Building up a business or online platform from nothing is not an easy task for sure. The initial cost of setting up a forex trading platform or brokerage would be a lot for someone entirely new to the forex world.
Hence, entrepreneurs often need more time to explore business opportunities in the forex brokerage industry. That is why we have some established and reputed forex brokers extending a helping hand to those eager to join the forex space to become online forex brokers.
And this helping hand is referred to as a white-label forex solution. So, today we will evaluate the pros and cons of this business idea as you will get to know everything about white-label forex solutions.
What Services Do You Get While Opting for a White Label Forex Solution
Before we evaluate the pros and cons of a white-label forex solution, we need to understand what exactly you get while opting for such a solution in the first place. Setting up a forex white label is like a shortcut that makes entry into the forex market space a lot easier as a broker.
Starting from scratch would call for many complex processes, large amounts of finances, legal formalities, technical solutions, and more. But a white-label forex brokerage can get started without dealing with all these complexities.
A reputed and well-known forex broker will be there to supply you with all the essential resources, including a trading platform, marketing advice, and more. And you get to create your brand name with offerings of another forex broker by paying the initial setup fees and monthly platform maintenance fee.
These costs will be much less than what you incur when you do it alone. We can compare it to a lease agreement, where the lessee gets the right to use the property owned by someone else.
The only exception is that you can present it as your establishment when you opt for a complete white-label forex solution. And your clients will never get to know that they are using a white-label forex platform.
Another interesting fact is that some of the popular forex brokers ruling the industry have entered the forex space as white-label forex brokers. They used these resources from primary brokers to create a name for themselves and then took it to the next level to become a fully independent forex broker with their platform and resources.
The essence of this business idea is focusing on innovative work rather than just hard work. But like anything else, even white-label forex solutions have advantages and disadvantages.
Benefits of Becoming a White Label Forex Broker
1) Cost Effectiveness: Cost-effectiveness means that you will get the best outcome and positive results compared to the cost incurred while setting up a white-label forex brokerage. This is less than the capital needed to start as an independent forex broker.
2) Expert Advice and Guidance: This is one of the most important aspects to consider while starting out as a white-label forex broker. You will do your business under a trusted primary broker who will help you with everything. Some forex brokers also include training programs as a part of their white-label forex solution.
That will be like following the footsteps of an expert as they are already running a fully functional forex broker platform. You will use the same tech solutions the primary broker uses, and the technical difficulties will be fine.
3) Flexible: You can establish a platform as per your preference if you find a primary broker happy to assist you. That includes building a unique brand image that would attract traders to your forex platform, which is the first step towards building a loyal customer base.
4) Ease of Operation: The best thing about a white-label forex platform is that it is always designed as user-friendly and attracts traders with its simple layout and ease of navigation. The users will get a seamless trading experience crucial for expanding your client base.
5) Secure and Reliable: Your Primary broker will ensure that the white-label forex platform has the same level of security and reliability as an independent forex trading platform. They are developed using advanced programming languages and guarantee secured transactions for everyone.
6) Faster and Hassle-free: Getting started as an independent forex broker is time-consuming and requires much effort. But becoming a white-label forex broker requires minimal effort on your part.
7) Smooth Onboarding: You don’t need to worry about installations or other technical processes since that is not needed for a white-label forex solution. Hence the process will be pretty smooth, and some primary brokers provide a quick setup where you can get started within weeks.
Drawbacks of White Label Forex Solution
1) Limited Customization: You will get a new band name and logo, but further customizations will add up to the cost.
2) It Takes Time to Establish a New Brand Name: This hurdle you must overcome, even if you start as a fully independent forex broker. Traders do have a preference for well-known brand names when it comes to choosing a forex broker.
Therefore, it will take time for a new forex broker to build their brand name and attract traders to their platform. But this is optional to worry about if you have a good marketing idea.
As you can see, the pros of starting as a white-label forex broker outnumber the cons or drawbacks. You get to focus only on the commercial aspect of the forex brokerage business as the primary broker will take care of all other aspects.
It is needless to mention that a white-label forex solution is smoother, faster, and an affordable alternative to young entrepreneurs who are interested in being a part of the world’s largest trading market as a white-label forex broker.