (almost never) offered
    2. – Expensive to operate (not disclosing amounts here because each case is different)
    3. – You need to prove you have existing flow of operations above $500K monthly
    4. – Depending on how you attract business, the only requirement would be not to burn the license so you will be going through stringent evaluation.
    5. – Could combine this with an agreement of buying into the company with each monthly payment. An expensive but excellent compromise with viable future.
  5. Purchase an existing offshore forex license
    1. – Buy all the shares
    2. – Partner up and buy a shareholding percentage
    3. – Costs between $100K-$250K

 

From experience, a combination of the above can do wonders and the saying “two birds with one stone” is the most accurate assessment when calculating the next step.

Fact 1: you cannot wait for 2 years until you get an offshore forex license (that is IF you get a license)

Fact 2: you can’t be a forex IB for the rest of your life

 

When you weigh the cost of operating your own structure Vs sharing on P&L Vs not doing either, you will see that it’s all needed but at the correct timing. No need to force one over the other when you can set up milestones and basically use all of it, every tool in your disposal.

“Higher cost doesn’t necessarily mean better service, and lower cost doesn’t mean you hit the jackpot”.

 

How allFX-Consult can step into this picture:

As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.

  • Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
  • Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.

 

Start a Forex Brokerage by:

Connecting offshore:

With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.

Connecting in the EU:

With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.

 

allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

 

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

 

#startaforexbrokerage #ib #forex ib #white label #tied agent #regional partner #licensing

Forex White Label | Requirements and options

 


 

What is a forex White Label?

A full license to purchase your own forex platform is very costly and unless you have the operations to support it, then it is common practice to connect through a forex white label program of another provider (usually a forex broker or a prime broker) and market it as your own, with certain conditions.

This enables you to start your own forex brokerage operations, market your very own forex brand and access banking, technical and technological support for a fraction of the huge cost required to do this on your own.

Important note:  look into your banking structures and any regulatory obstacles before you move ahead with any deals.

 

Part of what brokers provide with their forex White Label solutions are:

 

  • – Trading Platforms, Affiliate Software, CRM and in many cases a website (if the broker thinks it’s worth it)
  • – Low one-off cost, with average monthly technical support fees (in most cases you only pay the cost of the platform provider so check if there are any mark-ups on these costs)
  • – Access to their pool of instruments (make sure the instruments your clients trade are part of this pool)
  • – Access to deep liquidity (in some cases you get access to tier 1 bank liquidity)
  • – Market spreads from 0.0 pips (depending on the broker)
  • – Enhanced execution of orders (even on large scale although you need to meet monthly volume criteria)
  • – Bridge to LP (some offer this free of charge and some not so make sure you look into this)
  • – Support with Sales – Training your sales team
  • – Competitive revenue plans

 

Should you go for a forex White Label?

 

Depending on the development of your operations, maybe a forex White Label is not the immediate answer to your next steps. Like always, at allFX-Consult we tend to look into compromises that keep costs low but at the same time promote growth and reach milestones that will eventually lead to a predetermined target.

From another article we wrote on obtaining an offshore forex license

“Failing to work within a short term frame that’s part of a larger one, ensures stagnation and lack of growth. In 2-5 years, you will be exactly where you first started…”

 

Let’s take the case of a forex IB looking into expanding – If the number of new clients introduced and monthly deposits are not constant (or fall lower than average), maybe there are more important issues to fix before adding fixed monthly costs and attempt to operate on a larger scale through a forex White Label.

 

Looking into the income funnel line, we might identify weaknesses in our online/offline client acquisition, weaknesses in the product we offer to our target countries (audience), sales underperformance or language barriers, issues with our trading conditions, bad execution from our partner broker, failing reputation of our partner broker, shifts in our trader’s demands for conditions not allowed by the partner broker and much, much more.

So although it’s understandable that every networker in the industry wants to start a forex brokerage, it’s crucial to ask the right questions and give the right answers (not wishful thinking) prior to going ahead with a new arrangement, like a forex White Label.

 

What does a forex White Label cost?

 

No broker will publicise their cost (for the obvious reason of fierce competition) but the pricing ranges between $5k-$12k one-off cost for getting the platform(s), and no less than $3k monthly, for support.

These numbers are not set in stone, because of the large number of providers, the number of products they might provide within their solution and of course the different terms they require prior to partnering up with anyone.

