The forex market is the biggest trading market in the world. There are millions of traders from all parts of the world actively engaged in currency trading. These traders also need a forex broker for accessing the market and getting started with trading. As the number of forex traders keeps on increasing the forex brokerage industry is also getting bigger and better. But the forex market is also growing and expanding alongside, which means forex broker services are still in demand. So, becoming an online forex broker can be a great business idea. But implementing this idea is not that easy when you are on your own. But it will become a lot easier when you make use of the forex white label solutions of a reputed broker. And you will be getting some useful information about white label forex solutions by the end of this article.
What is White Label Forex ?
As you may already know, setting up a forex brokerage is a tedious process which requires a lot of resources. It costs a huge amount of money, time and effort to establish an online forex broker platform. Needless to mention that building a trading platform from scratch will be a complex process. In addition to the technical side there will be some legal formalities and paperwork too which is time-consuming. And white label forex solutions are there to simplify this complex process as anyone who is planning to set up a forex brokerage will get all the assistance from another forex broker itself.
A white label forex solution is more or less similar to a lease agreement. As they will be lenting out a part of their offering, platform and more resources to someone else who can use it as their own by rebranding it. This eliminates the need of buying or developing your own trading platform as you can use the very same platform of another established forex broker. A white label forex broker is not much different than a regular independent forex broker. In fact, you will be surprised to know that many of the popular forex brokers actually stepped into the forex world as white label brokerage platform.
And after gathering some experience, they took it to the next level and established themselves as an independent forex broker. This means that white label forex solutions is not a new practice as many brokers have already benefited from this feasible solution. With this setting, you will get access to all the resources you would need to function as a forex broker. From back-office support to platform maintenance, all these crucial tasks would be a lot to handle on your own. So, the white label forex service provider will take care of these on your behalf so that you can build your customer base without much effort.
Partial White Label Solution and Full White Label Solution.
As the name implies, a full white label solution gives you all the resources to operate as a forex brokerage and rebrand as well. But for a partial white label solution, you still get all the assistance but not all the rights when it comes to managing the funds of clients. Means the task of accepting deposits from your clients and processing their withdrawals would be entrusted with the forex broker who is providing you the white label solution.
On the other hand, a full white label solution enables you to accept and process client deposits, withdrawals and so on. Also there are some restrictions regarding rebranding when you opt for the partial white label solutions. But in case of full white label solutions, your website will be fully rebranded and your clients will never get to know that you operate under a white label system. Now deciding which one suits you the most depends on the amount of funds you have set aside for setting up your white label forex brokerage.
The partial white label solution can be availed at a lower fee but you have to compromise with rebranding and handling of funds. Still, the fee for platform customization and rebranding remains the same as both types of white label forex solutions have similar functions and functionality. Now coming to the total cost of establishing and running a white label forex brokerage, that will depend a lot on the primary broker you choose for the same. But mostly a broker will charge you an amount for the initial setup and then you will also have to pay a monthly maintenance fee.
The cost of running a white label forex brokerage will be a lot less than what you would have to incur while setting up an online forex brokerage on your own. Also the fact that white label forex solutions gives you an easy entrance to the forex industry with minimal effort on your part makes it an attractive solution. The primary broker will help you with marketing solutions, customer relationship management, trading platforms and moreover will guide you like a mentor with valuable advice whenever you need it. Some white label forex solutions even come with training programs so that you can fully prepare yourself for this venture.
How to Select the Best Primary Broker for White Label Forex Solutions.
Since there are quite a few brokers providing white label forex solutions, you are bound to feel confused when it comes to choosing the best one. Here are some of the factors you need to consider while registering yourself with a primary broker for starting a white label forex brokerage.
Credibility of the Primary Broker : The trust factor plays an important role in the success of a white label forex brokerage business. Especially if you are planning to avail a partial white label solution where the funds of your clients will have to be trusted with the primary broker itself. In this case, you can feel at ease when the primary broker is well-known, regulated and reliable. So, always choose a reputed and trusted primary broker as your white label forex solution.
Transparency : There needs to be a great level of transparency in the operations of the primary broker, as you will be greatly dependent on them throughout the process. There should be enough clarity regarding the total cost/fees that you will be bearing for establishing your white label forex brokerage. Make sure they are affordable and will provide you all the assistance that you would need to get started.
Trading Platforms: You will be using the trading platform provided by the primary broker. So, make sure they have a fully functional and feature-rich platform as that is an essential requirement for attracting clients. The classic MT4 and advanced MT5 is very much needed to provide a smooth trading experience to your clients. MetaTrader 4 and 5 are the most popular and preferred trading platforms for forex trading. Hence, you need to make sure the primary broker will let you use these platforms at an affordable price. Some primary brokers will even offer you an additional platform which is a plus.
Marketing Solutions: Nowadays no business can capture the markets without enough marketing and promotions. The same applies to a white label forex brokerage too. You will have to put in some effort in marketing and promotional activities for attracting traders to your brand new forex trading platform. Those who don’t have enough experience in the forex industry will need some assistance in this aspect as well. Hence make sure the primary broker will be there for you whenever you will need some help with marketing activities.
Since the very purpose of opting for a white label forex solution is to escape the complex and time consuming process, you will need to go for a primary broker who promises to help you get started within a short span of time. Make sure they fit your bill and budget perfectly before taking your first step. Being a white label forex brokerage has many perks and would surely take you one step closer to becoming an independent and top tier forex broker in the future.
