When it comes to retail Forex, the software that most currency traders use and prefer is Metatrader 4, a.k.a., MT4. The Metatrader platform, developed by the Russian company MetaQuotes, has been in existence since 2003 and has gone through various version changes, including MetaTrader 3 in 2003, MetaTrader 4 in 2005 and MetaTrader 5 in 2010. Despite its most recent release, MT5 continues to be much less popular than MT4 and most brokers today use MT4 instead of MT5. The information on this website is of a general nature only and does not consider your goals, financial situation or needs.
If you are a brand new white label company without extensive banking history, a merchant account might be a bit of a challenge to open and the processing fees you’ll likely incur will be higher than normal. Given the fact that most brokers nowadays tend to absorb the credit card fees on client deposits anyway, this will become an added cost for your business initially if you do the same. What is more, an IB partnership may be just the practice you need to master the necessary skills fx white label solution and amass the hands-on experience in order to be able to move on to the next level and set up your own white label forex brokerage. If you are good at earning clients for others, then you will most probably be good at getting them for yourself as well. Which scenario you will adopt depends on your situation and the objectives you set to achieve. However, to be able to take a wise decision, it is best if you carefully consider the pros and cons of each of the two options.
- The first challenge is the one already touched upon and has to do with earning the trust of customers and convincing them to deposit money with a new, unknown, fresh brand.
- The thing is that, like in any business, certain organizations and individuals will have a better edge as white label providers.
- 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. - Even if you do secure adequate funds and possess or amass the necessary knowledge and expertise, however, these two elements alone are not enough to turn you into a successful white label forex broker.
- This is natural because a white-label solution makes it easier to enter the market and once a brand is established, it can then further consolidate its position and undertake all steps in the process.
A failure to heed to this advice is one of the main reasons white label organizations eventually fail. That’s what I’ve discovered in over a decade of helping referral businesses succeed in the foreign exchange market. The truth is that unless you can already generate a huge number of financial or Forex related leads, running a bare-bones business in foreign exchange without providing attractive incentives or value-added services to your clients is equivalent to committing financial suicide. However you decide to structure your white label business, make sure that you first think carefully about all of the expenses you will likely incur prior to getting started, then handle your budget intelligently to give your business a better chance to succeed over the long run.
In a white label partnership, the white label partner provides the technology and infrastructure necessary to run a forex brokerage. This includes the trading platform, back-office systems, risk management tools, and support services. The broker’s role is to attract clients to the platform and provide them with customer support. In terms of the necessary funds to start out, remember that there are no freebies or cheap solutions, as these will reflect on your actual offering and thus render it unattractive. Bear in mind that traders are knowledgeable and demanding and you should be able to meet their demands if you are to gain them as clients. And in order to be able to keep funding all these needs, you will need to be attracting enough trading volume to keep the wheels turning.
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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. It is true that some clients, especially those opening larger accounts, will fund mainly via wire transfer, which require no special system or technology to process them. Clients with smaller accounts, on the other hand, normally prefer funding via credit card, since from a percentage basis, credit card fees will be relatively lower than wire fees for smaller deposits. Make sure that you work with a brokerage firm that offers account safety, good execution quality, and plenty of flexibility. Trading derivatives and leveraged products carries a high level of risk, including the risk of losing substantially more than your initial investment. Before making any decisions in relation to a financial product, you should obtain and read our Disclosure Statement (DS) and other legal documents available on our website and seek independent advice if necessary.
If the image of your white label organization (consisting of logos, website, etc.) is not optimized, you run the risk of turning customers off and losing business. In a regular sense, white-label is a popular format of a partnership where one company produces goods or services, and another one sells them under its brand. Since timing in business is crucial, it would be wise for you to heed the above advice and wait for the right moment to start your own brokerage brand. I’ll just accept deposits directly from my customers then.” The problem is that accepting deposits comes with its unique set of challenges too. Please be advised, services and products described on this site and offered by Tradeview Ltd. (TRADEVIEW) are not being offered within the United States and not being offered to U.S. residents or citizens, as defined under applicable law. In case you are not ready to meet all the requirements needed to start a White Label Business we can offer you to earn with us using our Affiliate program.
This article will provide an in-depth guide on how to apply forex white label. Of course, getting hold of your part of the MT4 platform comes with a fee, both in the form of an initial upfront payment as well as a recurrent monthly installment, since all licensed brokers need to pay this fee to MetaQuotes for every white label they sublicense. It is not possible to name exactly the height of these fees, firstly because they do change over time and secondly because they depend on the kind of agreement you will strike with your white-label solution provider. However, since the trading platform is at the core of the operation of a forex brokerage, there is no room for experiments and unnecessary risks. Pay to get the best platform so that you ensure reliability and work hard and smart to customize and rebrand it to make you stand out and be able to attract customers.
Fully Branded White Label Solution
Here the forex broker himself is a counterparty for his clients and executes client trades at real quotes received from banks and liquidity providers. Here the broker is an intermediary, and he conducts client transactions though a prime broker or a liquidity provider. As a result, the broker turns a profit by levying his customers commissions or by increasing the spread. There are no conflicts of interests, because the broker earns money whether a trader has taken profit or not. As we mentioned earlier, most organizations that want to become white labels in order to run their own brokerage firms are not very qualified to do so.
This allows the broker to offer a full suite of trading services to its clients, including forex, CFDs, and other derivatives. If your clients deposit their money with the brokerage firm you work with (instead of with your firm directly), they’re going to find out who the real broker behind the platform is (even though the platform is stamped with your logo and company name). When it’s time to send the money to fund their trading accounts, they’re going to know. This may not be a big deal if you already have a strong, established brand in another complementary market (e.g., financial blogs, gambling sites, etc.) and simply want to extend that brand to FX without dealing with the additional hassles of processing deposits. However, if your objective is to appear as a full-blown broker and not let your customers know who the actual brokerage firm behind the platform is, this arrangement becomes very disadvantageous.
If they live in the United States, you will also fall under the aforementioned NFA/CFTC umbrella. Consequently, if you opt for the typically wiser solution of establishing your FX business outside of the US, you will need to forgo US-based clients altogether. A White Label partnership means building up your own business in Forex under a personal brand.
Become White Label Broker – Starting a Forex Brokerage Guide
ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates. No matter your experience level, download our free trading guides and develop your skills. Simply fill out our IB form and provide us with some information so we can get you onto the next step. 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.
If you plan on having a physical location to meet or train clients, you need to factor in office leasing costs, occupational/licensing fees, security expenses, etc. Depending on your geographical location, this can add a few thousand dollars a month to your list of business expenses. I have local real estate company in Thailand and was deeply involved in local community. As my communication with local people could brought me additional revenue I decided to become Regional representative for PaxForex. I started negotiation with PaxForex and received confirmation that I’m able to be Regional Representative. PaxForex world famous broker and it was really easy for me to sell brokerage services that supported with excellent reputation.