Forex White Label – Making Your Own Brokerage Work

the brokerage industry. That too within a shorter period of time and without any rigorous effort. You have to invest time, and money while working on your business plan, brand building and promotional strategy. But the risk is minimal as you are relying on an experienced broker instead of trying to juggle a ton of things at once. 

Through this guide, you will learn about the functioning of forex white labelling and the things that you have to consider before launching your brokerage with a WL partnership. 

Basics of FX White Labelling

The idea of white labelling in the forex brokerage industry gained a lot of traction in the past few years. Firstly, because services of a forex broker are primarily about connecting the clients to the decentralised currency market and providing a technological infrastructure to carry out the trading process. Since the interaction with technology is the core component of this business, multiple brokerages can function simultaneously while offering the same platform to all users by sharing the technology. 

The same resources can be utilised by different brokers and still, they get to establish their own brand identity by customising the trading platform. The white label package is a turnkey solution that is rebranded by the new brokers entering into a partnership with the white label provider. The initial setup process and other complex processes including platform maintenance will be completed by the broker who owns the technology. You get to offer it as your own, cutting down the cost while still tailoring it to suit your brand image.  

Partial vs Full White Label Solution 

Many people are confused about the differences between partial and full white label solutions. Partial white labelling simply means that the WL provider will let you offer their platform as your own to your future clients but they will be the one accepting the deposits of clients as well. You are not handling the funds and this works for those who are not really sure about the segregation of client’s funds and other security systems that have to be there. 

If you can trust your WL provider with the money of your clients, then partial white labelling will be a perfect solution. But if you want to accept deposits from clients and keep your client information private, then a full white label solution will be ideal. So, you need to pick the best one for your business after considering the pros and cons of both. 

Selecting A Trading Platform For Your Brokerage 

Since the trading platform you get in a white label package can only be customised and rebranded, you have to select the best one for a seamless trading experience. MT4 and MT5 are the most popular ones and a lot of WL providers are offering these along with other platforms. I will suggest you test the platforms yourself through a demo account before finalising and you should look for a WL package that comes with MT4 or MT5 trading app that can be offered to your future clients under your own brand name. 

Costs of White Label Partnership

To talk about the cost of opening a brokerage with a white label solution, this will depend on the white label provider you choose but it will always be lower than the capital requirement for developing your own technology to build a brand new platform from scratch. There will be an initial setup cost at the time of launch and a regular monthly payment for platform maintenance. But you should create a budget after considering other ongoing expenses like promotions and marketing activities for client acquisition. 

How To Choose Your White Label Provider? 

The first thing to consider while choosing your white label provider is the cost and quality of services. You should also check the type of accounts and trading conditions they offer as you can only customise the options that are already included in the platform. For instance, if you want to function as a Halal forex broker, then you need to look for WL providers that are providing Islamic or swap-free accounts on their platform. Because you won’t be able to set up sharia-compliant accounts unless the primary broker supports the feature.

Some other things to consider for making a wise choice are the following. 

• Safety of Funds

If you are opting for a partial white label solution, then you have to ensure the safety of the funds as the WL provider will be the one in control of funding and withdrawals. Even in the case of full white labelling, you should evaluate the security features as your clients will be interacting with the third-party technology. I will suggest you look for a regulated white label provider while considering the jurisdiction. This way, you can also get the operating licence with ease as the platform is already complying with the standards set by the respective regulatory body.

• Speed of Execution

Any delay in the execution of orders will be a turnoff for your future clients. So, you have to check the mode of execution that is offered by the White label provider and also the speed of processing. They should be able to offer sufficient liquidity or else your clients will face issues like slippage.

• Flexibility

Many business owners fear that they won’t get any control of their own business when they are operating under a white label provider. The broker must support you as a dependable partner and allow you to make independent decisions when it comes to branding and customisations. They can give suggestions and guidance but they should listen to your needs and help you out in implementing your ideas.

Making Your Brand Look Appealing 

You cannot compromise the appearance of your platform while trying to enter the forex market as a brand-new broker. If your brand identity is not strong enough, your target audience will not get converted into leads or prospects even if they land on your website. Hence, you should pay more attention to branding as it is essential to win the trust of your future clients. 

Taking Deposits – Is it a Smart Move?

The decision to take the deposits from your clients has to be taken after a lot of consideration. It gives you more control as a business owner but also adds complexity. If you want to keep things simple, it will be better to let the white label provider accept the deposits of clients on your behalf. But if you want to manage the funds yourself, you can go ahead after opening a segregated bank account to keep the clients’ deposits. 

Conclusion

To conclude, opening a forex brokerage is a lucrative business if you have a clear idea and vision to rise as a trusted broker over time. When you operate with white label technology, you can fully focus on brand building and grow your business.