The Forex (Foreign Exchange) market is experiencing rapid growth. In just three years, the average daily turnover rose to $7.5 trillion, with a 14% increase in 2022. Moreover, each year, the market continues to grow even more and more, attracting new traders as well as institutional investors and presenting valuable opportunities for brokers.
However, to lead the market and differentiate themselves from other brokerages, brokers need a user-friendly, feature-rich, and technically refined trading platform. Partnering with the right Forex brokerage software development company is essential to creating such an innovative platform.
There are so many options in the software development industry, but still finding the one that holds expertise in Forex brokerage software can be a little bit hard. To assist in this process, we have created this article outlining the key steps to consider when selecting the right Forex brokerage software development firm.
Steps To Choose The Best Forex Brokerage Software Development Company
Preparing for the Search
Instead of starting a random search, it’s advised to have a clear idea of what you’re looking for. Thus, you should complete the necessary groundwork and understand what to expect from the development company. Here’s what you need to do:
- Finalize your business model by deciding whether you want to operate as an A-Book (STP/ECN) or a B-Book (market maker) broker. The choice is yours, and the development team will create the platform accordingly.
- Knowing exactly who your target audience is is crucial! Are you serving retail traders, institutional clients, or both? The complexity of your software will depend on the platform features your audience needs.
- Make a list of the features and functionalities required for your software, such as multi-asset trading, customizable trading tools and charts, and scalability options.
- Also, determine the budget you can allocate for the development of your Forex trading platform.
Measure Industry Expertise
Never go for any software development company; consider those that have the necessary expertise in Forex brokerage software development. For that, you can check their portfolio and determine if they have developed Forex-related platforms for other brokerages in the past.
Due to the intricacy of forex trading platforms, it is essential for the development company to be knowledgeable about all components involved. Ensure they are familiar with FIX API and related protocols for real-time data integration, as well as MetaTrader customization and risk management functions. The development team’s experience with forex would be the primary requirement for the project, but knowing about related domains like fintech, cryptocurrencies, blockchain, etc., would enhance the platform’s functionality.
Prioritizing Customization Capabilities
Every business model is unique, and so is its service platform. Therefore, the development company should be capable of creating a customized platform that offers a high degree of personalization. They should tailor the Forex brokerage software to meet your specific brokerage requirements.
For instance, the company should be able to incorporate trading algorithms and tools to support automation, as well as technical analysis tools for professional traders. Additionally, they should provide multiple order types to accommodate various trading styles.
Talking about the back-office system, the development firm should create a flexible system that includes features such as multi-tiered access, integrated CRM, and account management tools.
Note: Even if you are looking for a quick white-label trading platform, ask the company if they can provide it with all the necessary customizations, from normal brand logos to scaling and feature additions.
Ensuring Technical Proficiency
It is obvious that the Forex brokerage software development team will need all of the necessary tools and skills to work with the tech stack to build a robust platform. They should be proficient with programming languages like C++, Java, or Python; database management (such as MySQL and PostgreSQL); and cloud technologies like AWS, Google Cloud, and more.
Also, ensure the company can do the necessary APIs for payment gateways, liquidity providers, CRM systems, etc.
Check the Software development process
Regardless of the type of software, the right software development company will always use the Software Development Life Cycle (SDLC) to develop an effective platform. It mainly focuses on requirement gathering, planning, design, development, testing, final launch, and maintenance stages. This agile approach ensures that the project meets the client’s expectations and completes its objectives efficiently.
Take a look at the development steps followed by Webcom Systems for Forex brokerage software development.
Prioritizing Security Measures
The platform’s security is critical because it handles sensitive personal and financial information of traders and investors. A responsible Forex brokerage software development firm understands this, builds a secure platform using safe coding practices, and carries out regular security audits, penetration tests, and code reviews. They also include the most recent security features on the platform, such as SSL encryption, two-factor authentication (2FA), DDoS protection, and so on. Additionally, the team would take special consideration regarding the platform’s compliance with financial regulations, including KYC, AML, and reporting requirements, to operate legally and avoid penalties.
Most development companies even draft a Non-Disclosure Agreement (NDA) to safeguard the confidentiality of your project and make sure that their team abides by its terms.
Evaluating Customer Reviews
To ensure you have chosen the right development company for your forex brokerage project, you should check the experience of past customers. It would even ensure the reliability and authenticity of the service provider, as customers prefer to share their experience if it’s either too good or too bad. You can visit the business profiles on different platforms such as Google, Trustpilot, Clutch, or even social media channels like LinkedIn to read genuine customer reviews.
Conclusion
Picking the right development firm makes all the difference when building forex brokerage software for your business. The steps mentioned above in the article can help you make an informed decision. However, if you are still confused between a few of the selections that fit your list, you can request proposals and demos from them to evaluate and pick the best. Additionally, before committing to a service provider, carefully review all the documents and obtain precise terms pertaining to project milestones, development timelines, and post-launch support.
Webcom Systems is the leading Forex brokerage software development company, helping brokers to excel in their industry with cutting-edge Forex brokerage software. We have been in this sector for the last 20 years and have successfully delivered tailored trading platforms to numerous brokers across the globe. Get in touch to learn more about our services.
Recommended Read: Best Automated Forex Trading Software For Brokers And Traders
