White Label in forex trading is a partnership program where the services and platforms designed by one company are used by new partners who wish to start their own forex brokerage firm. White label forex providers basically help beginners to kick-start their forex brokerage journey by furnishing the required platform and technological know-how. Forex white label providers are a group of experienced individuals equipped with the required technological advancements and information needed by an individual to start with their own forex brokerage firm.
White label in forex provides a comprehensive solution that aids all the requirements of constructing a successful forex brokerage company. A forex white label provider is responsible for providing all the expertise, including liquidity suppliers, trading platforms, cost processors, back office assistance, etc. White label in forex trading is considered to be more economical than starting a forex firm from scratch on your own.
Things To Keep In Mind For Starting Your Own Forex Brokerage Firm
Before implementation of a plan, it is very important to strategize accordingly. An individual who wishes to start a forex brokerage firm should consider a number of things:
- Planning a Business Model – To set up a robust forex brokerage company, an individual should conduct a proper market survey by studying various competitors beforehand and evaluating the target audience. It is also essential to determine the funds that might be required for setting up and scaling the business in the future.
- Register and Obtain Required Licensing – For an individual planning to establish a forex brokerage firm, obtaining a proper registration and licensing is very important. Getting a licence issued by a recognized regulatory authority adds extra trust points to attract traders.
- Diverse Payment Methods – Traders generally opt for forex brokers who offer a wide variety of payment methods. To become a reputed forex broker an individual should offer the most popular and safe payment solutions. A wide variety of payment methods ensures flexibility and attracts all types of traders.
- Trading Platforms – The most important feature of forex trading is the platform that is used to assist buy and sell orders for forex assets. A forex brokerage firm that clients can easily rely on needs to have trading platforms that work without failures and delays. A trading platform should have a user friendly interface and should be easily accessible through mobile and web terminals.
What Is MT4 White Label?
MetaTrader 4 (MT4), as we all know, is a popular trading platform many forex traders worldwide use. With MT4 White Label, new brokers can offer their clients access to the forex market and other financial instruments such as CFDs. The platform includes a range of features, such as advanced charting tools, technical indicators, and the ability to automate trades using Expert Advisors (EAs).
Advantages of using an MT4 White Label:
- Customisation: MT4 White Label Forex allows new brokers to customise the platform with their own branding and features.
- User-friendly: MT4 is known for its user-friendly interface, making it easy for traders of all levels to use.
- Popular: MT4 is a popular platform used by many forex traders worldwide, meaning new brokers can tap into an existing user base.
- Security: MT4 is a secure platform with advanced encryption and other security features to protect client data.
- Back-office tools: MT4 White Label Forex also includes back-office tools such as risk management, reporting, and client management, which can help brokers manage their business efficiently.
What Is MT5 White Label?
MetaTrader 5 (MT5) is the successor to MT4, released by MetaQuotes Software Corp. in 2010. MT5 White Label Forex is similar to MT4 White Label Forex in allowing businesses to create their own branded version of the platform.
However, MT5 includes several new features and improvements over MT4, such as support for more financial instruments, a more advanced trading language, and improved back-testing capabilities. MT5 also includes a built-in economic calendar and market depth features, which can provide traders with additional insights into market activity.
Advantages of using an MT5 White Label:
- Advanced features: MT5 includes several new features and improvements over MT4, such as support for more financial instruments and a more advanced trading language.
- Market depth: MT5 includes market depth features, which provide traders with additional insights into market activity.
- Back-testing: MT5 includes improved back-testing capabilities, which can help traders develop and test trading strategies.
- User-friendly: MT5 has a user-friendly interface, making it easy for traders of all levels to use.
- Multi-asset trading: MT5 supports trading various financial instruments like forex, cryptos, indices, etc.
How To Pick The Best Forex White Label Service Provider?
An individual can cut down massive cost and save up on a lot of time by using the services provided by a white label forex provider. There are however certain things to be kept in mind before choosing a suitable forex white label provider:
- Company Size – A long service history implies experience and constant success rate among traders. Before choosing a white label provider, an individual should consider the number of years it has served and the size of the firm. A longer tenure and a larger company size reflects credibility and reputation among traders.
- Regulations and Licensing – Getting regulated and obtaining mandatory licensing from a reputed authority adds extra loyalty points to a company’s name. An individual must check all the essential documents and licence of a white label provider before opting.
- Services and Products Offered – An individual must evaluate all the services and products offered by forex white label providers. A wide range of services and products that offer a friendly user interface and experience along with a tight security should be chosen.
- Fees Charged – It is important to pick a white label provider who charges a genuine commission and fee for the services. An individual should only pay for what he is offered by these providers, any hidden charges must be carefully evaluated beforehand.
- Reputation – To eliminate the possibility of frauds and bias, an individual should pick only that white label service provider who has been able to maintain clean records and a high success rate among its clients.
- Customer Assistance – A new forex brokerage firm will definitely require continuous assistance and support in case of any problems. Pick a white label provider who has 24 hour customer support with a quick resolution facility.
Just like any other service, a white label solution has its pros and cons, let’s discuss some important ones.
Pros of Using a Forex White Label Service Provider:
- An individual does not have to take the pain of developing essential contacts on his own as with the help of white label provider, all the basics are already covered, which saves a lot of effort for a new brokerage business.
- A forex white label provider has already established the infrastructure needed to run a brokerage business, therefore, it becomes very easy for a new firm to enter the market within no time.
- White label providers are masters at establishing effective methods of branding, lead generation, website designing and marketing campaigns.
- There is a massive reduction in the implementation cost by using a white label forex provider because if an individual were to start a brokerage firm from scratch, it would definitely cost huge amounts as compared to the services of a white label provider.
- Many forex white label providers also offer education and training courses online and offline to their clients that makes a firm self-sufficient and independent in the long run.
Cons of Using a Forex White Label Provider:
- For the experience, expertise and established infrastructure, a commission or fees is charged from trading volumes of a new business.
- Some software designed by white label providers obstructs client information to some extent that might be needed by a novice brokerage company.
Forex brokerage business seems like an effective and efficient method for a startup in the forex market. Many people are interested in starting their own forex brokerage firm but the majority of them lack the expertise and knowledge required, and that’s where White Label providers are a big help. They are equipped with all the essential expertise, experience, infrastructure and technological advancements required to run a new forex brokerage business efficiently. So, if you are planning to have your own forex brokerage, then make sure to only consider a quality white label service provider for it.