So it also really depends a lot on the size of your forex operations as well – in many product setups allFX-Consult was consulting on, we advised our clients (forex brokers) to give a $5k worth of platform for free, by adding certain liquidity terms into their forex white label solution. And by taking this simple (but costly) step, we would gain smaller/average networks of $50k-$100k.

 

How allFX-Consult can step into this picture:

As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.

  • Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
  • Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.

 

Start a Forex Brokerage by:

Connecting offshore:

With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.

Connecting in the EU:

With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.

 

allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

 

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

 

#startaforexbrokerage #ib #forex ib #whitelabel #forexwhitelabel #tied agent #regional partner #forexlicense #forexoffshorelicense

 

Forex IB | Understanding the nature of an Introducing Broker


What is a forex IB?

Any legal person, individual or company that introduces/refers potential business to a Forex Broker and receives remuneration based on Revenue Share, CPA, CPL or P&L is considered to be an Introducing Broker (forex IB).

 

Should you become a forex IB?

To answer this question, you first need to look into the nature of your current business and understand what makes you good in attracting new business.You could be anything from:

 

  • – A simple website owner that uploads forex related content like news, broker lists/reviews, signals, opinions, videos etc
  • – A high traffic website (although this falls better in a forex affiliate program, if certain conditions are met you can put your site under a forex IB program)
  • – A forex trader that accumulated a number of followers over the years
  • – A forex trainer, providing traders and other industry participants insights into forex trading
  • – A forex industry participant who had some success in referring some people under smaller programs and wants to take it to the next level
  • – An existing forex IB that wants to evaluate other options and forex brokers
  • – An employee in the forex industry that has a portfolio and wants to start own operations
  • – A business in a different line of work with strong networks
  • – A forex enthusiast, who even though never traded and has nothing to do with the industry, is fascinated and wants to give this a shot – don’t laugh :) that’s how we all started in the first place

 

As you can see, the forex IB program is suited for anyone, small or big irrespective of their current status. Your next milestone is to grow with your new partner (forex broker) and not to just deposit a portfolio with no retention or growth potential. Forex Brokers with opposite opinions that apply pressure are just not worth your time. They are also the ones to give you generously a higher commission, a fact that should raise a red flag all by itself. In the end you will be out there again looking for a suitable partner or even worse, saying goodbye to your forex operation.

“Your client portfolio doesn’t define you, how you handle it and what you do with it does”.

 

Although some individuals or companies are in position to receive more commissions as a forex IB than others, this doesn’t cancel the fact that you could be that individual/company in the near future.

“Remember that professional traders today were beginner demo leads a few years back and some of the established forex brokerages of today, were no more than simple networkers and IBs in the past” 

 

So how does one succeed in a forex IB business?

Irrespective of what we talked about above, to win in this game you must face a simple truth. It’s always been and always will be a number’s game. From experience, a forex IB that is not happy in a current partnership is least likely to push this business forward and produce good numbers. And by good numbers, we don’t mean active clients, deposits or commissions earned. With good numbers we mean qualifying more and more potential leads that can be turned into rewarding revenue over time by simply talking about it and not being afraid or embarrassed to add it in a conversation.

Thus, it is imperative to work with a partner (forex broker) that you are comfortable with and a business deal that makes sense for you to work with. Once this is out of the way, the path is simple. Make sure that your network, old, current and new is aware that this is something you are deeply involved in and set the parameters of how you can provide support.

Now how you provide support brings us to another great point that answers how to succeed in a forex IB business. Your network (active and not) is not just numbers in a system and money in a bank account. They are people that join your program because you add value into their path for a successful trading experience. This added value could be your shared experience in trading or by connecting them with more experienced traders in your network, introducing them to educational webinars and workshops that aim to create traders and not burned accounts.

In addition you cannot and must not EVER promise or guarantee profits and make sure you’re there when they need you the most. A forex broker deals with a lot more than just your network and sometimes in the rush of the day they omit things, delay processes and fall victims of other minor daily issues that you can step in and fix so that your clients can have a hassle free experience.

Another important factor that determines the success or failure of your forex IB business is the pricing and charges that your clients incur, by being under your IB structure. By connecting with a broker under your IB program, your clients must feel that they connect as part of a larger network and therefore receive better pricing and charges, than if they connected on their own. If this is not the case, your forex IB business could be finished before it even begins.

