CFD White Label solutions are in great demand just next to Forex White Label Solutions. Same as Forex pairs; CFDs (Contract for Difference) too are OTC (over the counter) products that are traded in open markets without being under any regulator.
Forex & CFD trading goes hand-in-hand and why not, after Forex Trading got traction, several stock traders started trying it. And when they got hang of it, they thought it would be great to be able to trade derivative instruments with the forex brokers.
Wouldn’t it be wonderful if they could trade forex pairs and derivative instruments with the same broker and same platform?
This gave forex brokers an additional offering to attract stock traders and additional revenue.
CFD trading integration proved to be a win-win for both brokers and traders.
This is what gave birth to CFDs which stand for Contract for Difference. And the market for CFD trading is growing rapidly ever since at almost the same pace as forex trading.
Let’s discuss CFDs in a little more detail.
What is CFD?
CFDs are instruments that buyers and sellers enter into an instrument with a commitment to buy or sell it at a specific price by the specific expiry date of this contract.
As you would have guessed, traders make money when the prices move in their favorable direction.
Since these are leveraged instruments, traders make profits and losses in multiplication to the leverage provided to them by the CFD broker.
If you have been into stock trading, you would have related CFDs to derivatives, and yes! CFDs indeed are derivative instruments.
CFDs are OTC instruments the same as Forex Pairs and probably this is another big reason that most forex brokers offer CFD instruments for trading and CFD brokers offer currency pairs for trading to their clients.
CFD White Label Solutions
CFD White Label Solutions are similar to forex white label solutions that come with a Manager Panel for brokers to open accounts, set spread, commissions, swap charges, etc, place trades on their clients’ behalf, manage deposits, and withdrawals, etc. And a trading terminal with CFD instruments, their live price quotes, charting tools and indicators with different order options for trade execution, etc.
What makes CFD trading a little different than other OTC instruments like Forex pairs is that these CFD instruments as contracts that have expiry date something similar to future and options contacts.
This calls for an arrangement for a rollover and putting new contacts in place that too so seamlessly that traders don’t even notice or face any difficulty.
A good CFD White Label solution specifically takes care of this particular requirement for CFD brokers.
4 Best CFD White Label Solutions for Brokers
Are you planning to start your own CFD Brokerage business with budget constraints? A good CFD White Label Solution from a reliable brokerage solution provider can not only save you money but also time and effort.
Here are the 4 Best CFD White Label Solutions for Brokers:
I. Gain Capitals CFD White Label
Gain Capitals offers their CFD White Label to retails CFD brokers. They offer With 12,000+ FX, CFDs, spread bet, and options instruments that too just from one account. They are connected with several liquidity providers you get seamless liquidity and consistently tight spreads, regardless of trade size or activity.
Benefits of Gain Capitals CFD White Label
- Brokers get to view & manage brokerage business in real time
- Dedicated partner & customer support
- Fast customer on-boarding
- Go live in weeks
- Expertise in retail trading
II. MT4 CFD White Label
MT4 White Label was actually designed and developed for forex trading only. But as the demand for CFD trading grew, MT4 CFD White Label increased in popularity amongst the entrepreneurs who wanted to tap this growing demand by opening a CFD Broker business.
Since MT4 was primarily developed for forex trading, it lacked features needed for CFDs and exchanges traded instruments.
Another limitation of MT4 is the number of instruments. Only 1024 trading instruments can be added in MT4 and as you would have noticed Gain Capitals offers CFD white label with 12000+ instruments.
III. MT5 CFD White Label
MT5 CFD White Label overcame the limitation of a maximum of 1024 instruments of MT4 CFD White Label. Not only was this MT5 developed specifically to not only facilitate Forex Trading but also the CFDs and exchange-traded instruments.
MT5 CFD White Label is currently the most popular option available for aspiring brokers who want to start their own CFD brokerage business and want to offer to trade in diversified asset classes and instruments like CFD, Forex, Indices, Energy, Bullion, Cryptocurrencies, etc.
IV. cTrader CFD White Label
cTrader CFD White Label is another trading platform that you should look at if you are planning to start a CFD brokerage.
Their CFD trading platform has wonderful charting tools and indicators. Your traders will love it as they are very useful for technical analysis.
What makes cTrader CFD White Label very reliable and trustworthy is that it comes with a Liquidity Provider connection.
Although, you need to pay for it as a broker but takes off a big worry on your shoulders of order settlement.
If you are looking to run an A Book CFD Brokerage business, you should definitely explore more about cTrader CFD White Label.
CFD White Label Cost
An MT4 and MT5 CFD White Label solution costs USD 3999 per month without any setup fee. A cTrader CFD White Label may cost USD 3000 as set Up Fee, USD 2000 in Monthly Support & Volume Fee, and USD 5000 to Margin Amount/Collateral and Liquidity Provider.
But some CFD White Label Providers may charge you a little extra from the instruments and their feeds. You may have to shell out a little extra to CFD liquidity providers for the instruments which they consider of high risk.
As you would have noticed by reading till now that CFDs are little tricky trading instruments that need extra attention. Especially, when it comes to trading them and starting a CFD brokerage business.
So if you are looking to start a CFD Brokerage Business,
- You must enquire little extra too.
- If possible, talk to a sample size of your target traders’ base and see which CFD instruments they prefer and without which they won’t trade with a CFD broker.
- Talk to as many CFD White Label Solution providers.
- Share your requirement in details with them. Do share the list of trading instruments you want to offer to your clients.
- Do ask for the demo and get all the clarity.
- Check what kind of CFD Liquidity Providers they have and their charges.
- Set your expectations right and then your providers’ before subscribing to their CFD white label solution.
And last but not least, take the leap of faith. This is where most entrepreneurs get stuck.
Most of us need one little extra confirmation before we start the business but sometimes this is just our own fear of the unknown. You wouldn’t have all the answers unless you start.
And even when you launch your CFD Brokerage business, you are going to face new issues every day but only when you start.
So do what you think is mandatory and necessary and then take a leap of faith.
Wish you a successful CFD Brokerage Business!