Those who trade in the fast-paced forex market surely get a handful of opportunities to make a profit from favourable currency price fluctuations. However, when the market situation is unfavourable, they encounter losses as well. But those who act as the intermediary between the traders and the market by functioning as a forex broker get to generate revenue in any type of market situation. Hence, starting a forex brokerage can be a considerable business ideal for anyone with entrepreneurial skills and an interest in forex. The challenging endeavour has been made easy by the services offered by forex white label providers.
But how can you find the best forex white label provider to start your forex business? You will get all the details you need by the end of this article to begin your own forex brokerage.
What is the purpose of white label forex?
The purpose of white label forex can be understood if we look at the services offered by a forex white label provider. A forex white label provider is an established forex broker ready to share their technological infrastructure or software solution with a relatively new business entity to let them enter the forex brokerage industry without a huge capital investment in the first place. They make setting up a brand new forex brokerage much easier and quicker for a beginner. All the complicated processes related to running a brokerage platform will become the responsibility of the forex white label provider.
From finding liquidity providers to legal procedures, website design to platform launch, CRM solutions, payment processing, customer care and even promotional planning, you can think of the Forex white label provider as a solid support system that a new broker can rely on to start off their journey without the struggle that comes while taking the traditional route. Becoming an independent forex broker is not a beginner-friendly approach in the forex market due to the cut-throat competition which you have to face for survival.
But when you have a trusted top broker as your forex white label provider, your chances of success go up, and the business risk is greatly reduced. The burden of cost that comes with the initial setup and ongoing expenses are also cut down, making the forex brokerage business plan much more possible for a beginner. A forex white label provider will also act as your guide and mentor, as many white label packages also include training programs. You also benefit from their expertise and experience in the brokerage industry, which gives you a competitive edge that is hard to attain when you start out on your own.
What are the benefits of white label forex?
- Opportunity to start with less capital – As we mentioned earlier, forex white label packages are always made cheaper to make it an attractive alternative for newcomers who are unable to find enough funds or resources to build a brokerage platform from scratch. Hence, we can state that the opportunity to start with less capital is a key benefit you get by opting for a forex white label solution.
- Faster and hassle-free setup process – For those who get into the brokerage business by themselves, the initial setup process will be time-consuming and complex, demanding a lot of effort. But white label packages allow you to launch your website quickly as you are just using the platform of your chosen forex white label provider, modified with some customisations, and it will be running under your brand name. Thus, the 2nd benefit of a white label solution is a faster and hassle-free setup process.
- Superior technology – A technology-driven and sophisticated broker platform is hard to build and maintain when you are a newbie. You may not have enough knowledge about the technical procedures, and hiring a team of experts will also add up to the cost, not to mention the test runs and bug fixes that a new website needs to ensure a seamless user experience.
But all of these issues will be solved by the Forex white label package as the top broker you chose as your Forex white label provider will be using superior technology and software solutions and the same will be passed on to your future clients once you launch your broker platform.
Read Also: How to Obtain a Forex Brokerage License in Different Countries
What is the price of white label forex?
This is a tough question to answer, as different forex white label providers have different pricing policies for white label packages. Also, the cost tends to go up based on the scope of their services as well as the additional customisations you ask for. Generally, the price range will be $ 7,000 to $20,000 for most white label packages. But you need to ensure you have enough funds as there is an initial capital requirement and a working capital to be used for all the expenses in an online business.
The task of platform maintenance will be entrusted to the white label provider, but there will be a price for the service as well. You should not forget about the marketing activities needed for a successful beginning and the promotional activities that need to be extended to build and expand your client base as a brand-new broker. You can plan things cost-effectively, but make sure you have enough funds to cover all the expenses since generating revenue as a new brand will take some time.
Things to consider when choosing Forex white label provider
- Affordability – when it comes to forex white label providers, you will see quite a few options to choose from, but you need to compare the costs to pick the most affordable package for yourself. Make sure you are only spending a lot on the white label solution itself, as you need to save some money for future operations and promotions. So, always look for cost-effective brokers who can provide quality services within your budget.
- The reputation of the provider – Being associated with a reputed and regulated broker gives you a sense of safety and that way, you can ensure a safe trade experience for your clients as well. Hence, you need to look for a reliable broker as your white label provider and don’t forget to check the feedback and reviews of their clients before signing up for the white label solution.
- Customisation and branding – You need to ensure they will be flexible about customisation and branding before making a final decision. You will work with the white label provider as a team to customise and brand your platform. Hence, you should always discuss these things in advance to avoid any conflict in future.
- Platform functionality – Most forex white label providers offer the MT4 and MT5 trading software packages as a part of the white label solution. These two are the most preferred forex trading platforms, and they are also the best ones when it comes to functionality and trading experience. So, make sure your white label provider also offers the MT4 and MT5 platforms for trading.
What features should the platform provider have?
- Features to satisfy different types of traders – As a forex broker, your potential client base comprises people from all over the world and will have different needs and requirements. Hence, you need to make sure the platform can satisfy and serve all types of traders by providing different account types, including ECN, STP and even Islamic accounts, so that even clients of the Islamic faith can trade without violating any religious laws. Adding multiple accounts and features will help attract new clients and build a loyal client base within a short span of time. Along with that, a broker should offer different trading tools to allow traders to find important values related to their trades. For example, if a trader wants to calculate the appropriate margin required to place a certain trade, he/she can use a margin calculator. Similarly, a pip calculator can be used to calculate the pips in different currencies to clearly understand the profits or losses. There are more calculators available that can make trading significantly easier.
- Brand identity – Brand identity is comprised of anything and everything that adds uniqueness to your platform, making it stand out from the rest of the brokerage platforms. It is everything that helps your clients to recognise your brand while scrolling through similar websites. Your brand name, logo, design, and colour should be on the platform. You need to make the branding as appealing as possible to broaden your possibilities and capture new opportunities.
- Security and functionality – The platform needs to be safe and secure in all situations. This is essential to win the trust of your clients as a new broker. The platform’s functionality is not something you can compromise with, and you need to keep bringing new updates to satisfy your clients in the best possible manner.
Wrap Up
Choosing the right forex white label provider allows you to focus solely on the marketing and promotional activities of a new broker. In contrast, an expert broker carries out every other task on your behalf. This is the fastest and most convenient method to mark a successful beginning to your journey in the forex world as a broker. So, make sure you make the most out of it by choosing the right white label solution.
