If one looks up the term “starting a forex trading business” on Google, this yields a whopping 24 million results! What does this tell us? Well, in a nutshell it reveals that the foreign exchange market still attracts hordes of new entrants, spurred by the vast trading volumes recorded on a daily basis.
This fact alone brings to the fore the notion of a Forex White Label as this solution is the ideal vehicle for those seeking to start a forex brokerage company quickly and by avoiding significant startup costs, Moreover, White Label solutions also help existing businesses on the foreign exchange market to take advantage of the latest, cutting edge technologies in order to better meet the demands of their clients.
The Forex market is undoubtedly highly lucrative and this makes it very appealing, giving a great incentive for many to wish to capitalize on this success and opportunity to succeed and make profits. However, once they decide to delve into such an endeavor, it is revealed that actually starting a forex brokerage business is no ride in the park. In fact, it requires a great deal of forward planning, complicated and demanding legal procedures and a significant investment in time and financial and development costs. All these, lead many to opt for a White Label Forex brokerage solution, as this allows them to overcome the numerous entry barriers that may inhibit them to enter this lucrative market.
A White Label brokerage saves you the trouble of building everything up from scratch, through the purchase of the trading platform, software and other related services already developed by another company. This provides a simpler, fast-lane access to the forex market and allows one to focus on actually running their forex brokerage rather than being drained in the attempt to set it up.
As can be inferred by their name White Label solutions are indeed white, that means they can be further customized and branded accordingly to allow each firm to make them look as their own and as if they had been produced by them, thus offering an additional advantage for new forex market entrants.
However, White Label Forex solutions are not only geared towards new players in the foreign exchange market, but are also a powerful tool in the hands of existing, established Forex trading companies and brokerages helping them beat the competition. By resorting to a White Label provider, an existing Forex brokerage stands a better chance to keep their existing clients happy and attract new ones, by buying new software and additional tools, instead of having to heavily invest to develop them from scratch.
As lucrative as the forex market can be, it is equally if not more fiercely competitive, so existing brokerages need all the help they can get in terms of cost effectiveness and cost efficiency. To survive the fierce competition, handle the introduction of stricter regulations and requirements set out by regulating authorities in the different jurisdictions and allow for adjustment to the ever changing market conditions and ever growing customer demands, existing forex brokerages can resort to While Label providers in order to obtain better products and improved services offered, deeper liquidity pools and benefit from the implementation of new cutting-edge technologies that can do wonders in terms of customer satisfaction.
Had they attempted to deliver the extra functionalities demanded by customers on their own, such existing forex brokerages would have to tie up huge amounts of time, effort and cost and a heavy investment on specialized staff, faring down a road that is as complex as it is painstaking. Thus, resorting to a White Label provider to outsource the needs makes both logical and financial sense, and allows brokers to concentrate on attracting clients, retaining them and achieving profits, leaving the development work to be carried out by an outside specialist.
Finally, it should be noted that White Labels offer multiple benefits that are not only essential to forex brokerages, but to the full array of players in the foreign exchange industry. White Labels may well be the go-to solution for other financial institutions, such as banks, hedge funds, as well as liquidity providers, prime brokers and cryptocurrency brokers.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.