Why Consider A White Label Forex For Your Brokerage?

can be a challenging endeavour for an aspiring broker, and this is why you need to consider the feasible solution called white label forex, which makes the initial setup process easier for each and every new forex broker with a significant reduction in cost and complexity. But you might wonder why it is better to launch a brokerage with white labelling and what benefits it offers a budding business.

This blog includes all the answers you are looking for, and moreover, you will get a lot of valuable insights that can help you implement your brokerage business plan with greater ease.  

Basics of Forex White Label Solution

In order to understand the benefits of a Forex white label solution, you need to learn some basics about it. You can think of forex white label as a turnkey solution that covers every aspect of building and running a forex brokerage without having to do everything from ground zero as you get a ready-to-use technological infrastructure, including trading platforms, trading tools, liquidity arrangements and more from another brokerage business. The brokerage sharing its resources with you is referred to as a white label provider. The new broker will be fully dependent on the primary broker for all the complex technical processes, including back-office operations. 

Since you will be using existing technology and platforms, the initial setup cost will be greatly reduced, and it will also save a lot of time as there is no need to develop everything by yourself. Your brokerage business can be launched within a few weeks without much hassle as you have an experienced expert who is a reputed top broker to do everything on your behalf. But you will be able to rebrand the technology and offer it as your own to the clients with customisations. You can choose to accept the deposits directly from your clients or let the white label provider handle the funds if it is a partial white label solution. 

The type of white label solution you want depends on whether you are confident enough to handle the payment processing or funding with segregated bank accounts preferably, or will it be better to leave it to the white label provider for the safe custody of funds. You need to discuss all these while choosing your white label provider, along with the initial setup costs and ongoing costs in terms of platform maintenance fees. If you need some assistance with marketing and promotions, you should find a white label provider that can also help you in this aspect. You may need some guidance as a new business owner, and there are top brokers to help you out with training programs and offer valuable advice for growing your business.

Benefits of choosing white-label forex

There are many benefits to choosing a white label forex package instead of taking the traditional route where you will be on your own to do everything. You may not have in-depth knowledge about how the brokerage industry works and how you can build a platform that perfectly fits the standards and criteria for becoming a potential broker for a wide client base. When you devise your business plan, you need to decide everything, including the target audience and technology provider, and even hire an efficient team to develop your website with all the top features along with platform integration to meet the requirements of your future clients. 

This will be a tough task for a new broker as the different clients will be looking for different things, and serving all of them in a single place is not easy. For instance, you may want to offer your services to all types of traders on a global level, and your client base will consist of a diverse group of people from different cultural and religious backgrounds. If you are planning to meet the requirements of Muslim clients, you will have to offer Islamic trading accounts complying with Sharia law and offer Halal trading conditions in the absence of a swap. 

These things can be complicated to set up for a new broker. Still, if you choose an Islamic forex broker as your white label provider, the process will be easier and quicker as they are already complying with the rules of Islamic finance by offering swap-free accounts. Besides this, there are many other advantages of forex white labelling, but I will talk about the two primary advantages you need to know about as a new broker.   

• Outsourcing of the IT Infrastructure

Business outsourcing is a popular practice to minimise expenses without compromising efficiency or service quality. With white label solutions, new brokers get to outsource the IT infrastructure, which saves a lot of time and effort that would be needed to build the platform, get licences, and more. You will not have to worry about platform maintenance or other processes as the white label provider will be in charge of all technical processes, ensuring the quality of these services.

Your clients will get a seamless trading experience with a top broker in the background, leading and monitoring all the key operations that are important for the smooth functioning of a brokerage. Being a new broker, you will have limited knowledge about these aspects, and operating under the umbrella of a reputed broker is the safest route to take to emerge as a reliable broker over time. But you should research and learn how things work to choose the best white label provider for your brokerage business. 

• Easy Entry 

Entering the forex brokerage industry and launching your platform is not that easy as there are a lot of standards and regulatory formalities to comply with depending on the jurisdiction in which you choose to operate. Being a regulated broker gives you a competitive edge, and obtaining regulation is harder for a new broker. But when you choose a regulated broker as your white label provider, the process will be easier, along with a quick entry to the brokerage industry.

Otherwise, developing the platform and complying with the industry standards is a time-consuming process which delays your entry into the market. White label solutions are designed to offer a fast alternative as you will be able to launch the platform within a few weeks, which would otherwise take months or years when you decide to be an independent forex broker. 

Features To Look for While Choosing a White Label Platform Provider 

Even though starting out as a brokerage business becomes easier with the white label solution, you need to be serious about finding the right white label platform provider. You need to make sure that the white label provider is capable of helping you with all the services and always check the platform yourself prior to signing up as a white label partner. A top broker may be functioning as a white label provider for several new brokers, and you can also check the reviews of their clients to see if they are good enough. 

• Stable and Safe Solutions

All traders want to trade on a stable and secure platform in every sense. As a white label broker, you won’t get much control over these aspects as you will have to trust the white label provider with everything, including the trading process. I suggest you choose an MT4 white label provider as the MetaTrader 4 platform is a top choice for platforms among forex traders, along with MT5, which has advanced capabilities. These platforms are known for their stability and security features along with powerful tools, and a white label solution that offers these platforms along with mobile trading apps would be ideal to win your clients’ trust.

 

• Updated and Developed

Another thing to look for while choosing a white label provider is that the platform is regularly updated and has all the features new-age traders look for. The very purpose of going for a white label solution is to offer a superior trading experience to your clients, which may not be possible when you develop a new platform that has to be tested and optimised before the final launch. So, make sure that the platform is fully developed and satisfies a wide range of clients with responsive customer support to address their concerns.  

Summary

To sum it up, there is not just one reason to choose a forex white label solution as an aspiring broker. It offers many advantages, including cost-effective technological solutions with IT infrastructure outsourcing and easy market entry. You need to finalise your white label provider after comparing the available options to pick the best one in terms of cost, services and scalability. The white label solution needs to be stable, secure and updated, as that is important for client acquisition and building your brand image as a trusted broker.