A forex white label solution is the best suited solution for individuals or companies with little or no experience in the field wanting to become forex brokers and create their own brands in the forex industry, through which to offer retail trading services. According to the USA National Futures Association (NFA), white labeling “refers to the practice of leasing the right to place the lessee’s name on and market another firm’s trading platform as its own and then passing the trades through to the lessor. In the typical white labeling arrangement, the lessee’s customers do not have a contractual relationship with, and in fact may be unaware of, the firm that owns and operates the platform. For regulatory purposes, the lessee is the counterparty to the customer’s trades and the corresponding transactions with the lessor are separate transactions between the lessee and the lessor to hedge the lessee’s customer obligations”. For the broker, a white label partnership allows them to offer trading services to their clients without the need to invest in expensive technology or hire a team of experts. The broker can focus on marketing and sales, while the white label partner takes care of the technology and infrastructure.
Thus, the White Label Trading Platform to go to when deciding to embark on a forex brokerage endeavor is none other than MetaQuotes’s MetaTrader 4 platform, MT4 for short. A white label partner who chooses this option may be a large introducing broker or money manager who requires greater control over their trading environment and clients. Under this model greater margins can be achieved than through a traditional introducing broker program, however, it does not have the same regulatory, compliance, and operational responsibilities of a fully branded white label solution. IC Markets’ white label partnership program is a complete solution giving your clients access to our market-leading liquidity and technology. Once you become a white label partner, you will have access to the same award-winning MT4 platform that most traders prefer, but it will be branded with your very own logo, company name and contact information. This will help your business grow and your firm will benefit from professional, full-service back office support and varying administrative and support functions that are all there to help you succeed.
- The broker’s role is to attract clients to the platform and provide them with customer support.
- I recommend that until you have good answers to the questions above, you hold off on the launch of your white label.
- Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment.
If you follow the tried-and-true advice in this guide, your chances of succeeding as a white label business will increase exponentially. Take advantage of our many years of experience helping a great number of FX businesses succeed. We’ll start by discussing your ideas and objectives and let you know if they make sense as they are or should be modified to help you save money, time and headaches. Their clients know that their account funds are in the hands of a well-known and regulated firm. A full white label client, on the other hand, knows that they are sending their funds directly to a broker without a long track record behind it. Unless that client had a preexisting, trust-based relationship with the broker, funding will become an added challenge.
And the learning process takes time and effort so don’t even contemplate that you can become a top-notch broker overnight. The trading of currencies can be traced back into antiquity, but though historic it does not show any signs of fatigue. And as those ready, willing, and able to trade forex increase, correspondingly so are those who enter the market on the providers’ side, i.e. the firms/brokerages through which online forex trading transactions take place.
The broker can offer a range of products, including forex, CFDs, and other derivatives. The broker can also set the pricing for each product, including spreads, commissions, and margin requirements. In addition to overcoming the challenge of setting up credit card processing or alternative funding solutions for their traders, full white labels will also have to overcome the additional hurdle of getting clients to trust a relatively new company with their money. That foundation will be weak unless the brokerage firm that you decide to use, the one that will provide your platform and trade execution, is good.
Ready to start a white label forex brokerage? Don’t go there if …
In other words, remember that it is possible to be incorporated in one location and have your base in another. Saying it simply then, though a white label solution you rent out part of another firm’s offering and rebrand it to offer as your own, thus you can start your brokerage without having to either buy your own trading platform or having to develop it from scratch. This arrangement comes with many advantages, but also with some disadvantages, as will be discussed below. The broker is responsible for setting the pricing and trading conditions for its clients.
GO Markets multibank liquidity solution is offered to institutions and financial services providers operating the MetaTrader 4 platform. FXOpen White Label provides access to the cutting-edge technologies specifically used in this industry. They make it possible to trade with a wide range of financial instruments via the popular MT4 terminal. You will be assisted in the development of your growth strategy, landing clients policy, and business processes architecture. IC Markets’ white label program has a variety of levels designed to complement start-up or established brokerages to help take their business to the next level.You can opt for our liquidity package using one of our many and flexible connectivity options. Success as a forex broker is measured in how many customers you convert, how many you retain, and how big trading volumes you are able to generate.
If you are interested in becoming a white label forex broker then you have two available options in order to do so, namely to resort to a partial white label partnership or a full one. Depending on the country where you form the entity you plan to use to run your white label business, you might also have to register or get licensed there. However, there are many countries where you can incorporate your business that do not have such regulatory requirements. Nevertheless, even if you incorporate in a country with lax Forex statutes, you might still fall under the scrutiny of their regulators if the office where you meet clients is in that same country. That is why you need to choose your country of incorporation and your base of operation carefully.
Looking to Launch Your Own Turnkey Brokerage Business?
Likewise, compliance requirements around the world have reached nose bleeding heights. In some large countries, like the United States, the level of regulation has escalated to such a point that most smaller brokerage firms, IBs, and white label providers have disappeared from the FX industry altogether. Many even argue that all of this has been no accident, but instead the coordinated move by large governments not to protect investors, but to lure traders and other participants back into traditional markets (like stocks and futures) and away from alternative, global markets like FX. But before allowing clients to fund their accounts via credit cards, you’ll need to be able to process them. You’ll need a secure online interface to accept and carry out credit card transactions and also a merchant account to receive the funds.
As far as fees are concerned, MetaQuotes charges standard upfront and monthly fees to all licensed brokerage firms for each MT4 white label they sub-license to their referral partners. The White Label partnership allows you to utilize GCI’s technology infrastructure and trade execution while maintaining and growing your own brand identity. As a zero-cost turnkey solution, the fx white label solution GCI’s White Label solution is an ideal way to profitably grow your online trading business. When prioritizing resources for their own business, each partner should remember that the most important
thing for creating a successful forex broker is the experience in competitive struggle, rather than the amount of
capital investment or confidence in demand for such services.
Please ensure that you understand the risks involved and seek independent financial and legal advice if necessary. The information on this website is not directed at residents of countries where FX trading is restricted or prohibited by local laws or regulations. The White Label Partnership Program is designed for organizations with their own client base and legal entities who want to start working in Forex business under their own brand and trading platform. Our partners have access to the best-awarded trading platform and a full scope of administrative tools and instruments which allow them to join and thrive the high growth industry. Our fully branded white label program is designed for start-ups and existing brokerages with an active client base and monthly Forex volume of over $1 billion. This solution provides you with complete control and transparency of your client management infrastrucure.
To achieve this, you have to go for the full white label solution and accept customer deposits. Obviously, the first advantage of going with the partial solution and not accepting deposits is simplicity, peace of mind, and speed in terms of entering the market and getting going. If you go with this option and only have to deal with branding the platform and creating your corporate image under which you will be marketing your services as a WL brokerage, this means you could be up and running in a matter of a few days. Besides being able to start at a much lower cost, what is also great about white labeling is that it takes away the headache of having to deal hands-on with all the technical aspects of a brokerage, the trading platform configuration, and trade dealing specifics.
Another potentially significant type of cost is the cost of hiring and maintaining the right staff that will help you excel. What roles they will be performing and how many they will be will depend on how you will choose to structure your business and which model of operation you will choose to adopt. Keep in mind, however, that you cannot possibly do it yourself and that your brokerage will stand little chance of succeeding if you don’t have the right people handling marketing, customer service and support, accounting, management, and IT issues.