Forex White Label Partnership is the low-cost, simple, and quickest way for an aspiring forex broker to start their own brokerage firm under the guidance of a large and established forex broker.
Forex White Label Partnership is offered by large forex brokers to aspiring entrepreneurs who want to start their own forex brokerage business with all the advanced forex trading features but at a much lower cost.
Forex trading is becoming more and more popular the world over which is propelling the demand for forex brokers. It does look very lucrative to start a forex brokerage business however, starting an FX broker is not an easy task as it requires expertise, technology, and resources especially when it comes to forex brokerage technology.
Modern online Forex Trading business runs over the foundations and dynamic structures of different brokerage technologies, forex trading software, tools, and applications.
When someone wants to start their own forex brokerage business, they need different front-end and back-end technology solutions which include forex trading software, applications, and other brokerage tools.
These technologies form the core infrastructure of any forex brokerage business of every scale.
In a previous article, we have already discussed the FOREX White Label Solution provided by the solution providers. We recommend you read it too.
In this blog, we will be discussing the different aspects of Forex White Label Partnership program offered by established Forex brokers. This will help you to make an informed decision whether to go with it or Forex white label solution offered by tech solution providers.
Lets get started!
Table of Contents
As a broker, you have 2 options for forex Software
I. Develop everything from scratch.
This is expensive & time-consuming and despite all the investment, you are not sure that your proprietary forex trading platform will be successful and accepted by the traders.
You might not like it but that’s the bitter truth!
II. Get a turnkey brokerage solution from a software company
This is far cheaper, time-saving, and much more reliable as this forex trading software are already being used by thousands of other forex brokers and millions of their clients.
You have enough testimonials, reviews, feedback, complaints, and success stories to make the decision.
What is Forex White Label Partnership?
As the name suggests;
Forex White Label Partnership is a business association between large established forex brokerages (we call them Principal Forex Broker) that are running a full-fledged forex brokerage business with an advanced forex trading platform, broker CRM, PAMM, MAM, Trade Copier, tier-1 liquidity, or connection with ECN along with payment solutions, etc AND an aspiring entrepreneur (we call them Client Forex Broker) who wants to start a fully branded forex brokerage business at a small scale with much lower investment yet with all the advanced brokerage solutions that large forex broker offers to its clients.
These large forex brokerages typically have their own proprietary trading platforms or have purchased a Server or Admin License from forex trading software Development companies like;
- cTrader Server License
- Ninja Trader etc.
Not only this but they have a complete range of other forex brokerage and trading tools like:
- Broker CRM
- Payment Solution
- Liquidity Providers
- ECN Bridge
- FIX API
- Forex PAMM Software
- Forex MAM Software
- Trader Copier Software
- IB & Affiliate System, etc.
Apart from this, they have their own infrastructure of advanced hosting solutions, cyber security tools, third-party KYC and AML checks, technology teams, customer support teams, etc.
Most forex brokers with deep pockets and investors funding usually go with the Admin or Server Licenses of this forex trading software like cTrader, Ninja Trader, etc. Admin licenses are top-level licenses that have full access to all brokerage modules, tools & APIs.
They can further issue the Forex White Label Licenses like B2Broker White Label, cTrader White Label, etc.
How does Forex White Label Partnership work?
Forex White Label Partnership works very similarly to the Forex white label solution provided by a Forex brokerage solution provider, except for a few differences.
- Interested individual or business contacts the marketing team of the forex broker of their choice who offer forex white label partnership
- The discussions are two-way. The partner’s team of forex brokerage company probes about the business plan, strategies, marketing plans, etc, and helps with their experience too. They share what they can offer at what cost.
- There always is scope for negotiations in such forex white label solution partnerships around the charges, services, and other add-ons.
- Once the deal is done, a Forex White Label Partnership Agreement is signed between the Forex broker and their client with all the important terms and conditions.
- The advance payments and deposits are made by the client broker as per the term.
- The Manager Terminals, Trading Terminal, CRM, website etc. are set up and delivered usually within 10-15 days.
- The white label forex broker is good to start the business and sign up the clients and receive deposits/funds.
- A dedicated tech and customer support team helps white label partner and their clients with any support.
