quality brokers. However, it is challenging for new forex brokers to break through in the market. A trading platform is an important tool provided by forex brokers that makes trading possible, and developing and offering a stable trading platform is a challenging process and it is where the new brokers struggle the most. Generally, there are two ways to go about this.
You can either build your platform or purchase a custom solution. Well-established forex brokers prefer building their own websites and technology with integrated trading platforms because they have the resources and expertise.
However, new startups and medium-sized brokers can not keep up with the heavy cost that is required to build the infrastructure. This is why they lean on white-label Forex platforms. But what are they? And how do white-label providers help brokers establish themselves in the market? Let’s understand all that in this article.
Defining White-label Trading Platforms
Forex brokers provide a platform for traders to carry out trading in a seamless way. It is a medium that connects traders to the forex market, providing them with all the necessary tools to interpret the market, perform analysis, and execute trades. Not only should it be fast, but it should also be user-friendly.
Building a brokerage business from scratch now requires a big budget and more staff to take care of. Being new in the market and with a lack of resources, startups find this to be less effective. Hence, they look for an alternative: a white-label trading platform.
Companies that offer white-label FX platform solutions provide new brokers with ready-made technology solutions that are already doing well in the market and the white-label providers are top brokers who let new brokers use their platforms. What makes white-label trading platforms preferable among new brokers is that you can add these platforms under your brand’s name, after customising it to your requirements and specifications.
For example, you can change its interface, designing it in a way that matches your brand’s voice and theme. There are two benefits of doing this: you save costs and maintain your brand’s reputation.
White-label FX Solution and Its Benefits
If you’re choosing a white-label FX solution, here’s how you can benefit from it.
1) Save money:
Since you are already using an existing platform, you can save your money. Otherwise, you would have to pay for multiple costs, including hiring staff and development costs. Moreover, you will have to pay for integrating trading platforms like MT4 and/or MT5 because these are the most popular platforms used by most traders to trade currencies and CFDs.
2) You can launch your brokerage quickly:
Choosing a white-label Forex platform saves you the time that would you have to put into building a new full-fledged platform. You can use this saved time to onboard clients quickly as white-label FX solutions can speed up your launch and you can go live within weeks.
3) Customization:
Many forex business owners have a misconception that they would not be able to represent their brand because of white-label solutions. However, this does not happen. On the contrary, a white-label forex provider helps you showcase your brand better in front of clients. You only use the services provided by the white-label trading provider. So after customising it, you can show them as your own.
4) Customer support:
Currency trading platforms require backend technical processes to manage and operate. This means you need more staff and a team to take care of. White-label trading platforms do not let you worry about all that. From technical glitches to addressing customer queries, they offer a customer support team, so both you and your clients can use the provided platform without any hindrance.
How and to What Extent Can a White Label Provider Help Forex Brokers?
Whether you are a new or well-established broker, white-label trading platform services are open to all types of brokers.
1) New start-up owners:
If you have just started in the market and do not have enough finances to have your own platform, you can choose a white-label forex trading service. Providers will provide all the services, so you get steady ground as a new broker in the market.
2) Brokers who want to scale:
Some brokers want to reach more customers; they want to offer new services. For example, if you want to provide trading facilities like interest-free trading for Muslim traders, you can pick a white-label trading platform that offers Islamic accounts and meets other criteria. Once you implement this feature, your customers will be able to trade without any swap fees on overnight positions.
3) Brokers that want to have a backup FX platform:
A trading platform requires maintenance and regular updates. A glitch is a common occurrence. However, this should hamper your customer’s trading. Brokers can use white-label trading platform services to add a backup platform. Thus, whenever they go offline, fixing their current trading platform, there is another trading platform ready to ensure clients have an interrupted trading experience.
Selecting the Appropriate White-Label FX Platform Supplier
You will find many white-label forex providers that provide platforms. Because of that, you will find yourself confused about which white-label solution to choose. So, how do you choose? There are multiple factors that you need to pay attention to when choosing a platform provider.
Start with what you want in a provider. Do you want a provider that only provides you with the core functionalities of a platform that makes trading possible? If you want additional services and customization, then you need to talk about them with your provider because more services will lead to more costs.
After deciding on the customization package, the provider’s team will integrate a white-label trading platform into your portal. From the interface to themes, you can customise the platform as you see fit for your brand’s name. The cost of the white-label service will vary as it will be charged based on your service. Set-up costs are charged once, but you have to pay as a monthly subscription for the platform’s services.
How can a white label go wrong?
While the white-label trading platform provides you with an integrated solution for your business needs, it has some limitations. For example, customization is limited. So you should assess what customization options you get on a white label platform. In the long run, you could face scalability problems. Thus, it is always a good idea to either have a backup trading platform or invest in your platform as your business grows with time.
Conclusion
White-label trading platform providers offer a modern solution that caters to the needs of forex brokerages. Without having to invest large sums of money in building their FX platform, new forex business owners can launch their own brokerage and provide the best-in-all services to their clients.
