WHITE LABEL. MultiBank Group offers a full white label technology package for institutional customers who require their own proprietary trading system, branded in their corporate name, which allows them to become fully independent brokers that offer forex, metals and CFDs What exactly is forex white labeling? A forex white label solution is the best suited solution for individuals or companies with little or no experience in the field wanting to become forex brokers and create their own brands in the forex industry, through which to offer retail trading services 2/18/ · The establishment of the company must have at least 6 months. After registration you will become a Forex broker with a license. Taking into account the high costs of creation and, later, the maintenance of the company, this option is suitable for large Category: Forex Company Registration
HOW TO BECOME A FOREX BROKER | White Label Forex Broker
The trading of currencies can be traced back into antiquity, but though historic it does not show any signs of fatigue. On the contrary, and especially after the onset of the internet and the boom in online retail forex brokers, that have given the chance to literally anyone across the globe to set up an account and start trading, the foreign exchange market experiences a healthy growth year on year, it reaches record levels of transaction volumes, while it becomes popular across demographics, with more women and youngsters assuming the role of forex traders than ever before.
And as those ready, willing and able to trade forex increase, correspondingly so are those who enter the market on the providers side, i. A highly lucrative market that holds the promise of significant financial gains is usually the main rationale in the mind of those who seek to enter this market and set up a forex brokerage and to reading this you probably are one of them.
However, besides dreaming of the money you could be making, you should first and foremost be aware that the forex brokerage business is not a walk in the playground or a lazy sail on calm waters. Rather, it is an endeavor that should be undertaken with caution, following a phase of careful forward planning. Moreover, with the regulatory authorities across the globe becoming stricter and more demanding in an attempt to protect traders, as well as combat fraud, money laundering etc.
Finally, building a forex brokerage from scratch entails a significant necessary investment in terms of financial and development costs, as well as in time and effort. The difficulty and complexity of setting up become white label forex broker retail forex brokerage from scratch, has led many key players in the industry to offer white label forex brokerage solutionswhich many aspiring new entrants to the market turn to in order to overcome the numerous entry barriers that may inhibit them to enter this lucrative market.
The foreign exchange market is the most actively traded market in the world. Setting up a Forex brokerage business from scratch is an endeavor to which you will need to devote time and effort and of course a significant amount of start-up capital.
The process is pretty linear and can be roughly broken down into the following essential steps:. In order to effectively attract clients, you will need to have a pretty accurate idea of who your target market is and what characteristics they share. As forex trading is a business governed by different regulatory obligations in each jurisdiction, it is important to be able to define the location of your target customers, in order to decide which is the best jurisdiction for you to register your forex brokerage in.
Make sure you identify the several jurisdictions available and compare their requirements and overall approach towards brokers under their authority in order to be able to determine which licensing requirements you can fulfil and which setting best serves your own goals and aspirations become white label forex broker an aspiring market participant. The amount of capital you will need to set up a forex brokerage firm from scratch is largely determined by the rules applied in the jurisdiction you chose to register under.
However, on top of regulatory requirements in terms of capital sufficiency, you will also need to count in the costs of setting up and running the business per se, costs for technology, salaries etc. and ensure you have enough money to cover all the initial expenses comfortably, at least those you anticipate to incur during the first year of operation, giving you enough time to develop your customer base and establish your presence in the market.
The importance of the liquidity provider for any forex brokerage cannot be stressed enough, but it is beyond the scope to analyze it further here. It suffices to stress that connecting with a Forex liquidity provider that has direct market access to all Tier 1 forex liquidity venues, is a must. Payment service become white label forex broker are another essential component of your endeavor to set up a forex brokerage at it is through their own services that you will be able to execute all payments and become white label forex broker different deposit and withdrawal methods for your clients to choose from.
This is an aspect to which potential customers pay particular attention, so you need to ensure that your payments solution provider is honest and reliable, allowing you to effectively compete in the market. Another point to keep in mind is that if you are going to include cryptocurrencies in your offering of tradable assets, then it would also make sense to integrate a cryptocurrency payment gateway that will enable you to send and receive crypto payments online.
