There are two very distinct and separate paths you can take when starting a brokerage. One is significantly more expensive and time-consuming than the other. However, both options are viable, and which is right for you depends entirely on your circumstances.
One way is to invest in proprietary software and build your brokerage entirely from scratch. This way, you can provide solutions to current problems and develop unique tools that all help to demonstrate your organisation’s expertise. If your solutions are good enough, you can completely change the industry or be recognised as an innovative leader, an admirable goal by any standard.
However, if you do venture down that road, it is usually full of uncertainty, unexpected obstacles, and it will incur considerable expense.
The likelihood is that a few months down the line, something will break, or some third-party technology will go through an update and stop working with your platform altogether. If you are considering this route, this might sound disheartening, but it is better to be prepared. Afterall forearmed is forewarned.
There is an alternative option that can seem mundane to some. The technology to trade online already exists and traders and brokerages alike have been using it successfully for more than a decade. The MT4 platform facilitates that success and its popularity is showing no signs of waning just yet.
The benefit of using the MT4 platform is simple. It is currently in use, reliable and trusted by traders all over the world. Again, a new tool can be valuable, but it will take more money to convince traders to make the switch to your brokerage over their trusted MT4 platform.
The best thing about MT4 is that it is entirely brandable, and many organisations have entered the market, offering a wide variety of services with MT4 as the central focus.
The argument for white label services?
A white-label service provider allows other brokerages to use its technology and infrastructure as if it were its own.
Companies such as Popcorn Technology can provide software, server space, an affiliate network, strategic relationships, and experience.
It is essential to understand there is no right or wrong way to approach this. There is only the most suitable way for your circumstances. Suppose you have serious financial backing and employ experts that know what they are doing. In that case, it is quite possible to create a disruptive bespoke brokerage that is clearly independent and different.
However, the financial and technical barrier to entry is no longer there. Start-ups with drive and a willingness to get things done can make a dent in this market. Popcorn Technology has witnessed many successful ventures, and the good news is that the process is repeatable. There is so much value in having a proven and reliable road map to follow when starting out in an industry as vast and as complex as the financial markets.
Finally, there are some white label MT4 brokerages that are currently dominating the market, and that should provide all the evidence you need if you are now sitting on the fence.
