Everyone knows about the trading opportunities that are present in the global currency market which is the largest financial market with the most liquid trading instruments. However, not many people are exploring entrepreneurial opportunities in the forex trading industry. One lucrative business idea that you can implement in the forex world is launching a forex brokerage. Being a broker in the rapidly growing forex market can be very rewarding as all traders need a reliable broker by their side. However, the complexity and high capital requirement of this business can become an obstacle for an aspiring broker.
Still, “where there is a will, there’s a way” and the way that I suggest here is a forex white label solution that allows you to set up your forex brokerage in the easiest way possible. In this blog, you will learn about white label forex brokerage solutions and how you can benefit from them as a beginner.
Understanding Forex White Label
Let’s start by understanding what a Forex white label solution is and how it works. When you try to launch your business as an independent broker, you will have to build a trading platform and IT infrastructure from scratch by teaming up with software developers. Apart from the platform and business website, there are a lot of things that you have to take care of, for functioning as a licensed broker in the forex market. Making sure that your clients get solid trading conditions by connecting with liquidity providers and facilitating fast execution of the orders they place along with a secure payment environment and CRM solutions is important to win their trust.
Doing all these on your own will require a huge amount of money, resources, and time and to utilise all these in an efficient manner, you must have enough expertise and experience.
Forex white label solutions help you to skip all the complicated procedures and start your business real quick by using ready-made software infrastructure. A top broker will let you use the trading platform and offer it to your clients as your own after rebranding. You can also customise the platform to create an identity for your brand. The majority of forex white label packages come with customisable trading platforms and CRM solutions along with a quick setup process that can be completed within a few weeks.
Benefits of White Label Solution
- Advanced technology – When you attempt to build a website or platform from ground zero, there will be a lot of bugs that have to be fixed by conducting test runs. However, offering high-end technology is not easy for a new broker. But when you opt for a white label solution, you won’t have to worry about the technological processes as you will get to offer a tried and tested platform to your clients. White label packages consist of both desktop and mobile app versions of popular trading platforms like MT4 and MT5. MT4 is a good starting point for beginners, whereas the MT5 trading platform has advanced tools and features, offering a superior user experience.
- Cost-Effective – Since white label providers are helping you with turnkey solutions, they charge way less than what it would take to set up a platform on your own. There will be an initial setup cost and ongoing cost that you will pay to the white label provider for platform maintenance and other services that they provide by managing the back-end processes and dedicated support. Even existing brokers can depend on white label solutions for the betterment of their platform as they team up with an expert without spending a lot of money.
- Scalability – Another benefit of white label solutions is scalability which is important to provide quality services even when your client base starts expanding. Otherwise, you will have a hard time meeting the demands of your clients when there is a large number of orders being placed on your platform in future. When you choose a top-tier broker with a growing client base as your white label provider, they will be able to support you in the long run by offering scalable infrastructure allowing your brokerage business to reach its true potential over time.
- Guidance of an Expert – Being a beginner in the brokerage business can be challenging as you are not sure about many things. It takes time to gain knowledge and experience which delays your growth in the competitive space. However, relying on a white label provider can help you to learn things quickly as you will be guided by an expert. Operating under the umbrella of a secured broker surely makes you feel at ease and minimises the risk to a great extent.
Things to Consider while Choosing your White Label Provider
- Reputation and Reviews – The first thing to consider before finalising your white label provider is their reputation and reviews. To make things easier, you can filter your options on the basis of regulatory status and licences. A broker being regulated means that they comply with the industry standards and all their activities are monitored by the regulatory authority to ensure safety. They can help you to complete the legal formalities based on the jurisdiction that you have chosen for your brokerage business. So, do check their regulations and reviews from clients.
- Platforms being offered – You need to check the functionality of the platforms that are being offered by the white label provider by testing them beforehand. You can even open a demo account to see if the trading experience will be good enough to satisfy your future clients. You should also check the type of accounts that you can offer while customising the platform. For instance, if you want to provide swap free trading accounts to Muslim traders, you need to make sure that the white label provider can help you in setting up Sharia-compliant accounts.
- Total cost – Even though white label forex solutions are low-cost alternatives for opening your brokerage business, you need to calculate the total cost charged by a provider before your platform goes live. You should consider different options and make a wise choice after comparing them. Make sure that you have enough capital to not only pay for the initial setup but also for meeting the business-related expenses in future. This includes the cost of marketing and promotional activities. You will have to focus on these to build your brand name and win the trust of customers. Considering the fluctuating exchange rates, especially between the dollar peso, it’s crucial to factor in potential currency conversion costs, which could impact your overall budget and operational expenses in the forex market.
- Support and Training – You should check the training programs that they offer to the white label brokers as you will need onboarding assistance and ongoing support for smooth functioning. Some forex white label providers also offer assistance in marketing which gives you a clear idea about promotional strategies that can work. Make sure they have a dedicated support team to keep in touch and address any queries in time.
Summary
To sum it up, the best thing about opening your forex brokerage with the help of a white label solution is that you can concentrate on branding and promotional activities. Many new brokers struggle to spend enough time and effort into marketing as they are too busy with all the other complex processes which allow you to establish your brand.