Introducing Brokers vs White Label: Which option is the best one?

First, let’s define the meaning of white-label in common usage, and then in the Forex context.

Not only that, IBs also accept complaints and questions regarding the trading conditions of the broker. 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.

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. A new generation of professional software that helps brokers and exchanges manage their customers, admins and IB-partners in one place. The concept of white labeling comes with numerous considerations, both positive and negative.

They use mid-market rates for their currencies, which means you get a fair rate compared to other providers. It also allows you to see upfront what your payment will cost and avoid any surprises. You don’t need to deal with renting servers, going deeper into trade dealing specifics, trading platform configurations and other technical things. All of these things will be done by the company providing you with a WL.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. What a white label affiliation can do that other partnership programs cannot, is it allows an affiliate to create their own label. They can sell goods or services from their own website and benefit from all the traffic that comes with it.

If there are technical problems or if new solutions need to be implemented, the white-label broker appeals to the white-label provider. We will provide you with the best industry WL solution so you can start your brokerage quickly and cost-effectively. Today, the White Label model is used in many areas of business, offering a turnkey product that helps save time, money, and effort for the client.

• Many aspiring brokers are curious about trading platforms – how one configures them, how prospective traders are connected to an online trader’s room, setting up the payment system, and much more.
• On the subject of CRM solutions or investment platforms, these technologies are designed by primary brokers themselves.
• These companies offer traders all the things that the platform it uses has to offer.
• In this case, taking a ready-made or White Label solution and focusing on promoting it is easier and more profitable.
• Creating a product from scratch is not an easy thing to do, especially if you are limited both in time and finances.
• Some brokers will give their affiliated IB a unique link to track new clients and access a particular area, allowing the IB to download promotional materials to start targeting clients.

In this case, brokers will work with the same amount of capital as their clients, without risking volatility for each currency. All this requires substantial time as well as human and technical resources, which can prove expensive. In a partial White Label model, the tech provider delivers a service to the trading firm but does not provide regulatory registration. The full White Label model provides trading firms with regulatory registration, a platform, and stable quote systems (such as online quotes for gold, foreign exchange, crude oil, indices, and stocks) and market channels. As for the software, it also provides training in departments such as back-office, customer service, and market development, as well as the daily workflows of regular traders.

One is co-branding, which means that the companies receive a special domain and the logo from the partners. The second one is called partial White Label Forex broker, which means that the company receives a distinct domain, a fully designed website, as well as a trading platform. Misano Payments offers transparent pricing, with no hidden fees and competitive exchange rates.

In addition to reducing your costs, white label solutions allow you to get started in weeks rather than months as the foundations have already been laid. IX Prime is a provider that has liquidity within the forex and CFD trading sectors. That means white label brokers get instant access to 300+ instruments, LD4 hosting servers and real-time price data. White label partners also get access to analytics, order and management tools, and a dedicated account manager. This means a White Label Broker can focus on the activities that generate revenue and make profits such as branding, marketing, sales, and client service.

On top of that, your primary broker is also in charge of reporting, and all other administrative and regulatory procedures. At this point, it makes sense to look at dynamic leverage, switch between A-book and B-book, and Volume Consolidation between different Liquidity Providers. All of these features will maximize brokers’ profitability if used wisely. They also represent a high risk, so we only recommend them for professional brokers. It’s important for the platform to have a variety of plugins and applications compatible with it.

More sophisticated IBs will create their own marketing campaigns for the broker and also manage sales and retention for him. At the most basic level, IBs are practically like marketing agencies which recruit traders to their broker partners. They help the traders with opening an account at the broker’s platform, and the traders’ deposits go directly to the broker’s side. IBs usually take their commissions from the broker as a fixed return per referred user. In both cases, the more trading volume you have running through the platform, the higher the revenue of the broker, and as a result – the profit you will make. So the most important part of your business model would be to attract traders and keep them trading in your system.

Brokers who are the first to offer innovative solutions to common pains quickly rise to market leaders. At TFB, we offer custom development solutions, so if you have any ideas, we would be happy to help you bring it to life. Just like we said before, the bridge is one of the key components for brokerages. In the beginning, many brokers opt-out for a bridge configuration that is included in their White Label partner offering.

Some brokers will give their affiliated IB a unique link to track new clients and access a particular area, allowing the IB to download promotional materials to start targeting clients. When a client opens a trading account with the broker via the IB’s reference link, the IB will be rewarded according to the agreement or contract. Now that you know what the White Label model is and how it works, it’s time to understand how to start your own White Label brokerage business. There are no guarantees that the platform and the White Label model as a whole will actually bring profit. First of all, it must be convenient for traders and fit the technical conditions of the broker. There is no guarantee that the platform will really turn out to be interesting for the broker’s clients.