This is the most crucial step in the process and the one that will take the longer to complete, since it entails the set up and design of the website through which your brokerage will operate, deciding on and incorporating the trading platform you will use and identifying the array of additional features and services you will also want to include in your offering. Moreover, during this stage you will need to hire your staff, including people to handle IT matters, compliance issues, financial aspects, sales and customer support.
The two final phases are also critical for your overall success. Once you are all set up and ready to launch, it is imperative to dedicate enough time and effort to pilot test all your systems and technical aspects, become white label forex broker, including the trading platform, mobile applications and payment systems. This testing, pre-launch phase will allow for problems to emerge before you start taking on real customers, giving become white label forex broker the opportunity to make any necessary adjustments, improvements and remedies.
Once this step is completed and you also have your marketing campaign set up, then you are ready to launch your site. This is a valid question to which the answer is pretty straightforward. Become white label forex broker should choose the option of white labelling instead of setting up your own forex brokerage from scratch, because it is faster and easier.
Especially if you are a new entrant to the forex market, the landscape is so fiercely competitive and the entry barriers so high, that you stand little chance of succeeding without the backing and collaboration of a reliable, expert, established provider, become white label forex broker, who will offer you the white label solution, either partially or as a full, turnkey solution package.
In a nutshell then, to avoid all the headaches and troubles associated with setting up a forex brokerage on your own, from start to end, you can rent a part of the server from any company that offers such service, or in other words to start a White Label company or WL in exchange for a monthly fee plus a small set-up fee. A forex white label solution is the best suited solution for individuals or companies with little or no experience in the field wanting to become forex brokers and create their own brands in the forex industry, through which to offer retail trading services.
This arrangement comes with many advantages, but also with some disadvantages, as will be discussed below. Not many know or realize is that even several current top-tier forex brokers, have actually started out as white labels and gradually built their way towards the completely independent operation of their firms.
This is natural because a white label solution makes it easier to enter the market and once a brand is established, become white label forex broker, it can then further consolidate its position and undertake all steps in the process. In fact, running a white label brokerage does not differ much from running a regular forex brokerage.
You will still have a website through which to offer your services, you will be using a trading platform and you will be able to set your own spreads and commissions.
And exactly because as a white label you will be earning income from each trade placed by your clients, the higher the trading volume you attract, the higher your revenue will become white label forex broker. Your actual white label partnership agreement will contain provisions setting out the revenue and compensation model applied in your case, and most white label providers adopt a quite flexible approach on this matter, offering a variety of options for you to choose from.
The most obvious advantage of adopting a white label solution for your forex brokerage is that it almost obliterates entry barriers to the market, become white label forex broker. It removes the challenge, complexity, excessive cost and risk of purchasing or building your own platform and the entire retail trading operation necessities, thus giving you a fast track entry into your online business become white label forex broker. You can have the same proposition offered to potential customers as your white label service provider, become white label forex broker, but under your own brand!
Besides being able to start at a much lower cost, what is also great about white labeling is that it takes away the headache of having to deal hands on with all the technical aspects of a brokerage, the trading platform configuration, and trade dealing specifics, become white label forex broker. Ideally, all these should be dealt with by your white label service provider, who will be in a position to offer you extensive and continuous support, including back office support, end-of-day reports and other requirements, be they trading-related or administrative.
Ease of maintenance will mean peace of mind for you, and your white label provider should be ready to supply you with anything you might need, especially if you partner up with a provider become white label forex broker offers a true forex turnkey solution, that covers all aspects, become white label forex broker.
Another advantage is that you will gain the hands-on experience of the industry that you will need if your ultimate aim is to grow your customer base to that extend that it will make more sense for you to get your own platform and achieve economies of scale.
On the downside, resorting to a white label solution provider lessens your independence and room to maneuver, become white label forex broker, as it also makes you dependent on your solution provider, who is also the owner or the platform through which your brokerage operates.
