3 Reasons Why You Shouldn’t Choose Open Source Forex CRM for Your Brokerage Service

CRM, Customer Relationship Management, is a customer-centered operational strategy. It redesigns all business functionalities with IT technology, and reconstructures workflow, helping companies streamline their management.

CRM is a critical link in the product chain of a company. There are numerous paid and free open-source versions available out there. Some brokers who have little knowledge about it might blindly go with an open-source version, believing that it is free and saves cost.

​1. An open-source version is indeed of low-cost, which takes a lot of pressure off of a start-up's shoulders financially. But it provides only the basic framework, and requires secondary development with a strong development team before it becomes able to cater their needs. Being a moderate-sized market, each broker may have completely different market development patterns, trading habits of customers, geographical traits, or target audiences, hence distinctive needs for a CRM system.

2. Meanwhile, a CRM should be able to hand out commissions to a broker's IBs. Some big brokers might even have dozens, or even over a hundred layers of IBs, whose commissions are calculated in a extremely complicated manner with issues such as the need to be compatible with different trading software or payment solutions, you name it. So, does your tech team have what it takes to take on such a job that comes with an open-source? Bear in mind, a broker has the following demands for a CRM, but they are not limited to them:

- Allows retail traders to open up an account, make deposit, trade and withdraw on CRM online;

- Quickly and concisely solve regulatory compliance steps, including identity authentication, facial authentication, voice authentication, etc., and be able to notify customers of the audit results in a timely manner through system emails, text messages, phone calls, etc.;

- Uses a hierarchical IB model to develop new customers, quickly expands the clientele, and at the same time gives different commissions for different contributing IBs;

- Be able to deal with a case where a trader has an account already yet has not make any deposit yet, and the broker hopes to notify the trader in manner of e-mail or text message;

- Be able to deal with a case where a trader has less frequent trading yet each has bigger lots, and prefers to trade in a particular period of time, so the broker wishes to label such trader; and

- Be able to deal with a case where a trader constantly opens and closes a position in a short period of time, and the broker wishes to label him to make sure he is not scalping orders.

A broker mainly wishes to obtain customers and make profits, so it feels you are not doing what you should do if you spend a lot of time on analyzing, researching, developing or maintaining an open-source CRM. A start-up should focus on obtaining customers and making profits, instead of being tech-savvy. Therefore, open-source CRM is not suitable for a broker who doesn't have a tech team, and you should choose your CRM with caution.

3. Plus, when an open-source has too many loopholes, a start-up broker has to fix it with their own money by hiring a professional party. But a customized CRM comes with a warrant.