The forex brokerage industry offers high-profit potential and opportunities for growth for budding businesses, but the fierce competition and complex nature of this business is a challenge for emerging brokerage firms. When you enter the market as a new forex broker, your potential client base is huge, but converting the leads to prospects and building a loyal client base is not easy. In fact, building and establishing the platform itself is a tedious process which requires a lot of investment in technology. A major breakthrough that happened in this field is the white label provider solutions, which became a go-to option for many aspiring brokers.
However, with several options to consider, choosing the best forex white label provider has become a tough task for new brokers. This article can help you make a choice easier as I will share key factors to consider while choosing a forex white label solution for your brokerage.
What is White Label Forex?
Let’s start by understanding the scope of white label forex solutions and what they have to offer to you as a new broker. Typically, a forex white label solution provides you with the technological infrastructure, including software, trading platform, payment processing systems, CRM solutions and more that you would need for launching your brokerage platform.
The white label provider would be an established broker themselves and will do everything required to complete the initial setup process on your behalf, including liquidity arrangements and website design. You get to launch and run the platform under your brand name while using an existing technology that belongs to the white label provider.
Benefits of White Label Forex
- Cut down the cost of launching and running your brokerage.
- Provides ongoing support and assistance along with technological infrastructure.
- Allows you to customise the platform and highlight your brand name.
- Can reduce the time required for launch and get started within a few weeks.
- Minimise the risk of tech issues as you will be using top-notch technology.
- You get to offer competitive trading conditions by partnering with white label provider.
- You get to fully focus on branding and promotions of the brand.
Key Factors To Consider When Choosing A White Label Forex
1. Reliability and Stability
You will be completely relying on the white label solution for all major processes related to running your online brokerage. Hence, the first thing to consider here is whether the platform is reliable enough and how stable it is. The white label provider must provide a technology-driven and fully functional platform along with a responsive customer support team to address any issues that may arise and provide quick solutions.
There should be no interruptions that spoil the trading experience of users, including technological bugs and long downtime. For this, you need to choose a white label provider that you can trust to handle everything well. You should also check the scalability of the platform as it is relevant for the future when your business grows.
2. User-Friendly Interface
The interface is a key consideration as it will be the point of interaction for your future clients. Hence, you need to ensure the platform comes with an intuitive and user-friendly interface, which can greatly reduce learning time for newbie traders. If the interface gives a tough time to the user, they will not stick around for longer and will look for another platform that meets their requirements.
So, make sure to select a white label platform that stands up to the expectations of your potential client base by offering an easy-to-navigate platform and seamless trading experience. User-friendliness and convenience are key factors that make a platform appealing to the audience, and the ease of usage attracts them.
While choosing your white label provider, you must consider their customisation options. You must be able to make decisions about the appearance and layout of the platform, along with branding. Branding is the most relevant aspect for a new broker, as building your brand name is the first step towards success. Your brand logo, design and anything that shapes your brand’s identity should be highlighted on the platform.
Some white label providers may limit the customisation or even charge more for certain customisations. Hence, you need to check the customizability of the platform being offered and work with a white label provider who agrees with your vision and ideas. This is important to avoid future conflicts arising due to creative differences or terms and conditions.
4. Trading Tools and Features
A trader will only sign up for a platform that offers all the basic to advanced features and tools they would need to carry out the trading process with ease. Tools like pip calculator, forex profit calculator, position size calculator, automate the calculation and others need to be there to complete the toolkit of a modern trader who prefers to automate the calculation process for making quick trading decisions. Otherwise, they will have to spend a lot of time calculating these metrics manually, making them prone to manual errors.
Most trading platforms come with these tools, and you will have to include all the essential tools and features in your platform to compete with other brokers. Choosing a white label platform that can offer advanced charting tools, analytical tools and customisable features along with fast order execution and powerful trading tools will be the best thing you can do to mark a successful beginning to your brokerage business.
Just offering a bunch of tools and features won’t be enough to make the platform attractive. These tools and features must be easy to use and comprehensive for beginners and professionals alike. Your client base will include a diverse group of people, and the trading tools you offer must be able to satisfy everyone in the best possible manner. If your platform can offer the best forex tools for trading, it gives you an edge and client acquisition will become a lot easier.
5. Connectivity and Liquidity
Another key factor to consider while choosing a white label platform is connectivity and liquidity, which play an important role in the trading experience of your clients. A platform that offers a wide range of trading instruments and market access with favourable conditions and fast order execution will be able to attain and retain more clients easily. Hence, you need to look for a white label provider that fits these criteria well, allowing you to offer competitive pricing.
You should be able to connect with top-tier liquidity providers to offer solid trading conditions, and the mode of order execution is equally important. These days, traders have a preference for ‘No Dealing Desk Intervention’, and ECN brokers have become a popular option due to their cost-effectiveness. You need to do some research on this aspect and then make an informed choice.
6. Regulatory Compliance
Legal formalities and licensing processes are another complex procedure new brokers must complete before launch. Being regulated is important to win the trust of your clients, but beyond that, you can feel at ease that you are operating within the legal boundaries. Most traders prefer to trade with a regulated broker, and your regulatory status can make or break the deal as a new broker.
When you choose a regulated white label provider, they can help you with the formalities, and you will meet the same standards they follow for retaining their licence. There will be differences in regulations based on the jurisdiction you choose to operate, but you need to conform to the industry standards to emerge as a reliable and secure broker for your clients.
7. Mobile compatibility
Mobile trading has become very popular over the past few years as smartphones have become suitable for trading with advanced capabilities. Traders often look for brokers who provide mobile trading apps for on-the-go trading, and you need to ensure mobile compatibility with the platform while choosing a white label provider for your brokerage.
Modern traders look for convenience, and many of them are unable to sit in front of their desktops due to busy schedules. They will still want to trade from anywhere and anytime through their tablet or smartphones. So, partnering up with a white label provider that has dedicated trading apps is important to meet such requirements.
With that, we have completed the list of key factors that you need to consider while choosing a Forex white label platform for your brokerage business. There is no doubt in the fact that white label solutions are a feasible option for many new brokers as they get to kickstart their business with the support of an expert. But one has to prepare for facing the cut-throat competition. Doing enough research and solid business plans are essential to succeed in any business.
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