White labelling is a simple practice. One company purchases the right to use another company’s product as if it were their own. For example, a washing powder manufacturer sells his goods to Supermarket A and Supermarket B. It’s the same product but each supermarket packages it differently to match their other products on their shelves. The customer is none the wiser.
Regarding the Forex market, white labelling is used for trading software, CRM’s, back office solutions and other systems that a broker chooses to offer. As the title of this article suggests, white labelling is becoming increasingly popular because brokerages are realising huge benefits.
Utilising white label services saves new brokerages from wasting money on turnkey solutions that might not necessarily be better than the white label MT4 programme that traders around the world already know and trust today.
There are other advantages to using white label services too. It takes a significantly less amount of time to get to market. White-label platforms and systems are tested, optimised and ready to use straight out of the box. They often require no technical expertise to run and require no maintenance, which means little downtime for your brokerage.
Marketing and acquiring new customers becomes straightforward and cost-effective. Thousands of traders are using the white label MT4 platform, and if your brokerage offers this popular software, it is just one less thing for a potential customer to worry about.
There is one crucial aspect of using a white label platform which is often overlooked. Buying into and using existing services usually means you have access to a more extensive support network. Take Popcorn Technology, for example. They have a dedicated start-up support team who can guide a new brokerage to help them achieve their goals, and they can assist with other aspects of running a brokerage like branding, building a website and media content also.
When building a brokerage from the ground up, you are literally going at it alone. Another advantage of working with Popcorn Technology is benefiting from their relationships with other financial institutions. They have favourable terms with payment and liquidity providers that a new start-up might not necessarily have access. Additionally, you can tap into their established affiliate network. It all means that you immediately have an advantage over the competition.
As you may have realised, white labelling is not the only way to run a brokerage. Of course, if you have a large amount of capital and time to invest in your start-up, then a turnkey solution may be the best way forward for you. However, if you are on a tighter budget and have little money to invest in infrastructure or to hire a team of professionals, running a brokerage alone is an almost impossible task.
The forex industry is exceptionally complicated and fast-paced, and it can’t help to lean on an experienced company who specialise in the industry. If you can navigate away from some of the more common pitfalls that trip up most start-up brokerages, then you have a much better possibility of succeeding.