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

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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.

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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?

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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.

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MISTAKES YOU CAN AVOID IN YOUR FOREX AND CRYPTO
STARTUP
Here are some valuable considerations to keep in
mind.
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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.

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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.

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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.

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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.

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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.

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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.

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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.