 

What to look for, when searching for a potential partner (forex broker)?

 

  • Reliability through extensive market experience
  • Safety of funds through a reputable regulated environment
  • Customer centric through their educational material online and offline
  • Customer support and care when dealing with client issues
  • Professionally trained sales reps to deal with your clients
  • Strong platform, fast execution, competitive trading conditions
  • Fast process of KYC, deposits and withdrawals
  • Languages (support and website) to support your target audience
  • Ability to support your forex IB business both offline and online

 

What payout makes sense in a forex IB business?

Well the answer to this question depends greatly on how the broker makes the money to pay your commission. If they offer high payouts, they will want to be compensated for it and that’s where the problems start. A forex broker, either you like it or not, will always be on the winning side of both relationships (Trader-Broker and IB–Broker). So sometimes less is indeed more because it ensures long lasting relationships within a long term plan, rather than short term gain that results in losing sight of things and ends up with a burned business.

In all scenarios, there will be a scaled compensation depending on the volumes traded by your network, and so it might be better to reach higher payouts through higher volumes by retaining your portfolio with the added value support we explained above, rather than forcing high commissions on smaller volumes that can only result in the broker misbehaving and burning your business.


 

How allFX-Consult can step into this picture:

As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.

  • Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
  • Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.

Start your Forex IB business by:

Connecting offshore:

With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.

Connecting in the EU:

With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.

 

allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.

 

We’re chosen for being discreet, detail oriented and deadline driven.

 

Contact us for a private conversation to discuss your case through the contact form or one of our emails at info@allfx–consult.com, partners@allfx-consult.com.

 

#startaforexbrokerage #ib #forex ib #whitelabel #forexwhitelabel #tied agent #regional partner #forexlicense #forexoffshorelicense

The role of an outsourced service provider by today’s standards


Who wouldn’t prefer a full time employee to an outsourced service provider? We’re outsourced service providers ourselves and we would still choose full time Vs outsourced. It’s time to stop beating around the bush and face reality, even if it’s not what some of us want to hear.

Even with its perks, if money is not an issue outsourcing is not on the table even for discussion. For sure outsourcing is cheaper and requires fewer headaches than a full time employee. It also helps for a better, more targeted spend Vs result (mostly due to accountability). And to top all that, with the cost of hiring full time often 4 times that of a service provider – not to mention the recruitment agency fee – we still look into full time employees as the answer to our prayers that will lift us to the top of the food chain.

 

Outsourcing to a Service Provider is not an option yet

It takes a significant amount of time to realise you’ve made bad decisions. When you start counting your spend Vs income, when you quantify how much you progressed with your in house team and where you stand in the industry as a market player, you might start pondering on alternatives to your current structure.

You see market leaders constantly innovate, they push the boundaries further and unless you’re able to follow, the future does not look so bright. So are we doing enough? Is the knowledge of our team more than our own to help us push boundaries? The in-house team was hired to support our current functions, not to innovate and direct the business in new-found lands. We’re doing great as we are but are we moving further or are we involuntarily and unknowingly stagnant?

 

Could outsourcing to a Service Provider be an option?

There are two scenarios to consider; in the first one you know what you’re doing and you spot the problems before they become “make or break” holes draining your bank accounts. Outsourcing is now an option…

In the second scenario, you don’t know what you’re doing, the bank accounts drained already and the costs associated with your current structure are no longer viable. You then begin looking for alternatives, you decide to downsize and take over parts of the business that once belonged to your very expensive head of department. To make things even worse, all decisions are now biased and you’re looking for the cheapest solution to your business needs. And what do you know..? Outsourcing is also now an option…

If you are a forex broker operational for at least a year, surely you can associate with the second scenario, since most brokers raise share capital as well as enough operating capital only to start their business. This capital is then spent in the first year of operations in the battle to position the brand and make a name for yourself. There’s no income plan, no lead generation strategies, no feasible saleable product except the wishful thinking of the shareholder to position the brokerage through the people that will be hired.

Not everyone has the funds to support an in-house operation that is knowledgeable and skilful and like-minded to copy competitor’s successes and avoid failures. This type of team is immensely expensive, requires a lot of upkeep and is scarce to find. So good luck finding them, coordinating departments through them, paying and managing to keep them long enough to see the fruits of such operation return some profit.