Forex White Label Partnership Cost
Forex White Label Partnership Cost depends on the principal forex broker who is offering it to their client brokers.
There are 2 main components of Forex White Label Partnership Cost
1. Principal Forex broker’s fixed and recurring costs
1.1 Fixed Costs
If they have developed a proprietary forex trading platform, they would want to recover some part of the investment they have made in it.
If they are getting forex trading software from a development company, they would need to pay a license fee for every white label license issued by its Admin License holder.
1.2 Operational & Infrastructure Cost
There are operational, marketing, and infrastructure cost like manpower, hosting, network, CRM costs, etc.
A principal forex broker may levy a markup on this to cover their operations and marketing cost along with some margin to make profits.
2. Earnings from the client broker’s business
They get to earn brokerage on volumes, liquidity provider charges, and by taking the opposite side of the trade, a small fee on deposits and withdrawals, etc.
This is what most of the principal forex brokers are looking for.
If any forex broker is offering a true Free Forex White Label Partnership, it’s because they are able to make money from the business that their client brokers bring.
As you would have noticed, the pricing of a Forex White Label Partnership arrangement can vary from broker to broker and individual case to case.
But one thing is sure, if a client broker is able to bring a good profile of traders who would trade in larger volume in sum total, they can negotiate really good pricing terms with the principal broker.
FREE Forex White Label Partnership
When most of the small entrepreneurs plan to start their own forex brokerage business, they do look for a broker who would offer them FREE Forex White Label Partnership.
Let us break it to you, in case you don’t know it already. Nothing is free in this world; not even the so-called FREE Forex White Label Partnership offered by so many forex brokers.
Don’t trust us? Just try speaking to their partnership or marketing team and you would know.
It all depends on who you are and what kind of business potential you hold. They would literally interview and grill you about your business plans and how invested you are in this business venture.
And they are right too, it’s a big cost for them and they want to work with only the ones who are determined to make it work.
How does a FREE Forex White Label Partnership work?
As explained above; there are fixed monthly charges involved with most Forex white label solutions.
In a true sense, a principal forex broker would only offer you FREE Forex White Label Partnership if you are able to bring so many traders that result in such volumes that the earnings would not only cover the fixed white label cost but make reasonable profits from them too.
So before getting into the partnership, the principal broker evaluates a client broker’s business plan, their team’s experience, capabilities, and determination. Depending on their level of confidence, they decide whether to offer a FREE Forex White Label Partnership to the applicant client broker.
So anyone looking for FREE Forex White Label Partnership program must have really great plan to acquire traders who would regularly trade in large volumes.
As you would have observed, for an established Forex broker, offering a Forex White Label Partnership is just an additional source of revenue. They understand the probability of making profits, or losses and may even break even.
But for an entrepreneur who wants to start their own forex broker business, it’s the most important decision at the start-up stage. They would technically be partners with the principal broker which means they would be marketing for them.
All the technology and infrastructure are with the principal broker and your clients would know that. It happens more often than you would believe that your forex trader clients would want to open a trading account directly with the principal broker.
The worst may happen when your principal broker starts poaching your traders. This too happens frequently. Discuss it in advance and get it on the Forex White Label Partnership Agreement so that you could press charges if they try to violate the terms.
Last but not least avoid running after a Free Forex White Label Partnership, practically there exists none!
Wish you success!
1. Is Forex White Label Partnership a good option for starting a Forex brokerage?
Yes, Forex White Label Partnership is an excellent option for those who want to start their forex brokerage without significant upfront investment in technology and infrastructure. Start at a low scale with Forex White Label Partnership and upgrade to your own admin license as you grow.
2. What are the benefits of the Forex White Label Partnership?
The benefits of the Forex White Label Partnership include cost-effectiveness, low business setup turnaround time, customization, and focus on business development and branding.
3. What factors should I consider when choosing a forex broker partner?
You should consider the partner’s reputation, reliability of technology, cost, and customer support.
4. How can I ensure regulatory compliance for my forex brokerage?
You should ensure that you comply with all the regulations in the countries where you operate and have proper risk management procedures in place. Find out a legal consultant and discuss your business plans with them. They will guide you in the right direction.