Farid Shabaev,
general director of the company
"BROKER ALLIANCE"
When can you expand according to your business plan?
Before writing a business plan to expand your company, make sure the business is ready to scale. Farid recommends evaluating a business based on nine parameters:
You have a recognizable brand, at least in the region where you operate.
Stable income.
Business processes, instructions and control over their compliance have been debugged and described.
Quality standards: requirements for the qualifications of specialists, a list of services with tariffs, regulations for working with clients and partners, an agreement for the provision of services.
Prescribed business development strategy for three years.
Good reputation: many satisfied customers, the Internet is not full of exclusively negative reviews about your company.
Partner banks with which you have entered into agreements.
Experience of complex transactions: an example with a mortgage, an example with refinancing.
Large product line: consumer goods, mortgages, leasing.
How much does it cost to open a credit broker office using a business plan?
Farid tried to take into account average market prices in major cities Russia. It turned out to be 150,000 rubles. per month. Cost breakdown:
Office (25-30 sq.m.) – 20,000 rub. per month.
The official salary of three employees (two managers and a director) is 45,000 rubles.
Tax deductions 43%: 19,350 rub.
Internet and stationery: 1,500 rub.
Advertising, promotion on social networks, updating information on the website: minimum RUR 30,000. per month.
Current account maintenance and accounting support: RUB 3,000.
Expenses for due diligence clients – 15,000 rub. per month.
Tax simplified tax system 6% - 6000 rub.
telephone connection: 2,000 rub.
ordering business cards and advertising materials for the office: 3,000 rub.
Average bill for transactions
Above we wrote about a large product line. Farid offers seven services to clients. For each, he calculated the average bill.
| Service | Average amount in rubles | Broker commission in percentage and rubles |
| Consumer loan | 500 thousand | 10% = 50 thousand |
| Mortgage | 2.5 million | 3% = 75 thousand |
| Loan secured by real estate | 3 million | 5% = 150 thousand |
| Loan for house construction | 4 million | 5% = 200 thousand |
| Help with leasing | 4 million | 3% is paid by the client = 120 thousand and 1% by the leasing company = 40 thousand. Total: 160 thousand. |
| Simplified credit and financial analysis of the client (UCFA): 4 credit reports (NBKI, OKB, Equifax, KBRS) and FSSP) | 2.5 thousand | broker expenses 1000, profit 1500 |
| Full credit and financial analysis of the client (PCFA): 4 reports, TsKKI, SPARK business certificate, SB check | 5 thousand | broker expenses 1500, profit 3500 |
| Refinancing of consumer loans and credit cards | 500 thousand | The client pays 10% = 50 thousand and insurance return 20% = 10 thousand. Total: 60 thousand |
Transaction plan per employee
At Farid's company, managers' bonuses depend on the revenue plan. The higher the revenue, the higher the percentage of the bonus portion. Bonuses are also paid based on credit and financial analyses.
Revenue plans:
The minimum revenue plan is 150 thousand rubles. The manager receives 10% of this amount.
Average plan: from 151 thousand to 300 thousand. Bonus 12.5%.
Maximum plan: from 301 thousand. Bonus 15%.
Plans for credit and financial analysis:
10 UKFA. Bonus 500 rubles from each UKFA.
5 PKFA. Bonus 1000 rubles for each PKFA.
Net profit per month
Let's calculate revenue and subtract fixed expenses.
Net profit
400 thousand (minimum plan) – 150 thousand (mandatory expenses) – 50 thousand (bonuses and bonuses to employees) = 200 thousand net profit.
Be sure to set aside at least 15–20% of your profits into a reserve fund for force majeure situations and lean months.
How much does it cost to open a franchise office?
Before opening franchise offices, you need to “package” this very franchise: describe products, business processes, marketing activities; prepare training materials for franchisees and develop advertising layouts. All this requires money. Farid spent 200 thousand rubles on packaging the franchise. If you turn to a marketing agency for packaging, the price tag will rise to 700 thousand rubles.
The next stage is opening franchise offices. This also requires costs:
30,000 rub. per month - payment for an employee who runs the company’s office
20,000 rubles payment to a specialist who will conduct training
30,000 rubles Creation of new advertising landing pages based on your
10,000 rubles creation and setup of advertising campaigns in the region
presence of franchisees.