Further information or help regarding The Pros and Cons of Starting a Forex Brokerage as a White Label can be found in our published article with the title Why and how to become a White Label Broker. If you are interested in becoming a white label forex broker then you have two become white label forex broker options in order to do so, namely to resort to a partial white label partnership or a full one. To put it simply, under a full white label forex solution partnership you get both the trading platform that you can brand, and the ability to directly accept deposits from your trader clients, while under the partial solution scenario you forego the ability to take such customer deposits directly and this is then handled by the primary broker, i.
the licensed solution provider. In essence what this means therefore is that a partial solution is easier to operate on your part, but takes away your liberty to actually work with your own clients, since account management functions such as deposits and withdrawals are undertaken by the provider and not you. What you also forego is ensuring the anonymity of your clients, since their deposits and withdrawals will be handled by another party and not you.
If you go for a full white label forex brokerage solution, then that anonymity is safeguarded, plus since your forex site will be fully branded with your own company name and logo, traders may never know who the real owner of the platform you are using actually is.
As expected, a partial solution comes with a lower fee, though the difference is not sizeable, while there are also differences in pricing in terms of full white label solutions as well, with full turnkey brokerage solutions usually having a higher price tag as they literally have you covered for all your needs. Under all scenarios however, the same fees apply in terms of platform customization and platform rebranding, while the same functionality options are available.
We have already established that under a full white label brokerage solution your customers would be funding their accounts directly with you, i. you will be taking their deposits, while under the partial white label solution this will be done through the primary broker who is sub-licensing their software to you.
Which scenario you will adopt depends on your situation and the objectives become white label forex broker set to achieve. However, to be able to take a wise decision, it is best if you carefully consider the pros and cons of each of the two become white label forex broker. Obviously, the first advantage of going with the partial solution and not accept deposits is simplicity, become white label forex broker, peace of mind and speed in terms of entering the market and getting going.
If you go with this option and only have to deal with branding the platform and creating your corporate image under which you will be marketing your services as a WL brokerage, this means you could be up and running in a matter of a few days. Another advantage is that many of your potential customers may feel safer to deposit funds with a regulated, long-established firm in the forex market, which we assume your forex solution provider will be, become white label forex broker, rather than with an unknown, new entrant, which your own private label brand will be.
On the other hand, the partial white label option and not taking deposits ruins the anonymity factor all around. Your customer data and details are not entirely between them and you, but the licensed, primary broker gets full access to all such information. Even worse, your customers, whom you lured under your own private label brokerage, will suddenly know that there is actually another company behind you, that you are depending on others to operate, and may loose confidence and see you as a mere façade.
If your long term goal is consolidating your position in the market and you aspire to grow and become white label forex broker a truly independent brokerage one day, then it is perhaps wiser to protect your brand and leave the solution provider anonymous in the eyes of your own customers.
To achieve this, you have to go for the full white label solution and accept customer deposits. The problem with this proposition however, become white label forex broker, is that accepting deposits directly from customer is not easy, in fact it is particularly challenging.
The first challenge is the one already touched upon and has to do with earning the trust of customers and convincing them to deposit money with a new, unknown, fresh brand. This is not easy and to have any chance in overcoming this hurdle, you need to ensure that you make available as many different deposit and withdrawal methods as possible. This also necessary because different clients prefer different methods.
For example, small retail traders will most probably prefer to use a credit card or electronic wallet, while more professional or institutional clients, become white label forex broker, who fund their accounts with larger amounts, are likely to fund their accounts through wire transfers.
To be able to accept deposits then, you will need to have in place the apparatus through which to process them, that will be secure and reliable. Moreover, and besides being able to accept payments online you will also need a merchant account in which these funds will be deposited. But banks consider forex brokerage a risky business, so they might not easily grant you the opening of such an account or they may charge you disproportionally high processing fees.
