Real numbers for new brokers — fixed costs, variable revenue streams, break-even milestones and a worked financial model for Years 1–3.
| Cost Item | Monthly Cost |
|---|---|
| Trading Platform (white-label, CTATech) | $1,200–$2,500 |
| CRM / Back-Office | Included in platform |
| Server Infrastructure | Included in platform |
| LP Operating Deposit (opportunity cost) | Capital deployment, not a monthly fee |
| Compliance Officer (part-time / agent) | $500–$2,000 |
| Legal / Licence Annual Fee (amortised) | $300–$800 |
| Payment Gateway (fixed component) | $100–$300 |
| Customer Support Staff (1 FTE) | $1,500–$4,000 |
| Total Fixed Base | $3,600–$9,600/mo |
| Metric | Conservative | Target |
|---|---|---|
| Average lots per active client per month | 8 | 15 |
| Gross revenue per lot (spread + swap) | $7 | $10 |
| IB commission per lot | $3 | $4 |
| Net revenue per lot (post-IB) | $4 | $6 |
| Net revenue per active client per month | $32 | $90 |
| LP/payment gateway variable cost per client | $5 | $10 |
| Gross margin per active client | $27 | $80 |
With $6,000/month in fixed costs and $27–$80 gross margin per active client:
Most new brokers reach 75–150 active clients in their first 3–6 months when launching with 2–3 IBs. This means profitability is achievable in the first year with the right acquisition strategy.
| Month | Active Clients | Monthly Net Revenue | Cumulative P&L |
|---|---|---|---|
| Month 3 | 75 | $6,000 | -$30,000 (launch investment) |
| Month 6 | 150 | $12,000 | -$15,000 |
| Month 9 | 250 | $20,000 | +$5,000 |
| Month 12 | 350 | $28,000 | +$45,000 |
| Month 18 | 600 | $48,000 | +$180,000 |
| Month 24 | 900 | $72,000 | +$450,000 |
| Month 36 | 1,500 | $120,000 | +$1,200,000 |
These figures assume target-scenario economics, 20% monthly client growth in early months slowing to 10% by Year 3, and marketing spend of $8,000–$15,000/month.
A new brokerage with 100–200 active trading clients and average monthly volume of 2,000–5,000 standard lots (earning $6–$12 per lot) can expect $12,000–$60,000/month in gross trading revenue. After infrastructure, LP, staff and marketing costs ($15,000–$30,000/month), a small but profitable broker reaches break-even at approximately 150–300 active clients in the first 6–12 months.
Typical break-even timeline: a lean white-label brokerage with low overheads and a strong IB network can reach trading break-even in 3–6 months. A brokerage with a larger team, heavier marketing spend and custom technology may take 12–18 months. The biggest variable is client acquisition speed — brokers who launch with an existing IB network break even significantly faster.
The biggest cost for most new brokers is client acquisition — either through paid marketing, IB commissions or both. After the initial licence and platform setup, ongoing IB commission payouts typically represent 20–40% of gross trading revenue. Managing IB commission rates carefully while still incentivising high-volume IBs is a critical profitability lever.
IB commissions are typically structured as a rebate per lot traded by referred clients — for example, $3/lot on a $10/lot total spread revenue means the IB gets 30% and the broker retains 70%. If an IB refers 500 active clients trading 1,000 lots/month combined, the annual IB commission is $36,000 while the broker earns $84,000 from that IB's book. IB programmes are highly capital-efficient acquisition channels.
Low fixed costs, fast setup and IB management built in — CTATech gives you the best possible foundation for hitting break-even quickly.
Low monthly costs. High-margin IB management. Retention automation. CTATech maximises your net revenue per client.