If you are an aspiring forex broker, it is unlikely to not read or hear about white label forex trading platforms. We always think about ways where we can start a business without depending on anyone else but in the case of a forex brokerage business, having a dependable partner can make a huge difference. But what exactly happens when you opt for a white label solution to start your forex brokerage and how it simplifies the process? In this article, we will be discussing the role of white label forex trading platforms and the advantages that make them an attractive option for new and entry-level Fx brokers.
How White Label Forex Brokers Function?
To understand the basics of white label forex trading platforms, we have to learn about the functioning of white label forex brokers. When you decide to enter the forex market by registering in a white label partner program of a reputed Forex broker or White Label provider, you will be operating as white label broker which is different from a traditional brokerage. A traditional brokerage will have to build its own technology and trading platform to connect its clients to the decentralised currency market.
But a white label forex broker will be using the technology, resources and trading platforms of their white label provider to offer the same services that a regular broker offers. Your clients will not get to know that you are a white label broker as the website, trading platforms and even trading apps will be rebranded and customised to highlight your brand name. Suppose, the white label package consists of the IT infrastructure, CRM solution and more along with an MT4 white label platform and mobile trading app.
You can customise and add your brand name to both. You can only offer the platforms that are included in the white label package that you have chosen. If you want to establish a multi-asset brokerage offering a wide range of trading instruments, the MT5 white label technology will be better. It is also more advanced and comes with a lot of additional tools that are not found on MT4.
So, you have to find out more about various trading platforms and pick the one that perfectly matches your requirements. Remember that the WL provider is still the sole owner of the technology and they will be in charge of all major processes including platform maintenance and bringing new updates.
Advantages You Get By Becoming A White Label Forex Broker
- Low Cost & High Quality
Your potential client base will include both novice and seasoned traders. All types of traders look for fully-functional and feature-rich trading platforms along with solid trading conditions. If your target audience also includes professional and institutional traders, the demand for high-end technology will be higher. But high-quality technological infrastructure also incurs high costs which can be a financial burden for a budding business without a huge amount of capital to invest.
This issue can be solved by selecting a cost-effective white label solution and you can still offer quality services to your clients without fail. The trading experience on white label trading platforms will be superior as they are already tried & tested. Many traders are already using the platform and the WL provider will be in charge of platform maintenance too. You get this turnkey solution at a low price including the initial setup cost and monthly platform maintenance fee.
- Flexibility
Even Though white label trading platforms are owned and managed by another broker, you won’t have to worry about flexibility. Most WL providers give a lot of options to customise the platform giving it a brand new look so that it resonates with the identity of your brand and brand image. You can change the themes, layout and more to make it appear appealing to your clients. The availability of branding tools and customisation features is one of the key benefits you get as a white label broker.
- Quick Setup Process
Another advantage of opening your forex brokerage business with white label solution is the quick setup process. Without a white label package, you will have to develop the IT solution on your own and the trading platform integration will be a time-consuming and costly affair too. However, the white label provider offers a quick setup process that can be completed within a few weeks. This can vary depending on the WL provider you choose, so you have to check that for selecting the best one to save your time.
- Dependability
The ongoing support and guidance you get from your white label provider is another feature that makes it a great option for newcomers trying to step into the brokerage industry. It will not be easy to survive in the competitive space as your rivals are not just new brokers, but also the top brokers with a loyal client base. When you choose a WL provider, you are also choosing a supportive senior to help you in figuring things out. They may even offer assistance in promotional planning and this dependability is very much required to succeed as a brand new broker without any experience.
- Responsive Customer Support
When you are running a forex brokerage all by yourself, dealing with any technical issues or solving the problems faced by your clients can be a big headache. But when you choose a white label trading platform, the platform provider will be there to help you out anytime. Your clients can also experience the same if the customer support systems are being shared along with the trading platforms. The WL provider will be offering ongoing support which means you won’t have to stress about the challenges that you are going to face in future and can always count on them.
- Ease Of Use & Scalability
The last advantage that I want to talk about is ease of use and scalability. The white label trading platforms are very intuitive and beginner-friendly in general, which makes them easy to use for anyone and everyone irrespective of their skill level and experience. These solutions are also very scalable and can work flawlessly even when your client base starts growing over time.
Choosing The Best WL Solution
These days, you can find quite a few forex white label providers in the market and choosing the best one is the real challenge. You have to start by filtering your options based on your budget and requirements, including the total cost and trading platforms that are offered. To ensure safety, you should select a reputed and regulated provider with a growing client base. You should also test their platform yourself before signing up as a white label partner. Don’t make any decisions in a hurry and take your time to devise a sound business plan.
Final Words
In the end, setting up a white label forex brokerage can be a lucrative business venture if you can establish your brand name and earn the trust of your potential clients. You should also consider the challenges that you will have to deal with as an entry-level broker and follow a strategic approach to secure success in future.
