Don’t Let Platform Failures Ruin Your Brokerage

When the new coronavirus vaccines were declared, the world finally had a reason to celebrate. Consequently, market participation increased, and brokerages were looking to capitalise on the opportunity. Usually, this would have been a lucrative event, but instead, disaster struck, and the majority of brokerages’ platforms suffered malfunctions, which left many traders unable to place trades.

As a result, many large institutions suffered losses. For a start-up brokerage, it can be particularly frustrating and even devastating. As mentioned in the example above it can sometimes be taken out of the hands of a business, but there are things you can do as the founder of a brokerage to ensure this does not become a common occurrence.

Since the transition to trading online brokerages have suffered outages and slowdowns, it is a fact of life, but the good news is, technology is continually improving. The main reason for this happening is purely because most brokers do not have sufficient capacity to handle a surge in activity. Even the largest players cannot deal with thousands of traders logged in simultaneously. 

In the early days of a new brokerage, you will not need to worry about this problem until your client base becomes a sufficient size. Too many clients are an excellent problem to have, but it will not take too many outages to persuade your clients to switch to a more reliable competitor. 

So how does your brokerage avoid it? The answer is to partner with a white label provider who offers an exceptional FX trading platform that can scale with your business.

Most budding entrepreneurs incline to create something unique, something new. While there is no argument with the logic sometimes utilising existing products as part of your overall service might be the best approach. That sentiment is undoubtedly true with regards to the forex markets, where customers can be as volatile as the currency they are trading. 

Trust and security are just two significant factors that need to be immediately dealt with and demonstrated by your business at all times. It needs to be a foundation of your brokerage if a potential client is ever going to entertain using your services. Another critical factor is usability. 

Proprietary software can be glitchy, and it takes months to refine, not mentioning the mountains of money that is needed if modifications are required in the future. Most start-up brokerages do not have that luxury and instead choose to partner with a white label provider. A white label provider already has access to industry-standard tools and systems such as the MT4 platform, and they are willing to allow your start-up to utilise these systems and pass them off as your own. They can grow alongside your brokerage, and they take care of the infrastructure. 

For a start-up brokerage reliability issues will make or break the business so when a partner can take care of this for you, it means you have fewer headaches and can concentrate on other essential areas of the company.