Facts About Forex White Label Program & How It Works

Operating as a brokerage business in the world’s largest trading market can surely be a lucrative venture as the potential client base is huge and since the forex market keeps growing, the possibilities are endless. But you must consider the high cost and cut-throat competition that can become a barrier to your success as a brand-new broker. In fact, building a platform from scratch and convincing traders to choose a new brand over the established brokers is a challenging endeavour, which takes a lot of time. However, there is a great solution that you can have a look at in order to launch your business in the easiest way possible by finding a forex white label program that fits your budget and requirements. 

In this blog, I will be sharing some important facts about white label programs and how it works, so that they can accelerate your growth as an aspiring broker. 

How Does Forex White Label Work?

The essence of forex white labelling is getting an opportunity to focus more on brand building as all other major functions and processes that you are responsible for as a forex broker are undertaken by an established broker once you sign up as a partner in their forex white label program. They will offer all the assistance you need for making a smooth entry into the market including a ready-to-use technology infrastructure with a business website and integrated trading platform with customisation features. 

You get to use the same software solution as the broker by spending a much lower amount in comparison to the cost of creating your own platform from ground zero. The primary broker will be your white label provider and their team will be controlling all the technical procedures on your behalf; you just have to pay regular platform maintenance fees besides the initial setup cost that is paid during the launch of your brokerage. The scope of branding is wide as most of the time the traders won’t even realise that you are a White Label broker. 

The turnkey solution can turn you into a trusted broker due to the superior technology and security features that are hard to develop and maintain for a beginner in the industry. Even if you have enough money and time to spare for the complex processes, you may not have enough experience or expertise to lead your team in an efficient manner. The risk of opening an independent brokerage is bigger as you have to handle everything by yourself. Thus, support from a reliable white label provider can relieve your stress to a great extent. 

Benefits Of Forex White Labelling 

• Simple and Secure 

Starting out as a broker in the decentralised currency market is not something that can be done as easily as you can get into trading. In order to start trading on a platform, you just have to sign up with a broker and verify your identity for live account opening. It is another thing that you have to do a lot of learning before earning profits from your Forex account. However, the ease of access is surely an attractive feature but there is a lot more research that has to be done to break into the brokerage industry. 

Becoming a forex broker requires a lot more preparation and legal formalities starting from registering your business, selecting a suitable location, picking a jurisdiction based on your target audience, regulation, licensing, making liquidity arrangements and most importantly creating a platform that meets the industry standards promising a secure trading experience to your future clients. You can surely simplify all these tasks by taking the help of a regulated and reputed white label provider as they stay by your side and give ongoing support. 

• Tried and Tested Technology 

When you are building your own trading infrastructure, there will be a lot of test runs and optimisation that have to be done before it becomes good enough to go live. You cannot afford to deal with a technological failure after you have started with client onboarding as a new broker. Even a small bug can lead to a downfall as traders will already be sceptical about a new broker and they will end up leaving your platform if there is any interruption during the trading process. I am sure a negative review from a client would be the last thing you want in the early stages of your business.  

But since white label providers will be offering an already existing technological infrastructure, it is a tried and tested solution which you can also check out by opening a demo account on the white label provider’s platform. You should check the platforms they offer and support for trading. Most brokers have integrated MT4 as it is the most popular one among forex traders. Its successor, MT5 is also a great platform, which you can download on your PC, Mac or smartphone.  you can add as it offers additional tools and features that can enhance the trading experience of your clients, especially those who trade multiple assets. 

• Set Aside More Time For Promotional Activities 

The biggest benefit you get while opting for a white label solution as a new broker is you will get plenty of time to focus on branding and customisation to build your brand identity and then you can fully concentrate on marketing and promotional activities which are vital for client acquisition in the competitive space. Since all the other tasks will be carried out by the white label provider, you won’t have to worry about other processes. The white label provider may also help you in planning the promotions if marketing assistance is included in their package. 

• Faster Entry 

The time period for completing the initial setup process of a brokerage can be greatly reduced by depending on a white label provider. When you take the traditional route, it not only costs you a very high amount but also takes a long period of time. It can take months or years to go live after getting all the approvals from the authorities. But white label programs can give you the advantage of a faster market entry. It is possible to get started within weeks depending on the provider you choose. 

Things To Consider While Collaborating With A Forex White Label

• Budget – The first thing to consider while collaborating with a white label provider is your own budget and the total cost of the solution. You should consider both initial setup costs and ongoing costs along with other expenses that will come as a part of establishing your business as a broker. Remember that the revenue will not be regular until you build a loyal client base, so you must have enough funds to support yourself alongside the business. 
• Security & support – Security is paramount to function as a forex broker and you must pick your technology provider after careful consideration. Having responsive customer support is crucial when you are counting on another business to sustain your own business. 

In the end, white labelling is a scalable option for many emerging forex brokers as they get a fair chance to find a footing in a market where they have to compete against hundreds of well-known and successful brokers.