Introducing Broker vs White Label. The best way to make money on forex!
Both of these options offer the main broker the opportunity to increase the number of their clients and increase their income in a short time and with less effort.
Attracting new customers is one of the most difficult tasks after opening a brokerage company. There are many ways this can be achieved with marketing tools, such as advertising, e-mail marketing, search engine optimization (SEO), participating in trade shows and other lead generation tools. Also, a Forex broker can increase its income by working with Introducing Brokers and White Label brokers. Both of these options offer the main broker the opportunity to increase the number of their clients and increase their income in a short time and with less effort.
The role of IB is to attract customers for the main broker, entering into partnerships with successful traders, money managers, investment advisors, website owners, generating high traffic visitors.
The goal is to recommend the services of a broker and, in turn, receive remuneration for new customers who have been attracted. This can be a fixed income or a percentage of the trading volume that new customers will do with a broker (IB).
Attracting customers can be carried out in several ways, for example, through banner advertising on the website of the introducing broker or through a marketing campaign by e-mail, advertising special offers that the main broker may have. Usually IB gets a unique link, which the broker uses to identify the source of new customers, as well as access to advertising materials to begin targeting potential customers.
If subsequently a trader opens a trading account with a broker using a special link, IB will be rewarded in accordance with the terms of cooperation. In general, working as an introducing broker is a good starting point in the world of brokerage services, and many IBs are successful.
The White Label program differs from IB in that it gives you the opportunity to open your own forex company and have your own brand, and not direct clients to the broker. In essence, White Label is the leasing of the trading platform of the main broker and the provision of services on behalf of your company.
The White Label broker receives a complete solution, including a trading platform and back office support, as well as the opportunity to work under its own brand. Since the White Label broker earns from the trading volume of its clients, it functions similarly to the usual brokerage companies.
Unlike buying an expensive trading platform on your own, White Label is a much cheaper way to start a brokerage business. In addition, the Forex solutions provider can often help in many matters: from providing the latest technologies, legal advice, creating a website and developing marketing channels. Another advantage includes the quick launch of an online broker with regular support, avoiding the cost of setting up and operating a full-featured business model that requires a license. White Label broker gains practical experience in business, managing his own independent broker, working with his own clients. For a broker, this is an effective way to diversify the revenue stream through licensing revenues.
White Label brokers conduct their business on a completely different scale than IB. Brokerage service White Label is a complete operational installation with its own risk management, payment system (PSP), customer support, etc. White Label agreements can take many forms - from simple rental of a trading platform and back office support to a full-fledged enterprise with own brand.
Introducing Broker or White Label - Which is Better for You?
Introducing brokers and White Labels are very similar in that the key objective is to attract new customers who will trade on the platform of the main broker.
In both cases, the higher the trading volume on the platform, the higher the income of the main broker, and accordingly the income of IB or White Label. The main difference between these two models is the volume of functions and the degree of autonomy. While the introducing broker acts as an intermediary between the main broker and the traders, White Label is a full-fledged company with greater independence and control over its customers.
If you plan to become a major player in the Forex market, IB is not an ideal model, since you, in fact, are an agent of an existing business, not having the opportunity to develop your brand and brokerage infrastructure. Also, do not forget that brokers can hide real data and pay their IB less than they should.
Thus, the advantage of the White Label program became apparent. Income and compensation models are also much more flexible in White Label organization, depending on the details of your partnership agreement. In general, you get access to the entire spectrum of technologies and support without the need to open a brokerage company yourself.
In general, opening a White Label is a popular option for doing business, as it is a quick and easy way to enter the Forex brokerage market. Of course, the opening price of the White Label is higher than IB, but business revenue is also higher.
Reason to be reckoned with
As we have noticed, at first the model of the introducing broker may seem simpler than the White Label. However, White Label brokers can establish themselves as the main force in the market and even consider becoming an independent broker in 1-2 years.
For this, choosing a reliable technology provider is one way to ensure the success of your business in the future.
WhiteLabelsFX is a leading provider of White Label solutions offering MT4 / MT5 trading platforms that are sought by most Forex brokers and other players in the financial industry, including cryptocurrency brokers, prime brokers, liquidity providers, hedge funds, banks and HFT & prop- trading companies. WhiteLabelsFX White Label solutions allow brokers to choose from a variety of options, including:
- trading platforms MT4 / MT5
- MT4 web platform
- Mobile and tablet versions of applications for MT4 / MT5
- setting up trading groups for your type of account
- setting up trading instruments and commissions for them
- single margin account for group accounts STP
- MT management terminal accounts
- automatic daily HTML report with all parameters configured in accordance with personal requirements
- Forex, CFD and crypto liquidity with a wide range of trading instruments
- ready-made integrations: multi-level IB solution, single-level IB solution, PAMM / social trading platform, My Account, payment gateway and cryptocurrency payment gateway
- White Label is provided on our MT4 / MT5 servers
- management and maintenance of all equipment, infrastructure and software in data centers without third parties
Our solution for MT4 / MT5 White Label also allows brokers to quickly create a client database of professional traders who prefer high execution speed and advanced technologies in trading. All services work through the API; high execution speed and absolute security are provided. WhiteLabelsFX does not use any extensions or unlicensed applications on its trading servers.
If you want to make yourself known in the Forex industry and gain a competitive advantage, the White Label solution from a reliable supplier is definitely the way forward. WhiteLabelsFX has rich experience in the industry and is able to ensure the success of your business, while offering your customers the widest range of financial instruments and trading.
Make WhiteLabelsFX your partner and get the first-class White Label solution, which will allow you to benefit from the huge potential income in the Forex market.