5 Ways to Save Money Operating Your Trading Floor – Introduction
Operating a trading floor is different from running other businesses. Businesses like restaurants, bars, and groceries require you to buy inventory, rent a shop, and hire employees. This can be a difficult task to do because of the business operating periods, issues of demand and supply, and government regulations. Competition is also a major factor when running a business. On the other hand, operating a trading floor bypasses these issues. You can trade for 24 hours, 7 days a week (if you are interested in cryptocurrency), issues of demand and supply are not there, and there are very limited government regulations. There is no competition. In fact, the more people participate in trading the better. How then do you save money for your trading floor?
- Use your spare room
To save money, you can use your spare room instead of hiring an office. I have a few friends who run their trading floors in rented office spaces. They pay more than $3000 per month to the landlords for the benefit of using their offices. They also spend money on service charges, food, and transport. At the end, they spend more than $5000. This is not an appropriate thing especially when you have a spare room or a garage in your home. The fact is that, while an office is associated with class, you don’t need it. You can use your own spare room to set up a floor.
There are many service providers that target traders. For example, the Bloomberg Terminal and the Reuters Eikon are the two main service providers in the financial world. Bloomberg Terminal costs more than $2100 per month while the Reuters Eikon subscription costs $1800 per month. When you add all these amounts, it shows that subscribers pay more than $20,000 per year on these subscriptions. The fact is that I have used the Bloomberg Terminal for a few months, and the price they charge is not worth it. As a trader, you can receive breaking news for free using different platforms like Reuters, MSN Money, YCharts, and Yahoo Finance. The information you receive from these platforms is adequate for your trading needs.
Furniture costs differ from one country to another. However, in most cities, furniture costs are not cheap. A simple office desk can go for more than $1,500 in some cities. Considering that you need at least 7 traders, the costs can be very expensive. Fortunately, there are many ways of saving money in this. For example, you can use your existing furniture for your trading floor. When I started my floor, to save on costs, we used the furniture I had in my house. There was no need to buy more chairs and I had extra chairs in my house. You can also go with second hand furniture. You don’t need brand new furniture at all. Remember that many companies are upgrading their furniture sets and to do that, they are disposing their current pieces. You can buy used furniture.
- Other expenses
There are other expenses that you can cut and do well without. For example, you can make your own meals instead of buying. You can buy used computers provided they have the specs that you require. You can also clean the office instead of hiring a company to do that.