Remember the Basics
The basics of this business are simple: 1. Service clients. 2. Turn a profit. How you go about the former will heavily determine the result of the latter. Just like in any service related business, those who are successful understand what their clients really want. So what do they want? Safety of funds? Definitely. Competitive spreads? Obviously. Reliable technology? Without a doubt. All three fit, but there is one more thing that many brokers overlook – and it costs them dearly: Excellent customer service. If your clients know you are responsive to their needs and fully believe that you are behind them, they will continue to do business (often even if they lose initially). Many of the larger brokers fail to give clients the personal touch, and many very small brokers overlook this important step in their growth process, so remember the basics: Service clients very well. Turn a better profit.
Know your Strengths
Did you enter this business as a trader? An IB? An IT team leader? Whichever your field of expertise, you probably don’t know the whole picture. No one expects you to know everything about this business, and you shouldn’t expect to either. Delegate wherever you can to those you trust. Unless you are an attorney, don’t be one – find one. If you heard you can take clients’ positions on without hedging (and you want to try it), you had better know your risks and understand the dangers associated with this practice. In the early stages, deal directly with things you know. Everything else should (at the very least) require consultation.
Use Common Sense
If you are approached by potential partners (be it for liquidity, technology, marketing, sales, investment, etc.), make sure you vet them properly. One of the main reasons businesses fail is bad choices. Do not get involved with people you don’t know or in a situation where you have committed your funds, your company or yourself without an exit strategy. The retail FX business is fraught with the ‘ethically deficient’ – there really is a lot of money at stake. You have begun to build your business your way, so don’t jump into any deals with anyone until you have done your homework and your legal team has reviewed the terms and participants (and no – you are not your legal team).
Stick to the Plan
You had a plan from the very beginning. You made a significant calculated investment in yourself and now you have put that plan into action. Your checklist was short, simple: technology, liquidity, registration, bank account and marketing. Now that everything is beginning to take shape, it can be difficult to stay focused. Don’t rush to spend resources. Keep in mind that starting small is the most prudent way to go and that as long as you pay attention, everything should fall into place. We are scalable, so you are scalable.
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