For the average broker, that is 80% of the industry today these scenarios serve as reality check. If the above are not scenarios you can accommodate, you’re heading towards a low cost operation, with in-house teams that are only as good as the reason they accepted your low salaries. Not meaning to undermine anyone here, i’m positive they are good for what they’re hired to do, but that’s just about it. The boundaries we talked about before are the safe zone that you should get comfortable in, since that’s exactly where you’ll be staying.

 

Outsourcing to a bad Service Provider

In an ever increasing industry such as the consulting services industry, the possibilities are endless; countless agencies are popping up, ready to serve on a small budget, whispering all the right words you need to hear. Words that provide the feeling of “salvation” since they know that if you’re looking for help, you brought yourself at the brink of closing shop.

Given the amount of  possibilities, narrowing down your options when biased, will also not really help your situation. By biased i mean bringing yourself to a point where you’re still looking for cheap solutions, quick profit and desperate enough to accept anything. Say goodbye to your values, company culture and initial vision. Say hello to chop shop operations, aggressive tactics, all the wrong reasons to be in this business until it’s really too late.

 

Outsourcing to a good Service Provider

As we’ve come to know, the best decisions are made when we’re strong and able to think clearly. There’s a reason Service Providers are in business and there’s no harm in evaluating outsourcing in the beginning steps of your operation. Evaluate all options when the business is strong, well-capitalised and allows room for changes that can be adopted fast. Educated decisions must be taken always based on industry standards and correct competitor analysis, not individual experiences.

Once there is a strong base and foundation set-up, be sure that you secured a few more years as an industry player and can reconsider your spend accordingly. An absolutely fantastic time to employ more full time employees and expensive heads of your departments. Important to note here that you will not be hiring to set up your structure anymore but to strengthen it, with their expertise and hard work.

Departments that are built around people are the most costly and least viable.

Departments that are built around industry standards, competitive analysis and decades of experience, will be with you for a long time.


 

If you found this information useful, you might also like:

Understanding the nature of a Forex IB

Forex White Label – should you go for it?

What is a Tied Agent | Definitions and requirements  


About allFX-Consult:

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections take place, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.compartners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

Forex Call Centre; A must have tool in our arsenal or…not…


The forex industry receives daily harsh critiques from investors, economists, regulators, any professional academic or not relative to the intentions, practices and professional conduct of brokerages. Now the disappointment continues with the uncanny practices of a random/generic/so called forex call centre, proving once more that things are not getting any better.

Back in 2006 when we first joined the industry, our Sales tactics were limited to an introductory script and our willingness to learn, a much needed tool to help close a sale. You see competition was not as fierce as it is today, products were limited to simple structures and the idea of trading in foreign currencies was as simple as 1,2,3.

Today though, with the number of brokers increasing rapidly, systems and product diversification, and with personnel being recycled like beer bottles we resulted in practices that make no one proud, conduct far from professional and continuous loss of the potential customers the industry could benefit from tomorrow.

 

Call centres / forex call centre in a nutshell

The latest trend in outsourcing, are generic call centres that among other things also sell forex services, branding themselves as a forex call centre; in essence boiler rooms with hundreds of uneducated people (uneducated relative to the market), following scripts and lists of unaware “potential leads” that are being funnelled like dirty laundry.

It’s inevitable while industries grow for chop shops like these to pop up, taking advantage of the market’s needy and greedy face, disregarding human rights, privacy and ethics. Its in our nature to follow one another, in good and dark places and we don’t realise that the only losers in this game is us while these chop shops take advantage from the scraps. Unfortunately the scraps in this case are decent people that found themselves in these lists and are being harassed day in and day out.

Using high pressure sales tactics, uneducated scripts, begging if nothing else works and inappropriate follow up methods, it’s time for brokers to open their eyes and handle their sales proactively and in the right way. If you’re lucky, this “forex call centre” is not using your company’s name to sell your product, although highly unlikely. Therefore their practices are now your practices, for which you have absolutely no control of.

 

So if call centres are not an option, what do we do?

Call Centres as a function, if used correctly are not a bad solution at all. No one argues the efficiency that numbers can produce as long as there is a process associated with the function, an educated methodology in line with current standards and a culture within the operation derived and cultivated by our own values.

