The payment system introducing brokers use is similar to that of affiliates, but the way earnings are calculated usually varies. The commission of the IB is usually formed of both the spreads paid by the broker and a certain sum by the client. Therefore, the percentage for each of these components may not be the same due to factors determined by the broker’s overall conditions.

After that, they can earn the IB title after introducing at least 5 active clients. White label products are manufactured by a third party, not the company that sells it, or necessarily even markets it. The advantage is that a single company does not have to go through the entire process of creating and selling a product.

• Forex Broker – A forex broker is an entity that is legally allowed to do facilitate the forex traders and do trading on their behalf, upon the promise of the certain commission amount.
• In this article, we will highlight the main differences between using traditional partnership programs and White Labelling.
• All of that, without the enormous hassle involved in opening a brokerage firm by yourself.
• Leverate’s LXLite white label package allows new brokers to hit the ground running with instant CySEC regulation, and with no need to open a bank account and set up PSPs, as the broker can use ours.

A challenge that new forex brokerages face is to form a partnership with a reputable and financially sound white label technology provider. Similar to selecting a liquidity provider, it is important to carefully evaluate the firm you ultimately decide to partner with before launching the business. There are many ways to initiate customer interest and generate leads for your forex brokerage. Some of these ways include affiliation, affiliate networks, email marketing, social media marketing, and more.

Sales Support

Several compelling reasons for traders to become brokers include access to new clients, more revenue, better trading alternatives, lower trading expenses, and improved support. At the same time, firms gain from the more customers brought in by IBs and the lower costs of giving these brokers discounts. Overall, IBs are crucial to the trading sector and provide traders and firms with valuable services. White Labels differ from introducing brokers and regular affiliates in that they do not reveal who they are affiliates of. Technically, they are a business of their own who want to provide brokerage services under their own brand. This type of contract between the broker and the affiliate is also different in that white labels have a lot more customisable solutions that they can tailor to their business.

In the worst cases, a lack of technical support can mean that the broker will face fines and bankruptcy. White label solutions provide start-ups with the top-rated technical support that they need without hiring support staff, which is cost-effective and ensures high quality of service. New brokerages that choose white label packages receive a key to a comprehensive and feasible business solution for a monthly/annual fee.

If you are interested in exploring some alternatives to MT4 or MT5, we are happy to show you some options to evaluate. You don’t have to worry about dealing with complicated regulations, building your own trading platform, or finding banking partners. Moreover, you won’t be scratching your head over coding or software configurations. You sign up with a primary broker who offers a white-label solution, and they take care of all the technical mumbo jumbo for you. You will get the same trading platforms that they offer, so in case the broker offers MT4 and MT5, then you can offer the same platforms to your clients. Some primary brokers offer lightning-fast onboarding, where you can go from signing up to trading within just a few weeks.

This helps to establish a framework for customer support services and assists with their initial launch. With white label solutions, brokers pay monthly or annual subscriptions which are a fraction of the cost of licenses. When an individual or group decides to start a forex broker from scratch, they will be required to purchase a significant number of licenses such as trading platform and liquidity bridge licenses, amongst several others. Each piece of software may not cost that much, but it can add up to large sums.

With Quadcode, you can add a personal touch to your traderoom, choosing a logo, color scheme, and trading tools to make your brand stand out. Depending on the country, there could be strict regulations and rules that the brokers should abide by. Thus, the brokers have to make wise decisions in choosing their white-label provider and remembering the jurisdiction aligned with it. All the above-described models have their own pros and cons, depending on the goals and objectives of white-label brokers. In terms of the scope of IB obligations in general, their task is to solve all the clients’ issues to make the trading process exceptionally easy for them.

With this program, you may utilize the product with your identity while keeping all the rights with the original creator, unlike purchasing or renting. In fact, in some cases, some are not even aware that the broker they are using is White Label. Experienced brokers can benefit from full access to the configuration of the bridge. They should be able to adjust markups, routing and control trades execution. It adds to the flexibility and helps brokers stay in full control of their operations.

All of that, without the enormous hassle involved in opening a brokerage firm by yourself. The white label broker also does not facilitate trading orders – all execution is made by the primary broker. But other than that, white label brands function best forex white label solutions like any other broker, and they call the shots regarding their trading conditions, spreads and commissions, and business structure. At the most basic level, IBs are practically like marketing agencies which recruit traders to their broker partners.

Best White Label Brokerage Providers

Also, the White Label Brokerage firms make their profits as per the trading volume they obtain from their traders. The terms and conditions between the White Label Firm and the traders are independent of the primary brokers and the operations are autonomous in case of white label brokerage. White label technology is an indispensable component to any new forex brokerage; without a software platform for your clients to trade with, there is no realistic way to grow a forex brokerage business.

White Label MetaTrader 4

The bank’s white-label offering is known as Saxo Markets, which provides a turnkey solution for businesses looking to offer trading and investment services under their brand. Currently, they serve over 120 banks and brokers and 300+ financial intermediaries. Attracting brand-new clientele is one of the most challenging jobs when starting a brokerage firm. It may be accomplished using marketing techniques, including ads, email marketing, search engine optimization, taking part in trade shows, and other lead-generating methods.

The ideal WL platform supplier will provide all the above services and more, all at a feasible cost for your brand. The immediate benefit of using white label solutions to set up a brokerage is cost. Although there are costs involved, they’re lower than they would be if you created a custom product. There are no capital requirements because liquidity is provided by the white label provider.