During the iFX EXPO International 2024 in Limassol, Cyprus, FinanceFeeds Editor-in-Chief Nikolai Isayev sat down with Roman Garanin, the Founder and CEO of Yourfintech.
Founded in 2022 and headquartered in Limassol, Yourfintech provides a suite of services to support both new and established Brokerage and Prop Trading businesses. The company’s key offerings include a Trading Platform, CRM, Market Data, and Risk Management services tailored to the needs of both startups and existing brokers.
Roman Garanin shared his insights on Yourfintech’s solutions, the challenges faced by the industry, and strategies to help brokers optimize revenue and liquidity.
Optimizing Revenue: Up to 40% Increase
Roman emphasized how Yourfintech helps brokers and prop firms enhance their revenue streams. “What we see in the market are brokers chasing clients with high rebates, high leverage, attractive bonuses, and low spreads. They eventually attract clients and deposits but fall short on the revenue side,” he explained.
He highlighted that 9 out of 10 broker clients face inefficiencies in their financial models. By evaluating existing setups, Yourfintech has helped increase client revenue by up to 40%, without sacrificing product quality. “On average, we manage to boost revenue by 40% on the same trading flow,” Roman added.
Yourfintech offers end-to-end optimization services for brokerage firms, covering everything from business models and trading flow analysis to IT infrastructure, improving both operational efficiency and profitability. Roman stressed that their approach goes beyond technology, stating, “We don’t just provide the technology; we offer our expertise in brokerage mathematics, helping brokers offer attractive products to clients while ensuring profitability.”
Start a Brokerage in Days
Roman also detailed the different technology packages available, designed to cater to various broker segments. “Unlike other technology providers, we don’t just give you the tools; we help you achieve the result you’re aiming for,” he said.
Yourfintech offers turnkey solutions, enabling businesses to launch a brokerage within days. The service includes business plan creation, company registration, trading platform setup, bridge and payment gateway integration, and a CRM system.
He further elaborated on their three distinct packages:
- Higher Fixed Fee, Lower Dollar per Million (DPM): Suitable for established brokers seeking predictable costs.
- Balanced Fee Structure: Ideal for mid-sized brokers looking for a flexible approach.
- Partnership Model: For promising startups, Yourfintech can provide the technology and expertise for free, in exchange for higher DPM fees, effectively investing in the early stages of the business.
“We accommodate brokers of all sizes, including those entering the market with smaller budgets. Our goal is to help them avoid the mistakes others have made, ensuring a smooth entry into the industry,” Roman explained.
Beware of “Too Good to Be True” Liquidity Providers
Roman offered a candid perspective on Liquidity Providers (LPs), advising brokers to carefully scrutinize their offerings. “If you’re getting the lowest commissions, highest leverage, and best bonus terms, it’s often too good to be true,” he warned.
He continued, “It’s crucial to understand that LPs are there to make money from you. If their offer seems too generous, expect changes to the terms at some point. Brokers need to be transparent about how and where revenue is generated.”
Roman also noted a worrying trend: many LPs appear to grow faster than retail brokers, indicating they may not properly evaluate the financial risks involved. “Some LPs onboard clients with favorable terms, but brokers often end up facing unpleasant surprises down the road,” he cautioned.
High Churn Rates in FX Brokerage Startups
The conversation then turned to the high churn rates within the FX brokerage industry, largely driven by a lack of understanding around basic financial metrics. “Many brokers don’t even know their turnover or their expected revenue breakdown,” Roman said.
He pointed out that this lack of awareness can lead to unsustainable business models. “Brokers focus on offering the best trading conditions—lowest spreads, swap-free accounts, high leverage, and huge rebates. They attract deposits, but at the end of the day, there’s no revenue,” Roman explained.
“The most common mistake is ignoring how much they’re making per million traded or how their P&L is constructed—what percentage comes from spreads, swaps, or commissions and how much from that is actually given away. After several months, they realize their business isn’t viable,” Roman stated.
This, according to Roman, is the primary reason for the high churn rate among FX broker startups and prop trading firms, where understanding financial mathematics is even more critical.
Closing Insights
Roman Garanin’s insights underscore both the challenges and untapped potential within the FX brokerage industry. With the right blend of technology and financial discipline, brokers can unlock significant opportunities for growth and profitability.