20,000 rubles purchase of 200 customer leads to start the office
25,000 rubles Development of a brand book with the name of the partner.
23,400 rubles tax simplified tax system 6% from the sale of a franchise
Total: 158,400 rubles.
Franchise profit
Farid sold the franchise in “packages”. The cheapest one cost 390 thousand rubles. We subtract 158.4 thousand rubles. expenses and get 138.4 thousand net profit from one franchise. The period for launching a franchise office is 1 month.
Royalty: the first three months are a grace period, then 20–30 thousand rubles. monthly.
Office or franchise
Two models for expanding a credit broker's business are opening new offices or selling a franchise. Farid tried both options and determined the pros and cons of each.
Office
Pros:
You select employees yourself or control their selection. Are you sure that the employees are at least adequate.
Have complete control over your finances
Control the quality of office work
Eliminating the risk of financial losses.
Consistency in the actions of each employee of the company.
Additional profit: all profits remain with the company, not with the franchisee.
Minuses:
Additional costs and risks
Time costs. You have to take one and a half to two months away from managing the company's head office.
Franchise
Pros:
Additional profit from the sale of a franchise.
Monthly royalties.
Business scaling. Expansion of geographical
presence of the company.
Increasing the company's image and brand awareness.
New sales channels, new promising partners.
Discounts on services from partners.
Minuses:
An unscrupulous franchisee who suddenly abandons established standards and begins to work according to his own. This is fraught with reputational risks for the entire brand.
Lack of control over the work of franchisees on site. Lack of constant feedback.
The franchisee stops paying royalties, while continuing to work under your brand.
“The last point of the franchise’s minuses is our personal experience. We sold a franchise to an entrepreneur from Samara: we handed over all the materials, trained, and brought clients. When the royalty deadline came, no payment was received. For several months, the franchisee refused to pay royalties. We asked him to close the office under our brand and offered him to work for himself. In response, we received a letter from the arbitration court about “unjust enrichment.” The franchisee filed a lawsuit against us demanding a refund for the franchise. We filed a counterclaim. Now we are suing."
P.S.
The EBK system service offers credit brokers clients for loans and credit checking tools.
Brokerage activities are widespread in Europe and America. Russians have a low level of financial literacy and rarely use the services of brokerage companies. However, analysts predict an increase in interest in financial markets, so the business idea to open brokerage company is promising. A prerequisite for implementation is the availability of the necessary knowledge or the ability to attract high-quality brokers who will do all the work. It will also require a significant initial investment.
The essence of brokerage activity
A broker is a financial specialist who makes transactions on stock market with clients' money in order to make a profit. The basis for disposing of funds is trust management. The broker uses all possible financial instruments and invests in securities. The broker's income is specified as a percentage of the total profit or is determined by a fixed amount.
Along with the maximum possible profitability, the brokerage business has high risks:
- Market predictability valuable papers is relative, fluctuations depend on events in the world. Some incidents can cause a collapse, an unprecedented increase in exchange rates and stock prices.
- A successful brokerage business is possible with constant monitoring of analytics, news, and statistics. Unnoticed an important event may cause losses.
- The brokerage business is complex and responsible. To carry out transactions on the market, recommendations from specialized agencies that monitor financial markets are required. The broker constantly conducts independent analysis of markets, exchange rates, dynamics of micro and macroeconomic factors.
Possible forms of starting a business
In order to organize a brokerage business with direct access to the stock market, significant investments will be required - at least 10 million rubles, an additional advertising budget will be provided. Companies with direct access to the market are formed on the basis of large credit, financial organizations. A novice broker can make money by finding clients for large brokerage companies. The commission for each new client is $100-150.
The most popular form of brokerage business is subbrokerage - work under the leadership of a large foreign brokerage company. It comes in 2 types:
The new company is registered as a regional representative office of a foreign partner within its region. The company's competence includes drafting contracts, working with clients, opening accounts, and transferring client funds to the accounts of the parent company. The representative office receives profit from all transactions of its clients, which significantly exceeds the agency fee.
An agreement is concluded with the parent company on subbrokerage, which allows you to carry out independent activities in the stock market, train traders, and create your own brand under the auspices of a foreign brokerage company. The business owner uses a ready-made business model, a well-promoted brand, and pays commissions to the parent company.