The only way all these can be aligned, is through an in-house structure developed by the broker, for the broker. How can a faraway country, with uneducated personnel that is used to sell appliances, telecommunication products and anything other than financial services, take the role of the income generator of a wannabe leader broker. In an ever demanding role, like the sales role, where our own educated people find it hard to sell (although they’re doing a great job), how can we expect that outsourcing the function can be successful without false promises, aggressive sales tactics and offering investment advice (when they can’t even tell the connection between leverage and margin)?

 

How does a broker setup a forex call centre?

Building an in-house call centre is the same as setting up a sales team from scratch. Same training principles apply, with minor differences in the running cost (lower cost), the phone operative’s numbers (big or small), the approach the calls will take (relative to first deposits, retention and volume generation strategies), the CRM system’s use (more automated than manual), the attention put on several points within the value chain and income generation process and much, much more.

The most important characteristic of a modern day forex call centre though is the training of the operators themselves. How much they know so that they can avoid all the aforementioned bad practices and still yield a result the broker can be proud of. Its not far fetched and quite simple in theory and even simpler in practice if the ones responsible in building it, are aware of potential problems before hand and put pressure where is needed for a smooth, educated operation.

With more than a decade training sales reps, we are firm believers that FX Sales is a lot more than a cheap chop shop; it’s a form of art and should be a treated with respect just like the people we are selling to.

At the same time, we all recognise the importance of reaching targets and milestones, we understand that without these targets reached there would be no market to do business in. There are simpler ways to acquire new customers, if no-one in house can help, outsource it as a needed service to people/companies that can create positive steps ahead for your business.


If you found this information useful, you might also like:

Understanding the nature of a Forex IB

Forex White Label – should you go for it?

What is a Tied Agent | Definitions and requirements  


About allFX-Consult:

allFX-Consult is a boutique forex consulting agency, catering to quality rather than quantity. For over a decade, our Directors have been connecting with some of the best individuals/professionals, service providers and brokers the industry has to offer so that we can meet any corporate forex challenge that comes our way.

allFX-Consult always has a counterpart/partner for any corporate structure. Before introductions/connections take place, we thoroughly examine all possibilities.

We’re chosen for being discreet, detail oriented and deadline driven.

Contact us for a private conversation to discuss any forex related topic through the contact form or one of our emails at info@allfx–consult.compartners@allfx-consult.com. We specialise in training sales teams and forex corporate structures for individuals that want to Start a Forex Brokerage.

SPREAD THE WORD; Fight Unemployment in Cyprus

An initiative of allFX-Consult

 

If you look up definitions relating to unemployment you will see terms like voluntary, involuntary, cyclical, Keynesian, frictional, structural, classical, seasonal, hardcore and hidden unemployment.

So many “names” for a very straight forward issue. Do they really matter?

As of June 2015, cystat published that the unemployment in Cyprus is 40,876 persons, up from 39,672 persons, according to the previous month report. You can click here to see the reports.

The recent crisis in Cyprus as well as the current economic situation in Greece, has left us to ponder on whether or not it is logical to expect a better, stable and more promising tomorrow. That is not only for our own personal finances but also for our community. With financial statistics and economic speculations bombarding us every day through the media as well as informal discussions, some of us raise the stakes and wonder “what are WE really doing to help with the situation”?

 

About allFX-Consult

 

allFX-Consult is an FX Sales and Operations consultancy; we train the non-experienced and give equal opportunities irrespective of one’s background or if they have a client base and/or portfolio. Since before its inception, allFX-Consult has always favored motivation, hard work and individuality, three very important characteristics one would require, in order to become successful in such a competitive environment.

The forex industry in Cyprus, has over the years supported the Cypriot economy by becoming a hub, for international entities that choose the island as a destination to establish their operations. Whether or not it’s due to Cyprus tax benefits or strong regulatory environments, the point is that these organizations choose Cyprus to carry on with their business. And yet, the majority of these entities still look for experienced candidates to fill their positions.

Decisions like this are what we at allFX-Consult consider a gamble. Why? Because it is an unfortunate fact that the greater percentage of experienced candidates, come with attitudes and needs that most of these organizations, especially start -ups cannot handle. This costly recruitment decision adds up to the constant recycling of personnel, moving from one organization to the next, hoping to find what might never be found.

