How to expand your brokerage company in Latin America? From market research to implementation

Latin America as a whole is not only an attractive economy to invest in, but has also experienced great growth in trading. It is not surprising, therefore, that there are brokerage companies interested in opening operations in the region, and looking to attract new investors.

Of course, before opening operations, in this or any other territory, it is always necessary to investigate and then determine how feasible such an investment can be and how to maximize profitability.

Below, we will learn a little more about how to expand your brokerage company in Latin America, from market research to implementation.

The importance of market research

In any industry or sector of the economy, it is always important to conduct a market study, before launching a product, a service or creating a company. Market studies provide useful and valuable information, such as:

  • They allow to estimate the number of potential customers as well as its characteristics;
  • Which other companies are carrying out the same activity in the area and what are the features of the service that they offer (offer analysis);
  • If there is unmet demand (demand analysis);The ones that the consumer could afford (price analysis);
  • The eventual or possible acceptance that the service to offer might have. 

With all these data, a report is generated, which is used both for the sizing of the market and for the planning and the strategy to follow, in order to deliver the good or service that is desired to be provided to the consumer.

In this way, market research provides multiple advantages, as they help to guide the action, maximizing the investment and reducing potential risks or losses, before opening operations, expanding, making a makeover or a new launch.

Market research for a brokerage company

With regard to market studies, brokerage companies cannot be the exception, since they must also know the potential consumer (in this case investor) and what the possible acceptance would be.

Thus, in addition to the aforementioned, previous research for a brokerage company should also consider other data, for example:

  • Predominant economic or productive activities in the region or country;
  • Economic indicators: interest rates, inflation, GDP, people’s income level;
  • Current legal regulations;
  • What are the assets in which the most is invested;
  • Factors influencing investment decisions.

From market research to implementation

The more you know about the target market, concerning investment habits, the better marketing strategies can be created, which allow attracting potential investors towards the assets to be offered.

However, before this, there are still some decisions to be made when expanding a brokerage company to the Latin American market. There is one that is considered fundamental; it has to do with being physically present. That is, whether an office or space will be opened, or will be operated remotely, through platforms.

This decision necessarily goes through the existing legal regulations. It is important to remember that in some Latin American countries, there are restrictions and certain requirements to operate; for example, in Brazil, you must register as an exchange house for markets such as FOREX.

Therefore, in case of starting to operate physically, it would be necessary to incorporate into a company, subject to compliance with the minimum legal requirements; in the same way, a space (premises or office) should be sought for the headquarters, as well as hiring staff for key positions, among other actions.

But, even to operate remotely there are also needs to be covered. Apart from the fact that you must have legal advice, which guides you regarding the proper management of the legal framework, it is required to pay attention to aspects such as:

  • A website aligned with the market, in terms of language management and cultural references;

  • Carrying out campaigns to launch the company and the products or services, always adapting them to the particular characteristics and idiosyncrasies of each country.

And it should not be forgotten that, although we talk about LATAM as a unit, there is also great diversity within the region, even in the same country. And all these are situations that should not be ignored when expanding your brokerage company, moving from market research to implementation and start operating successfully in Latin America.

Support to expand your brokerage company to Latin America

In the Latin America and Caribbean region, trading has experienced significant growth, increasing the number of registered traders as well as the volume of trades, according to data provided by the platform INFINOX.

Now, to expand your brokerage company into this market, it is important to have allies who provide support in specific tasks, within the implementation process.

Therefore, Latam Forex Solutions, an organization with in-depth knowledge of the Latin American market, offers a wide variety of services (from administration and personnel selection to legal advice), for brokers who want to successfully transition this process: from market research to implementation.

At Latam Forex Solutions we pay attention to the smallest detail, always intending to ensure that both the company and its investors achieve their goals in terms of maximum profitability.

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