It is possible to get the maximum profit by opening a business under a subbrokerage agreement, but the initial investment will be required as much as possible.
Business registration, licensing
Registering your own company is more difficult than working as an agent; the process is regulated by order of the Federal Service. Before opening a brokerage company, you must register as an individual entrepreneur, LLC, or JSC.
It is recommended to open a legal entity, LLC, JSC, which will allow, in the event of bankruptcy, to be liable for the company’s debts within the limits of the capital contributed by the founders. Individual entrepreneur must be held liable for all property owned.
Brokerage business is licensed by the Federal Service for Financial Markets on the basis of federal law dated April 22, 1996 No. 39-FZ. The license is issued once, subject to the availability of own funds of at least 10 million rubles, certified employees, technical support, business accounting. The cost of state fees for obtaining a license is 1.3 thousand rubles, the issuance period is 30 days. The most frequently issued licenses are for dealer activities and securities management activities.
Selection of office, technical equipment
The success of a business depends on the trust of clients, so it is important to choose a spacious, bright room with an area of more than 50 m2 with a reception area and an office. The decoration is kept in strict colors, expensive furniture and accessories are used, and a climate control system is installed.
In addition to standard communications, a telephone connection and uninterrupted high-speed Internet are required. The cost of renting the premises is from 30 thousand rubles.
You will need modern, reliable computer equipment; you will need a wide-format monitor. The success of transactions depends on the speed of the computer and the Internet. The cost of a computer for one workplace is from 70 thousand rubles. Additionally, you will need a printer, fax, scanner, copier, which will require 150-200 thousand rubles.
Brokerage Business Software
Business in the stock market is carried out on information and trading platforms. The most popular among brokerage companies is MetaTrader4. The advantages are:
- Custom indicators, advisors, scripts.
- Orders are executed in the shortest possible time.
- Non-distribution of information about transactions.
- Notification about system and trading events.
- Support for market notifications (alerts).
The cost of the licensed version is approximately $15 thousand. MetaTrader4 does not require any auxiliary software to operate. software.
Search for clients
The brokerage business is aimed at the wealthy individuals, with an income of more than $1 thousand monthly, legal entities who want to make money on temporarily free Money Oh. There are two options for cooperation:
- Clients themselves are participants in the stock market; the brokerage company carries out transactions for a fee.
- Clients with the right of fiduciary management provide the brokerage company with the opportunity to conduct transactions on the stock market on their behalf for a fee.
Starting a brokerage business, they plan to cooperate with 20 clients. To expand the company and attract new customers, an advertising campaign focused on target groups is required. It is mandatory to create your own website describing the advantages of the brokerage company, promising options for cooperation, everything available services. It is possible to have several reputable clients, receive a large income with a minimum number of transactions, or serve many clients, with the cost of each transaction not exceeding the average.
Business payback
A brokerage business requires significant investments, at least 10 million rubles upon opening, constant investments in an advertising campaign, and office maintenance. It is difficult to assess the profitability of brokerage transactions; different operations bring in a percentage of the cost of transactions. Even if the result is unprofitable, the broker receives his reward, so the availability of completed transactions is important.
Additional income can be obtained from teaching clients the basics of brokerage. Many companies earn more than 50% from seminars and trainings. With active activity in the stock market, it is possible to recoup a business in 3-4 months; annual income can be from 2 million rubles.
The brokerage business is highly profitable with high level risk. To open a business, it is necessary to have specialized knowledge and experience of successful work in the stock market. The profitability and payback of an investment are directly dependent on the number of brokerage transactions conducted.
Force majeure and outright fraud in the FOREX services market do not in any way reduce the popularity and relevance of over-the-counter markets in the eyes of clients from the CIS. Citizens of Russia and Ukraine continue to consider high-risk instruments as their main investment idea, and mmgp.ru remains at least four times more popular than the smart-lab.ru forum (according to Alexa Rank data in Russia).
Demand creates supply, and every year more and more new brokers are born, whose development is watched literally by many investors live. Such projects that have gained popularity over Lately even before birth, include PrivateFX, Gerchik&Co and ICE FX.
For some reason, the contribution of the founders of some companies is sometimes overestimated already at the opening stage, and at the end we often get an unremarkable yet another dealing center. How much does it cost to organize such an office, and are the costs of opening a new broker really that high?
