White label partners also benefit from economies of scale, as the forex broker can spread the cost of technology and infrastructure across multiple partners. The white label company is responsible for acquiring and maintaining clients, while the larger broker handles the back-end operations. The white label company earns revenue from the spreads and commissions charged to their clients. The larger broker may also earn revenue from the partnership by charging fees for the use of their platform and services. The White Label program is suitable for companies with a strong market position or entrepreneurs with a strong marketing plan who want to become forex brokers and operate in their niche on the market or well-known region. To be recognized as a White label partner, you need to have a significant client base and generate reasonable trading volumes.
Tickmill’s white label solution grants brokers the flexibility to customize the platform according to their clients’ needs. Supported by cutting-edge trading technology, Tickmill is an excellent choice for any broker seeking an all-inclusive solution for their forex trading needs. Now that we’ve established that a WL forex solution is a sure way to go, the million-dollar question is – How much does a White Label Trading platform cost? If you’re looking to open your own forex brokerage, you’ll need to finance properly. For example, if you’re looking for Forex broker turnkey solutions including all the stages, including creating the company from the ground up, you’re looking at a heavy chunk of change. If you’re going for a solution that includes trading platform access and technology, prices will reduce significantly.
Of course, utilizing all of the services we listed above is going to come at a higher price. The white label provider (original brokerage) will provide the trading platform, often with customization options so the third party (new brokerage) can apply its branding, logo, and design elements. This includes the essential backend processes such as customer support, payment processing, and compliance. Depending on the arrangement, the original brokerage might handle these tasks, or the new brokerage might take them on.
Trade with a Regulated Broker
Interactive Brokers (IBKR) provides a valuable opportunity to brokers and professional advisors with its white branding program, where they can establish their brand identity while utilizing powerful tools and resources. They can customize the Trader Workstation (TWS) platform, one of the best trading platforms, Client Portal, registration system, statements, portfolio analyst, and other tools with their logos, company names, and contact information. The white branding program enables brokers and professional advisors to market their businesses and establish a strong brand identity using the IBKR platform.
- Get the most profitable fully licensed fx/crypto brokerage software or ready-to-operate business in 48 hours.
- In the worst cases, a lack of technical support can mean that the broker will face fines and bankruptcy.
- However, besides dreaming of the money you could be making, you should first and foremost be aware that the forex brokerage business is not a walk in the playground or a lazy sail on calm waters.
- 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.
- The example above contains a complete diversification for the base currencies of customer groups, according to margin accounts based on the same base currencies.
Think of a white label product as a blank canvas, straight from the manufacturer. The “rawest” version of a product, a version that allows companies to have custom-made specifically for them to make their own and resell.How does a white label solution work when it comes to the brokerage industry? Remember that long list of things we mentioned before that you’ll need to consider when opening your own brokerage? Well, a Forex White Label solution solves all those problems for starting brokerages by providing your business with the already-established fundamentals as a “bundle” package.
Efficiency behind White Label Solutions for Brokers
If you have a brokerage that is just starting, white labelling can provide you with the resources and support that you need until our business is self-sufficient to handle everything. MetaTrader 4 and MetaTrader 5 are two of the best trading platforms for brokerages. The technology may be perfect, but every broker will occasionally need some technical support.
For instance, the EUR/USD pair is purchased by a trader who wants to trade euros on US dollars. The trader sells the pair to close the trade which is equivalent to the purchase of U.S. dollars with euros. If the currency rate is higher when the trader closes the trade, the trader makes a profit. Given the unique advantages and disadvantages of full and partial white label solutions, it is crucial that your Forex company chooses the right one. After you complete our short form, we’ll first discuss with you your objectives and ideas; then, recommend the best solution – the one that will give your branded FX business the best chance to succeed. In addition to overcoming the challenge of setting up credit card processing or alternative funding solutions for their traders, full white labels will also have to overcome the additional hurdle of getting clients to trust a relatively new company with their money.
Best White Label Forex Brokers for 2023
For instance, some companies suggest turnkey Forex broker solutions, and this service includes all the stages, starting with a company creating. The budget issue is entirely individual and should be discussed with a company you’ve fixed on. It may be hard to imagine, but many top-rated forex brokerage firms initially started best forex white label solutions as white labels. The reason is very simple, and it lies within the fact that when starting a forex brokerage from the ground up, it can be a very complex venture that involves a lot of financial, legal, and technical complications. This monthly fee typically covers the basic infrastructure, software, and technical support.
FX daily trading volumes have surpassed the mark of $7 billion, while the overall market’s worth is moving towards $3 quadrillion. Unbelievable numbers that open new horizons for both traders and brokerage companies. The traditional scheme of brokerage with the use of a single margin account, based on the most popular clients’ base currency. This scheme works with small volatility risks on basic fiat currencies, but has a huge volatility risk with crypto and exotic currencies.
The competition level is high enough; this said excellent products functioning appropriately should be sent to the market only. The process required high-end promotion to attract traders’ attention to your product. In addition to providing access to the financial markets, a Forex broker can offer other asset classes, including indices, metals, and energies. To add value to clients, many Forex brokers offer client-focused services such as tutorials, bonuses, contests, and investment services like Copy Trading, PAMM/MAM, Liquidity, and IB Modules.
Whether it’s education, helpful tools, or anything else that your clients will appreciate, focus on offering your customers value. For a more specific list of high-probability candidates, you can access the this section of our website. In our “IB Guide,” we also provide a detailed list of businesses that are well-positioned to succeed in the IB space. 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. Beginner business owners cut their costs, as they leverage the White Label trading platform, facing no necessity to purchase the product.
Moreover, and besides being able to accept payments online you will also need a merchant account in which these funds will be deposited. But banks consider forex brokerage a risky business, so they might not easily grant you the opening of such an account or they may charge you disproportionally high processing fees. Obviously, the first advantage of going with the partial solution and not accepting deposits is simplicity, peace of mind, and speed in terms of entering the market and getting going. If you go with this option and only have to deal with branding the platform and creating your corporate image under which you will be marketing your services as a WL brokerage, this means you could be up and running in a matter of a few days. Which scenario you will adopt depends on your situation and the objectives you set to achieve.
Advisors can easily access white branding through the Advisor portal and configure the settings to fit their needs. Interactive Brokers offers comprehensive instructions on how to set up white branding on their website, as well as a dedicated team available for further information about the program. The IBKR white branding process usually takes no more than two hours, except for statements, which may take up to 24 hours.