Critical Mistakes to avoid while setting up your Forex and Crypto Brokerage - PowerPoint PPT Presentation

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Critical Mistakes to avoid while setting up your Forex and Crypto Brokerage

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Needless to say, the startup stage of any firm is the most crucial phase of the business. The startup stage is what goes on to define how successful the company will become in its future. In the case of a Forex brokerage startup, this phase can indeed be very confusing keeping in mind the various avenues you can take for expanding your business. How do you position your brand? Which demographic do you target? Do you opt for a Brokerage turnkey solution or go for tailor-made complicated software? This is just the tip of the iceberg when it comes to the various considerations you’ll be having in your mind and it is inevitable that some of these decisions might not go according to plan. So, to make things easier for you, here is a list of the common mistakes you can avoid in your Forex and Crypto Brokerage Startup – PowerPoint PPT presentation

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Date added: 29 July 2020
Slides: 13
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Title: Critical Mistakes to avoid while setting up your Forex and Crypto Brokerage


1
(No Transcript)
2
Why is the startup stage of your brokerage
business pivotal?
  • In any business, the startup stage is what goes
    on to define how successful the company will
    become in its future.
  • In the case of a brokerage startup, this phase
    can indeed be very confusing keeping in mind the
    various avenues you can take for expanding your
    business.

3
What are some of the puzzling decisions you might
have to take?
  • How do you position your brand?
  • Which demographic do you target?
  • Do you opt for a Brokerage turnkey solution or go
    for tailor-made complicated softwares?

4
What is the impact of those decisions?
  • The decisions you take when it comes to your
    brokerages startup phase is what will make or
    break your company.
  • It is highly likely that you will make mistakes
    in your beginning stages.
  • These mistakes can lead to several detrimental
    effects.

5
MISTAKES YOU CAN AVOID IN YOUR FOREX AND CRYPTO
STARTUP
Here are some valuable considerations to keep in
mind.
6
Mistake 1
  • Not Differentiating Your Brand Identity
  • Before you start a Forex Broker firm or a Crypto
    broker firm, it is crucial that you think of your
    brands identity.
  • The FX and Crypto markets are heavily saturated
    with a lot of players and it seems like all of
    them offer the same types of solutions.
  • Not only that, a majority of them use
    brand/domain names with ultra-common words like
    Forex or Brokerage in them, making it even
    harder to differentiate.

7
Mistake 1
  • So, it is very vital that you spend the extra
    hours coming up with a compelling brand identity
    with a unique name and a set of strong USPs.
  • Its absolutely okay to spend a little extra for
    the initial marketing as it will go on to make a
    big difference in the future.
  • Some of the critical components would be the
    maximum leverage that you offer, customer support
    in local languages, trader education team, brand
    ambassador programs, social trading leaderboard,
    ease of payment deposits and withdrawals and many
    more.

8
Mistake 2
  • Using Over-Complicated Technology
  • FX technology for brokers is expanding rapidly as
    is the field of Crypto technology for brokers.
  • A very common mistake made by start-up firms is
    using the most advanced tools and softwares for
    your clients without having the necessary
    technical know-how
  • If it ever comes to the situation where your
    client is faced with trouble while working and
    you are unable to solve their problems, good luck
    sustaining your business.

9
Mistake 2
  • During the startup stage of your brokerage, it is
    better to opt for simple technology which you are
    well versed with.
  • Forex broker turnkey solutions and Crypto
    brokerage turnkey solutions make more sense in
    this stage due to their simplicity of use.

10
Mistake 3
  • Trying to imitate established firms strategies
  • Newer firms very often make the mistake of
    directly copying the strategies of more
    established and successful firms in an attempt to
    make rapid progress.
  • What they dont keep in mind is that those firms
    generate much larger revenues and hence can
    afford to spend a lot more than what you can.
  • Trying to copy their strategies directly can very
    well affect your spends in a big way and can even
    take you into losses.

11
Mistake 4
  • Not Adopting an Appropriate Risk Management
    Method
  • This is one of the more overlooked aspects on
    this list.
  • As a startup there is a very high possibility
    that you might not make the correct decision when
    it comes to risk management methods.
  • Being a newer entrant in the market, you may be
    tempted to offer liquidity for your traders by
    yourself.

12
Mistake 4
  • This might turn out to be a risky decision as you
    will most likely not have enough generated
    revenue to use in the event of a crisis.
  • Utilizing your traders investments in these
    situations is a big no!
  • Hence it is best suggested that in these
    situations you opt for a standalone liquidity
    provider who can take care of these risks for a
    fee.
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