Introduction to VP Business Solutions
Recently Spotware announced a new partnership with VP Business Solutions. VPBS is a consulting company based in Hong Kong. The firm specializes in advising forex and CFD brokers on outsourcing or selecting technology solutions. After working with Spotware on the acquisition and onboarding of a number of brokers in the East Asia region, the two companies have made an official announcement on the relationship. We look to Gavin Mak the Chief Consultant and Founder of VP Business Solutions to get a unique perspective for our cTrader users.
Gavin, please introduce yourself. How did this all start?
It all started back 5 years ago when I started learning trading forex as a trader. By that time I have made an intensive review of available retail trading systems which is suitable for my scalping strategy. cTrader was by far the most outstanding software in the market. Since then, I have stuck with cTrader, watching it grow up and improve in the past 5 years.
A year and a half ago, I started my own forex brokerage consulting company. As a heavy user and high believer in cTrader, a marriage between VPBS and Spotware is just a matter of time, or I would say it’s faith.
What do you actually do for brokers? Why can’t they do it themselves?
We mainly give brokerage give advice on how to grow their business to the next level while building up a more sustainable business model. After confirming how the business should go next, we have all the necessary business units in place to deliver the technology, incorporation and banking solution directly. In my opinion, a broker should focus most of its effort in business development and growth – A broker is running a brokerage and NOT a technology nor company secretarial firm. Outsourcing is well proven as a sustainable and efficient way of improving an organization for the past decades. As a consulting focused organization, we are adding value not only to improve efficiency but also bringing the most forward-looking insight and the best market intelligence to our clients.
What are the day-to-day challenges brokers face that traders may not consider?
Here is the conclusion from my experience “brokers don’t know what the traders don’t know”. In our core market, Asia, cTrader is not well explored by traders in the region. I would say there might be 90% of the traders who don’t know cTrader at the beginning. They don’t yet have the chance to evaluate cTrader in their trading career. You can never assume a cup of coffee cannot be sold when customers don’t know what coffee is. As such, I don’t experience a lot the “traders may not consider” questions but more the mindset restriction from the broker itself.
What distinguishes the East Asia forex market from the European Market?
Regulation and education. The majority of East Asia forex market is not heavily regulated nor regulation being heavily enforced in general. It’s still a wild west market where the brokers can think of a lot of innovative ways to promote their business freely. Since it’s not heavily regulated payment sometimes is a tricky topic as well. Education level in Forex and CFDs also greatly varies between the East and the West. As a relatively new derivative in the market, traders often have a misunderstanding about the nature of the instruments. For example, traders in East Asia market typically over magnify the advantage leverage bring in without considering the risk bring along together.
When loose regulation combines with immature education in the market, this leads to a different way of promotion in Asia – Personal introduction. This is also why the introducing broker model still contributes to the majority of the revenue for the brokers operating in the East.
How do you choose the partners you work with?
Sustainably and honesty. We are not coming here for 1-year business but seeking growth together in the long run. So, we prefer partners who can share visions and ideas together. I am happy when my partner answers me NO to various questions, vice versa to my client – which is a strong indicator that they are doing serious business but not serious marketing.
What drove you to start cooperating with cTrader?
Pretty well explained above, it’s a marriage or so-called faith. It drove us to start cooperation because we truly believe it can bring value to the traders in the Asia market.
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