There are many terms used in Forex trading, and a better understanding makes one more effective. If you are interested in starting your own forex broker, then you may have come across terms like IB, White Label and Gray Label.
These terms are on everyone's lips. But what is it? If you are not familiar with these terms, performing operations will not be as efficient.
So what is a Gray Label?
See if you are trying to open your forex broker in Singapore or Africa, then you may have considered independent platforms, but they are too expensive. There are technology tools such as platforms, liquidity providers, trading platforms, payment modes, spreads, and more that are bundled into pre-designed software.
Gray Label is an option for new start-up forex brokers or binary brokers who do not want to invest huge amounts of money in using expensive technology software like White Label. The process is simple: you get a Gray Label license from the provider WhiteLabelsFX, which allows you to provide brokerage services to your clients, but you cannot use your brand, which includes name, logo, address details, company name, etc. The cost of the gray label server license is $ 3000.
This is software provided by White Label MT4 / MT5 providers where you can work with your clients using your server and you have to pay a flat fee to the technology provider for using this software. It is also called "White Label provider" - the idea is simple - if you do not have that much financial strength to perform all the startup operations when starting a forex business, you enter into a partnership with a White Label provider, which will provide you mean in the form of a server and software.
Later you can go to White Label or Main Label. Many forex trainers in India, Singapore or Africa are also suggesting the same path, as many brokers have switched to the main label along the same path. Options provided to Gray Label users include customizing customer leverage, stop-out level, margin cell level, margin symbol contract size, and more.
Gray Label is preferred over IB. That is, an introducing broker that is based only on a commission relationship with the main broker. You follow the main broker's rules and deal with clients.
Whereas White Label allows you to take full advantage of MT4 / MT5 software with your brand and name that makes your customers recognize you and it seems that this software belongs to your firm and company.
The difference between the three is only the degree of control. If you have some experience in the forex business and are fully involved in it, then moving to Gray Label is the preferred option due to its extremely cost-effective setup and the amount of control it provides. And it's only a matter of time before you become fully effective in the business, you can indicate your name using the White Label, and earn more.