What is a forex White Label?
A full license to purchase your own forex platform is very costly and unless you have the operations to support it, then it is common practice to connect through a forex white label program of another provider (usually a forex broker or a prime broker) and market it as your own, with certain conditions.
This enables you to start your own forex brokerage operations, market your very own forex brand and access banking, technical and technological support for a fraction of the huge cost required to do this on your own.
Important note: look into your banking structures and any regulatory obstacles before you move ahead with any deals.
Part of what brokers provide with their forex White Label solutions are:
- Trading Platforms, Affiliate Software, CRM and in many cases a website (if the broker thinks it’s worth it)
- Low one-off cost, with average monthly technical support fees (in most cases you only pay the cost of the platform provider so check if there are any mark-ups on these costs)
- Access to their pool of instruments (make sure the instruments your clients trade are part of this pool)
- Access to deep liquidity (in some cases you get access to tier 1 bank liquidity)
- Market spreads from 0.0 pips (depending on the broker)
- Enhanced execution of orders (even on large scale although you need to meet monthly volume criteria)
- Bridge to LP (some offer this free of charge and some not so make sure you look into this)
- Support with Sales – Training your sales team
- Competitive revenue plans
Should you go for a forex White Label?
Depending on the development of your operations, maybe a forex White Label is not the immediate answer to your next steps. Like always, at allFX-Consult we tend to look into compromises that keep costs low but at the same time promote growth and reach milestones that will eventually lead to a predetermined target.
From another article we wrote on obtaining an offshore forex license
“Failing to work within a short term frame that’s part of a larger one, ensures stagnation and lack of growth. In 2-5 years, you will be exactly where you first started…”
Let’s take the case of a forex IB looking into expanding – If the number of new clients introduced and monthly deposits are not constant (or fall lower than average), maybe there are more important issues to fix before adding fixed monthly costs and attempt to operate on a larger scale through a forex White Label.
Looking into the income funnel line, we might identify weaknesses in our online/offline client acquisition, weaknesses in the product we offer to our target countries (audience), sales underperformance or language barriers, issues with our trading conditions, bad execution from our partner broker, failing reputation of our partner broker, shifts in our trader’s demands for conditions not allowed by the partner broker and much, much more.
So although it’s understandable that every networker in the industry wants to start a forex brokerage, it’s crucial to ask the right questions and give the right answers (not wishful thinking) prior to going ahead with a new arrangement, like a forex White Label.
What does a forex White Label cost?
No broker will publicise their cost (for the obvious reason of fierce competition) but the pricing ranges between $5k-$12k one-off cost for getting the platform(s), and no less than $3k monthly, for support.
These numbers are not set in stone, because of the large number of providers, the number of products they might provide within their solution and of course the different terms they require prior to partnering up with anyone.
So it also really depends a lot on the size of your forex operations as well – in many product setups allFX-Consult was consulting on, we advised our clients (forex brokers) to give a $5k worth of platform for free, by adding certain liquidity terms into their forex white label solution. And by taking this simple (but costly) step, we would gain smaller/average networks of $50k-$100k.
How allFX-Consult can step into this picture:
As our worldwide client base increases, Forex IB and White Label plans emerge that allow networkers to work with some of the best professionals the industry has to offer.
- Newly established forex brokerages with strong finance background and solid funding, offering very flexible terms to support their new ventures.
- Well established investment firms offering partnerships for tied agents, regional partners and more complex structures.
Start a Forex Brokerage by:
With clients in Belize, Seychelles, the Caymans, Martial Islands and St. Vincent offering the most flexible IB and White Label solutions.
Connecting in the EU:
With clients in 15 out of the 28 member states offering strong partnerships to individuals and corporations with existing client base, looking to connect.
allFX-Consult always has a counterpart/partner for any corporate structure. But before we connect anyone, we thoroughly examine all possibilities.
We’re chosen for being discreet, detail oriented and deadline driven.
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