7 Challenges Of Starting A Forex Trading-Related Business

Today, many financial businesses and services are growing online. With the help of the internet, a company from another country can now cater to foreigners and anyone across the globe whenever they need to. This technological development has influenced many industries, mainly financial services, to be accessible.

As a result, there are now various kinds of financial services that you can access online. One of which is forex trading. Since more people are starting trading in the forex market, many have started businesses that relate to trading. Some are pursuing a forex broker company, account manager, or trading software developer.

Indeed, there are many forex-related businesses that you can start today. But regardless of the business type, operating one can be challenging. In this post, let’s look at some challenges of starting a forex trading-related business.

1 - They must be experts and knowledgeable in various forex trading software platforms.

One of the challenges of starting a forex trading-related business is being knowledgeable in the different forex trading platforms you plan to use. Today, there are many trading software platforms that traders can choose from. But among the many, these three are the most popular: MetaTrader 4, MetaTrader 5, and cTrader.

When planning to start a forex broker company, you must first be an expert in those platforms. You should be able to provide immediate insights, solutions, and tips to any query a trader could have. That’s why you must first take certifications, training, and classes to ensure you’re an expert in navigating those trading platforms.

2 - Providing immediate troubleshooting solutions for software-related concerns and issues.

If you also wish to start a forex broker company, another challenge you could encounter is software-related concerns and issues. The internet does provide many opportunities for individuals to grow money, but it can also cause you to lose thousands. Why? Because its performance could affect the trading platform’s operations.

On top of that, it’s inevitable for trading platforms to encounter some issues occasionally. Minor to massive problems can happen no matter how great the software is. And if you have clients that spend large amounts on buying and trading currency pairs, this could be a challenge.

3 - Applying to the strict regulatory requirements of concerned offices.

According to research, the FCA (Forex Conduct Authority), ESMA (European Securities and Markets Authority), and ASIC (Australian Securities and Investments Commission) continuously work together to enact better trading regulations to secure that every business operating in the market is reliable.

This could be challenging for small, starting businesses that wish to pursue trading-related services. Since the regulatory requirements are becoming stricter and tougher to comply with, many illegal forex-related companies exist today. Operating an unlawful business may be quicker, but a business that complies with the regulatory requirements is better–and will save you from unnecessary problems and troubles.

4 - Marketing forex-related services online requires complying with online platforms’ advertising guidelines.

Aside from the challenge of complying with the regulatory requirements of FCA, ESMA, and ASIC, online marketing platforms like Google, Facebook, and LinkedIn have advertising guidelines that financial businesses must follow.

One of the reasons those media platforms impose strict advertising guidelines is to ensure that their platforms are not being used to promote illegal and malicious software services that could harm users. Since it can be difficult for small and starting businesses to follow those guidelines, some begin with SEO solutions. Utilising SEO is good, but it can be tedious, too.

5 - Developing a reliable CRM (Customer Relationship Management) system.

A CRM system is one of the most critical backbones of a forex-related business. If you plan to start a forex broker business, you shouldn’t only rely on the trading software platform you choose. According to many forex professionals, a broker’s best point is its CRM system, following its platform type.

A reliable customer relationship management system is necessary because it will help you develop stronger relationships with your clients and partners. An efficient CRM system will also benefit your business because tracking your clients’ trading activities will be smooth. But the challenge is, developing one that is reliable, and would provide you and your clients with a seamless, worthwhile, and efficient trading experience.

6 - Promoting your business can be challenging because of the tainted reputation of the forex market.

Despite the growth and popularity of forex trading, the market’s negative reputation precedes it. The thing is, many people have unpleasant experiences in the forex market. Why? Because many people dive into the market without learning and understanding how it works.

The result is a loss of money and a negative market perception. Unfortunately, many forex companies advertise the market as a miracle money-making service. Those marketing tactics implanted an expectation into many people’s minds that buying and trading currency pairs would make them rich overnight. As a result, it’s challenging now to promote forex-related businesses, despite the pure intentions of those companies.

7 - Maintaining a solid and loyal client base.

Even now, many people enter the forex market with unrealistic expectations. Because of that, it’s challenging for forex-related businesses to maintain a solid and loyal client base. Typically, a client’s trading journey lasts for one to three months. Once they realise forex trading is not a game of luck, they immediately quit.

You can prevent this from happening by offering learning courses and demo accounts to your clients first. That way, they’ll know what to expect and encourage them to trade knowledgeably and strategically.

Financial businesses are no walk in the park.

Financial businesses are indeed profitable and a great business idea. However, maintaining them daily is a real challenge. In fact, the conceptualising, planning, and implementing stages are the toughest due to the requirements you need to meet. But if you’re passionate and are determined to start a forex-related business, these challenges will surely be a piece of cake for you. Good luck!

About the author:

Bianca Banda writes informative trading data, tips, and strategies about the forex market. She highly recommends trading with FP Markets–the industry's most efficient, reliable, and trusted broker by many.