Another fact that further increases the cost on your side, is the common practice among brokerages to absorb the credit card fees incurred from client deposits, and if you want to be competitive you should do so too, but this will mean you will have to foot a bigger bill. Offering additional and alternative payment options such as PayPal, Skrill or Neteller is also essential and it is also equally challenging. Both because again the fees charged are sometimes even higher than those charged for credit cards and also because such online payment systems also consider the forex business risky and require you to go through a long and strict process of due diligence before they accept you as a new merchant.
Clearly then, the decision to accept deposits or not, in other words whether you will go for a partial or a full white label brokerage solution, depends entirely on how ready you are to jump into the deep and where exactly it is that you are aiming to arrive, well and obviously how good a swimmer you are!
Become white label forex broker difference in cost is not necessarily a good or a bad thing, it is a plain fact. Other than this difference however, the other costs of running a white label forex brokerage are pretty much the same, under both options They are made up of the original set up fee and the fees for the rebranding of the platform and marketing it under your own brand name and logo, as well as management expenses for the platform.
Besides these costs, running a white label forex brokerage entails the same costs as any other business, for example renting a space, if you decide you will not only offer services online, and paying the operational expenses of such a physical location, become white label forex broker. It is good if you do have an office, become white label forex broker, where you will be able to meet clients or prospective clients, or maybe offer training and seminars to either traders or collaborators.
Having a brick and mortar location will add prestige to your brand, but it will obviously increase the costs. Another potentially significant type of cost is the cost of hiring and maintaining the right staff that will help you excel.
What roles they will be performing and how many they will be will depend on how you will choose to structure your business and which model of operation you will choose to adopt. As you venture out into the wilderness that is the online retail forex landscape and as you try to build your own customer base for your brand, it is obvious that you will not only aim to attract people who have never traded before but also existing traders who would be ready to abandon their broker and open an account with you instead.
Luckily, the forex industry has an industry standard when it comes to trading platforms. A platform that is reliable, proven, trusted, enjoying huge popularity among traders ever since its initial launch more than 15 years ago.
And since such a platform exists, become white label forex broker would be stupid to go become white label forex broker any other option, especially little known, obscure, proprietary platforms that might be offered to you at very low prices or even for free!
Resorting to one of those would be like shooting yourself on the foot, since it would make the burden of attracting customers double, getting them to trust you as a new brand and also trusting the unfamiliar, new, untested platform that you will be offering.
The steeper learning curve associated with an unknown, new platform is a sure put off for potential customers and will surely increase their reluctance and hesitation to become your clients, become white label forex broker.
Although in become white label forex broker same company went on to launch the Metatrader 5 platform, the MT4 still remains the most popular and widely used forex trading platform and it has managed to gain the vote of confidence of the hordes of traders and brokers alike, who consistently choose it as their preferred trading venue. The MT4 puts at the disposal of brokers an abundance of historical data, become white label forex broker, ample free demos and guides, free charts and charting tools as well as algorithmic trading through the use of so-called robots or expert advisors, which in turn they can offer to their trader clients, thus greatly enhancing their trading experience.
Due to its dominant position in the market and the fact that it has been around for so long, both brokers and traders feel confident, secure and at ease when trading in the MT4 environment and are familiar with its numerous additional features. Of course, getting hold of your part of the MT4 platform comes with a fee, both in the form of an initial upfront payment as well as a recurrent monthly installment, since all licensed brokers need to pay this fee to MetaQuotes for every white label they sub license.
How to start your own forex brokerage - Sanfrix: FX Turnkey Solutions
, time: 4:13Become White Label Broker – Starting a Forex Brokerage Guide
2/18/ · The establishment of the company must have at least 6 months. After registration you will become a Forex broker with a license. Taking into account the high costs of creation and, later, the maintenance of the company, this option is suitable for large Category: Forex Company Registration WHITE LABEL. MultiBank Group offers a full white label technology package for institutional customers who require their own proprietary trading system, branded in their corporate name, which allows them to become fully independent brokers that offer forex, metals and CFDs What exactly is forex white labeling? A forex white label solution is the best suited solution for individuals or companies with little or no experience in the field wanting to become forex brokers and create their own brands in the forex industry, through which to offer retail trading services
No comments:
Post a Comment