Covid-19 has been classified as pandemic by WHO, the World Health Organisation. Markets are falling world over ever since. Almost all the stock markets are trading in lower circuits. All the commodities and other asset classes are falling by 10-20-30% everyday for the past couple of days. Trust me; the situation is grave and it could get graver. No one actually knows what is going to happen. So the million dollar question arises; What should Forex, Crypto & CFD Brokers Do?
In this blog, we share simple yet effective things to do to not only sail through this testing time but come out as a trusted and resilient Forex, Crypto & CFD Broker.
And the answer is this is an emergency situation and it must be tackled with concrete contingency plan. Here are couple of things that you need to do:
#1 Review your operations and expenses.
When the times are good people tend to spend on things which are not essential to run the business and it is fine when you are doing good, generating good money, there is enough positive cash flow, you may spend much. That’s true but now is the time when you look down to the things you spend money on as they are and classify them into essential and nonessential.
List on all the expenses that you make to run the brokerage business and categories them into two broad categories: essential and non essential.
I’ll give you a clue on what is “essential”? When you are running a Forex brokerage business, Technology is essential. If you are running a white label brokerage on MT4 white label or MT5 white label, this technology forms the core of your Forex brokerage business or crypto brokerage business. This is an essential expense that you need to maintain. Actually, it’s kind of an investment for you.
You must be using a couple of other forex brokerage and trading tools like CRM, traders room, IB & Affiliate Module, PAMM software, MAM software, Trade Copier, Forex Signals, some reporting tools, virtual dealer plugin, MT4 bridges etc. List them all down and see which are being actually used and adding value to either you or your clients.
Look at those tools that your clients are using. Which are the tools that are being used frequently, which are the tools that you are paying for and are really using to run your business.
There may be a couple of software and tools which you are not using frequently or might be like your clients are not using as much as you do you may have to think of cutting it off.
For example if you are using MT4 white label or MT5 white label and availing web version of Trading Terminal, you must be selling out $500 or more per month extra. Now you can check how many people are actually using the web version. If the number is less than 10-15%. You may have to look at how many people are using those versions and how many times you may request them to start using mobile version frequently.
You might look at how many employees you have and how much salary you are paying to other people. How many people you have in your team and start working on that part.
#2 Marketing & Promotion
Now comes the marketing part!
Devise a Marketing & Promotion Plan for your Forex, Crypto CFD, Brokerage Business
To start a forex brokerage business, you just need 3 key things:
- Understanding of the nitty gritties of Forex Market & Trading.
- Willingness to start forex brokerage business
- Capital which in many case is less than USD 10000 initially
You can learn more about how to start forex brokerage business in this blog.
Just invest upto USD 10000 initially, go with mainstream forex white label solutions like MT4/MT5 White Label and you can start your own forex brokerage business.
The Turnkey Forex Brokerage Business Solutions help you start within 7-10 days. The only key responsibility at your hand remains is to keep acquiring new clients while serving existing clients in a way that they stay happy and keep on trading with you and subscribing to higher packages. This is how you grow your Forex brokerage business.
Now is the time to double down on Marketing & Promotions.
Communicate with your team, your traders, clients that the time might not look good but there lies opportunity.
People have been advised to not go out of home. Forex Trading is one such business that can be carried out by staying at home and without much large set up.
You may want to launch some forex trading tutorials videos that help people to understand the nitty gritty of forex trading.
Start promoting and advertising your Free DEMO account so that newbies could try forex trading practically.
Webinars & Podcasts
Keep connecting with your clients, traders and community over the webinars and podcast to discuss your understanding of what is going on and how the things may turn out. Don’t give false assurance and don’t push something that may get them in panic.
Keep communicating with your community over social media like Twitter, Facebook, YouTube & LinkedIn etc.
If the budget allows, try to advertise your Tutorials & Education Videos along with DEMO account using paid advertising like PPC, Twitter Ads. etc
The idea is that you keep showing up instead of going down under or absconding. Let your community see you as a positive, vigilant and careful forex broker.
This will help you build trust and brand of your forex brokerage business.
Wish you best.