White Label Vs Introducing Broker Whats The Difference?

Let’s look at some of the pros and cons of working with a white label Forex broker. Sirix Venture provides a complete suite of back-end tools to help Forex brokers build their business. The package includes the Sirix server, Sirix broker, and Sirix trading platform, which are available for Forex, CFD, and crypto trading on the web, desktop, and mobile. This enables businesses to begin providing brokerage services without requiring considerable capital investment or technological skills.

Your income as a WLB depends on the magnitude of trading done by the traders through your firm. As an IB, you must follow the rules and regulations set by the brokerage firm you’re working with. You need more freedom to decide things on your own when it comes to dealing with traders.

With several businesses on a single server, there will be an increased difficulty in running individual upgrades. There is also a risk that your processes will be affected by a poorly executed upgrade of your neighbours. Technical support is one more important aspect – primary brokers are ready to solve all the troubles and headaches of companies who have integrated WL components. Brokers using WL connections don’t need to run their own trading servers and hire experts to maintain them. On the other hand, full-licensed brokers have to set up their brokerages from the scratch which is not only costly but also time-consuming.

Once you’re up and running with a successful white label, you can start investing in more custom products and solutions that allow you to go it alone. This isn’t the route most people take but it’s certainly possible to use white label solutions as a springboard to a full brokerage. Becoming a white-label forex broker requires minimal effort on your part, so you can hit the ground running in no time.

However, the initial TWS white branding can take up to 48 hours to take effect. Over 20 years of White Label experience providing tailored off-the-shelf and customized solutions, enabling licensed financial institutions to expand their product offerings with full client control. The two most common approaches among newcomers hitting the Forex market are becoming an IB or starting their own Forex white label brand. Both of these choices have excellent earning potential and are highly advised. The key distinctions between these two models are their scope of functionality and degree of autonomy. As for the traders using the White Label companies, it should be noted that not that much changes.

Because of lower transportation costs, the retailer could sell the product for less and still reap a bigger profit margin. We offer a large range of products and services to enhance your business operations. The example above contains one margin account based in US Dollars, and a lot of client groups based in different currencies. In this case, brokers will operate with US dollars only, but their clients have diversified portfolios which drive the broker to take a risk from the volatility of clients’ base currencies. The main aim here is to create a stand-alone self-branded brokerage service, which can be hard to run, especially considering the growing competition in the niche.

Starting a White Label brokerage FAQ

The referral system may become exceptionally hard for managing, and mistakenly paid rewards frequently spoil all the structure. Up-to-date CRM systems tailored to brokerage needs – such software helps business owners manage their referral programs. IBs describe all the services, point out their pros and cons, looking for the best solution right now. Introducing brokers partner with primary ones, aiming to bring new clients. White Label agreements can consider taking several forms from leasing a commercial platform and support from the back office to a complete company with its own brand. In a White-Label agreement, the creator of a technological platform sells it to the user.

  • Although there are many advantages that White Labels have, there also are some things that people should keep in mind.
  • Arranging a payment system is especially tricky for offshore brokers, as these are considered suspicious by many banks and financial organizations.
  • Liquidity Provider is another factor that enables quality price feed and fast execution.

IBKR offers free client relationship management tools, full white branding and custom website creation services, flexible client management, and reliable client onboarding processes. Brokers can also manage user access rights and implement flexible fee structures, automate fee administration, and provide dynamic fee management with electronic invoicing. To dig a bit deeper, the term “white label” refers to the branding, or labeling of forex trading technology. In many cases this technology may be MT4 & MT5 but there are other platforms available as well. In order to properly understand the definition of a forex white label, let’s think about where the name originated from.

IBKR’s white label program particularly benefits Forex brokers who want to expand their offering beyond Forex and into other asset classes, such as equities, futures, and options. With IBKR’s multi-asset platform, brokers can provide their clients with access to a wide range of financial instruments, including 150 markets across 33 countries. As the monthly maintenance fee and other expenses of white-label forex brokers are relatively lower than a full licenced broker, most brokers prefer to have white label licence to start their brokerage. At the same time forex white label brokers do not have to be worried to set up and maintain server with server locations and stay up-to-date at different corners of the globe. Using a White Label platform; this needs will be managed by the technology provider. Starting a brokerage firm requires time, money, and knowledge of the financial markets.

Offer of the month

The white-label provider supplies the MT4 and MT5 server segment, software, mechanism for conducting transactions on the external market, reliable backup system, building of a global access server network, etc. White Label solutions offered by B2Broker are the ideal option to boost your positioning in the financial markets. MetaTrader trading platforms (4th and 5th versions) customized to corporate needs and demands. A White Label best forex white label solutions model differs considerably from Introducing Brokers as this type of service refers to businesses that are ready to pave their independent steps in the Forex market. An IB provides clients with up-to-date information that helps solve existing troubles and is adjusted to traders’ demands. Summing up, the white-label solution can be regarded as a smart way to take the first steps in the world of brokerage without huge costs.

What is a White Label Forex Broker?

The world of forex trading is tumultuous yet fun and most importantly rewarding. And it offers a stupendous return on investment, that’s why it has become so much popular. You can also foray into the world of forex trading as a Forex Broker/ White Label Brokerage/ Introducing Broker or even a Forex Trader. Pheasantech will help you build your own forex broking platform and start your own business as a forex broker, with a thorough consultation and very reasonable costs. Axi is a reputable, well-regulated, and large brokerage that offers white labelling to other financial start-ups.

If deemed ineligible, this will impact the commissions the affiliate can get. Introducing Broker (IB) and White Label (WL) work to bring in new clients who will trade on the Main Broker’s platform. When clients trade more frequently and in larger volumes, it means more profits for the broker. And when the broker makes money, it also means success for the IB or WL partner.

IBs with more expertise will design their marketing strategies and oversee sales and customer retention. It accepts customer applications to execute several stock exchange operations. Following the contract, the expert does not retain customer accounts and does not have the right to obtain tangible values or money to settle the obligation, which is a crucial distinction. There are two major types of white labeling, partial white labeling, and full white labeling.