What Is a White-Label Broker in Forex?

Quadcode’s white-label solution provides clients with a full-packed brokerage business tailored to their needs, powering 150 million trading accounts in over 170 countries. It serves brokerage firms and financial institutions seeking impeccable, off-the-shelf https://www.xcritical.com/ fintech solutions redefining industry standards. Established brokerage technology and services provider offering a comprehensive suite of solutions through its SaaS trading platform, including Forex, CFDs, crypto, and advanced social trading features.

cons of White Label brokers

The strategy within white labeling involves using a brand’s reputation to sell a similar, yet cheaper to produce, product. This allows brands to reduce their costs of manufacturing while also enjoying the benefit of important existing consumer relationships. White label branding is popular among CPG brands because these brands are in a mass volume business. CPG brands often reap the following benefits as a result of white labeling.

The Upside of White Label Branding

But other than that, white label brands function like any other broker, and they call the shots regarding their trading conditions, spreads and commissions, and business structure. For example, in the USA new entrants to the market who are just starting out as a white label brokerage cannot fulfill certain requirements for brokerage work . Meanwhile, Germany’s Federal Financial Supervisory Authority (BaFin) stated that 48% of European brokers are licensed in Cyprus, and only 29% have local German licenses. Possible payment solutions

Traders need to obtain convenient ways to deposit and withdraw their funds from your company.

cons of White Label brokers

The user interface for MT4 unfortunately is fairly dated compared to more recent white labeling agents, which may put off potential new clients. An Introducing Broker, or IB for short, is like a middle person that helps connect traders with the main broker. Your job is to find traders who are interested in trading with your main broker, and you guide them through the sign-up process. However, the main broker handles everything else, like transactions and technology.

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The more ask and bid offers are placed there, the higher chances traders get to buy and sell assets by the market price. Reliable liquidity providers connect your order book with the largest banking institutions and funds like BNP Paribas, Barclays, Goldman Sachs, etc. To summarise, starting your journey as a new forex broker has many challenges. But a white-label broker offering the required assistance can simplify the process to give you a more accessible entrance into the forex brokerage industry. White-label brokers are rich in expertise and experience and can act as your guide to mark a successful beginning to your business idea.

By renting out a portion of the server of a white label forex broker, start-ups can avoid initial challenges and complications, allowing them to enter the forex trading market easier and faster. The integration of TWS into white labeling allows Forex brokers to offer their clients a well-established and trusted trading platform with a wide range of currency pairs. IBKR offers a vast selection of over 100 currency pairs for trading, including major pairs like EUR/USD, USD/JPY, and GBP/USD, as well as minor and exotic pairs. Additionally, traders can access Forex options through the TWS platform, allowing them to trade options on currency pairs. A few words about liquidity

At first sight, Forex is a liquid market, as we are talking about fiat currencies. If to switch the attention to brokerage companies, the liquidity is referred to the depth of the order book.

The broker can focus on business

Furthermore, the step is also related to creating a convenient and functional website, user-friendly UI, and other important features that influence an end-user’s choice. We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Whether you are an active or passive investor, there is an options traders platform available for everyone. CTrader is one of Spotware’s many software, offering a wide variety of instruments, and built-in tools to maximize the benefit for clients. CTrader, unlike MT4 and MT5, has a much more user-centric interface, updated to maximize user experience.

Interactive Brokers (IBKR) offers a white label program for Forex brokers, which allows them to leverage IBKR’s technology and infrastructure to create a branded trading platform for their clients. IBKR’s white label program particularly benefits Forex brokers who want to expand their offering beyond Forex and into other asset classes, such as equities, futures, and options. With IBKR’s multi-asset platform, brokers can provide their clients with access to a wide range of financial instruments, including 150 markets across 33 countries. Instead of high initial costs, the white label broker pays the prime brokerage a monthly fee for the white label solutions that they offer in addition to the use of their servers. In addition, there may also be a small set-up fee for the installation and configuration of the trading platform that the white label broker uses. In this way you avoid the high initial set-up costs and can get access to a platform and start attracting traders without having to buy your own platform or set up one from scratch.

How do white label solutions help businesses?

White label branding requires the brand to have an established following before implementation. The strategy relies on a brand’s reputation to carry the sales of another product, so its market clout will play a significant role in the strategy’s success. Brands will be better prepared to expand their market share through white label branding because they’ll be able to produce a large number of products at a lower price.

cons of White Label brokers

A white label in Forex is an affiliate program, according to which a solution and infrastructure provider transfers it on a paid basis to the founder of a new brokerage company. FX daily trading volumes have surpassed the mark of $7 billion, while https://www.xcritical.com/blog/white-label-broker-in-forex-what-is-it-and-how-to-start/ the overall market’s worth is moving towards $3 quadrillion. Unbelievable numbers that open new horizons for both traders and brokerage companies. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

When to Consider White Labeling

This is because the consumer gets an emotional return for collecting and redeeming these points. As such, brand-specific loyalty points can act as a good avenue for gaining in-store sales from price-focused consumers. There is a register of forex companies that ensures the reliability and transparency of operations carried out under the supervision of the regulator, the National Bank of the Republic of Belarus.

  • They have over 12 years of experience, a team of over 250 IT professionals, and have built over 100 partnerships to deliver top-notch services to their customers.
  • For instance, B2Core is the CRM solution of the new generation that manages referral programs up to 30 levels.
  • When new clients join a brokerage firm, IBs get rewards that usually depend on new client activities.
  • If we distinguish the main pros and cons of every model, brokers experience the highest simplicity (no payment providers are needed) and the opportunity to enter the market within the shortest terms.
  • The solution provider could be a developer as well as an agent between the developer and brokers.