 

SPREAD THE WORD; ight Unemployment in Cyprus

 

Within the 9 plus years, in which the consultants of allFX-Consult have been training candidates to fill sales related roles of forex brokers, we have come to the conclusion that if you give non-experienced individuals the necessary tools and knowledge, they can be as effective and productive, as the experienced ones, if not more.

allFX-Consult initiated the program “SPREAD THE WORD; Fight Unemployment in Cyprus”, a program that will give equal opportunities to hard workers, motivated individuals with no previous experience to join this ever increasing market.

All CV’s are welcome, from any background and any nationality, so be a part of this fight against unemployment in Cyprus and SPREAD THE WORD that allFX-Consult is ready to help build a stronger, financially stable community for all and crush the statistical numbers that plague our community in the recent years.

Opening a brokerage; achievable goal or far-fetched dream?

Opening a brokerage; achievable goal or far-fetched dream?

Published on iGB Affiliate magazine, issue 51 June/July 2015, page 50

If you are an affiliate and currently working with an FX or Binary Options broker, have you ever been frustrated at low conversion rates on your traffic? Have you ever asked yourself whether or not you could run the operation on the other side of the affiliate program you are signed up to? Opening a forex brokerage is not as big a stretch as you may think, although few are aware of what comes with it.

According to the Bank of International Settlements, trading in foreign exchange markets in April of 2013 averaged $5.3 trillion in daily turnover, up from $4 trillion in April of 2010. With estimates of nearly $8 trillion by 2019, there are no signs of slowing down. And still, recent years have left the forex industry with more challenges than solutions, more questions than answers and a lot of money and time wasted in advertising and selling the non-salable. Not only is the competition constantly growing, the regulators are placing more and more obstacles in the path of brokerages, thus making client acquisition harder, but the client base has also transformed into network and individual trading abusers resulting in low income generation.

How can a forex brokerage survive today’s climate of ever-increasing costs over income? How can business development be guaranteed in this unstable environment and how can wasted time/money be avoided in order to allow the establishment of a solid foundation and infrastructure to support future growth?

Forex Brokerages start out with set plans and proactive methodologies, but over time, they allow themselves to become reactive, a systemic approach towards operations that will eventually kill the running system and require refreshing and starting over, if not a complete shutdown. So it is imperative to build strong foundations that will work as a base for tomorrow’s activities.

 

Do you have the data to kick-start your forex brokerage?

It is a fact that the more data you have, the better your chances to acquire sufficient market share, expand your operations and grow. With targets hovering above every decision you make and every day costing more than the previous one, income generation is imperative, if not vital, to your rise or fall. Given the importance of data, this is an area where affiliates and participants in the gaming industry would have a clean head start should they ever decide to branch out and utilize their resources to start a forex brokerage.

 

Spend

Spending money to acquire data does by no means guarantee income. It is however among the first of steps required to get you where you need to be. Questions such as “should I spend?”, or “How much and when should I start spending?”, will puzzle you in the beginning, while over time, you will grapple with questions such as “is my spending enough?” and “should I spend more or stop spending completely?”. Marketing spend always played a big role in brand awareness although with today’s social media and free educational material, this has become a little easier for start-ups, because as prospects strive for quality in their decision making, they will need information.

 

Educate

Education will be imparted by your team which needs to either have acquired this from past experience or from you. Hiring experienced people can reduce training costs and the time it takes them to get up and running but they can bring with them bad habits and divergent ways of working that you may need to control. Are you capable of training newcomers and developing fresh ideas to push your business forward as fast as possible?

Putting the right team together is among the most important things you will do. The time when we could give our sales team one page with reading material, send them off to call prospects and generate income has passed. Not having enough knowledge to promote themselves and their organizations will result in a complete alienation of your lead database. The prospect will immediately see through the weak sales rep, the conversation will be over, and it’s then very hard for any future positive interaction to take place.

The above is but a short introduction to the back-end of running a forex brokerage. There are various solutions when it comes to deciding how to start, and these can be discussed with any broker directly, or a licensing agency that can set you on the right path. It is imperative that you pay close attention to the overall operations and correctly structure your strategies towards income generation, from the very early stages. While the level of competition and the challenges have increased in recent years, the overall market is only growing stronger, offering plenty of opportunities for a newly formed forex brokerage.