So just how does your brokerage get peace of mind?

May 2, 2016

Foreign exchange very competitive business

The world of online trading has seen exponential growth over the last few years and every day it seems, new brokerage labels are established by brokerage operators looking to break into this hugely profitable market. Hugely profitable it may be but the world of foreign exchange or forex trading is also extremely competitive and mistakes can be very expensive for operators.

One of the areas where a lot of new white label operators come to grief is in their choice of setup model. Some prime brokers who also maintain retail operations offer what on the surface at least, look like competitive white label packages for new operators. While these packages may seem to make good sense at the beginning, many operators have found themselves tied into long-term contracts with a provider who is essentially in the same market as they are. Retail traders.

Foreign exchange business can give you more profits

No matter how good the pricing you can get from a provider, if that provider also offers services to retail clients, then your price point for the same kind of retail client will be higher. It stands to reason. If a white label operator gets his pricing from a prime broker, the operator has to mark up his pricing to make any profit. The prime broker can simply offer retails clients the same pricing the white label operator gets with the profit already factored in.

Not only that, but as all client sign-ups go through back-office systems maintained by the prime broker, do you really want your client database accessed by what could well be a competitor? Your database of traders is the life blood of your brokerage so sharing is definitely best avoided.

This has been the norm for a number of years now but the industry paradigm is undergoing a shift. That shift is toward service providers who offer highly competitive services for white label operators without having any retail operations of their own.

This is how you get to a brokerage solution where there is no conflict of interest between you and your service provider. This is a totally transparent solution. The better your brokerage does, the better the financial returns for your service provider as your traded volumes and commissions increase.

At Apexum we measure our success by the success of our partner brokers. Our brokers get a turn-key solution with all the technology in place to setup and grow a successful and profitable brokerage and the the peace of mind that comes from knowing that we’re not a brokerage and we never will be. We’re a technology company. You’re our client – the brokerage operator. We don’t offer any services to retail clients so we will never be in competition with you for your traders.

Fully featured solutions with peace of mind built in.

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