- Company registration;
- Opening a bank account;
- Liquidity providers;
- Website development and other expenses;
- Conclusion.
Broker registration
I've been running this blog for over 6 years. All this time, I regularly publish reports on the results of my investments. Now the public investment portfolio is more than 1,000,000 rubles.
Especially for readers, I developed the Lazy Investor Course, in which I showed step by step how to put your personal finances in order and effectively invest your savings in dozens of assets. I recommend that every reader complete at least the first week of training (it's free).
Let’s break down the costs of organizing such a popular business, with a few assumptions. The first point after selecting a CEO (let’s set his salary at $1,000 per month) for the broker owner will be the creation of a parent company and its incorporation. We will leave civilized jurisdictions like the USA, Great Britain and Australia alone as an expensive, useless undertaking. Civilized jurisdictions are not suitable for domestic investors, interfere with the existence of the usual PAMM and LAMM trust management schemes, and limit the methods of depositing and withdrawing funds. Cyprus seems to be some kind of intermediate option, but the offshores of the Caribbean are much calmer for the creator and more interesting.
As the main one, I will use information from the website of the international law company Heritage Group (heritage-offshore.com). This is an ordinary intermediary between Russian-speaking clients and local registrars, unremarkable. The largest such service in RuNet is offshorewealth.info. However, the information of the latest service is complexly structured, and the prices for services will differ slightly.
The British Virgin Islands is the main harbor for offshore business. In some industries, up to 60% of the world's companies are registered here. Abroad, BVI is the most likely choice for a new broker, among companies with domestic roots the most a shining example serves as a FIBO broker. However, this jurisdiction is not very popular in the post-Soviet space.
Saint Vincent and the Grenadines is a more famous and popular option, largely due to the presence of pseudo-regulators on the territory of the state. In fact, in this jurisdiction you can get an extra piece of paper for one thousand dollars, which is not burdensome for the broker’s organizers. Amarkets followed this path, and Alpari also has a structure in the group of companies registered in the specified offshore.
In general, Alpari, during its rapid activity, managed to try the financial regulations of most famous countries. Today there are them in Belize structural subdivision. Belize is not just the cheapest option for incorporation, it is also the most loyal to company owners in terms of trials and litigation, the easiest option for obtaining a more or less decent financial license.
If a simple company in Belize costs $1,549, then sophisticated broker creators with one will have to shell out $26,724 (including opening a bank account). Plus, the annual costs of maintaining a licensed company will, of course, be significantly higher.
Opening a bank account
The second point in terms of organizing a broker will be opening a bank account. This point is important both when working directly with clients and when collaborating with electronic payment systems.
A bank account does not have to be opened in the same jurisdiction where the company was registered. Moreover, paperwork with overseas banks, coupled with the language barrier, can significantly complicate the operational conduct of business.
Most FOREX brokers open accounts in the friendly Baltic states. Latvian banks Rietumu and Norvik are especially popular. The cost of opening an account will be $499, plus the costs of document management and apostille of documents, which rarely exceed $250. In addition, you will need an additional personal current bank account to withdraw profits in the form.
Liquidity providers
Thus, we get a ready-made company with a bank account ready to accept payments from clients. But can they start trading? We need liquidity providers with whom we can cooperate in two ways.
The first way. White label partnership with a reliable broker with low spreads. Most brokers have such programs. Entrance can be free; the cost of postage and apostilling of contracts will be taken by analogy with the previous paragraph ($250).
The second way. Independent brand independent exit to banks, consortiums or liquidity aggregators. The most important thing in this case is the need to independently purchase and maintain a trading terminal. By default, you will need and will have to closely communicate with MetaQuotes Software Corp. The cost of a trading terminal, depending on the components purchased, ranges from 50 to 150 thousand US dollars. Maintenance costs – minimum 10 thousand dollars per year. Let's add here the same postage costs of 250 dollars.
The question of priority is a philosophical one. Saving on a terminal is extremely tempting for a young company, but its own service allows you to realize all the capabilities of a b-book and recoup your investment many times over in the first year. Don't forget that more than 90% of traders lose their money in the market. Your own terminal allows you to win due to these losses, it’s simple.
