Forex brokers provide a trading platform and other brokerage services for traders. The forex broker is self-employed, but they have to obey the rules that are set within the industry. It is a company that monitors and advises investors on current conditions in the forex market including conversion rates. A White Label Forex Broker is also known as a retail or currency trading forex broker. It has full control over the trading. Forex brokers allow their clients to trade through electronic platforms and computer applications. They can very easily make updates and changes in the trading platform.
Becoming a Forex white label provider is a practical first step in the financial services industry. It is very easy to set up a white label platform to run your Forex business quickly. The FX white labels should become brokers to take your business to the next level.
1. Regulation: Getting licensed is the first step to become a fx white label broker. Therefore, to do this, you will need to register with the regulator. In this certification process, it is important to complete an application pack which will require all the financial and nonfinancial information about your firm and even of the members using it. Also, you need to submit an authorization fee that fluctuates between £1,500 and £2,500.
2. Broker’s control: Brokers have more control over the forex business than the white label provider. White label provider cannot update and change platform as they are restricted by your broker partners. On the other hand, the brokers have the complete freedom to change and update the platform. In case of White label providers clients are crying out for a new feature, but you’re not in a position to add it. But in case of brokers, the clients have full control over their platform and can make any changes and updates if they deem it to be necessary.
3. Setup: There is little scope for customization as there is minimal setup involved in a white label platform. They offer their clients with a limited number of instruments as in case of White label providers. Since, they do not have a choice of the liquidity provider. On the other hand, the brokers can have a fully branded trading platform. And this platform can be set up within few days. Brokers offer their clients with a full range of financial instruments. It includes Forex, CFDs, commodities, equities and indices. Moreover, brokers can also choose from a selection of liquidity providers and have full control over which risk strategy they employ.
4. Broker’s revenues: The average white label provider loses as much as 50% of their profits to their broker partner whereas a broker gets to keep 100% of their profits.
5. Sales and marketing: White label providers have to work very hard to attract clients. However, brokers attain more profit, so they attract and retain a large number of clients. White label providers have to drive traffic from the trading platform and have to convert this traffic into clients. Hence, after this, they can generate as much income as possible from these clients. In the initial steps, brokers have to work equally as hard as white label providers. However, brokers retain greater profits than white label providers, so their return on investment from sales and marketing activities is much greater and hence can retain more clients.
6. Trading conditions: White label providers have pretty little control over the trading conditions. On the other hand, broker partner governs what fees you have to charge your client. They also govern the type and variety of platform features you can offer your clients. They have full control over their trading platforms. They offer their clients with a wide variety of platform features. They also decide on the spreads or the leverage options. This is the key selling points of our xStation trading platform.
7. Future growth: As a white label provider, the opportunities for future growth are limited. Updating or improving any aspect of your Forex business is governed by your broker partner’s capabilities and ambitions. For brokers, the opportunities are limitless as they can govern and have full control over the trading. There are no barriers to the growth of their Forex business in case of brokers. Brokers can generate and earn extra income by setting up their own white label partners.