FINANCIAL TRADING FOCUS
OPENING A BROKERAGE:
ACHIEVABLE GOAL OR FAR-FETCHED DREAM?
For affiliates frustrated at the low conversion rates on traffic they are sending to FX or binary options
brokers, running the operation on the other side of the affiliate programme is not as big a stretch as they
may think, writes George Sardos of allFX-Consult.
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 programme you are signed
up to? Opening a 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-saleable.
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 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?
Brokerages start out with set plans and
proactive methodologies, but over time,
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?
It is a fact that the more data you have, the
better your chances to acquire sufficient
50
iGB Affiliate Issue 51 JUNE/JULY 2015
market share, expand 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 brokerage.
Spend
Spending money to acquire data does by
no means guarantee income. It is however,
among the first 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 has 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.
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 backend of running a 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 increase [