Website development and other expenses
The next step to successful work There will be a website development. Actually, this is the most important marketing stage, from which you cannot hide. A dealing center is an online business, and the website will be the face of the business, a meeting place for clients with consultants, a bulletin board, and a resource for downloading a trading terminal. Domain name, hosting, server protection seem to be initial costs, then development personal accounts, database integration and more. We keep in mind that the site can be improved in the future, but first we need to get started as quickly as possible. Based on my experience, for 10 thousand dollars you can launch a discreet resource. The question is the company's PR and proper coverage of the process.
Separately, it is necessary to link bank accounts and the system for accepting payments from clients. There is a merchant account for this. Unlike online stores, FOREX business, along with bookmaking, pharmaceuticals and goods for adults, appears to banks to be risky and unreliable. From payment systems, a client’s complaint can result in significant sanctions, so banks are very sensitive to the process of connecting new brokers to the system. You will have to pay 5-10 times more than an ordinary non-risky business, namely $2,500. We will include in this amount the costs of postal needs, verification and apostille of documents.
The last expense item. Marketing, broker promotion, advertising. These are ridiculous expenses; hundreds of millions of dollars can be spent on these purposes. Or you can get by with a brand name/media person, a previously promoted blog, or the wreckage of an old project that left behind questions.
I do not undertake to estimate the size of such cash injections; indeed, there are many ways to reduce them to almost zero.
Conclusion
Let's summarize. The minimum cost of opening a Forex broker from scratch as a white label partnership with company registration offshore without a license is in the first year:
| № | Expense item | Costs in dollars |
| 1 | CEO salary | 12 000 |
| 2 | Company in Belize with nominal service for a year | 1 549 |
| 3 | 998 | |
| 4 | Site development | 10 000 |
| 5 | 2 500 | |
| 6 | 750 | |
| 7 | Unforeseen expenses (10% of calculations) | 1 580 |
| TOTAL: | 29 377 |
Maximum cost of a classic offshore broker with a license, opened independently without a partnership (excluding marketing costs):
| № | Expense item | Costs in dollars |
| 1 | CEO salary | 12 000 |
| 2 | Company in Belize with nominee service, office, account (for the regulator) and license for a year | 26 724 |
| 3 | Bank account in Latvia for a company, as well as for personal use (optional) | 998 |
| 4 | Site development | 10 000 |
| 5 | Merchant account | 2 500 |
| 6 | MetaTrader License | 150 000 |
| 7 | Postage and related costs | 750 |
| 8 | Unforeseen expenses (5% of calculations) | 9 549 |
| TOTAL: | 2 12 521 |
As follows from the information presented, the main cost items for minimal investments are personnel and website development. When, as a maximum option, it requires significant costs in order to use a trading software package, as well as the incorporation of a company with a license from an offshore regulator.
Thus, the range of initial investments is quite wide. Cost optimization allows you to organize and develop your own brand instead of a representative office or branch of an office. The amount of costs is quite affordable for an investor from the CIS and falls within the framework common sense. When choosing a reliable partner, it involves cooperation with active IB and stable traders.
Maximum investment determines the future maximum return. You can rely on direct customer attraction, you can use all the “kitchen” technologies at once. It does not matter which traders the company attracts in this case, what is important is the influx of clients as a whole. Unfortunately, investments at the level of the cost of real estate in the capital do not stop many scammers; from year to year we receive new story from another new superbroker. I hope this article will allow you to evaluate the reliability and plans of many existing projects and will save readers from nightmare investments comparable to the costs of organizing them!
Sincerely, Vitaly O.Kh.
Among the most common options for registering such a business is opening an individual entrepreneurship or a limited liability company.
But a company registered as an LLC will look much more respectable in the eyes of the client, and in the event of financial problems, LLC participants are liable only within the limits of their authorized capital.
Should I open my own company?
It is worth noting that a brokerage company is not a cheap and not the easiest business, so there are at least three ways to start such a business. In addition to the fact that you can open your own brokerage firm, there are also options for organizing a branch of a large brokerage company in your city (this can be either foreign or well-known domestic company), and also become an agent (sub-broker) of another large organization.
“More expensive” than anything else. But if you open a branch of another company, then almost all financial concerns fall on the parent company (office equipment, advertising, etc.), so you will have to prove the feasibility and payback of such a company under your leadership.
