5 most common mistakes that Forex and Crypto Brokerage Start-ups make
Countries are looking for ways to re-start their economies post COVID – 19. Almost all the business sectors – be it Manufacturing or Services, they are hit by economic slowdown. But there are only a few exceptions here, such as…
FOREX TRADING & CRYPTOCURRENCY TRADING
In these types of markets, trading usually happens online between large financial institutions and individual traders. So, they are immune to such crisis to an extent. Despite the global economic slowdown, these statistics say a totally different story.
The forex trading market is estimated to be 6.6 Trillion USD
Daily forex trading is expected to reach 10 Trillion USD soon
So, a forex trading broker and cryptocurrency brokerage start-up is definitely an ATTRACTIVE option. However, many brokers end up doing some common mistakes which may lead to failure of a Forex & Crypto Brokerage Start-up. Let’s discuss a few ‘most-common mistakes’!
COMMON FOREX/ CRYPTOCURRENCY BROKER MISTAKES:
These are some of the simple logics – which may seem correct at the moment but become a MISTAKE later. To be a Forex and Cryptocurrency Broker, one needs to simply avoid making these mistakes.
1. Not starting the forex/ crypto brokerage early
We all know how tumultuous the field of technology is. One day an idea may seem ‘amateurish’ and just a few days later, you may see it trending all over. Once it has attracted so many players in the market, it becomes over-crowded and difficult to compete in such market. As they say ‘The early bird catches the worm’! If you identify potential in forex/ crypto brokerage business, you should definitely move in early and carve out your space in the market.
2. Ignoring the regulatory & legal requirements
You must be aware that certain countries have declared ‘cryptocurrency’ illegal. And in the countries where it is not illegal, there are different laws and rules pertaining to ‘financial services’. When it comes to forex trading, certain countries offer lenient regulatory framework (Labuan, Seychelles, Mauritius, etc.) while some countries have more stringent laws. A Forex and Cryptocurrency Brokerage Start-up needs to select the country wisely and follow the requirements.
3. Giving preference to emotions over technology
Running a forex/ crypto brokerage requires a certain degree of instinct, agreed! But there should be a balance between instinct and technology in the decision-making process. Many a times, brokers (just like the traders) trust their emotions over concrete data points, and fail miserably. This is because, they underestimate the capability of technologies such as Artificial Intelligence, Machine Learning, Automation, Chatbots and Cloud.
4. Not getting an AI/ ML powered CRM software
Customer Relationship Management (CRM) is a brilliant way to manage sales and get more forex/ cryptocurrency traders on board. But when CRM is empowered with Artificial Intelligence and Machine Learning, it can work wonders for your business. It not only helps you get more customers on board but also in managing the existing clients. AI & ML helps your sales team get actionable intelligence and improve their effectiveness.
5. Getting wrong offshore developer as a partner
When you are thinking about creating a Forex and Cryptocurrency Brokerage Startup, you need a proper offshore developer as a partner. Because it requires a lot of IT expertise in creating website, CRM, AI/ ML, Chatbot, RPA and Digital Marketing Strategies. But this is undoubtedly the first step in the process and if this goes wrong, everything goes wrong. So, make sure you select an experienced and efficient offshore development partner for your startup.
Make the right choice with Pheasantech
Pheasantech is a Singapore based IT company. We have been providing offshore development services to numerous forex brokerage startups across the globe. We have the experience of ‘The good, the bad and the ugly’ of forex broking and cryptocurrency trading. And we will help you NOT MAKE THESE MISTAKES, ever. So, if you really want to launch a Forex and Cryptocurrency Brokerage Startup successfully, we know the way! Contact Pheasantech anytime on skype or send an email to email@example.com.
Get Started with Pheasantech
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