If we look back to the history of forex brokerages and trading platforms, we will see that only a few providers were actively engaged in this industry. The forex market was quite different from any other financial market with its decentralised structure and round-the-clock nature. Hence, providing trading services and brokerage services was nothing less than a challenge, and entrepreneurs were not brave enough to move forward with this business idea. However, the forex white label solutions made the market entry easier for new brokers, and this changed the landscape of the brokerage businesses in a good way.
This article will educate you about the benefits of white label solutions while providing tips for finding the best white label forex platform provider for your brokerage.
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Benefits of Forex White Labelling
Starting your business as an independent forex broker requires heavy capital investment, and there are a lot of complex processes and procedures to go through for launching your online brokerage platform. opting for a while label solution can offer several advantages that can streamline your business operations while giving you a competitive edge by ensuring quality services for your clients. When you choose a white label provider, you are free from the stress of spending a whole lot of money on technological infrastructure and processes.
You will get ready-made technology together with liquidity arrangements and market access. This allows you to establish your brokerage in a short period while fully focusing on brand building, as the white label provider will carry out all other major tasks. A top-tier broker will be functioning as a white label provider to lend a helping hand to aspiring brokers. If you sign up with a white label provider offering MT4 and MT5, your clients can trade on the MT4 and MT5 platforms and access their beginner-friendly tools and features.
Now, let’s have a look at the key benefits of partnering up with a reliable white label provider.
- Easy Implementation and Customisation: A white label forex platform offers a straightforward implementation process, removing the complexities associated with the initial setup process. Most white label solutions provide a turnkey approach where you can completely rely on the white label provider for all tech-related concerns. Typically, you’ll need to register your business, and then you can get in touch with the white label provider to carry out all other processes. They will be in charge of website design, platform integration, IT infrastructure, payment processing, CRM solutions and back-end operations.
You won’t have to worry about creating, hosting, or updating the platform yourself, as the white label provider handles all aspects of development, maintenance, and support. You just need to work with them to discuss the customisation and branding, which are the most important decisions concerning your brokerage business. You need to pay a lot of attention to brand building and promotions, and the white label provider may assist you in these if it is included in their package.
Another point to add is that you need to be sure about the target audience and brand positioning before proceeding with a white label solution. For example, if you wish to promote your brand with the label of an Islamic forex broker, you will have to consider a white label provider who is already serving Muslim clients by offering swap-free accounts.
- Cost-Effective Solution: Developing a high-quality forex trading platform from scratch is a time-consuming and costly endeavour. By opting for a white label solution, you avoid the need to create your trading platform, thus saving both time and money. In fact, most white label providers help you to go live within a few weeks, and the cost of white label solutions ranges between $7000 and $20000 depending on the provider you choose. This includes both initial setup costs and ongoing costs for platform maintenance. So, you can see that white labelling is way more affordable for a beginner in comparison to the traditional approach of building everything from ground zero.
- Enhanced Credibility: Employing a white label forex brokerage brings credibility to your brand in several ways. Your clients may not be aware of the white labelling but will be getting access to the same technology that a top brokerage has been offering. Thus, the services and trading experience they will get from your platform will be satisfactory. You won’t have to worry about technological processes or regulatory status if you choose a regulated white label provider with advanced security features on their platform.
- Access to Latest Features: Utilising a white label forex platform grants you access to the latest features and upgrades, which empowers you to survive in the competitive brokerage industry. The provider manages all aspects of the platform’s growth, maintenance, and support. This ensures you always have access to the most up-to-date functions and enhancements as the supplier releases them. This benefit allows you to focus on growing your business without the constant concern of staying updated with the latest developments in the currency market.
- Scalability: A white label forex platform offers scalability that is challenging to achieve independently for a new broker. As your business expands and acquires more clients, the white label provider can swiftly scale up to meet your needs. This scalability saves time and funds since you won’t have to invest in additional technology or software to accommodate your expanding client base.
Things to Keep in Mind While Choosing a White Label Provider
- The Platform Offered: The first thing to consider while choosing a white label provider is the technology infrastructure, including the trading software or platform. If you are considering offering the classic MT4 platform to your clients, you need to find a white label provider who is providing the same under their white label solution. If you want to function as a multi-asset brokerage alongside forex, you need to look for brokers offering MT5, as it is more suitable for exploring multiple markets. You need to check all the tools being offered and platform functionality before finalising your white label provider.
- Scope of Their Services: Most white label providers offer a turnkey solution covering all the processes that are essential for setting up and running a brokerage. But you still need to consider the scope of their services before signing up. Will they be helping with legal formalities, or will you only get assistance with technology processes? How much time will it take for the launch? Will they offer any help with promotion and marketing activities? Are training sessions included in the white label package, or will you be on your own for making crucial business decisions? All these aspects need to be taken into account while comparing different white label solutions.
- Regulation and Reputation of the Provider: Another concern while choosing a white label provider is making sure that they are reliable and secure. For this, you need to consider the regulation and brand reputation of the white label provider. There are many regulated top-tier forex brokers offering white labelling services, and you can add them to your watch list to choose the best one. They adhere to the rules and standards set by the respective authorities for obtaining and retaining the licence; that way, you can be sure about the platform’s security.
- Budget: The very purpose of opting for a white label solution is to cut down the budget that will be needed for opening a brokerage business. So, you need to pay a lot of attention to the cost of the white label package, which includes initial setup cost and ongoing costs, which is required for platform maintenance. Choosing a low-cost provider will be ideal for limiting your expenses, but you should not compromise on service quality, as that is essential for the success of your brokerage business.
- Customer Support: Customer support systems are quite expensive to set up and maintain for a new business. You need to hire experienced staff to handle and help your clients in the best possible manner. This can be challenging for an inexperienced broker, and a responsive customer support team is essential for building and expanding your client base. Many Forex white label providers will help you in this aspect by sharing their customer support systems with you. So, you need to discuss this before partnering up with a white label provider.
So, these are the key factors to consider when choosing a white label provider. Starting as a brand new broker in the dynamic forex market offers enormous revenue generation and growth opportunities. White label platforms can be a stepping stone for making the process easier. But client acquisition as a new broker takes time, and till then, you won’t be able to make significant profits. Hence, you must be willing to wait until then.