Now that we’ve established that a WL forex solution is a sure way to go, the million-dollar question is – How much does a White Label Trading platform cost? If you’re looking to open your own forex brokerage, you’ll need to finance properly. For example, if you’re looking for Forex broker turnkey solutions including all the stages, including creating the company from the ground up, you’re looking at a heavy chunk of change. If you’re going for a solution that includes trading platform access and technology, prices will reduce significantly. Your financial budgeting is individual, set to change, and should be negotiated with the company you’re set on working with.
Additionally, as we have seen, it is not uncommon for brokers to cheat their IBs and pay them less than they should. The White Label offers a wide range of technology and assistance without requiring you to open a brokerage yourself, which can be daunting. Launching a White Label has proven very popular as a fast and straightforward way to enter the Forex brokerage market. At first sight, both options are promising enough; Introducing Brokers serve as a source of additional earning, as IBs claim to welcome new clients to your brokerage platform. As for White Labeling, the new development level takes place as you get an opportunity to build the ecosystem of services available to beginner brokers.
Is a White Label Better than Becoming an Introducing Brokerage?
IBs get to connect traders and brokers regardless of their nationality and location. Without them, local traders often struggle with international brokers because of the language barrier, different payment methods, and others. Summing up, the white-label solution can be regarded as a smart way to take the first steps in the world of brokerage without huge costs. On the other hand, the term private label is often used to describe products that are exclusively manufactured for a retailer and sold under the retailer’s brand.
There are many ways to cut a slice of the Forex brokerage cake, but two models stand out from the rest as good choices for newcomers – becoming an Introducing Broker (IB), or building your own white label brand. All the above-described models have their own pros and cons, depending on the goals and objectives of white-label brokers. Slowly but surely, crypto trading is becoming more and more spread and accepted. This means that to meet the current market demands, new brokers must offer crypto trading. Providing deliverable crypto trading would give an excellent opportunity for a broker to stand out.
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The ETNA Web Trading Platform is a lightning-fast HTML5 trading platform that can be accessed from any device with a web browser. It offers a seamless trading experience without the need for downloads or installations. Their highly customisable mobile trading app can be integrated with existing investment management and trading infrastructure. The result is a synchronised appearance with powerful functionality that meets the needs of self-directed investors. However, keep in mind that depending on the Forex White Labeling company, all of these options might not be available. One is co-branding, which means that the companies receive a special domain and the logo from the partners.
Such partners place links and use different communication channels to welcome new clients to a brokerage company’s website. Obviously, the price of opening a full white label brokerage would be higher than an IB, and the procedure would require greater time and effort. A white-label broker is an established company that pays commission to the white-label provider for using its infrastructure and licenses.
🏆 10 Best Rated Forex Brokers
To become an IB, one must fulfill the basic requirements and receive a license to operate. Most IBs also partner only with brokers under legal regulators, so traders can do their trading activities and transactions securely. In other words, traders can use IBs to eliminate unregulated brokers suspicious of scamming and prone to bankruptcy.
- A full-service investment bank with over 20 years of white labelling experience that provides advanced trading tools.
- Also, IBs need to follow the rules and regulations of the broker firm and they have very limited freedom to decide terms and conditions with the traders while WLBs are a lot more independent compared to IBs.
- At the same time forex white label brokers do not have to be worried to set up and maintain server with server locations and stay up-to-date at different corners of the globe.
- If the currency rate is higher when the trader closes the trade, the trader makes a profit.
- In addition to stocks, the platform includes advanced options trading capabilities, such as option chains with implied volatility and Greeks.
- There are no guarantees that the platform and the White Label model as a whole will actually bring profit.
- As an introducing broker, you do not have to deal with technical issues or account management.
Over 20 years of White Label experience providing tailored off-the-shelf and customized solutions, enabling licensed financial institutions to expand their product offerings with full client control. B2Broker is a popular and well-established liquidity and technology provider for both the cryptocurrency and forex exchange industry. B2Broker has recently won an industry ecn broker meaning award as the best White Label Multi-Asset Liquidity Platform of 2023. In the worst cases, a lack of technical support can mean that the broker will face fines and bankruptcy. White label solutions provide start-ups with the top-rated technical support that they need without hiring support staff, which is cost-effective and ensures high quality of service.
White Labeling Video Explainer
This approach lets your clients directly interact with the professionals handling their marketing campaigns, thus promoting transparency, immediate feedback, and more personalized service. By adopting this method, we aim to provide high-quality, efficient service while strengthening the perceived value of your brand. Company positions itself, and indeed prefers, to act as a front-facing white label digital marketing provider. This means that we actively engage with clients on your behalf under your brand name.
They are responsible for accompanying and guiding clients when doing trading activities. Not only that, IBs also accept complaints and questions regarding the trading conditions of the broker. To get more attention from new clients, IBs often offer promos and gifts in exchange for the trader’s commitment to trading with them. This kind of service can hardly be found in most brokers, so many traders are more interested in checking out IBs offers before choosing the Main Broker to trade with. The traditional scheme of brokerage with the use of a single margin account, based on the most popular clients’ base currency.
The Difference between an Introducing Broker and White Label
Let’s explore the definitions, top pros and cons, and core features of those strategies to understand which one is the best to follow. Revenue and compensation models are also far more flexible in a white label arrangement, and it all depends on the details of your partnership agreement. All of that, without the enormous hassle involved in opening a brokerage firm by yourself. The white label broker also does not facilitate trading orders – all execution is made by the primary broker. But other than that, white label brands function like any other broker, and they call the shots regarding their trading conditions, spreads and commissions, and business structure.
A deep pool of institutional liquidity will satisfy even the most sophisticated traders you serve. The platform also includes Microsoft Cloud for full scalability and security, real-time redundancy, and incident management. White Labeling makes everything a lot easier, which is why it is so popular in the market. In addition to being very straightforward, establishing a White Label Forex brokerage is also a lot more cost-effective compared to creating a Forex broker on your own. You are strongly advised to obtain independent financial, legal and tax advice before proceeding with any currency or spot metals trade.
The provision of quality technical support
Multi-leg options trading is also supported, making the platform a comprehensive solution for options traders. White Labels function in a similar way to the regular Forex brokers as they earn from the trading volume of their clients. From the White Label’s point of view, it can be said that it is a lot cheaper way to launch a Forex trading business https://www.xcritical.com/ because the provider can help them in numerous different aspects. This includes providing the latest technology, legal aspects, even building a website as well as different types of marketing programs. Forex Trader – A forex trader is an individual who invests his money in currencies and earns by making the sale of the currency at a higher rate.
Unveiling JustMarkets’ Improved IB Program
Introducing Broker (IB) has the most straightforward cooperation system between brokers and third parties. The aim is to introduce the broker’s services to new clients, and, in return, the third parties get rewarded for each client they bring. The WL MT as a part of the complex solution includes Liquidity, Trading platform, Trader’s Room, Payment System, IB Program and PAMM/MAM/Copy trading solutions.
There have been dozens of brokerages that initially started out as White Labels and managed to become independent, successful, and leading Forex brokers around the world. This includes marketing, the legal side of registering as a broker, or taking care of the technological side of the actual trading. To avoid all these processes, some of the companies prefer to become White Label. This gives them the ability to do business depending solely on the services of the broker they made an agreement with. Forex Broker – A forex broker is an entity that is legally allowed to do facilitate the forex traders and do trading on their behalf, upon the promise of the certain commission amount.