When deciding to delve into the world of online forex brokerage the first question that beg answering is whether you should build a platform or buy one. Even if you already are in the forex brokerage business seeking to strengthen your market position and hold through a new brand or if you are a new entrant wishing to make a head-turning debut the decision you take with regards to buying or building a trading platform could make all the difference for the prospects of your endeavour.
In the case of the jurisdiction of Cyprus, and in other jurisdictions for that matter, we saw an interested example unfolding when the country opened up for regulated forex and binary options trading. Some of those jumping on the bandwagon went with the option of building a platform from scratch, while others resorting to white label solutions. With the benefit of hindsight, the latter seem to have made a wiser decision, since using existing technologies enabled them to get a head start on competitors.
Answering this crucial dilemma whether you should buy or build is not as straight-forward as one would like, because there are pros and cons tied to each side of the coin. Obviously, if you build a proprietary platform this automatically gives you full control on all technologies used, while if you buy as a white labeller you do not have such full control. However, white label solutions come with the benefit of already being tried and tested and thus they can be launched in a swift, fast and problem free manner, while your own platform could take several months to be built and could face several teething problems after its initial launch.
With this in mind it is no surprise that there has been an exponential increase in the number of white label forex solutions on offer as well as in the number of brokers who choose to go down that path. The obvious reason for this is that a white label solution is usually a full turnkey option that covers all bases and essentials. A unitary package that takes care of the trading platform, deposit and payment issues, licenses and legal matters and obligations such as KYC, as well as offering customer support and marketing tools allows you to get to the market in no time and at a reasonable cost, thus it is a time efficient and cost-effective method.
Moreover, and besides a good performance in terms of operation and reliability, a white label platform solution is also hassle-free since it means that a broker does not need to enter into different agreements with several technology and service providers but can shop for all from a single source. Another plus is that a white label service provider also has an expert team of engineers and customer support staff that can take care of any problems or glitches and provide solid guidance. Thus, a broker can divert all its effort and attention on successful branding and marketing in order to attract customers.
Not all is made in heaven though, as if you choose a white label platform solution what you do need to ensure is how to stand out from the rest and make your own offering look more attractive from others. Although platforms can be customized and branded to your liking and needs, achieving true differentiation that will incentivise customers does require determination, strength, perseverance and above all creativity, innovation and out-of-the-box thinking, especially in terms of marketing efforts.
So as not to imply that this task is daunting and to assure it is doable, let us use one example to illustrate the case and argument. Darius Technology is the white label provider behind some of the top-notch online forex brands in Europe, such as Osprey FX. Although all three brokers use the same technology behind their operations each of them comes across as unique it terms of its market positioning and the offering to its customers. This becomes apparent in their branding and marketing efforts and identity. To illustrate the example further, consider how Osprey FX has managed to win multiple awards and be established as an extremely transparent broker, adopting a no bullshit approach towards traders in its terms and conditions, thus allowing them to trade in a fair and honest environment. To help further differentiate its offering and stand out Osprey FX has also spent millions in marketing and advertising through successful promotional campaigns.
The recipe to success then is clearly the successful blending of a state-of-the-art, cutting-edge, reliable and robust technology with effective market positioning and a smart and innovative, as well as rigorous, marketing effort. Consequently, the most crucial factor that will determine the success of a white label forex brokerage and help it spiral to the top is having in place a team of expert and talented marketers that can act as game changers.
Moreover, to succeed a white labeller needs to be able to work in close collaboration and harmony with its white label provider in order to ensure that the trading platform is used at its full potential, while additional tools and features that will assist its effective differentiation and help it stand out from competitors are developed. Also, special effort and attention should be given to traffic optimization to achieve maximum conversion rates.
In a nutshell, white label solutions are popular exactly because they can and do lead to success. However, in order to succeed the white labeller needs to pull all stops too. Take full advantage of the technology they are provided with, closely work with their provider and be innovative and pioneering in terms of branding and marketing.
Thus, since no effort is needed in actually building the technology when you choose to buy, through a white label solution, then the only hurdle between you and success is dedicating time, effort, devotion, determination, imagination and…money towards marketing and differentiated branding.
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.