In this case, you will not become the owner of the business, but rather its partner, and the parent company will have every opportunity to control your activities.
More attractive option– enter into an agency agreement with a large company. You will divide the costs of opening a branch in half, you will receive a brand famous broker and its analytical resource, and the company - a stable percentage of your income.
However, now we will talk about what needs to be done and how much to spend to build a brokerage business from scratch.
Licensing of a brokerage company and authorized capital
In order to provide brokerage services, a company needs a special license. To obtain a broker or dealer license, a company must have own funds in the amount of 10 million rubles.
If you also plan to carry out trust management of your clients’ capital, this amount increases to 35 million. And finally, depository activities require the company to have an authorized capital of 60 million rubles.
The licensing process itself brokerage company is not particularly complicated, you need to fill out a form and submit an application to the Federal Service for Financial Markets of the Central Bank of Russia. Registration of the license will take approximately two months.
Office
It goes without saying that a reputable company to which people entrust their money should have an appropriate office. The most valuable investment is computers and software for smooth trading.
In addition, you will need a large TV to constantly monitor official news, a printer, good Internet and telephone connections, scanners and other office equipment.
It is necessary to equip 8-10 workplaces. Three of them will initially belong to employees, the rest will be for clients. Square office space– from 50 square meters.
Personnel and monthly expenses
For the first time, three or four employees are enough. Consider that take a post general director Can only be done by a person with at least one year of relevant work experience and a qualification series 1.0 certificate. Sometimes, in order to obtain special licenses, it is necessary to have several employees with such a certificate on staff.
One more point - accountants or system administrators are rarely hired at a brokerage. Most often, accounting and computer services are outsourced in order to save money.
The company's monthly expenses will be approximately 200-250 thousand rubles.
Profit
The most advantageous is direct sales and a course to work with wealthy clients, but the company receives interest from transactions carried out, and therefore it makes sense to start with attracting large quantity small buyers. Another source of profit is training clients through seminars and special programs.
Regarding income from the company, then active work and availability large number clients, it can pay for itself in 3-5 months and generate a profit of about 300-400 thousand rubles per month.
Despite all the difficulties in opening such a business, brokerage is a business that is gradually expanding, and is not yet very widespread in our country, so there is a real opportunity to gain a competitive advantage.
A brokerage company is an intermediary company for everything you can imagine, and its popularity depends on many things.
The subject of the activity, the location of the office and its interior in the necessary details are at times no less important for concluding an agreement than a professional broker. When one person is a broker, then a very narrow range of activities is available to him, but if a company is engaged in brokerage activities, then the maximum possible volume should be covered. The very first step is to create a business plan for a brokerage company.
All the nuances of business planning
The flow of customers depends on the location of the company and the first impression of the building. Here, even in the case of renting, you should not spare money on a good place in the city, but you should try to save money at first. When choosing a location, you should focus on social areas that will most likely be associated with your activities - hypermarkets, car markets, or even other companies that provide services, for example, transportation. The office itself does not have to be large, and an area of 20 m2 is enough for 4 brokers.
The plan should indicate how much each member of the company will receive, and there is no need to artificially inflate the numbers, since the manager only needs 15,000 rubles per month plus a percentage of transactions. But such a measure ends after 2-3 months of successful development of a specialist and then he switches to self-sufficiency. Also, an accountant and a system administrator can be hired, but if an accountant needs to be at work from time to time and receive his 25,000-30,000 for this, then the system administrator, as a rule, appears once every 1-2 months and has a minimum contractual salary.
The creation of each workplace, in addition to the office rental itself, will cost a minimum of 45,000 rubles, but this is a one-time contribution that will pay off in the very near future. Moreover, the payback period depends on another important aspect - the right advertising campaign. There is no need to install billboards throughout the city, but if you run audio advertising locally, it will have an effect.
The formal structure of the plan looks like this:
- Privacy Policy;
- Summary;
- Stages of project implementation with approximate deadlines;
- Characteristics of future directions of activity;
- Organization development plan for the next 2-3 years;
- Description necessary equipment and its properties;
- Financial plan;
- Risk assessment, since in no case can you be 100% sure;
- Financial and economic justification for investments.
Based on the results of business planning, you can try to start developing your brokerage company, which will certainly be successful if you adhere to all points from the first to the last letter.
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